POLA ORBIS HOLDINGS INC.

Business Details

Promotes a multi-brand strategy featuring POLA and ORBIS as core brands, Jurlique as an overseas brand, and DECENCIA, THREE, and FUJIMI as growth brands. Conducts research and development, manufacturing, and sales of cosmetics and health foods, approaching customers in Japan through consignment sales channels, directly-managed stores, e-commerce, and other channels. Overseas operations focus mainly on China, Australia, and ASEAN. In Q1 FY2026 (ending March 2026, December 2026 fiscal year), sales to external customers were ¥39,277 million and operating profit was ¥4,973 million.

Recent Overview

Sales declined slightly, but operating margin improved significantly due to cost control; structural reform costs were recorded as extraordinary losses

In Q1 FY2026 (ending March 2026), the Beauty Care Business posted sales of ¥39,277 million (down 1.3% year on year), a slight decline, while appropriate cost control led to a substantial increase in operating profit to ¥4,973 million (up 20.3% year on year). The operating margin improved from 10.4% to 12.6%. For the POLA Brand, ¥1,603 million in special support payments and other costs related to the voluntary early retirement program ("Next Career Special Support Program") were recorded as an extraordinary loss, and Jurlique International Pty. Ltd. recorded ¥451 million in consulting costs related to organizational structure optimization as an extraordinary loss. The ORBIS Brand and growth brands drove results with increased sales and profit.

Key Products

Growth Drivers

• Strong performance of ORBIS Brand's high-value-added skincare products and expansion of external channels driving domestic sales growth and higher purchase unit prices
• Steady performance of POLA Brand's growth stores, e-commerce, and hotel amenity channels, and improved profitability from the full renewal of "B.A"
• Significant improvement in operating margin (10.4% → 12.6%) through appropriate cost control and reduced SG&A expenses
• Expanded online and offline recognition and strengthened high-LTV customer base from DECENCIA Brand's award-winning new whitening series
• Growth in THREE Brand's domestic holistic care sales and growth of new businesses "Kaokara" and "Dive"
• Optimization of SG&A expenses and improved operating loss from Jurlique Brand's progressing structural reforms
• Strong sales growth in the online channel from POLA's new "B.A" products in the Chinese market

Risks

• Continued impact on domestic sales from measures to curb shipments to the secondary distribution market for the POLA Brand and a decline in inbound customer numbers
• Impact on overseas operations of POLA, ORBIS, and Jurlique from deteriorating economic conditions and consumer sentiment in Asia, particularly China
• Recording of ¥1,603 million in extraordinary losses related to POLA Inc.'s voluntary early retirement program ("Next Career Special Support Program") (Q1 FY2026, ending March 2026)
• Recording of ¥451 million in consulting expenses related to business and organizational structure optimization at Jurlique International Pty. Ltd. (Q1 FY2026, ending March 2026)
• Risk of delayed brand revitalization for the THREE Brand and uncertainty regarding customer acquisition difficulties and business scale expansion for the FUJIMI Brand
• Year-on-year decline in overseas business due to the impact of the liquidation of ORBIS Brand's China subsidiary
• Continued decline in tax-free sales, mainly at department stores, reducing the benefit from inbound demand