Lion Corporation (4912) Q1 2026 earnings summary

Executive summary

• Q1 net sales rose 5.3% year-over-year to ¥99.2 billion, with core operating income up 13.8% to ¥6.01 billion and EBITDA margin improving by 0.8 points to 11.1%.

• Growth was driven by high-value oral healthcare products and the consolidation of profitable overseas companies, notably in Vietnam and Australia.

• Profit attributable to owners of the parent increased 4.5% year-over-year to ¥4.2 billion.

• Management is focused on building a resilient business foundation and advancing Vision2030 2nd STAGE, with ongoing portfolio transformation and process reforms.

• No changes to earnings or dividend forecasts; company aims to achieve initial targets despite uncertainties.

Financial highlights

• Q1 consolidated net sales: ¥99.2 billion, up 5.3% year-on-year; constant currency growth was 1.7%.

• Core operating income: ¥6.01 billion, up 13.8% year-on-year; EBITDA margin improved to 11.1%.

• Gross profit increased to ¥45.7 billion, offset by a rise in SG&A, mainly from higher advertising and promotional costs.

• Profit attributable to owners of the parent rose 4.5% to ¥4.2 billion; EPS grew 4.4% to ¥15.21.

• Cash and cash equivalents at period end were ¥58.4 billion, reflecting higher investment outflows.

Outlook and guidance

• Full-year 2026 net sales forecast at ¥430.0 billion (+1.9%), core operating income at ¥35.0 billion (+13.8%), and EBITDA margin expected to rise to 12.8%.

• Dividend forecast raised to ¥34 per share, payout ratio at 37.6%.

• Additional cost increases of ¥3–4 billion expected due to crude oil price hikes, with countermeasures in place.

• Management expects higher costs to persist and is preparing further structural reforms.

• Forecasts are subject to risks and may differ materially from actual results.