Lion Corporation (4912) investor relations material

Executive summary

• 9M net sales rose 6.7% to ¥325,413 million; core operating income increased 15.2% to ¥25,706 million and EBITDA margin improved 0.8pp to 12.5%.

• Oral Healthcare and overseas growth, price revisions and high-value product mix supported results; higher raw-material costs and lower Industrial Products sales were offsets.

• Q3 core operating income rose 7.1% YoY, extending quarterly increases to 12 consecutive quarters; full-year earnings guidance remains unchanged.

• Profit attributable to owners fell 13.6% to ¥17,977 million, primarily reflecting higher taxes tied to subsidiary share transfers.

Financial highlights

• 9M gross profit rose to ¥150,892 million; SG&A increased to ¥125,185 million, including higher promotional and other expenses, while logistics and warehousing expenses declined ¥0.7bn.

• 9M operating profit increased 12.4% to ¥31,285 million; profit before tax rose 13.3% to ¥33,772 million.

• Income tax expense increased 94.9% to ¥12,835 million; profit for the period fell 9.8% to ¥20,937 million.

• Q3 net sales were ¥108.5bn (+2.9%) and core operating income ¥10.3bn (+7.1%); operating profit declined 26.8% to ¥10.5bn.

• 9M operating cash flow was ¥14,623 million versus ¥10,329 million a year earlier; investing cash outflow was ¥7,974 million versus ¥37,774 million.

Outlook and guidance

• FY2026 guidance is unchanged: net sales ¥430bn, core operating income ¥35bn, operating profit ¥40bn and attributable profit ¥25bn.

• FY2026 EBITDA margin forecast is 12.8%, nearing the medium-term target of above 13%; 9M core operating income reached 73.4% of guidance versus a four-year average of 70.2%.

• Priorities include domestic price revisions effective from October, cost reductions, higher-value Consumer Products and Oral Healthcare growth in Thailand, China and Vietnam.

• Price revisions and new-product contributions in Q4 support targets; consumer trends and intensified year-end competition remain under watch.

• FY assumptions include Dubai crude at $85/bbl, domestic naphtha at ¥90,000/KL, palm oil at RM4,500/ton and USD/JPY at ¥160; current crude and naphtha prices are slightly above annual assumptions.