Pigeon (7956) Q1 2025 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2025 rose 6.2% year-over-year to ¥25,227 million, driven by strong growth in China, Lansinoh, and Singapore, while Japan saw a decline due to a subsidiary transfer.

• Operating income increased by 18.4% year-over-year to ¥3,193 million, with higher gross profit offsetting increased SG&A expenses, especially in China and Lansinoh.

• Net income attributable to parent rose 22.3% year-over-year to ¥2,331 million, reflecting improved profitability.

• Gross profit margin improved by 2.1 percentage points year-over-year, despite higher SG&A expenses.

• Comprehensive income turned negative at ¥(276) million, mainly due to foreign currency translation losses.

Financial highlights

• Net sales: ¥25,227 million (+6.2% YoY); Operating income: ¥3,193 million (+18.4% YoY); Net income: ¥2,331 million (+22.3% YoY).

• Ordinary income: ¥3,214 million (+8.5% YoY).

• Net income per share: ¥19.49 (up from ¥15.94 YoY).

• Gross profit margin improved to 51.1% from 49.0% YoY; SG&A ratio increased to 38.5%.

• China, Lansinoh, and Singapore segments posted double-digit sales and profit growth; Japan segment declined.

Outlook and guidance

• Full-year FY2025 forecast unchanged: net sales ¥109,700 million (+5.3% YoY), operating income ¥12,900 million (+6.3% YoY), net income ¥8,400 million (+0.3% YoY).

• U.S. tariff impact remains uncertain; company is monitoring and considering countermeasures such as production shifts and price adjustments.

• Uncertainty remains due to global economic conditions, commodity prices, and potential impact from US tariffs imposed in April 2025.