Pigeon (7956) investor relations material

Executive summary

• Sales and operating profit for the first half of FY2026 significantly exceeded prior-year results, with all business segments achieving sales growth and consolidated operating income rising despite Middle East headwinds in Singapore.

• Net sales rose 9.8% year-over-year to ¥58,977 million in the first half, driven by strong performance in all business segments, especially high-value-added products in Japan and core products in China.

• Operating profit increased 17.9% year-over-year to ¥7,878 million, with ordinary profit up 16.2% to ¥7,986 million and profit attributable to owners of parent up 12.9% to ¥5,221 million.

• Initiatives under the mid-term strategy are progressing steadily, supporting robust core business performance and improved profitability.

• The company launched its Ninth Medium-Term Management Plan (FY2026–FY2028), focusing on product, regional, and management strategies for sustainable growth and profitability.

Financial highlights

• Net sales for 1H FY2026 were ¥58,977 million, up 9.8% year-over-year.

• Operating income reached ¥7,878 million, up 17.9% year-over-year, with an operating margin of 13.4%.

• Net income attributable to owners was ¥5,221 million, up 12.9% year-over-year.

• Gross profit margin improved to 51.1% from 50.7% year-over-year, absorbing higher SG&A expenses from growth investments.

• Comprehensive income surged to ¥7,478 million from ¥1,370 million year-over-year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥113,500 million (+4.0% YoY), operating income ¥13,900 million (+5.6% YoY), net income ¥9,140 million (+6.7% YoY), and EPS ¥76.41.

• Sustained growth momentum is expected, with efforts to achieve mid-term plan targets and enhance corporate value over the medium to long term.

• Uncertainty remains due to geopolitical risks, raw material price fluctuations, and market competition, especially in Japan and China.

• The company will promptly disclose any necessary revisions to forecasts.

• Continued focus on product mix optimization and pricing actions to address macroeconomic and geopolitical risks.