Lion Corporation (4912) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales reached ¥422.09 billion, up 2.2% year-over-year, with core operating income rising 16.8% to ¥30.76 billion and EPS increasing 30.4% to ¥99.74, exceeding guidance for the second consecutive year.

• Achieved growth in both revenue and profit, driven by profit structure reforms, new product launches, and strong execution of the Vision 2030 2nd STAGE strategy.

• Overseas business shifted focus to profitability, with margin improvements and successful integration of new acquisitions, despite challenges in China and South Korea.

• Built a foundation for future growth through organizational management reforms and business portfolio management.

Financial highlights

• FY 2025 net sales were ¥422,092 million (+2.2% YoY); core operating income was ¥30,760 million (+16.8% YoY); operating profit was ¥36,368 million (+28.1% YoY).

• EBITDA margin improved to 11.7% (+0.8pp), ROIC rose to 6.7% (+0.9pp), and ROE reached 9.0%.

• Profit attributable to owners of the parent grew 30.1% to ¥27,587 million; EPS was ¥99.74.

• Cash flows from operating activities were ¥40,648 million, with a net decrease in cash and cash equivalents of ¥14,148 million.

• Group-wide oral healthcare growth was 5.2% year-on-year.

Outlook and guidance

• FY 2026 targets net sales of ¥430,000 million (+1.9%), core operating income of ¥35,000 million (+13.8%), and EBITDA margin of 12.8%.

• Dividend for 2026 planned at ¥34 per share, marking the 11th consecutive annual increase; payout ratio at 37.6%.

• Focus on high value-added products, profitability, and growth investment in oral healthcare.

• Overseas business expected to continue contributing to growth, especially from Vietnam, Malaysia, and Australia.

• Profit attributable to owners forecasted at ¥25,000 million (-9.4% YoY) due to strategic investments.