Milbon Co., Ltd (4919 JP) reported FY25 (Dec year-end) earnings, coming in with gross profit [GP] of ¥33,176mil (+1.8% YoY) and operating profit [OP] of ¥5,652mil (-17.4% YoY) on sales of ¥52,863mil (+3.0% YoY). Both sales and OP surpassed FY25 guidance for sales of ¥52,300mil and OP of ¥5,300mill which was revised down in August, respectively. Milbon guides for FY26 OP of ¥6,300mil (+11.4% YoY) on sales of ¥54,800mil (+3.7% YoY) based on the following assumptions: (1) Domestic OP of ¥5,090mil (+7.0% YoY) on sales of ¥39,880mil (+1.7% YoY), generating an OPM of 12.8% (+0.7ppt YoY) and (2) solid overseas sales growth, especially in the US and Europe, both of which have achieved higher-than-expected growth in FY25. Although the US operations will remain in the red with an operating loss of -168mil vs FY25’s loss of -¥47mil, sales are expected to rise +13.1% YoY to ¥2,850mil [YDB] on successful sales of new products. The firm also expects solid growth in South Korea [OP of ¥1,271mil (+18.6% YoY) on sales of ¥5,802mil (+5.4% YoY)]. In China, Milbon assumes rapid a recovery with OP improving +54.3% YoY to ¥68mil on sales of ¥2,623mil (+7.4% YoY).
