Pigeon (7956) Q4 2025 earnings summary

Executive summary

• Achieved year-on-year increases in sales and income for FY Dec. 2025, with operating margin improvement across all business segments.

• China business delivered double-digit sales growth, while Japan and Singapore businesses saw over 20% income growth.

• Lansinoh business posted strong sales in Europe and the U.S., though U.S. income declined due to tariff impacts.

• Executed Eighth Medium-Term Business Plan, focusing on brand, core product, and regional strategies for sustainable growth.

Financial highlights

• FY Dec. 2025 consolidated net sales: ¥109,170 million, up 4.8% year-over-year.

• Operating income: ¥13,158 million, up 8.4% year-over-year; net income attributable to owners: ¥8,570 million, up 2.4%.

• Gross margin improved to 50.2% from 49.3% the previous year; operating margin was 12.1%, up from 11.7%.

• All business segments saw sales growth; income increased in all but Lansinoh.

• Net assets increased to ¥85,887 million; total assets reached ¥110,088 million.

Outlook and guidance

• FY Dec. 2026 forecast: net sales ¥113,500 million (+4.0% YoY), operating income ¥13,900 million (+5.6% YoY), net income ¥9,140 million (+6.7% YoY).

• 9th Mid-Term Plan (2026–2028) targets: net sales ¥125 billion, operating profit ¥20 billion, operating margin 16%.

• Focus on expanding global market share in nursing bottles/nipples to 20% over 10 years.

• Dividend for FY2026 projected to remain at ¥76 per share.