Yakult Honsha (2267) investor relations material

Executive summary

• Sales and profit declined year-over-year, mainly due to lower domestic performance and foreign exchange impacts, despite overseas sales growth in local currencies.

• Overseas business showed recovery, especially in China and Asia/Oceania, with a 2.8% year-over-year increase in bottles sold in Q1 and local currency growth in Asia/Oceania and Europe.

• Net sales for FY2025 declined 2.7% year-over-year to ¥486,425 million, with operating profit down 18.4% to ¥45,185 million and ordinary profit down 19.5% to ¥61,084 million. Profit attributable to owners of parent fell 2.9% to ¥44,228 million.

• The company is positioning the current fiscal year as a transition to regrowth, focusing on product renewal and channel strategy in Japan and aggressive sales activities overseas.

• Comprehensive income rose 18.9% to ¥75,106 million, driven by gains in valuation difference on securities and foreign currency translation.

Financial highlights

• Net sales decreased 2.7% year-over-year to ¥486.4 billion, with a negative FX impact of ¥7.1 billion.

• Operating profit dropped 18.4% to ¥45.1 billion, with a margin of 9.3%.

• Profit attributable to owners of parent was ¥44.2 billion, down 2.9% year-over-year.

• Total assets increased by ¥48.2 billion to ¥912.5 billion, with ¥17 billion of the increase due to exchange rates.

• Cash and deposits decreased by ¥37.5 billion, mainly due to investment activities.

Outlook and guidance

• FY2026 forecast: Net sales to rise 8.3% to ¥527.0 billion, driven by overseas growth and FX tailwinds.

• Operating profit expected to decrease 2.6% to ¥44.0 billion, with domestic profit pressured by high raw material costs.

• Profit attributable to owners of parent projected to increase 5.1% to ¥46.5 billion.

• Annual dividend for FY2026 is planned at ¥72 per share, up ¥2 from the previous year.

• ROE target set at 8% for this fiscal year and 10% by fiscal year 2030.