Pola Orbis Holdings (4927) Q4 2025 earnings summary

Executive summary

• FY2025 consolidated net sales were ¥170.3 billion, flat year-over-year, with operating income rising 13.6% to ¥15.7 billion, driven by ORBIS growth and expense control.

• Ordinary income increased 5.8% to ¥17,022 million, aided by prior-year foreign exchange gains.

• Profit attributable to owners of parent grew 2.0% to ¥9,472 million, despite restructuring expenses.

• POLA's domestic revenue declined, but the consignment sales channel's decline slowed; overseas, Chinese store closures aimed to improve profitability.

• ORBIS saw continued revenue and income growth, led by strategic skincare products and strong direct selling performance.

Financial highlights

• Operating income exceeded plan by ¥1.2 billion (up 8.2%), ordinary income by ¥2.3 billion (up 15.8%), and profit attributable to owners by ¥972 million (up 11.4%).

• Extraordinary losses increased by ¥2.3 billion, mainly due to the liquidation of Orbis Beijing and structural reform expenses for Jurlique.

• Gross profit was ¥138,264 million, with a gross margin of 81.2%.

• Net assets at year-end were ¥163,094 million, equity ratio 82.3%.

• Dividends per share totaled ¥52.00, with a payout ratio of 123.9%.

Outlook and guidance

• FY2026 consolidated net sales are forecast at ¥173.0 billion (up 1.6%), with operating income projected to rise 10.2% to ¥17.3 billion.

• Profit attributable to owners is expected to decrease 5% to ¥9.0 billion due to anticipated extraordinary losses from early retirement program costs.

• Annual dividend forecast remains at ¥52 per share, with a payout ratio of 127.8%.