ENVALITH
株式会社ミルボン logo

Milbon Co., Ltd.

4919・Prime Market・Chemicals

Official website
株式会社ミルボン logo
Milbon Co., Ltd.4919

Business

Milbon Co., Ltd., founded in 1960, is a cosmetics manufacturer specializing in products sold exclusively through beauty salons, manufacturing and selling hair care products, hair coloring products, permanent wave products, and cosmetics, among others. Its primary customers are hair designers (beauty stylists) and beauty salons, and it does not sell directly to end users. Domestically, the company operates brands such as "Ojua," "Elujuda," and "Ordive," and overseas it promotes business across seven regions: Japan, Korea, Greater China, ASEAN, North America, the EU, and the Middle East. Net sales for FY2025 (ending December 2025) were ¥52,863 million, with the overseas sales ratio expanding to 25.8%. The group comprises 9 subsidiaries and 1 affiliated company, with the Yumegaoka Plant in Iga City, Mie Prefecture serving as the main production base, and it also has an overseas production base in Thailand.

Business Model

Through its proprietary "Field Person System," sales staff who have undergone nine months of in-house training provide not only product sales but also education and management support to hair salons, building long-term business relationships. Product development is conducted through the "TAC Product Development System," which standardizes the techniques of successful hairstylists, enabling continuous introduction of high value-added products that meet market needs. Retail products reaching end users via hair salons are expanding through the milbon:iD membership platform (over 1 million members), creating a structure that secures stable earnings through the dual pillars of professional-use products and retail products.

Company Strengths

The company's unique system, in which field persons who have undergone nine months of in-house training are responsible for education and management support for beauty salons, has accumulated over 40 years of know-how since its launch in 1984. This model, which contributes to salons' revenue and profit growth rather than simply selling products, is considered difficult for competitors to imitate, and forms a stable distribution network with major agents (Topy Corporation 12.7%, Gamo Co., Ltd. 8.4%, MASS-HD 6.9%).

R&D expenses for FY2025 (ending December 2025) totaled ¥2,672 million (5.1% of net sales). The company has built a global R&D structure linking four sites in Japan, the US, China, and Thailand, and opened an Innovation Center in Haneda, Tokyo in December 2023. In FY2025, it received four awards at international and domestic academic conferences, demonstrating its ability to translate basic research into product development.

As of the end of FY2025 (ending December 2025), the equity ratio stood at 84.9% (up from 82.9% in the previous period), with cash and cash equivalents of ¥11,513 million. Operating cash flow of ¥5,383 million was sufficient to cover capital expenditures of ¥2,701 million, dividends of ¥2,864 million, and share buybacks of ¥2,000 million. The company's financial structure, which is close to debt-free, supports flexibility in business investment.

ENVALITH's Perspective

Operating profit for 1Q FY2026 improved significantly to ¥1,250 million (versus ¥712 million in the same period of the prior year), while ordinary profit rose to ¥1,337 million (versus ¥625 million in the same period of the prior year). The disappearance of the ¥113 million foreign exchange loss recorded in the same period of the prior year, combined with the external tailwind of yen depreciation, contributed to ordinary profit more than doubling. Against the full-year forecast (operating profit of ¥6,300 million, up 11.4% year on year), the 1Q progress rate stood at 19.8%, which can be assessed as a solid start even after accounting for seasonality.

Overseas sales for 1Q FY2026 expanded rapidly to ¥3,952 million (versus ¥3,014 million in the same period of the prior year, up 31.1% year on year), and their share of total sales rose from 27.0% to 31.8%. In addition to continued high growth in the US and EU, South Korea, which had been affected by political turmoil in the same period of the prior year, also achieved strong sales growth. While it should be noted that yen depreciation, an external factor, is boosting gross profit on overseas sales, the results of the focus-area strategy are steadily materializing, and it is commendable that overseas operations are beginning to function as a structural growth engine.

In the domestic market, the competitive environment for professional-use products such as hair coloring products is intensifying, and although the decline in domestic fashion color sales is on a narrowing trend, challenges persist. In addition, selling, general and administrative expenses for 1Q FY2026 increased to ¥6,622 million (versus ¥6,345 million in the same period of the prior year), due to higher personnel costs from headcount increases and base pay raises, as well as higher logistics costs associated with increased overseas shipments. While the gross profit margin is improving, achieving the full-year profit target amid continued cost pressure will require both sustaining overseas growth and managing domestic costs in tandem.

Growth Strategy

Growth driven by two pillars: concentrated investment in three priority overseas areas (US, EU, South Korea) and a domestic high-value-added strategy

The company reexamined its 7-region strategy under the Medium-Term Business Vision (2022-2026) and designated the US, EU, and South Korea—markets with high market potential and growth—as priority areas. In 1Q FY2026, overseas sales reached ¥3,952 million, up 31.1% year on year, with the overseas sales composition ratio rising to 31.8%, demonstrating steadily emerging results.

The company launched the new brand "Sowa" and a new styling product from "Nizel" in the domestic market, combining these launches with planned sales and education activities to achieve solid sales growth. High-value-added coloring products such as ICEA-certified "Villa Lodola Color" also maintained high growth, aiming for differentiation in an increasingly competitive hair coloring products market.

Through the milbon:iD Digital Membership Platform, the company structurally supports salon retail product sales, sustaining stable growth in domestic Hair Care Products. In 1Q FY2026, domestic sales maintained stable growth, up 3.6% year on year, with the expanding membership base continuing to contribute to sales.

Based on a resolution of the Board of Directors dated April 10, 2026, a total of 32,274 shares of restricted stock (total disposal value of ¥89,689,446) were granted to 6 directors and 7 executive officers (disposed of on May 8, 2026). The purpose is to provide incentives for the sustained enhancement of medium- to long-term corporate and shareholder value, and to share value with shareholders.

Last updated: July 17, 2026