HABA LABORATORIES,INC.
4925・Standard Market・Chemicals
Business
HABA Laboratories, Inc., founded in 1983, is a cosmetics and health food manufacturer that has upheld the "Additive-Free Principle®" — adherence to five types of additive-free formulation, including "no paraben preservatives" and "no petroleum-based surfactants" — as its core philosophy since its founding. The company offers Basic Cosmetics (Skincare) centered products (61.5% of sales composition), Makeup Cosmetics, and Health Foods & Sundries, etc. (20.1% of sales composition), conducting multi-channel sales that combine the Mail Order (Including EC) Channel (56.6% of sales composition) as its main channel, together with Wholesale to Department Stores (15.9% of sales composition), Other Wholesale (Domestic & Overseas) (23.8% of sales composition), and Directly-Operated Stores (3.7% of sales composition). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the core Mail Order (Including EC) Channel business, the company leverages its Club Harbor membership program (point stages such as Diamond and Platinum) to promote repeat purchases among existing customers and improve LTV. Manufacturing is handled by subsidiary Harbor Co., Ltd. (Tomakomai) and external contractors, while logistics operations have been integrated following the April 2026 absorption-type merger with Harbor Cosmetics, which had previously managed this function. In Wholesale to Department Stores & Directly-Operated Stores (Store Sales Business), the company is capturing inbound demand, and in Other Wholesale (Domestic & Overseas), it is pursuing efficiency gains through consolidation of distributors in China.
Company Strengths
Since its founding in 1983, the company has consistently upheld its "Muten-ka Shugi® (No Additives Policy)" philosophy, differentiating its brand by applying five additive-free principles across all cosmetics products. Sales to the premium tier (Diamond and Platinum members) through the Club Herb membership program continued to increase year-on-year in FY2026 (ending March 2026), confirming a high level of long-term customer loyalty.
R&D and product development are handled in-house, while manufacturing is carried out by the subsidiary Herb Co., Ltd. (Tomakomai, Hokkaido) and through outsourcing. In April 2026, the company absorbed and merged its logistics subsidiary, Herb Cosmetics, integrating operations from logistics through to sales. R&D expenses in FY2026 (ending March 2026) totaled ¥122,791 thousand (1.0% of sales), with continued development of new foods with function claims and renewals of existing products.
The company posted operating losses for three consecutive fiscal years from FY2022 (ended March 2022) through FY2024 (ended March 2024), but has since pursued structural reforms including the closure of unprofitable stores (4 stores), the sale of the Komoro plant (recording a gain on sale of fixed assets of ¥127,731 thousand), SKU optimization, and inventory reduction. The operating margin improved to 6.0% in FY2026 (ending March 2026), up from 4.9% in the prior period, and net income reached ¥760,360 thousand, a 31.9% increase year-on-year.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥12,909 million in FY2022 (ending March 2022) and subsequently declined for several consecutive periods, but in FY2026 (ending March 2026) it turned slightly upward to ¥12,141 million (up 0.7% year on year). Operating profit was in the red for three consecutive periods from FY2022 (ending March 2022) through FY2024 (ending March 2024) (with the largest loss of ¥610 million in FY2023 (ending March 2023)), but turned profitable at ¥590 million in FY2025 (ending March 2025) and improved further to ¥727 million in FY2026 (ending March 2026). This was mainly driven by a reduction in SG&A expenses (down 1.9% year on year) and inventory optimization. Wholesale to Department Stores (up 8.7% year on year) and Other Wholesale (up 10.1% year on year) led the growth, while Mail Order (down 2.5% year on year) and Directly-Operated Stores (down 26.7% year on year) continued to decline. For FY2027 (ending March 2027), operating profit is forecast at ¥610 million (down 16.1% year on year) due to the drop-off of extraordinary gains and an increase in upfront investment.
Growth Strategy
Under the second medium-term management plan (FY2026–FY2028, ending March 2026 through March 2028), the company is advancing customer base expansion, new brand development, and management efficiency improvements.
Implementing revisions to the Club Harbor program to boost activity among mid- and basic-tier members and strengthening F2 conversion initiatives. Rolling out digital promotions targeting the millennial generation (including creator collaboration video distribution, etc.) to build a foundation for acquiring new customers. Also plans to progressively restructure the flagship skincare product lineup by "skin concern" category.
Began development and rollout of foods with function claims and beauty supplements, as well as products exclusive to self-selection channels, in FY2026 (ending March 2026). In FY2027 (ending March 2027), the company plans to launch a new brand for general distribution channels, differentiated from its existing brands, in order to develop new customer segments and sales channels and build a new business model.
In April 2026, absorbed Harbor Cosmetics Co., Ltd. through an absorption-type merger, achieving integrated operations from logistics through sales. Introduced an executive officer system in the same month to accelerate decision-making. The company will build a framework for operational efficiency and swift management decision-making by strengthening IT infrastructure and data utilization capabilities.
In FY2026 (ending March 2026), closed 4 unprofitable stores, relocated and renovated 3 stores, and sold the Komoro plant, reducing SG&A expenses. In FY2027 (ending March 2027), the company will continue to optimize its store network, review the cost-effectiveness of advertising expenses, and optimize inventory levels and SKUs, thereby strengthening the revenue base across the group as a whole.
Last updated: July 19, 2026