KOSÉ (4922) Q3 2025 earnings summary

Executive summary

• Net sales for 1Q–3Q 2025 rose 0.7% year-over-year to ¥240.5 billion, with overseas sales accounting for 34.7% and growth in Japan and North America offsetting declines in Asia.

• Operating profit dropped 27.8% year-over-year to ¥13.5 billion, mainly due to higher SG&A expenses, goodwill amortization, and increased marketing and logistics costs.

• Ordinary profit declined 34.5% to ¥13.5 billion, impacted by foreign exchange losses from yen appreciation.

• Profit attributable to owners of parent was nearly flat at ¥9.3 billion, down 0.3% year-over-year.

• Comprehensive income fell 30.8% to ¥6,776 million.

Financial highlights

• Gross profit increased slightly to ¥167.1 billion, but the gross margin slipped to 69.5%.

• SG&A expenses rose by ¥5.5 billion (+3.8%) to ¥153.6 billion, driven by higher selling, administrative, and logistics costs.

• Net income per share was ¥164.50, nearly unchanged year-over-year.

• Total assets decreased to ¥373,999 million from ¥386,793 million at the end of 2024.

• Equity ratio improved to 72.3% from 70.4% year-end 2024.

Outlook and guidance

• Full-year 2025 guidance remains unchanged: net sales projected at ¥336.0 billion (+4.1% YoY), operating profit at ¥20.0 billion (+15.2% YoY), and profit attributable to owners of parent at ¥13.8 billion (+83.7% YoY).

• No revisions to the previously announced full-year forecast.

• Japan expected to see mid-single-digit sales growth, Asia and North America/Europe/others to remain flat.

• Initiatives for 4Q include new product launches, expanded e-commerce, and targeted marketing in key regions.