LONSEAL CORPORATION

Business Details

Mainly handles building materials products such as Flooring Materials, Waterproofing Materials, Housing Materials, Wall Covering Materials for Construction, as well as industrial materials products such as Vehicle Flooring Materials, Film Base Materials. Manufacturing and sales are handled by the Company (Ronseal Industries), with domestic sales conducted through distributors. Overseas, the group expands into North America, Europe, Asia, and other regions through consolidated subsidiaries. The company adopts a build-to-forecast production method and differentiates itself through proprietary technologies such as the antiviral technology "Ron Protect" and heat-shielding waterproofing construction methods.

Recent Overview

The effect of sales price revisions became evident, and operating income recovered significantly, up 68.2% year-on-year.

In the Synthetic Resin Processed Products Business for FY2026 (ending March 2026), net sales reached ¥21,747 million (up 3.2% year-on-year) and operating income reached ¥1,075 million (up 68.2% year-on-year). The effect of sales price revisions became apparent, and profitability improved significantly, aided also by the disappearance of the ¥680 million impairment loss recorded in the prior period. Among building materials products, housing materials and export flooring materials saw sales increases, while among industrial materials products, both Vehicle Flooring Materials and Film Base Materials saw sales increases; on the other hand, domestic flooring materials, waterproofing materials, and wall covering materials saw sales decreases. By region, overseas sales expanded, with North America at ¥2,390 million (up 7.9% year-on-year), Europe at ¥393 million (up 47.2% year-on-year), and Asia at ¥804 million (up 14.4% year-on-year).

Key Products

Growth Drivers

• Emergence of the effect of sales price revisions (operating income up 68.2% year-on-year for full-year FY2026 ending March 2026)
• Sales increases in export flooring materials, housing materials, Vehicle Flooring Materials, and Film Base Materials (full-year FY2026 ending March 2026)
• Expansion of sales to North America (full-year FY2026 ending March 2026: ¥2,390 million, up 7.9% year-on-year)
• Expansion of sales to Europe and Asia (Europe ¥393 million, up 47.2% year-on-year; Asia ¥804 million, up 14.4% year-on-year)
• Differentiation through high value-added products such as the antiviral technology "Ron Protect" and heat-shielding waterproofing construction methods
• Improved profitability through stabilization of raw material procurement and thorough cost management

Risks

• Decrease in sales of domestic flooring materials, waterproofing materials, and wall covering materials (full-year FY2026 ending March 2026)
• Risk of fluctuations in raw material prices (concerns over rising procurement costs of PVC resin and other materials due to crude oil price fluctuations)
• Impact on overseas sales from US trade policy and foreign exchange fluctuations (exports developed to North America, Europe, and Asia)
• Profit pressure from increased personnel and other SG&A expenses (SG&A expenses of ¥7,021 million in FY2026 ending March 2026, up 5.9% year-on-year)
• Impact on energy supply-demand and raw material procurement from prolonged geopolitical risks
• Risk of demand fluctuation due to domestic and overseas economic trends