MTG (7806) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly sales and profits, with sales up 45.4% year-over-year to ¥34,410 million and gross profit margin improving to 66% from 62% last year.

• Core brands ReFa, SIXPAD, and ReD all significantly exceeded sales projections, prompting an upward revision of full-year guidance.

• Aggressive new product launches (185 items in Q1) drove a high new product sales ratio of 62%.

• Comprehensive income increased 73.4% year-over-year to ¥3,778 million for the quarter.

Financial highlights

• Q1 sales: ¥34.41 billion (+45% YoY); gross profit: ¥22.68 billion (+55% YoY, 66% margin); operating income: ¥5.66 billion (+54% YoY, 16% margin); net income: ¥3.94 billion (+66% YoY, 11% margin).

• SG&A expenses rose 55% YoY, mainly due to branding, marketing, and personnel investments.

• Upwardly revised FY2026 full-year guidance: sales ¥128.0 billion (+30% YoY), operating income ¥14.0 billion (+31% YoY), net income ¥9.5 billion (+20% YoY).

• Basic earnings per share for the quarter were ¥100.40, up from ¥60.00 year-over-year.

• Total assets increased to ¥91,160 million as of December 31, 2025, from ¥75,199 million at the previous fiscal year-end.

Outlook and guidance

• Full-year outlook revised upward due to strong performance of core brands, with forecasted net sales of ¥128,000 million, operating profit of ¥14,000 million, and net income of ¥9,500 million.

• Basic earnings per share forecasted at ¥241.82 for the full year.

• Dividend forecast for the fiscal year is ¥30.00 per share.

• Aims for minimum 20% annual sales growth and consecutive dividend increases.

• Targeting 300 new product launches and 10 million e-commerce members by FY2026.