Financial Results Explanation Material for the First Quarter of Fiscal Year 2026 (January 1 – March 31)

Performance Overview

For the first quarter of fiscal year 2026, consolidated net sales reached 234.2 billion yen (up 2.9% YoY), and core operating profit was 31.5 billion yen (up 8.5% YoY), achieving both revenue growth and profit increase. In the Japanese market, sales declined by 2.4% and operating profit decreased by 10.5%, mainly due to increased awareness of life defense. Conversely, the overseas markets, particularly in Asia, showed substantial improvement with a 5.9% increase in sales and a 37.7% increase in profit. Growth contributions came notably from existing businesses in India and Vietnam, as well as the pet care segment. Currency fluctuations resulted in approximately 6.4 billion yen increase in sales and about 0.6 billion yen increase in core operating profit.

Shareholder Return and Future Outlook

The total return ratio remains above 65%, continuing the plan for 25 consecutive years of dividend increases. The annual dividend is scheduled at 22 yen (a 4 yen increase), with approximately 19 billion yen of share buybacks already executed by April. From the second quarter onward, the company expects profit improvement through the deepening of value transfer. The focus remains on structural reforms and aggressive investments. Additionally, the company will strengthen regional approaches in the Middle East and Brazil to accelerate global growth.