Nippon Shikizai,Inc.
4920・Standard Market・Chemicals
Japan
Core segment handling domestic cosmetics and quasi-drug manufacturing outsourcing (OEM/ODM)
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Japan segment) Q1 FY2027 (ending March 2027) | ¥3,154 million | ¥2,900 million (same period prior year) | ↑ |
| Operating income (Japan segment) Q1 FY2027 (ending March 2027) | ¥114 million | ¥153 million (same period prior year) | ↓ |
| Revenue (Japan segment) full-year results | ¥11,789 million | — | — |
| Operating income (Japan segment) full-year results | ¥281 million | — | — |
Business Details
This is the manufacturing outsourcing segment operated domestically by Nippon Shikizai Inc. Centered on cosmetics (including quasi-drugs) such as foundation, lipstick, mascara, eyeshadow, and skincare products, the segment receives orders from domestic and overseas cosmetics manufacturers and produces at multiple sites including the Zama Plant, Tsukuba Plant, and Komoro Plant. As a dedicated OEM/ODM operator without its own brand, the company has built a system capable of handling everything from formulation development to finished product manufacturing on an integrated basis. Major customers include Parfums Christian Dior SA and Ida Laboratories Co., Ltd.
Recent Overview
Revenue rose 8.8% year on year, but operating income fell 25.5% due to rising costs
In Q1 of FY2027 (ending March 2027) (March to May 2026), the Japan segment recorded revenue of ¥3,154 million, up 8.8% year on year, supported by steady orders from domestic and overseas cosmetics manufacturers. On the profit side, however, the impact of accelerating inflation in raw material costs and various expenses due to the intensifying situation in the Middle East, as well as rising labor costs, was significant. Despite continued cost-reduction efforts, operating income declined 25.5% year on year to ¥114 million. In addition, fixed assets (construction in progress and land) increased due to the acquisition of the Komoro Plant, among other factors.
Key Products
Growth Drivers
- Revenue expansion driven by continued steady orders from domestic and overseas cosmetics manufacturers
- Expanded production capacity through the acquisition of the Komoro Plant (the third domestic production site)
- Room for profitability improvement through higher utilization of the Phase 3 expansion equipment at the Tsukuba Plant
- Expansion of business with major overseas cosmetics manufacturers (such as Parfums Christian Dior SA)
- Differentiated order acquisition through strengthened clean beauty and SDG-compliant formulations
- Continuation of the gradual recovery and improvement trend in cosmetics demand
Risks
- Pressure on profitability from continued inflation in raw material costs, labor costs, and various expenses
- Insufficient man-hours due to hiring difficulties and elevated outsourced processing costs
- Fluctuations in energy and resource prices due to geopolitical risks (Middle East, Ukraine situation, etc.)
- Impact on procurement costs from foreign exchange and interest rate fluctuations
- Risk of order fluctuations associated with sluggish shipment growth among domestic cosmetics manufacturers due to increased imports
- Risk of lower utilization levels due to order fluctuations
Last updated: May 29, 2026