Worth reading
74In focus
Scored from 5 of 6 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
5500
¥ million (increase from the initial full-year net sales forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportSecond quarter (interim period) of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥31,008 million+14.1%
Operating profit¥2,653 million+37.1%
Ordinary income¥2,708 million+54.6%
Net income¥1,946 million+95.2%
Operating profit margin8.6%, up 1.5 percentage points year on year
Full-year earnings forecast
Net Sales
¥64,000 million
Operating profit
¥5,400 million
Ordinary income
¥5,400 million
Profit attributable to owners of the parent
¥3,800 million
Annual Dividend
¥70
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated revenue
Chemicals Business2,970
Cosmetics Business-657
Other184
Foreign exchange impact (Chemicals)1,303
Foreign exchange impact (Cosmetics)27
Consolidated ordinary income
Chemicals Business segment profit934
Cosmetics Business segment profit-316
Other segment profit-35
Eliminations and corporate items-20
Foreign exchange impact268
Other non-operating items124
Consolidated interim net income
Operating profit717
Non-operating income46
Non-Operating Expenses-116
Extraordinary income-55
Extraordinary loss192
Income Taxes191
Net income attributable to non-controlling interests-25
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD exchange rate
Before revision¥150
After revision¥158
Domestic naphtha
1Q¥65,700
2Q forecast¥116,200
3Q forecast¥93,700
New initiatives
- Acquired the non-fluorinated water-repellent Zelan business from Chemours
- Constructing the Fukui Smart Factory, a new cosmetics factory
- Launched the bleach-free line under TOIROCTION
- Plans to launch the new oil brand FeTeE in Japan and South Korea
- Opened an official investor relations account on note
Key KPIsA metric the company considers important as a management benchmark.
- EHD-related product sales ratio48.1 %Year on year against the same period last year+2.9%
- EHD-related product sales22 % increase
- EHD product profit margin (versus non-EHD products)14 % higher
- Owned media DEMI LABO page views35 % increaseYear on year against the same period last year+35.0%
- Progress in securing product inventory at the new cosmetics factory94 %
- Overseas revenue ratio48 %
Segment results
Chemicals Business
Net Sales
¥23,876 million+21.8%
Segment profit
¥3,191 million+51.5%
Cosmetics Business
Net Sales
¥6,706 million-8.6%
Segment profit
¥506 million-38.1%
Other
Net Sales
¥425 million+76.5%
Segment profit
¥3 million-90.1%
Medium-term management plan targets
EHD product sales ratio
2026 target48 %
2030 target55 %
Financial targets
DOE
Guideline3 %
ROE
2026 2Q actual10.7 %
ROIC
2026 2Q actual6.4 %
Market Size / Share
Offers numerous products in the Chemicals Business with the No. 1 domestic market share and a world-leading positionNumber of stores and locations
Number at period-end14 overseas locations (in 9 countries and regions, including factories and research facilities)
Number of employees
Number of Employees1,631 people
As of30 June 2026
Capital expenditures
¥195 100 million investment scale for the new cosmetics plant
Annual Dividend
Annual dividend per share¥70
Interim Dividend¥35
Payout ratio
not disclosed (DOE target of 3.0%)| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending December 2026 |
| Net Sales | ¥31,008 million (YoY +14.1%) |
| Operating profit | ¥2,653 million (YoY +37.1%) |
| Ordinary income | ¥2,708 million (YoY +54.6%) |
| Net income | ¥1,946 million (YoY +95.2%) |
| Operating profit margin | 8.6%, up 1.5 percentage points year on year |
| Full-year earnings forecast | Net Sales ¥64,000 million / Operating profit ¥5,400 million / Ordinary income ¥5,400 million / Profit attributable to owners of the parent ¥3,800 million / Annual Dividend ¥70 |
| Segment results | Chemicals Business Net Sales ¥23,876 million (YoY +21.8%) / Segment profit ¥3,191 million (YoY +51.5%) / Cosmetics Business Net Sales ¥6,706 million (YoY -8.6%) / Segment profit ¥506 million (YoY -38.1%) / Other Net Sales ¥425 million (YoY +76.5%) / Segment profit ¥3 million (YoY -90.1%) |
| Breakdown of Factors Affecting the Change | Consolidated revenue Chemicals Business 2,970 / Cosmetics Business -657 / Other 184 / Foreign exchange impact (Chemicals) 1,303 / Foreign exchange impact (Cosmetics) 27 / Consolidated ordinary income Chemicals Business segment profit 934 / Cosmetics Business segment profit -316 / Other segment profit -35 / Eliminations and corporate items -20 / Foreign exchange impact 268 / Other non-operating items 124 / Consolidated interim net income Operating profit 717 / Non-operating income 46 / Non-Operating Expenses -116 / Extraordinary income -55 / Extraordinary loss 192 / Income Taxes 191 / Net income attributable to non-controlling interests -25 |
| Key KPIs | Indicator name EHD-related product sales ratio / Value 48.1 % / Year on year against the same period last year 2.9 %, Indicator name EHD-related product sales / Value 22 % increase / Year on year against the same period last year Not disclosed, Indicator name EHD product profit margin (versus non-EHD products) / Value 14 % higher / Year on year against the same period last year Not disclosed, Indicator name Owned media DEMI LABO page views / Value 35 % increase / Year on year against the same period last year 35 % increase, Indicator name Progress in securing product inventory at the new cosmetics factory / Value 94 % / Year on year against the same period last year Not disclosed, Indicator name Overseas revenue ratio / Value 48 % / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Number at period-end 14 overseas locations (in 9 countries and regions, including factories and research facilities) / Number of store openings and closures during the period Not disclosed |
| Number of employees | Number of Employees 1,631 people / As of 30 June 2026 / Changes during the period and hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | USD exchange rate Before revision ¥150 / After revision ¥158 / Domestic naphtha 1Q ¥65,700 / 2Q forecast ¥116,200 / 3Q forecast ¥93,700 |
| Medium-term management plan targets | EHD product sales ratio 2026 target 48 % / 2030 target 55 % |
| Financial targets | DOE Guideline 3 % / ROE 2026 2Q actual 10.7 % / ROIC 2026 2Q actual 6.4 % |
| Annual Dividend | Annual dividend per share ¥70 / Interim Dividend ¥35 / Year-end dividend Not disclosed |
| Payout ratio | not disclosed (DOE target of 3.0%) |
| Capital expenditures | ¥195 100 million (investment scale for the new cosmetics plant) |
| Market Size / Share | Offers numerous products in the Chemicals Business with the No. 1 domestic market share and a world-leading position |
| New initiatives | Acquired the non-fluorinated water-repellent Zelan business from Chemours, Constructing the Fukui Smart Factory, a new cosmetics factory, Launched the bleach-free line under TOIROCTION, Plans to launch the new oil brand FeTeE in Japan and South Korea, Opened an official investor relations account on note |
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The full-year forecast reflects increased sales of EHD-related products and textile chemicals, growth in overseas operations in China, India, Bangladesh and other markets, an increase in new business in the electronic materials field, as well as cost reductions, price revisions, the acquisition of the Zelan business, and foreign exchange rates. In the Cosmetics Business, the effects continued from inventory adjustments at major distributors, a decline in repeat orders for products newly launched by ODM customers in the previous year, and the stagnant South Korean economy.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.