FY2026 Q1 Consolidated Financial Results Overview

Performance Overview

In the first quarter of FY2026, sales were 413.2 billion yen, representing a constant currency increase of +2.5%. Operating profit stood at 44.9 billion yen, with a profit margin of 10.9%, showing an improvement of 3.0 points YoY. ROIC increased to 10.1%, up by 2.6 points YoY. The domestics Personal Care (GC) business drove growth, while the overseas GC segment continued steady expansion through increased sales in Asia cosmetics and North and South American health and beauty care. Land sale gains of 11.5 billion yen, as part of logistics optimization efforts, contributed to enhanced capital efficiency.

Segment Performance and Future Outlook

All segments of the GC business achieved profit growth, with the operating profit margin improving by 1.8 points YoY. The Chemical business experienced a decline due to reduced demand for fats and functional materials in Europe and the U.S., mainly caused by delayed price pass-through, but expects recovery from Q2 onward. The Cosmetics business showed remarkable growth in Europe, Asia, and other regions, with continued sales increases of key brands. The full-year consolidated earnings forecast remains unchanged, with progress toward achieving K27 on track. Efforts to strengthen integrated supply chains to mitigate raw material procurement risks are also underway.