Lion Corporation (TSE: 4912), one of Japan's leading manufacturers of oral care, household cleaning and personal care products, posted a solid first quarter for the fiscal year ending December 2026, reporting results on May 12, 2026. Consolidated revenue rose 5.3% year-on-year to ¥99,205 million, driven by volume growth and the broadened consolidation perimeter. Operating profit advanced 11.6% to ¥6,292 million, outpacing the revenue gain and pointing to improved operating leverage. The company's preferred internal measure, business profit (事業利益 — operating profit before certain recurring items), grew 13.8% to ¥6,015 million, from ¥5,287 million a year earlier. Pre-tax profit climbed 16.9% to ¥7,392 million, while total quarterly profit reached ¥5,297 million (+11.4%). Net profit attributable to owners of the parent rose a more measured 4.5% to ¥4,206 million, against ¥4,026 million in the prior-year quarter, with basic EPS of ¥15.21 (diluted: ¥15.19), up from ¥14.57 (diluted: ¥14.54).
The gap between the strong pre-tax growth (+16.9%) and the more modest attributable profit growth (+4.5%) reflects the allocation of earnings between the parent's shareholders and minority interests within the expanded group, alongside the normal tax-line variability in a broadened consolidation. Comprehensive income for the quarter totalled ¥5,384 million, compared with a negative ¥1,329 million in Q1 FY2025 — a swing of more than ¥6.7 billion driven partly by currency translation gains on overseas assets.
Eight new consolidations deepen Lion's global footprint
A notable disclosure in the quarter was the expansion of the consolidation scope, with eight new entities brought into the group — led by PNB Consolidated Pty Ltd and affiliates based in Australia. Lion has long operated in the Asia-Pacific personal care and oral care markets, and the Australian platform represents a meaningful extension of that geographic presence. These additions lifted both the reported revenue and asset base, contributing to the group's growing international earnings diversification. The company confirmed no change in accounting policies under IFRS during the period.
Balance sheet strengthens as equity ratio climbs to 62.1%
Total consolidated assets stood at ¥520,307 million at March 31, 2026, down slightly from ¥528,596 million at the end of FY2025, reflecting normal working capital movements. Total equity rose to ¥349,708 million from ¥348,419 million, while equity attributable to owners of the parent reached ¥323,161 million (prior year-end: ¥322,726 million). The equity ratio improved to 62.1% from 61.1%, underscoring Lion's conservative and well-capitalised balance sheet. The company holds no net debt concerns of note, a position typical of Japan's established consumer goods manufacturers.
Dividend raised to ¥34; full-year guidance reaffirmed
Lion raised its annual dividend forecast for FY2026 to ¥34 per share (¥17 interim + ¥17 year-end), up from ¥30 paid in FY2025 — a 13.3% increase that signals management's confidence in the full-year earnings trajectory. For the first half (cumulative through June 2026), the company guides for revenue of ¥210,000 million (+5.3%) and operating profit of ¥19,000 million (+42.0%), with net profit of ¥10,000 million (+4.1%) and EPS of ¥36.15. For the full year, Lion targets revenue of ¥430,000 million (+1.9%) and operating profit of ¥40,000 million (+10.0%), with full-year net profit of ¥25,000 million (−9.4%) and EPS of ¥90.38. The guided full-year net profit decline despite strong first-half operating profit guidance reflects expected second-half cost pressures and a high base from FY2025's non-operating gains. No revision to the previously published guidance was made.
| Metric | Q1 FY2026 | Q1 FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 99,205 | 94,237 | +5.3% |
| Operating profit (¥ million) | 6,292 | 5,636 | +11.6% |
| Business profit (¥ million) | 6,015 | 5,287 | +13.8% |
| Pre-tax profit (¥ million) | 7,392 | 6,322 | +16.9% |
| Quarterly profit (¥ million) | 5,297 | 4,755 | +11.4% |
| Net profit attrib. to owners (¥ million) | 4,206 | 4,026 | +4.5% |
| Basic EPS (¥) | 15.21 | 14.57 | +4.4% |
| Diluted EPS (¥) | 15.19 | 14.54 | +4.5% |
| Comprehensive income (¥ million) | 5,384 | −1,329 | n.m. |
| Total assets (¥ million) | 520,307 | 528,596 | −1.6% |
| Total equity (¥ million) | 349,708 | 348,419 | +0.4% |
| Equity ratio | 62.1% | 61.1% | +1.0pp |
| Annual dividend forecast (¥) | 34 | 30 | +13.3% |
| FY guidance — revenue (¥ million) | 430,000 | — | +1.9% |
| FY guidance — operating profit (¥ million) | 40,000 | — | +10.0% |
| FY guidance — net profit (¥ million) | 25,000 | — | −9.4% |
| FY guidance — EPS (¥) | 90.38 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.