Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
1737
¥ million (year-on-year increase in consolidated operating profit)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 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales84,349 Millions of yen+1.3%
Operating profit9,954 Millions of yen+21.1%
Ordinary income12,135 Millions of yen+93.2%
Net income6,539 Millions of yen+40.8%
Selling, general and administrative expenses58,564 Millions of yen
Gross Profit Marginnot disclosed (cost of sales ratio rose from 18.3% in the year-earlier period to 18.8%)
Operating profit margin11.8%, up 1.9 percentage points year on year (9.9% in the year-earlier period)
Results for the three months of the current quarter
Consolidated revenue
43,520 Millions of yen+3.8%
Consolidated operating profit
5,028 Millions of yen+23.6%
Beauty care business sales
41,993 Millions of yen+4.0%
Beauty care business operating profit
4,976 Millions of yen+26.6%
Full-year earnings forecast
Consolidated revenue
173,000 Millions of yen
Consolidated operating profit
17,300 Millions of yen
Ordinary income
17,300 Millions of yen
Profit attributable to owners of the parent
9,000 Millions of yen
Beauty care business sales
166,900 Millions of yen
Beauty care business operating profit
17,750 Millions of yen
Real-estate business revenue
3,060 Millions of yen
Real estate business operating profit
400 Millions of yen
Other net sales
3,040 Millions of yen
Other operating profit
150 Millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Gross profit increase from higher sales895 Millions of yen
- Impact of higher cost ratio-420 Millions of yen
- Personnel expenses128 Millions of yen
- Sales Commissions666 Millions of yen
- Sales-related expenses250 Millions of yen
- Administrative expenses and other216 Millions of yen
- Non-operating income and expenses, and foreign exchange impact4,115 Millions of yen
- Extraordinary Gains and Losses-1,719 Millions of yen
- Income Taxes-2,237 Millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Assumed Australian dollar exchange rate¥97
- Assumed Chinese yuan exchange rate¥21
New initiatives
- Early rollout of an esthetic treatment option menu linked to the B.A Eye Zone Cream
- Strengthening cross-selling in the China business centered on the B.A series
- Launch of ORBIS products in rose shades
- Launch of 3 Jurlique face masks
- Launch of the DECENCIA eye cream for sensitive skin
- Renewal of the THREE core skincare series
- Growth and earnings contribution from the new businesses “Kaokara” and “Dive”
Key KPIsA metric the company considers important as a management benchmark.
- POLA domestic business average purchase price2.8 % year on year
- POLA domestic business customer count-8.3 % year on year
- ORBIS direct-to-consumer average purchase price2.8 % year on year
- ORBIS direct-to-consumer customer count-1.2 % year on year
- POLA domestic store count2,450 Location
- POLA overseas store count122 Location
- POLA domestic sales mix83.4 %
- ORBIS domestic sales mix98.9 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- POLA domestic business average purchase price2.8 % year on year
- POLA domestic business customer count-8.3 % year on year
- ORBIS direct-to-consumer average purchase price2.8 % year on year
- ORBIS direct-to-consumer customer count-1.2 % year on year
Segment results
Beauty care business
Net Sales
81,270 Millions of yen+1.3%
Operating profit
9,949 Millions of yen+23.4%
Real Estate Business
Net Sales
1,558 Millions of yen+4.7%
Operating profit
425 Millions of yen-1.4%
Other
Net Sales
1,520 Millions of yen-2.8%
Operating profit
103 Millions of yen+48.0%
Corporate and eliminations
Operating profit
-524 Millions of yen
Medium-term management plan targets
Plan nameVISION 2029
Target fiscal year2,029
Consolidated operating profit¥50.0 billion
Consolidated operating margin15% or higher
Consolidated revenue¥300 billion
Overseas revenue ratio30-35%
ROE14% or higher
Financial targets
ROE
Actual results5.8% (2025)
TargetAt least 14% (2029)
Market Size / Share
The size of the Japanese cosmetics market was slightly below the year-earlier level. Consumption in the Chinese cosmetics market exceeded the prior-year level. Market size and share figures have not been disclosed.Number of stores and locations
POLA domestic store count
End of period2,450 Location
Change during the period-31 Location
POLA overseas store count
End of period122 Location
Change during the period-4 Location
Capital expenditures
2025 actual8,385 Millions of yen
2026 forecast¥9,000 million–¥10,000 million
Annual Dividend
2025 actual¥52 (interim ¥21, year-end ¥31)
2026 forecast¥52 (interim ¥21, year-end ¥31)
Payout ratio
2025 actual121.5%
2026 forecast127.8%
PolicyThe basic policy is to maintain a consolidated payout ratio of 60% or higher
Acquisition of treasury shares
To be considered in light of the investment strategy, the market price and liquidity of the Company's shares, and other factors| 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 | 84,349 Millions of yen (YoY +1.3%) |
| Operating profit | 9,954 Millions of yen (YoY +21.1%) |
| Ordinary income | 12,135 Millions of yen (YoY +93.2%) |
| Net income | 6,539 Millions of yen (YoY +40.8%) |
| Gross Profit Margin | not disclosed (cost of sales ratio rose from 18.3% in the year-earlier period to 18.8%) |
| Operating profit margin | 11.8%, up 1.9 percentage points year on year (9.9% in the year-earlier period) |
| Selling, general and administrative expenses | 58,564 Millions of yen |
| Results for the three months of the current quarter | Consolidated revenue 43,520 Millions of yen (YoY +3.8%) / Consolidated operating profit 5,028 Millions of yen (YoY +23.6%) / Beauty care business sales 41,993 Millions of yen (YoY +4.0%) / Beauty care business operating profit 4,976 Millions of yen (YoY +26.6%) |
| Full-year earnings forecast | Consolidated revenue 173,000 Millions of yen / Consolidated operating profit 17,300 Millions of yen / Ordinary income 17,300 Millions of yen / Profit attributable to owners of the parent 9,000 Millions of yen / Beauty care business sales 166,900 Millions of yen / Beauty care business operating profit 17,750 Millions of yen / Real-estate business revenue 3,060 Millions of yen / Real estate business operating profit 400 Millions of yen / Other net sales 3,040 Millions of yen / Other operating profit 150 Millions of yen |
| Segment results | Beauty care business Net Sales 81,270 Millions of yen (YoY +1.3%) / Operating profit 9,949 Millions of yen (YoY +23.4%) / Real Estate Business Net Sales 1,558 Millions of yen (YoY +4.7%) / Operating profit 425 Millions of yen (YoY -1.4%) / Other Net Sales 1,520 Millions of yen (YoY -2.8%) / Operating profit 103 Millions of yen (YoY +48.0%) / Corporate and eliminations Operating profit -524 Millions of yen |
| Breakdown of Factors Affecting the Change | Factors Gross profit increase from higher sales / Amount 895 Millions of yen, Factors Impact of higher cost ratio / Amount -420 Millions of yen, Factors Personnel expenses / Amount 128 Millions of yen, Factors Sales Commissions / Amount 666 Millions of yen, Factors Sales-related expenses / Amount 250 Millions of yen, Factors Administrative expenses and other / Amount 216 Millions of yen, Factors Non-operating income and expenses, and foreign exchange impact / Amount 4,115 Millions of yen, Factors Extraordinary Gains and Losses / Amount -1,719 Millions of yen, Factors Income Taxes / Amount -2,237 Millions of yen |
| Key KPIs | Indicator name POLA domestic business average purchase price / Value 2.8 % year on year, Indicator name POLA domestic business customer count / Value -8.3 % year on year, Indicator name ORBIS direct-to-consumer average purchase price / Value 2.8 % year on year, Indicator name ORBIS direct-to-consumer customer count / Value -1.2 % year on year, Indicator name POLA domestic store count / Value 2,450 Location, Indicator name POLA overseas store count / Value 122 Location, Indicator name POLA domestic sales mix / Value 83.4 %, Indicator name ORBIS domestic sales mix / Value 98.9 % |
| Unit price and quantity metrics | Indicator name POLA domestic business average purchase price / Value 2.8 % year on year, Indicator name POLA domestic business customer count / Value -8.3 % year on year, Indicator name ORBIS direct-to-consumer average purchase price / Value 2.8 % year on year, Indicator name ORBIS direct-to-consumer customer count / Value -1.2 % year on year |
| Number of stores and locations | POLA domestic store count End of period 2,450 Location / Change during the period -31 Location / POLA overseas store count End of period 122 Location / Change during the period -4 Location |
| Assumptions Underlying the Business Outlook | Item Assumed Australian dollar exchange rate / Value ¥97, Item Assumed Chinese yuan exchange rate / Value ¥21 |
| Medium-term management plan targets | Plan name VISION 2029 / Target fiscal year 2,029 / Consolidated operating profit ¥50.0 billion / Consolidated operating margin 15% or higher / Consolidated revenue ¥300 billion / Overseas revenue ratio 30-35% / ROE 14% or higher |
| Financial targets | ROE Actual results 5.8% (2025) / Target At least 14% (2029) |
| Annual Dividend | 2025 actual ¥52 (interim ¥21, year-end ¥31) / 2026 forecast ¥52 (interim ¥21, year-end ¥31) |
| Payout ratio | 2025 actual 121.5% / 2026 forecast 127.8% / Policy The basic policy is to maintain a consolidated payout ratio of 60% or higher |
| Acquisition of treasury shares | To be considered in light of the investment strategy, the market price and liquidity of the Company's shares, and other factors |
| Capital expenditures | 2025 actual 8,385 Millions of yen / 2026 forecast ¥9,000 million–¥10,000 million |
| Market Size / Share | The size of the Japanese cosmetics market was slightly below the year-earlier level. Consumption in the Chinese cosmetics market exceeded the prior-year level. Market size and share figures have not been disclosed. |
| New initiatives | Early rollout of an esthetic treatment option menu linked to the B.A Eye Zone Cream, Strengthening cross-selling in the China business centered on the B.A series, Launch of ORBIS products in rose shades, Launch of 3 Jurlique face masks, Launch of the DECENCIA eye cream for sensitive skin, Renewal of the THREE core skincare series, Growth and earnings contribution from the new businesses “Kaokara” and “Dive” |
Items this document does not state (6)
Progress against full-year forecastSelf-assessment against the planNumber of employeesRisk amount incorporated into the outlookOrders 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.Higher sales and profit at ORBIS, improved performance at Jurlique, lower selling, general and administrative expenses, and the change from foreign exchange losses to foreign exchange gains contributed to the increase in profit. Higher extraordinary losses and the reversal of the decline in income taxes and other taxes recorded in the year-earlier period weighed on net income.
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