Nippon Shikizai, the Tokyo- and Nagoya-listed cosmetics maker (code 4920), lowered its profit forecasts on 7 October 2026 for the fiscal year ending February 2027. Management expects its French subsidiaries to beat plan, but expects the standalone business to do much worse.
Where the shortfall sits
For the full year, consolidated operating profit is now forecast at ¥261mn, against ¥394mn in the forecast published on 13 April 2026. Ordinary profit falls to ¥116mn from ¥275mn, and profit attributable to owners of the parent to ¥100mn from ¥187mn. Sales are close to unchanged at ¥18.33bn, from ¥18.36bn.
The standalone forecast carries most of the damage. Full-year standalone sales are now ¥11.78bn, down from ¥12.71bn. Ordinary profit is forecast at ¥1mn, compared with ¥263mn before, and net profit at ¥10mn, compared with ¥203mn.
The interim half
For the six months to 31 August 2026, the company now forecasts consolidated sales of ¥9.16bn, up from ¥8.92bn, with operating profit of ¥50mn against ¥92mn previously. It now expects an ordinary loss of ¥14mn and a net loss attributable to owners of the parent of ¥21mn, where it had forecast profits of ¥33mn and ¥11mn. Standalone interim sales are forecast at ¥6.13bn, down from ¥6.33bn.
| Measure | Previous | Revised |
|---|---|---|
| Interim sales | 8,918 | 9,155 |
| Interim operating profit | 92 | 50 |
| Full-year sales | 18,361 | 18,328 |
| Full-year operating profit | 394 | 261 |
| Full-year ordinary profit | 275 | 116 |
| Full-year net profit to parent | 187 | 100 |
What management blames
The company said orders from domestic cosmetics makers fell below its April forecast, citing tension in the Middle East, and that some large orders from overseas cosmetics makers were postponed. It also pointed to cost increases led by oil-derived products, which it said were not sufficiently passed on in order prices despite cost-cutting. Third-quarter orders remain weak. Orders show signs of recovering in the fourth quarter, but third- and fourth-quarter sales are expected to stay below the second quarter.
The company also said that expense recognition is for now running ahead at its Komoro plant, which began operating on 3 September 2026, and that it plans to raise utilisation gradually.
The French offset
The company said that at its French consolidated subsidiaries, THEPENIER PHARMA & COSMETICS S.A.S. and Nippon Shikizai France S.A.S., pharmaceutical and cosmetics orders have recovered and sales rose in both euro and yen terms. Despite higher labour and other costs, it expects their combined results to beat forecasts for the interim period and the full year. It expects consolidated interim sales to beat the forecast because French growth and a weaker yen outweigh the domestic order shortfall, but expects profit to fall short because the domestic decline exceeds the French recovery.
Management's comments on the wider cosmetics industry, including slower shipments by domestic makers and weak price pass-through in make-up, are its own inference, and the notice describes demand as holding up. The company said the forecasts rest on information available on the release date and that actual results may differ.