Shinnihonseiyaku Co., Ltd.

Business Details

A segment that sells cosmetics (PERFECT ONE, PERFECT ONE FOCUS) and healthcare products (Fun and Health, Wellness Food) to domestic individual customers via mail order. Sales are conducted through call centers, the company's own online shop, and external e-commerce malls, with the basic strategy of maximizing LTV through the Subscription Purchase Service. In FY2025 (ended September 2025), Mail Order Sales revenue was ¥37,138 million, accounting for approximately 90% of total company sales of ¥41,140 million. Note that in the Q2 FY2026 (ending September 2026) financial results summary, disclosure of individual segment sales figures has been omitted.

Recent Overview

Sales increased in the first half, but operating profit declined; net income rose sharply due to the absence of the prior year's impairment loss.

Consolidated net sales for the first half of FY2026 (ending September 2026, October 2025 to March 2026) were ¥20,517 million (up 1.2% year on year), a modest increase. On the other hand, selling, general and administrative expenses increased from ¥13,780 million to ¥14,088 million, resulting in a decline in operating profit to ¥2,311 million (down 8.8% year on year). Ordinary profit also declined to ¥2,352 million (down 7.2% year on year). Net income attributable to owners of the parent for the first half rose sharply to ¥1,619 million (up 73.0% year on year), mainly due to the absence in the current period of the ¥759 million impairment loss recorded in the same period of the previous year. In healthcare, Fun and Health saw increased sales driven by strong performance of Slimore Coffee, while in cosmetics, PERFECT ONE saw decreased sales due to reduced advertising investment, though the subscription customer base expanded. The full-year earnings forecast remains unchanged at net sales of ¥45,000 million and operating profit of ¥5,000 million.

Key Products

Growth Drivers

• Continued strong new customer acquisition and expanded investment for Slimore Coffee, and expansion of the customer base through the launch of the new product Slimore Coffee Latte
• Improved LTV and expansion of the subscription customer base for the PERFECT ONE brand through enhanced database marketing
• Expansion of the product lineup for PERFECT ONE FOCUS, including the rollout of large-capacity face masks and the renewal of cleansing balm
• Maximization of synergies for the Wellness Food brand and efficient use of management resources through the absorption-type merger of Flat Craft (effective October 1, 2025)
• Strengthening competitiveness through speedy product development and expansion into new lines and categories
• Promotion of priority initiatives based on the medium-term management plan 'Growth Next 2027'

Risks

• Continued consumer thrift orientation and prolonged price increases leading to weaker purchasing intent
• Risk of declining new customer acquisition capability and decreased sales for the PERFECT ONE brand due to reduced advertising investment
• Uncertainty regarding the effectiveness of product lineup expansion for PERFECT ONE FOCUS, as sales have fallen short of plan
• Risk of declining operating profit margin due to an increasing trend in selling, general and administrative expenses
• Intensifying competitive environment in external e-commerce malls (including entry of overseas brands)
• Uncertainty regarding the realization of post-merger synergies for Wellness Food (former Flat Craft)
• Uncertainty about the outlook due to instability in international affairs and policy trends in various countries