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How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit7 Hundreds of millions of yen
Results for the three months of the current quarterOperating profit of ¥700 million. In skincare and other categories, Teaflex generated approximately ¥600 million in sales and Befas approximately ¥300 million. Online sales volume for the pen-shaped beauty appliance facial massager was 310% of plan, approximately one month after launch.
Full-year earnings forecastOperating profit of negative ¥500 million to positive ¥1.0 billion
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
Q1: Background to and impact of the delay in disclosing the full-year results. Q2: The substance of the issues involving Right Here. Q3: Response to the re-examination, maintaining the listing, and changing market segments. Q4: Recourse for costs and other expenses incurred by the president personally. Q5: Background to the approximately ¥3.0 billion to ¥4.0 billion in additional investment and the timing of its recovery. Q6: Possibility of raising the operating profit forecast. Q7: Reasons for the first-quarter revenue decline in beauty appliances and the outlook for full-year revenue growth. Q8: Reasons for the significant revenue growth in skincare and other categoriesBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Beauty appliances: restrained advertising investment and allocation issues stemming from organizational challenges, partially offset by strong performance from the Face Current Pointer. Skincare and other categories: growth in brands related to health foods. Operating profit outlook: a negative impact of approximately ¥700 million to ¥800 million from raw materials and supplies in the second half, with the possibility of additional investment.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company assumes a negative impact of approximately ¥700 million to ¥800 million from raw materials and supplies in the second half. Additional investment will be considered in line with sales progress. Other numerical assumptions: not disclosedNew initiatives
Additional investment of approximately ¥3.0 billion to ¥4.0 billion. Organizational changes aimed at restoring growth in hair care and beauty appliances, and a review of the investment decision-making process. Investment discipline based on IPTOS for each brand. Strengthening measures to prevent recurrence, governance, and the compliance framework. Consideration of applying for an examination to maintain the listing on the Prime Market or applying to change the market segmentKey KPIsA metric the company considers important as a management benchmark.
Online sales volume for the Face Current Pointer: 310% of plan. Teaflex sales: approximately ¥600 million. Befas sales: approximately ¥300 million. Hit-product benchmark: sales of at least ¥1.0 billion within 2 years of launchUnit price and quantity metricsThese figures show sales broken down by price and volume.
Online sales volume for the Face Current Pointer: 310% of plan. Metrics related to unit prices: not disclosedSegment results
Beauty appliances: revenue declined year on year in the first quarter. Skincare and other categories: significant revenue growth. Brands related to health foods led the increase in revenue. Systematic figures for revenue and profit by category: not disclosedRisk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Approximately ¥700 million to ¥800 million. Negative impact on raw materials and supplies in the second half from geopolitical risks surrounding the Strait of Hormuz| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Operating profit | 7 Hundreds of millions of yen |
| Results for the three months of the current quarter | Operating profit of ¥700 million. In skincare and other categories, Teaflex generated approximately ¥600 million in sales and Befas approximately ¥300 million. Online sales volume for the pen-shaped beauty appliance facial massager was 310% of plan, approximately one month after launch. |
| Full-year earnings forecast | Operating profit of negative ¥500 million to positive ¥1.0 billion |
| Segment results | Beauty appliances: revenue declined year on year in the first quarter. Skincare and other categories: significant revenue growth. Brands related to health foods led the increase in revenue. Systematic figures for revenue and profit by category: not disclosed |
| Breakdown of Factors Affecting the Change | Beauty appliances: restrained advertising investment and allocation issues stemming from organizational challenges, partially offset by strong performance from the Face Current Pointer. Skincare and other categories: growth in brands related to health foods. Operating profit outlook: a negative impact of approximately ¥700 million to ¥800 million from raw materials and supplies in the second half, with the possibility of additional investment. |
| Key KPIs | Online sales volume for the Face Current Pointer: 310% of plan. Teaflex sales: approximately ¥600 million. Befas sales: approximately ¥300 million. Hit-product benchmark: sales of at least ¥1.0 billion within 2 years of launch |
| Unit price and quantity metrics | Online sales volume for the Face Current Pointer: 310% of plan. Metrics related to unit prices: not disclosed |
| Assumptions Underlying the Business Outlook | The company assumes a negative impact of approximately ¥700 million to ¥800 million from raw materials and supplies in the second half. Additional investment will be considered in line with sales progress. Other numerical assumptions: not disclosed |
| Risk amount incorporated into the outlook | Approximately ¥700 million to ¥800 million. Negative impact on raw materials and supplies in the second half from geopolitical risks surrounding the Strait of Hormuz |
| Key points of the Q&A | Q1: Background to and impact of the delay in disclosing the full-year results. Q2: The substance of the issues involving Right Here. Q3: Response to the re-examination, maintaining the listing, and changing market segments. Q4: Recourse for costs and other expenses incurred by the president personally. Q5: Background to the approximately ¥3.0 billion to ¥4.0 billion in additional investment and the timing of its recovery. Q6: Possibility of raising the operating profit forecast. Q7: Reasons for the first-quarter revenue decline in beauty appliances and the outlook for full-year revenue growth. Q8: Reasons for the significant revenue growth in skincare and other categories |
| New initiatives | Additional investment of approximately ¥3.0 billion to ¥4.0 billion. Organizational changes aimed at restoring growth in hair care and beauty appliances, and a review of the investment decision-making process. Investment discipline based on IPTOS for each brand. Strengthening measures to prevent recurrence, governance, and the compliance framework. Consideration of applying for an examination to maintain the listing on the Prime Market or applying to change the market segment |
Items this document does not state (18)
Net SalesOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 company explained that the issues in prior fiscal years stemmed from deficiencies in its governance structure and accurate disclosure processes, including insufficient explanation of its relationship with Right Here. The need for additional investment was attributed to the need to restore growth in hair care and beauty appliances and scale up new hit products launched in skincare and other categories. The company cited the potential negative impact of higher raw material and supplies costs in the second half due to geopolitical risks surrounding the Strait of Hormuz, as well as the possibility of additional investment, as reasons for maintaining its operating profit forecast.
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