Financial Results Presentation for the Third Quarter of the Fiscal Year Ending December 2026 | Earth Corporation (4985) timely disclosure

Worth reading

72In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-1.1

¥100 million (operating profit variance from plan)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Earnings presentation materialsFiscal year ending December 2026: third quarter13 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥148,995 million+4.2%

Operating profit¥11,835 million-10.8%

Ordinary income¥11,957 million -12.1%ordinary profit

Net income¥7,570 million -16.1%net income attributable to owners of the parent

Gross Profit Margin41.7

Operating profit margin7.9

Selling, general and administrative expenses¥50,237 million

Results for the three months of the current quarter

Operating profit

¥-13.8 100 million variance from plan for the 3Q accounting period

Net Sales

Plan variance: -¥2 billion, 95.1% of plan

Gross margin

Plan variance: -¥1.3 billion, 91.9% of plan

Full-year earnings forecast

Net Sales

¥188,000 million

Gross profit

¥78,900 million

Selling, general and administrative expenses

¥69,900 million

Operating profit

¥9,000 million

Ordinary income

¥9,550 million

Net income attributable to owners of the parent

¥6,200 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Selling, general and administrative expenses71.9%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue: below plan; operating profit: below plan; selling, general and administrative expenses: in line with plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Operating income versus plan

Failure to meet sales plans¥-8.4 100 million

Change in Revenue Mix¥-10.3 100 million

Promotional Expenses¥2.6 100 million

Logistics Costs¥0.7 100 million

Advertising expenses¥3.7 100 million

Personnel Expenses¥1.5 100 million

Activity expenses¥1.7 100 million

Research and Development Expenses¥1 100 million

Fees paid¥0.5 100 million

Advisory fees¥2.1 100 million

Other expenses¥3.9 100 million

Operating profit year on year

Revenue-growth effect¥20.6 100 million

Change in Revenue Mix¥-12.8 100 million

Promotional Expenses¥-2.6 100 million

Logistics Costs¥-8.2 100 million

Advertising expenses¥-10.7 100 million

Research and Development Expenses¥-1 100 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Exchange rate

USD150

CNY21

THB4.5

VND0.01

MYR35

PHP2.6

EUR170

Foreign-exchange sensitivityA 1% depreciation of the yen against all currencies would have a negative impact of approximately ¥60–70 million on profit.

New initiatives

Price revisions, primarily for daily necessities
Exploring alternative raw materials
Accelerating distribution of new products and strengthening sales offices
Expansion of testing facilities for the life sciences sector

Key KPIsA metric the company considers important as a management benchmark.

Year-on-year change in the domestic insect control products market101.2%

Domestic Insect Control Products Market Share59.9% (up 0.9 percentage points year on year)

Year-on-year change in the mouthwash market106.0%

Mouthwash Market Share18.8% (up 0.6 percentage points year on year)

Bath Additives Market, Year-on-Year103.8%

Bath Additives Market Share40.9% (down 0.6 percentage points year on year)

Number of annual Comprehensive Environmental Hygiene contracts16,725 contracts

Year-on-Year Change in Annual Comprehensive Environmental Hygiene Contract Count104%

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Comprehensive Environmental Hygiene16,725 contracts; average price per contract increased

MondaminIn-store sell-through 110.8%, shipments 91.1% (year on year)

Segment results

Insect Control Products Division

Net Sales¥64,880 million

Year on year against the same period last year+5.9%

Household Products Division

Net Sales¥48,215 million

Year on year against the same period last year-2.2%

Gardening Products Division

Net Sales¥8,209 million

Year on year against the same period last year+18.7%

Pet Supplies and Other Division

Net Sales¥8,851 million

Year on year against the same period last year+2.2%

Household Products Business

Net Sales¥130,156 million

Year on year against the same period last year+3.2%

Comprehensive Environmental Hygiene Business

Net Sales¥27,544 million

Year on year against the same period last year+6.6%

Financial targets

DOE2026 estimate: 3.7%

Payout ratio2026 estimate: 45.8%

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Cost increases for raw materials, containers and packaging materials, etc., due to the situation in the Middle EastNegative impact of approximately ¥1 billion on operating profit for the current fiscal year

Market Size / Share

Insect-Control Products

Market, Year-on-Year101.2%

The Company's market share59.9%

Mouthwash

Market, Year-on-Year106.0%

The Company's market share18.8%

Bath additives

Market, Year-on-Year103.8%

The Company's market share40.9%

Capital expenditures

¥6,536 million 2026 plan

Annual Dividend

¥130 /share

BreakdownRegular dividend: ¥130; no special dividend

Payout ratio

45.8

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Fiscal year ending December 2026: third quarter
Net Sales	¥148,995 million (YoY +4.2%)
Operating profit	¥11,835 million (YoY -10.8%)
Ordinary income	¥11,957 million (ordinary profit) (YoY -12.1%)
Net income	¥7,570 million (net income attributable to owners of the parent) (YoY -16.1%)
Gross Profit Margin	41.7
Operating profit margin	7.9
Selling, general and administrative expenses	¥50,237 million
Results for the three months of the current quarter	Operating profit ¥-13.8 100 million (variance from plan for the 3Q accounting period) / Net Sales Plan variance: -¥2 billion, 95.1% of plan / Gross margin Plan variance: -¥1.3 billion, 91.9% of plan
Full-year earnings forecast	Net Sales ¥188,000 million / Gross profit ¥78,900 million / Selling, general and administrative expenses ¥69,900 million / Operating profit ¥9,000 million / Ordinary income ¥9,550 million / Net income attributable to owners of the parent ¥6,200 million
Progress against full-year forecast	Selling, general and administrative expenses 71.9%
Self-assessment against the plan	Revenue: below plan; operating profit: below plan; selling, general and administrative expenses: in line with plan
Segment results	Insect Control Products Division Net Sales ¥64,880 million / yoy_pct ¥5.9 million / Household Products Division Net Sales ¥48,215 million / yoy_pct ¥-2.2 million / Gardening Products Division Net Sales ¥8,209 million / yoy_pct ¥18.7 million / Pet Supplies and Other Division Net Sales ¥8,851 million / yoy_pct ¥2.2 million / Household Products Business Net Sales ¥130,156 million / yoy_pct ¥3.2 million / Comprehensive Environmental Hygiene Business Net Sales ¥27,544 million / yoy_pct ¥6.6 million
Breakdown of Factors Affecting the Change	Operating income versus plan Failure to meet sales plans ¥-8.4 100 million / Change in Revenue Mix ¥-10.3 100 million / Promotional Expenses ¥2.6 100 million / Logistics Costs ¥0.7 100 million / Advertising expenses ¥3.7 100 million / Personnel Expenses ¥1.5 100 million / Activity expenses ¥1.7 100 million / Research and Development Expenses ¥1 100 million / Fees paid ¥0.5 100 million / Advisory fees ¥2.1 100 million / Other expenses ¥3.9 100 million / Operating profit year on year Revenue-growth effect ¥20.6 100 million / Change in Revenue Mix ¥-12.8 100 million / Promotional Expenses ¥-2.6 100 million / Logistics Costs ¥-8.2 100 million / Advertising expenses ¥-10.7 100 million / Research and Development Expenses ¥-1 100 million
Key KPIs	Year-on-year change in the domestic insect control products market 101.2% / Domestic Insect Control Products Market Share 59.9% (up 0.9 percentage points year on year) / Year-on-year change in the mouthwash market 106.0% / Mouthwash Market Share 18.8% (up 0.6 percentage points year on year) / Bath Additives Market, Year-on-Year 103.8% / Bath Additives Market Share 40.9% (down 0.6 percentage points year on year) / Number of annual Comprehensive Environmental Hygiene contracts 16,725 contracts / Year-on-Year Change in Annual Comprehensive Environmental Hygiene Contract Count 104%
Unit price and quantity metrics	Comprehensive Environmental Hygiene 16,725 contracts; average price per contract increased / Mondamin In-store sell-through 110.8%, shipments 91.1% (year on year)
Assumptions Underlying the Business Outlook	Exchange rate USD 150 / CNY 21 / THB 4.5 / VND 0.01 / MYR 35 / PHP 2.6 / EUR 170 / Foreign-exchange sensitivity A 1% depreciation of the yen against all currencies would have a negative impact of approximately ¥60–70 million on profit.
Risk amount incorporated into the outlook	Cost increases for raw materials, containers and packaging materials, etc., due to the situation in the Middle East Negative impact of approximately ¥1 billion on operating profit for the current fiscal year
Financial targets	DOE 2026 estimate: 3.7% / Payout ratio 2026 estimate: 45.8%
Annual Dividend	¥130 /share
Payout ratio	45.8
Capital expenditures	¥6,536 million (2026 plan)
Market Size / Share	Insect-Control Products Market, Year-on-Year 101.2% / The Company's market share 59.9% / Mouthwash Market, Year-on-Year 106.0% / The Company's market share 18.8% / Bath additives Market, Year-on-Year 103.8% / The Company's market share 40.9%
New initiatives	Price revisions, primarily for daily necessities, Exploring alternative raw materials, Accelerating distribution of new products and strengthening sales offices, Expansion of testing facilities for the life sciences sector

Items this document does not state (6)

Number of stores and locationsNumber of employeesMedium-term management plan targetsAcquisition 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.

Sluggish domestic shipments of insect-care products due to unfavorable weather, the reaction to the renewal of Mondamin, higher prices for raw materials, containers and packaging materials, and changes in the sales mix contributed to the shortfall against plan and the decline in earnings. The Company said it would respond by controlling or not using fixed costs such as advertising expenses, revising prices, and controlling expenses.

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