KOSE Holdings Co., Ltd. (TSE: 4922), the Japanese cosmetics group behind brands such as Cosme Decorte, Sekkisei and Tarte, reported consolidated results for the first quarter of the fiscal year ending December 31, 2026 (the three months from January 1 to March 31, 2026) under Japanese GAAP. Revenue edged down 0.9% year-on-year to ¥78,265 million, but the earnings lines deteriorated sharply. Operating profit fell 84.5% to ¥1,030 million from ¥6,659 million, ordinary profit dropped 54.3% to ¥2,358 million from ¥5,157 million, and net profit attributable to owners of the parent collapsed 91.9% to ¥426 million from ¥5,292 million.
Margins squeezed at the operating line
With revenue down only marginally, the steep fall in operating profit points to a heavy compression in operating margin, which narrowed to roughly 1.3% from 8.4% a year earlier. The company's first-quarter operating profit of ¥1.03 billion represents just over 5% of the ¥20.0 billion it still expects to deliver for the full year, underscoring how back-loaded management is assuming the year's earnings will be. The far smaller percentage decline in ordinary profit than in operating profit indicates that non-operating items — typically foreign-exchange gains or equity-method earnings — cushioned the result below the operating line.
Net profit hit hardest
The decline steepened further down the income statement, with net profit attributable to owners falling more than 90%. Basic earnings per share came in at ¥7.48, down from ¥92.75 a year earlier. Quarterly comprehensive income fell 80.3% to ¥495 million from ¥2,520 million, reflecting both the weaker bottom line and a smaller contribution from other comprehensive income items such as currency translation.
Balance sheet stays solid
Despite the earnings setback, KOSE's financial position remained robust. Total assets stood at ¥387,464 million, down slightly from ¥393,454 million at the prior year-end, while net assets were ¥299,853 million. The equity ratio held essentially flat at 72.1% (from 72.2%), one of the strongest in the sector, and net assets per share were ¥4,913.11. The company carried no review by independent auditors on the quarterly statements, as is standard for first-quarter filings.
Dividend lifted, including a commemorative payout
KOSE plans to raise its annual dividend to ¥150.00 per share for FY12/2026, up from ¥140.00 the previous year. The forecast comprises a ¥70.00 interim dividend and an ¥80.00 year-end dividend, with the year-end figure including a ¥10.00 commemorative dividend on top of an ordinary ¥70.00 payout. There was no revision to the previously announced dividend forecast.
Full-year guidance held unchanged
Management made no change to its full-year FY12/2026 forecast despite the soft first quarter. KOSE continues to guide for revenue of ¥350,000 million (+6.0%), operating profit of ¥20,000 million (+8.3%) and ordinary profit of ¥21,000 million (−2.2%), with net profit attributable to owners of ¥12,100 million (−19.9%) and full-year EPS of ¥212.67. Delivering that operating-profit target will require a substantial acceleration over the remaining nine months, leaving the second half pivotal to whether the full-year plan is met.
| Metric | Q1 FY12/2026 | Q1 FY12/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 78,265 | 78,998 | -0.9% |
| Operating profit (¥ million) | 1,030 | 6,659 | -84.5% |
| Ordinary profit (¥ million) | 2,358 | 5,157 | -54.3% |
| Net profit attrib. to owners (¥ million) | 426 | 5,292 | -91.9% |
| Comprehensive income (¥ million) | 495 | 2,520 | -80.3% |
| Basic EPS (¥) | 7.48 | 92.75 | -91.9% |
| Total assets (¥ million) | 387,464 | 393,454 | -1.5% |
| Equity ratio | 72.1% | 72.2% | -0.1pp |
| FY26 revenue guidance (¥ million) | 350,000 | — | +6.0% |
| FY26 operating profit guidance (¥ million) | 20,000 | — | +8.3% |
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.