Pigeon (7956) investor relations material

Executive summary

• Q1 sales and operating income exceeded prior-year and budgeted figures, driven by strong performance in all business segments, especially high-value-added products in Japan and core products in China.

• Operating income increased 14.1% year-over-year to ¥3,645 million, while net income was flat due to higher taxes and SG&A expenses, with core business profitability improving.

• The company launched its Ninth Medium-Term Management Plan (FY2026–FY2028), focusing on product, regional, and management strategies for sustained growth.

Financial highlights

• Net sales rose to ¥27,707 million, up 9.8% year-over-year.

• Operating income increased to ¥3,645 million, up 14.1% year-over-year; operating margin reached 13.2%.

• Gross profit improved to ¥14,214 million, with a gross margin of 51.3%.

• Net income attributable to owners was ¥2,309 million, 99.1% of the previous year.

• Comprehensive income turned positive at ¥3,230 million, compared to a loss of ¥276 million a year earlier.

Outlook and guidance

• Full-year net sales forecast at ¥113,500 million, up 4% year-over-year.

• Operating income forecast at ¥14,150 million, up 5.6% year-over-year.

• Net income attributable to owners forecast at ¥9,140 million, up 6.7% year-over-year.

• Focus on resilient growth in North America, China, and other regions to achieve mid-term targets.

• Management notes ongoing uncertainty due to geopolitical risks, raw material trends, and market competition.