Yakult Honsha (2267) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2025 declined 4.9% year-over-year to ¥116.6B, with operating profit down 32.2% to ¥10.9B and profit attributable to owners of parent down 17.7% to ¥11.6B.

• Sales and profits were impacted by lower domestic dairy sales, yen appreciation, and increased competition.

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

• The company promoted probiotics and launched new products, but rising costs and competition weighed on results.

Financial highlights

• Net sales for Q1 FY2025 were ¥116.5B, down 4.9% year-over-year; operating profit fell 32.2% to ¥10.9B.

• Ordinary profit decreased 22.9% to ¥17.1B; profit attributable to owners of parent dropped 17.7% to ¥11.5B.

• Gross profit decreased to ¥68.7B from ¥73.7B year-over-year.

• Comprehensive income turned negative at ¥(5.5)B, compared to ¥38.2B in the prior year.

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

Outlook and guidance

• FY2025 net sales forecast revised down to ¥495.0B from ¥506.0B; operating profit forecast cut to ¥53.5B from ¥58.5B.

• Full-year profit attributable to owners of parent forecast at ¥45.5B, with basic EPS of ¥155.23.

• Lower sales in Japan expected due to reduced purchasing intention from price increases; overseas sales expected to remain stable but impacted by a stronger yen.

• Year-over-year, net sales expected to decrease 0.9% and operating profit 3.4%.