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Financial Results Presentation7782Sincere Co.,LTD.Electrical Equipment and Precision Instruments

Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026

In Q1 FY2026, revenue increased substantially, driven by the acquisition of the colored contact lens business and growth in the Company's own-brand products. Operating income and net income, however, fell below the year-earlier period due to higher personnel and advertising expenses associated with the business integration, as well as a one-time extraordinary loss.

Worth reading
64In 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
24.1
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,935 Millions of yen+24.1%
Operating profit143 Millions of yen-6.4%
Ordinary income139 Millions of yen+0.8%
Net income68 Millions of yen-22.6%
Gross Profit Margin32 %
Operating profit margin7.4 %
Full-year earnings forecast
Net Sales
7,657 Millions of yen
Gross profit
2,375 Millions of yen
Operating profit
388 Millions of yen
Ordinary income
362 Millions of yen
Net income
246 Millions of yen
EBITDA
470 Millions of yen
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。
Net Sales25.3%
Operating profit36.9%
Ordinary income38.5%
Net income27.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit50 Millions of yen
  • Higher Advertising Expenses-13 Millions of yen
  • Increase in packing and freight expenses-21 Millions of yen
  • Increase in personnel expenses-10 Millions of yen
  • Decrease in goodwill amortization12 Millions of yen
  • Increase in other expenses-28 Millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed Exchange Rates¥155.0/USD
New initiatives
  • Scheduled to launch “Sincere One-Day S Multifocal” in May 2026
  • Fully launched the pharmaceutical regulatory consulting business
  • Begin development of the next-generation POS system
  • Continue promoting M&A and strengthen PMI
Key KPIsA metric the company considers important as a management benchmark.
  • Sincere S Series revenue660 Millions of yen
    Year on year against the same period last year+1.0%
  • Number of prescription facilities and retail outlets handling the products2,933 Engagements
    Year on year against the same period last yearApproximately 1.1x year on year
  • EBITDA163 Millions of yen
    Year on year against the same period last year-11.8%
Segment results
Contact Lens Business
Net Sales
1,792 Millions of yen+24.7%
Profit
182 Millions of yen-5.9%
Consulting business
Net Sales
24 Millions of yen+86.7%
Profit
15 Millions of yen+94.5%
Systems Business
Net Sales
118 Millions of yen+8.2%
Profit
14 Millions of yen-29.9%
Number of employees
Number of Employees60 People consolidated
Annual Dividend
Annual dividend per share¥16
Payout ratio
40 % or higher
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales1,935 Millions of yen (YoY +24.1%)
Operating profit143 Millions of yen (YoY -6.4%)
Ordinary income139 Millions of yen (YoY +0.8%)
Net income68 Millions of yen (YoY -22.6%)
Gross Profit Margin32 %
Operating profit margin7.4 %
Full-year earnings forecastNet Sales 7,657 Millions of yen / Gross profit 2,375 Millions of yen / Operating profit 388 Millions of yen / Ordinary income 362 Millions of yen / Net income 246 Millions of yen / EBITDA 470 Millions of yen
Progress against full-year forecastNet Sales 25.3% / Operating profit 36.9% / Ordinary income 38.5% / Net income 27.7%
Self-assessment against the planProgress in line with plan
Segment resultsContact Lens Business Net Sales 1,792 Millions of yen (YoY +24.7%) / Profit 182 Millions of yen (YoY -5.9%) / Consulting business Net Sales 24 Millions of yen (YoY +86.7%) / Profit 15 Millions of yen (YoY +94.5%) / Systems Business Net Sales 118 Millions of yen (YoY +8.2%) / Profit 14 Millions of yen (YoY -29.9%)
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount 50 Millions of yen, Factors Higher Advertising Expenses / Amount -13 Millions of yen, Factors Increase in packing and freight expenses / Amount -21 Millions of yen, Factors Increase in personnel expenses / Amount -10 Millions of yen, Factors Decrease in goodwill amortization / Amount 12 Millions of yen, Factors Increase in other expenses / Amount -28 Millions of yen
Key KPIsIndicator name Sincere S Series revenue / Value 660 Millions of yen / Year on year against the same period last year 1 Millions of yen, Indicator name Number of prescription facilities and retail outlets handling the products / Value 2,933 Engagements / Year on year against the same period last year Approximately 1.1x year on year, Indicator name EBITDA / Value 163 Millions of yen / Year on year against the same period last year -11.8 Millions of yen
Number of employeesNumber of Employees 60 People (consolidated) / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookAssumed Exchange Rates ¥155.0/USD
Annual DividendAnnual dividend per share ¥16 / Interim and Year-End Breakdown Not disclosed
Payout ratio40 % or higher
New initiativesScheduled to launch “Sincere One-Day S Multifocal” in May 2026, Fully launched the pharmaceutical regulatory consulting business, Begin development of the next-generation POS system, Continue promoting M&A and strengthen PMI
Items this document does not state (12)
Selling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.

Revenue increased due to the colored contact lens business acquired from FURYU CORPORATION, growth in the Sincere S Series, and private-label products. On the earnings side, in addition to higher business integration costs, upfront investment, personnel expenses, advertising expenses, and packing and freight costs, the systems business incurred a one-time extraordinary loss. The gross profit margin also declined, due in part to foreign exchange effects.

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Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | Sincere Co.,LTD. (7782) timely disclosure | Komori