Yakult Honsha (2267) Q1 2026 earnings summary

Executive summary

• Consolidated sales and profits declined year-over-year, driven by lower domestic dairy sales, yen appreciation, and weaker consumer demand in Japan.

• The Japanese economy faced downward risks from overseas uncertainties and price increases, impacting consumer demand.

• The company promoted probiotics and launched new products, but sales were affected by competition and rising costs.

Financial highlights

• Net sales for Q1 FY2025 were ¥116.5 billion, down 4.9% year-over-year; operating profit fell 32.2% to ¥10.9 billion; ordinary profit dropped 22.9% to ¥17.1 billion; net profit declined 17.7% to ¥11.5 billion.

• Gross profit decreased to ¥68,652 million from ¥73,722 million year-over-year.

• Operating profit margin declined to 9.4% from 13.1% year-over-year.

• Basic EPS was ¥39.36, down from ¥46.48 year-over-year.

• Extraordinary income of ¥1.4 billion was recorded from the sale of investment securities.

Outlook and guidance

• Full-year FY2025 net sales forecast revised down to ¥495.0 billion (down 2.2% from previous guidance); operating profit forecast at ¥53.5 billion (down 8.5%); net profit at ¥45.5 billion.

• Downward revision driven by lower domestic dairy sales, weaker demand, and further yen appreciation.

• Overseas business expected to progress in line with initial plan, with revisions mainly due to exchange rates.