Lion Corporation (4912) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of 2026 rose 8.7% year-over-year to ¥216.83 billion, with core operating income up 21.3% to ¥15.33 billion and EBITDA margin improving by 1.1 points to 11.8%.

• Growth was driven by strong Oral Healthcare sales in Japan, consolidation of profitable subsidiaries in Vietnam and Australia, and recovery in key overseas markets.

• Both sales and profit exceeded forecasts, achieving first-half targets and advancing growth strategies despite global uncertainties and higher raw material costs.

• The business environment was challenging due to Middle East instability and supply chain disruptions, but mitigation measures were effective.

• Profit attributable to owners of the parent increased 12.9% to ¥10.84 billion.

Financial highlights

• Operating profit increased 54.7% year-over-year to ¥20.7 billion; EPS for the interim period was ¥39.20, up 12.8%.

• Gross profit grew 12.3% to ¥101.7 billion, offsetting JPY 1 billion higher raw material costs in H1.

• EBITDA margin for the first half was 11.8% (+1.1 points YoY).

• Cash flows from operating activities improved to ¥12,220 million.

• Dividend per share increased to ¥17.00 for the interim period.

Outlook and guidance

• Full-year 2026 net sales forecast at ¥430.0 billion (+1.9% YoY), core operating income at ¥35.0 billion (+13.8%), and EBITDA margin expected to rise to 12.8%.

• EPS is forecast to decline to ¥90.38 due to higher costs and tax impacts.

• Raw material cost impact revised from JPY -1 billion to JPY -7 billion for the year, with JPY -5 billion expected in H2.

• Plan to offset cost increases through price hikes, cost reductions, and improved SG&A efficiency.

• No changes to previously published forecasts; FX assumptions updated to ¥160/USD and ¥4.9/baht.