Pigeon (7956) Q3 2026 earnings summary

Executive summary

• 9M FY2026 sales rose 10.7% YoY to ¥89,177m; operating profit increased 27.1% to ¥12,750m and parent-attributable profit rose 25.1% to ¥8,805m.

• Growth across all segments reflected strong sales of higher-value products and core nursing bottles and nipples; improved gross margin offset higher SG&A and growth investment.

• FY2026 is the first year of the FY2026–FY2028 Ninth Medium-Term Management Plan, targeting sustainable growth with profitability.

Financial highlights

• 9M net sales were ¥89,177m, gross profit ¥46,222m, and operating profit ¥12,750m, versus ¥80,526m, ¥40,767m, and ¥10,028m, respectively, in 9M FY2025.

• 9M ordinary profit rose 24.5% YoY to ¥13,288m; profit attributable to owners of parent increased 25.1% to ¥8,805m, and comprehensive income was ¥9,478m versus ¥5,356m.

• Gross margin was 51.8% versus 50.6%; cost of sales was 48.2% of sales versus 49.4%, and SG&A was 37.5% versus 38.2%.

• Higher sales and gross-margin improvement lifted operating profit by ¥2.7bn YoY, partly offset by higher personnel, travel, logistics, marketing and other expenses.

Outlook and guidance

• Revised FY2026 forecast: sales ¥118,400m (+8.5% YoY), operating profit ¥14,800m (+12.5%), ordinary profit ¥15,500m (+13.3%) and parent-attributable profit ¥9,800m (+14.3%).

• Operating profit guidance rose from ¥13.9bn to ¥14.8bn; revised targets are 4.3% higher for sales, 6.5% for operating profit, 9.5% for ordinary profit and 7.2% for parent-attributable profit versus prior forecasts.

• Assumptions include continued favorable momentum while allowing for Q3 pull-forward demand, raw-material trends and Middle East-related cost increases.

• Expenses are to be directed proactively toward strengthening the business foundation for growth from the next fiscal year onward.

• Guidance is based on current information and assumptions; actual results may differ materially amid economic, geopolitical and market uncertainties.