Pola Orbis Holdings Inc. TSE:4927

Pola Orbis : Summary of Financial Results for Fiscal 2025 Nine Months

Published

Source: MarketScreener



Summary of Financial Results

For the Nine Months of the Fiscal Year Ended December 31, 2025 (Consolidated)

These financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan. The following English translation is based on the original Japanese-language document.

POLA ORBIS HOLDINGS INC.

Listing: Tokyo Stock Exchange, Prime Market (Code No.: 4927) URL: https://www.po-holdings.co.jp/

Representative: Yoshikazu Yokote, Representative Director And President Contact: Naoki Kume, Director, Finance

Start of Cash Dividend Payment:

Supplemental Materials Prepared for Financial Results: Conference Presentation for Financial Results:

November 7, 2025

Tel: +8l-3-3563-5517

Yes

Yes(for analysts)

  1. Consolidated Performance for the Nine Months of Fiscal 2025

    (January 01, 2025-September 30, 2025)

    1. Consolidated Operating Results

      (Amounts less than one million yen have been truncated)

      Net Sales

      Operating Income

      Ordinary Income

      Profit Attributable to Owners of Parent



      (Percentage figures indicate year-on-year change)

      Millions of yen

      %

      Millions of yen

      %

      Millions of yen

      %

      Millions of yen

      %

      FY2025 Nine Months

      125,002

      (0.3)

      11,952

      10.5

      11,224

      (4.3)

      7,652

      10.1

      FY2024 Nine Months

      125,395

      (1.1)

      10,817

      (9.2)

      11,725

      (20.9)

      6,948

      (25.2)

      Note: Comprehensive income: ¥8,172 million (-23.3%) for the nine months ended September 30, 2025;

      ¥6,626 million (-18.5%) for the nine months ended September 30, 2024

      Net Income Per Share

      Diluted Net Income Per Share g g



      FY2025 Nine Months

      Yen

      34.58

      e

      34.55

      FY2024 Nine Months 31.41 31.37

    2. Consolidated Financial Position

      Total Assets

      Net Assets

      Equity Ratio

      Net Assets Per Share



      Millions of yen Millions of yen %

      FY2025 Third Quarter 193,447 161,572 83.4

      FY2024 200,320 164,916 82.2

      Reference: Equity capital: FY2025 Third Quarter: ¥l6l,3l3 million; FY2024: ¥164,656 million

      Annual Cash Dividends Per Share



  2. Dividends

    Ql-end

    Q2-end

    Q3-end

    Year-end

    Total

    FY2024

    Yen

    -

    Yen

    21.00

    Yen

    -

    Yen

    31.00

    Yen

    52.00

    FY2025

    -

    21.00

    -

    FY2025 (Forecast)|

    |

    |

    |

    31.00 |

    52.00

    Note: Revisions to the cash dividends forecast announced most recently: none

    Yen

    729.04

    744.16

  3. Consolidated Performance Forecast for Fiscal Year Ended December 31, 2025

    (January 01, 2025-December 31, 2025)

    (Percentage figures indicate year-on-year change)

    Net Sales

    Profit Operating Income Ordinary Income Attributable to

    Owners of Parent

    Net Income

    Per Share

    Millions of yen

    174,000

    % Millions of yen % Millions of yen % Millions of yen %

    Full year

    2.1 14,500 5.0 14,700 8.6 8,500 8.5

    Yen

    38.42



    Note: Revisions to the consolidated performance forecast announced most recently: none

    Notes to Summary Information

    1. Changes in significant subsidiaries during the current period

      (Changes in specific subsidiaries resulting in changes in the scope of consolidation)

      : None

      None

    2. Application of special accounting methods for the preparation of the quarterly consolidated financial, statements

    3. Changes in accounting policies, accounting estimates, and restatement

      1. Changes in accounting policies associated with revision of accounting standards

        1. Changes other than (3)- l)

        2. Changes in accounting estimates

        3. Restatements

    4. Number of shares issued and outstanding (common stock)

      1. Number of shares issued and outstanding at the end of each period (including treasury stock) At September 30, 2025 229,136,156 shares

At December 31, 2024 229,136,156 shares

  1. Number of shares of treasury stock at the end of each period

    At September 30, 2025 7,869,047 shares

    At December 31, 2024 7,870,726 shares

  2. Average number of shares issued and outstanding in each period Nine months ended September 30, 2025 221,267,756 shares

Nine months ended September 30, 2024 221,256,118 shares

:Yes

: None

: None

: None

Note: The number of shares of treasury stock at the end of each period includes the Company's shares held by the officer compensation Board Incentive Plan (BIP) trust (344,910 shares at September 30, 2025, 344,998 shares at December 31, 2024). The number of shares of treasury stock deducted in the calculation of average number of shares outstanding during each period includes the Company's shares held by BIP trust (343,946 shares in the nine months ended September 30, 2025, 273,482 shares in the nine months ended September 30, 2024).

Information Regarding Review Procedures

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:

Explanation of Appropriate Use of Performance Forecast and Other Special Items

: None

This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections resulting from changes in the economic environment and other risks and uncertainties. For performance projections, please refer to "1. Qualitative Information on Consolidated Performance for the Nine Months of Fiscal 2025 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 5.

tly: none

Table of Contents

  1. Qualitative information on Consolidated Performancefor the line Months of Fiscal 202$. 2

    1. Explanation of Consolidated Operating Results 2

    2. Explanation of Consolidated Financial Position .................................................................. 4

    3. Explanation of Consolidated Performance Forecast and Other Predictive Information 5

  2. Quarterly Consolidated Financial Statements ........................................................................ 6

    1. Consolidated Balance Sheets 6

    2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 8

    3. Notes to Consolidated Financial Statements 10

(Going concern Assumptions) 10

(Significant Changes in Shareholders' Equity) 10

(Changes in Accounting Policies ) 10

(Consolidated Statements of Cash Flows) 10

(Segment Information) 11

(Subsequent Events) 12

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1

  1. Qualitative Information on Consolidated Performance for the Nine Months of Fiscal 2025
    1. Explanation of Consolidated Operating Results

During the nine months of fiscal 2025 (January l-September 30, 2025), the Japanese economy continued to show a moderate recovery, despite the impact of U.S. trade policies and other factors, primarily on the automotive industry. Backed by a gradual recovery in the real wage income of employees and improvements to consumer sentiment, there are signs of recovery in personal consumption.

In the domestic cosmetics market, the post-COVID-19 recovery has plateaued, and recent growth has been moderate. Inbound demand also saw a reversal reaction from the previous year's high growth, but the current level exceeds that of the previous year. In the Chinese market, although various policy measures are becoming effective, the economy has remained stagnant.

Within this market environment, as part of its medium-term management plan (from 2024 through 2026) that started in 2024, the POLA ORBIS Group (the "Group") implemented four business growth strategies, namely, "strengthen the customer base in the domestic business to achieve sustainable growth and improve profitability,""further grow the overseas business and establish business bases in new markets," "achieve profitability through growth in brands under development, contributing to sustainable earnings," and "enhance the brand portfolio and expand business domains." At the same time, in an effort to sustainably strengthen the management foundations that will support these strategies, the Group has worked to "strengthen R&D capabilities for new value creation" and "strengthen sustainability combining the resolution of social issues with uniqueness."

Consolidated net sales for the nine months of fiscal 2025 decreased 0.3% year on year to ¥125,002 million, due mainly to a decrease in sales revenue from the flagship POLA brand. Operating income increased 10.5% year on year to ¥11,952 million mainly due to a reduction in selling, general and administrative expenses, despite a decrease in gross profit from lower net sales, while ordinary income decreased 4.3% year on year to ¥11,224 million due to foreign exchange losses. As a result of the factors noted above and a decrease in income taxes - deferred following the resolution to liquidate a subsidiary, profit attributable to owners of parent increased 10.1% year on year to ¥7,652 million.

Operating Results Overview

Nine Months Ended September 30

(Millions of yen)

Net Sales Operating Income Ordinary Income

Profit Attributable to Owners of Parent

2024

¥125,395 10,817

11,725

¥6,948

2025 ¥125,002 11,952 11,224 ¥7,652

2

Year-on-Year

Amount Change Percent Change (%)

¥(392) (0.3)

1,134 10.5

(500) (4.3)

¥703 10.1

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Operating Results by Segment

Net Sales (Segment Sales to External Customers)

Nine Months Ended September 30

(Millions of yen)

2024 2025

Year-on-Year

Amount Change Percent Change (%)

Beauty Care

¥121,487

¥120,411

¥(1,076)

(0.9)

Real Estate

1,577

2,238

661

42.0

Others

2,330

2,352

21

0.9

Total

¥125,395

¥125,002

¥(392)

(0.3)

Segment Profit (Loss) (Operating Income (Loss))

Nine Months Ended September 30

(Millions of yen)

2024

2025

Year-on-Year

Amount Change Percent Change (%)

Beauty Care Real Estate Others

Reconciliations of Segment Profit (Note)

¥11,731 ¥11,855 ¥123 10

55 375 319 5724

189 125 (64) (34.1)

(1,159) (403) 756 -

Total ¥10,817 ¥11,952 ¥1,134 10 5

Note: Reconciliations of segment profit refer to elimination of profits arising from inter-company transactions and expenses not allocated to reportable segments. Please see note 2 in "1. Information about Net Sales and Profit (Loss) by Reportable Segment" on page 11 and 12 for the details of reconciliations of segment income during the period.

Beauty Care

The Beauty Care segment consists of the flagship brands POLA and ORBIS, the overseas brand Jurlique, and the brands under development DECENCIA, THREE and FUJIMI.



POLA is working to establish a business base to return to a growth trajectory. In the domestic business, we are working to accelerate sales growth among stores on a growth track in the consignment sales channel and achieve further business growth in other sales channels. Communications centered on our renewed skincare products from the premium series, B.A, which were launched in September, contributed an increase in sales among existing customers. However, overall performance in the domestic business fell below that of the previous year mainly due to the impact of a decline in the number of customers resulting from the reduction in the number of stores. In the overseas business, we are continuing to establish our brand presence in China, our priority market, by expanding contact points with high-prestige customers and strengthening CRM. However, due to the continued impact of the economic slowdown in some areas of Asia, particularly in China, the overall performance of the overseas business fell below that of the previous year. As a result, POLA brand net sales and operating income decreased year on year.

ORBIS is proceeding with initiatives that focus on customer retention and higher lifetime value as it aims for an even higher profit structure. In the domestic business, high-value-added products such as ORBIS THE CLEANSING OIL, which was launched in May, performed well. In the dire‹ttysglling

channel, both customer numbers and unit purchase price rose. In the external channels, we expanded customer contact points and maintained a high sales growth rate, and overall performance in the domestic business exceeded that of the previous year. In the overseas business, the overall performance fell below that of the previous year due to the continued impact of the economic slowdown in some areas of Asia, particularly in China, as well as the impact of the resolution to liquidate our Chinese subsidiary. As a result of the above, ORBIS brand net sales and operating income exceeded those of the previous year.

Jurlique continues to work toward business growth in the markets of Asia, mainly in Australia and in China. In Australia, the home country of the brand, although the performance of e-commerce and directly operated retail store channels exceeded those of the previous year, sales in the department store channel were sluggish. In China, the effects