Mitsubishi Pencil (7976) investor relations material

Executive summary

• Net sales for the six months ended June 30, 2026, rose 10.4% year-over-year to ¥47,757 million, driven by strong domestic and overseas writing instruments and non-writing businesses.

• Operating profit increased 28.6% year-over-year to ¥6,170 million, supported by higher sales and improved SG&A expense ratio.

• Ordinary profit climbed 34.2% year-over-year to ¥6,650 million, aided by foreign exchange gains from yen depreciation.

• Profit attributable to owners of parent rose 35.5% year-over-year to ¥4,259 million.

• Comprehensive income surged 149.3% year-over-year to ¥10,069 million for the period.

Financial highlights

• Gross profit: ¥24,016 million, up 7.9% year-over-year; gross margin at 50.3%.

• Operating profit: ¥6,170 million, up from ¥4,799 million year-over-year.

• Ordinary profit: ¥6,650 million, up 34.2% year-over-year.

• Basic earnings per share for the period were ¥80.49, up from ¥57.28 a year earlier.

• Net assets per share as of June 30, 2026, were ¥2,747.50.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥95,500 million, operating profit to ¥11,500 million.

• Operating profit margin expected to reach 12.0% for the year.

• Profit attributable to owners forecast at ¥8,000 million; EPS projected at ¥155.44.

• Dividend forecast raised to ¥57 per share for the fiscal year ending December 31, 2026, with a 40% payout ratio target.