2026 Fiscal Year First Quarter Financial Results Explanation Materials

Performance Overview

The first quarter of 2026 saw sales of 992.0 billion yen (YoY +5.3%), operating income of 60.1 billion yen (YoY +13.8%), and EBITDA margin of 11.1% (+0.8 points), achieving revenue and profit growth. High-value-added oral healthcare products advanced domestically and internationally, and newly consolidated subsidiaries contributing to overseas high-margin businesses played a role. Factors behind operating income growth included volume effects and price increases driven by high value-added products, which contributed to gross profit expansion. Although competitive costs increased due to aggressive advertising spending domestically, overall profitability improved.

Segment Performance and Focused Strategies

The Consumer Goods segment saw increased revenue but decreased profit due to rising competitive costs; however, overseas subsidiaries contributed to margin improvement. The oral healthcare sector performed well with a 9.8% sales growth, supported by the multi-faceted expansion of premium brands. Overseas operations saw improved profitability in Malaysia and the launch of high-value-added businesses in Vietnam. Moving forward, the company aims to accelerate its transformation of the business portfolio and management processes to enhance agility and achieve its early-year performance targets.