ENVALITH
株式会社アイビー化粧品 logo

IVY COSMETICS CORPORATION

4918・Standard Market・Chemicals

Official website
株式会社アイビー化粧品 logo
IVY COSMETICS CORPORATION4918

Business

Ivy Cosmetics Co., Ltd. is a cosmetics manufacturer specializing exclusively in door-to-door sales, having started cosmetics manufacturing and sales in 1977. The company has sales contracts with 238 independent sales companies nationwide, delivering products to customers through Beauty Managers (BM) and Ivy Mates (IM) affiliated with each sales company. Its core category is skincare (approximately 72% of net sales), centering on aging-care products such as "Ivy Prestige" and "Red Power Serum", alongside the makeup line "Churie", the hair care line "Hair Primary", and Beauty Support Products. The company owns its own factory and R&D institute in Misato Town, Saitama Prefecture, handling everything from manufacturing to research and development in an integrated manner. It will mark its 50th anniversary in FY2027 (ending March 2027).

Business Model

The Company's net sales represent the shipment amount to distributors (wholesale-price sales), with a basic structure of a 36-40% markup rate applied to the retail (list) price. The Company has a mechanism to maintain the motivation of the sales organization by providing distributors with cashback such as "distributor refunds" and "management guidance fees." Due to a fixed-cost structure with high profit leverage relative to sales, fluctuations in net sales have a significant impact on operating profit. The development of the sales organization through training and events directly leads to an increase in loyal customers and sales staff, and achievement of the retail-price sales target is positioned as the most important KPI.

Company Strengths

The company owns its own factory and development research laboratory in Misato Town, Saitama Prefecture, establishing an integrated system spanning manufacturing through research and development. It holds multiple patents covering cosmetics, quasi-drugs, and pharmaceutical fields, including the acquisition of a "TGF-β signal transduction inhibitor" in March 2025 (Reiwa 7). The company's track record of winning the Monde Selection Gold Award for multiple consecutive years also provides objective support for product quality.

The company has concluded sales contracts with 238 independent distributors with no capital relationship (as of the end of March 2026 (Reiwa 8)), building a nationwide sales network. It maintains motivation among the sales organization through an incentive design based on distributor refunds and management guidance fees, and manages distribution inventory conditions through a system of obtaining financial statements from and conducting interviews with all distributors.

Following the completion of the exercise of the 5th series of stock acquisition rights (cumulative funds raised of ¥382 million) and other factors, the equity ratio at the end of the fiscal year under review improved to 72.4% (69.2% in the previous fiscal year). This significantly exceeds the 50% equity ratio the company had set as a benchmark for resuming dividends, and the company plans to resume dividend payments for the first time in 8 fiscal years. Operating cash flow also secured a positive ¥451 million, and cash and deposits increased to ¥1,041 million.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales came to ¥2,641 million (down 9.8% year on year) and operating profit to ¥195 million (down 53.8%), reflecting a sharp decline in core business earnings. However, with the absence in the current period of the ¥457 million loss on termination of the retirement benefit plan (extraordinary loss) recorded in the prior period, net income rebounded sharply to ¥164 million (up 282.5% year on year). Underlying earning power, excluding one-time factors, has declined significantly from the prior period, and the recovery of the operating margin to 7.4% (from 14.4% in the prior period) will be the focal point for the next fiscal period.

The earnings forecast for FY2027 (ending March 2027) assumes essentially flat results, with net sales of ¥2,640 million (down 0.1% year on year) and operating profit of ¥200 million (up 2.4%). However, this forecast is premised on the worst-case scenario of a continued closure of the Strait of Hormuz, and explicitly cites, as external environmental risks, a prolonged Middle East conflict and rising cost ratios stemming from naphtha supply shortages. Should diplomatic resolution normalize raw material procurement, there is room for upside; on the other hand, since sales have been excluded for some new and existing products where raw material delivery schedules remain unconfirmed, the plan can be considered conservative in substance.

Class A preferred shares (representing capital of ¥500 million and capital reserves of ¥500 million) remain outstanding and unredeemed, resulting in a deduction of ¥1,000 million when calculating net assets per share. In FY2026 (ending March 2026), cumulative dividends of ¥187 million (covering seven periods) were paid, and going forward, preferred dividends of ¥30 million per year will continue to take priority. Net income attributable to common shareholders was limited to ¥134 million (net income of ¥164 million less preferred dividends of ¥30 million), and the payout ratio of 71.0% (¥15 per common share) is at a high level. Consideration of a commemorative dividend for the company's 50th anniversary has also been suggested, but this remains uncertain depending on the situation in the Middle East.

Growth Strategy

Revenue recovery through new product launches, sales organization restructuring, and strengthened financial foundation, alongside 50th anniversary initiatives

Launched "Peeling Lotion" and "Moist Sheet" in December 2025, and "Churie Premium Set" in February 2026. However, for the next fiscal year, due to unconfirmed raw material delivery schedules for certain new products stemming from the impact of Middle East conflicts, related sales have been excluded from the forecast.

Reflecting on FY2026 (ending March 2026), during which the expansion of sales offices and BMs was sluggish, the company has confirmed a recovery trend in sales organization training mobilization and new customer acquisition. It is promoting a shift to a performance-linked personnel system to revitalize the sales organization.

Improved accuracy in demand forecasting and raw material procurement planning reduced raw materials and supplies from ¥374 million to ¥275 million (down 26.6% year on year). The company continues to promote ongoing reduction of manufacturing costs, but expects the cost ratio to rise in the next fiscal year due to increasing crude oil prices.

Completion of the exercise of the 5th series of stock acquisition rights (cumulative fundraising amount of ¥382 million) achieved an equity ratio of 72.4%. In FY2026 (ending March 2026), the company resumed ordinary dividend payments at ¥15 per share of common stock. For the next fiscal year, a stable dividend (¥15) is planned to continue, and a commemorative dividend for the company's 50th anniversary will be considered depending on second-quarter results.

Continuing to execute key initiatives led by the Board of Directors and Management Committee, further strengthening compliance, and promoting SDG initiatives. The company aims to secure a certain level of profit even amid declining sales by thoroughly managing budget-versus-actual expenses and reducing fixed costs.

Last updated: July 19, 2026