Mitsubishi Pencil (7976) investor relations material

Executive summary

• Achieved record-high Q1 net sales of ¥24,710 million, up 9.4% year-over-year, driven by strong domestic and overseas writing instruments and growth in non-writing instrument businesses.

• Operating profit rose 39.5% year-over-year to ¥3,566 million, supported by higher sales and reduced SG&A expenses despite increased raw material costs.

• Profit attributable to owners of parent increased 68.8% year-over-year to ¥2,464 million.

• Comprehensive income surged 717.8% year-over-year to ¥3,356 million for the quarter.

• Overseas sales ratio increased to 54.1%, with the U.S.A. market leading growth.

Financial highlights

• Gross profit reached ¥12,233 million, up from ¥11,887 million year-over-year.

• Ordinary profit climbed 51.6% year-over-year to ¥3,549 million.

• Basic earnings per share for Q1 2026 were ¥45.56, up from ¥26.44 in Q1 2025.

• Total assets as of March 31, 2026, were ¥191,449 million, up from ¥183,005 million at the end of 2025.

• Equity-to-asset ratio was 73.4% as of March 31, 2026.

Outlook and guidance

• Q1 net sales represent 26.3% of the full-year forecast of ¥94,000 million.

• Operating profit progress at 34.0% of full-year target.

• Full-year 2026 forecast: net sales ¥94,000 million (+4.7% YoY), operating profit ¥10,500 million (+8.3%), ordinary profit ¥11,000 million (+9.7%), profit attributable to owners of parent ¥7,700 million (+23.5%), and EPS ¥142.35.

• No revisions to previously announced earnings or dividend forecasts.

• Monitoring Middle East situation due to potential impact on performance.