S.T.CORPORATION

Business Details

The S.T.CORPORATION group manufactures and sells daily necessities across seven categories: deodorizers/air fresheners (Air Care), mothballs/insect repellents (Clothing Care), dehumidifiers (Moisture Care), body warmers (Thermo Care), gloves (Hand Care), food care/cleaners (Home Care), and cat litter products (Pet Care). Domestic sales form the core of the business, and the sales structure is wholesale-dependent, with two major distributors, PALTAC Corporation and ARATA Corporation, accounting for approximately 60% of net sales combined. Net sales for FY2026 (ending March 2026) were ¥48,492 million (up 0.8% year on year).

Recent Overview

Net sales and operating profit increased, but net profit fell sharply due to the disappearance of the prior-year gain on negative goodwill

In FY2026 (ending March 2026), net sales were ¥48,492 million (up 0.8% year on year) and operating profit was ¥1,986 million (up 19.8% year on year). Operating profit improved due to price increases on some mainstay products, measures to curb rising costs such as reviewing suppliers, and a decrease in selling, general and administrative expenses following the disappearance of consulting-related expenses incurred in the prior year. On the other hand, since the prior-year gain on negative goodwill of ¥1,101 million was not recorded in the current period, profit attributable to owners of parent came to only ¥1,615 million (down 43.0% year on year). The company absorbed and merged with S.T. Business Support Corporation effective July 1, 2025, to promote supply chain efficiency. It withdrew from the hand care manufacturing business at its Thai subsidiary, recording business restructuring costs of ¥50 million. Research and development expenses increased to ¥1,035 million (from ¥895 million in the prior year).

Key Products

Growth Drivers

• Growth in high-value-added products such as the "Shoshuriki Premium Aroma" series and new product "Shoshuriki DeoPita for Toilets" in Air Care, along with new user acquisition (net sales of ¥21,602 million for FY2026 ending March 2026, up 2.3% year on year)
• Continued growth in the Pet Care category (net sales of ¥3,778 million for FY2026 ending March 2026, up 5.1% year on year) and accelerated new product launches and sales channel expansion planned for the next fiscal year
• Growth in the Home Care category driven by expanding demand for "Kometoban" amid rice price surges (net sales of ¥4,446 million for FY2026 ending March 2026, up 2.7% year on year)
• Improved operating margin (4.1% in FY2026 ending March 2026, versus 3.4% in the prior year) through cost increase mitigation measures such as supplier review and reduction of selling, general and administrative expenses
• Optimization of the value chain and generation of funds for growth investment through the company-wide "Profit Structure Reform Project" based on the medium-term management plan "SMILE 2027"
• Supply chain reorganization and improved operational efficiency and productivity through the absorption merger of S.T. Business Support Corporation
• Continued strength in commercial-use gloves and new product development in the Hand Care category (net sales of ¥5,540 million for FY2026 ending March 2026, up 2.9% year on year)

Risks

• Continued market stagnation in Clothing Care (Mothballs/Insect Repellents) due to diversification of storage styles (net sales down 2.7% year on year in FY2026 ending March 2026)
• Decreased demand in Moisture Care (Dehumidifiers) due to climate factors such as a dry rainy season, intense heat, and lingering summer heat (net sales down 9.4% year on year in FY2026 ending March 2026)
• Lost sales opportunities and return risk in Thermo Care (Body Warmers) due to persistently high temperatures (net sales down 3.0% year on year in FY2026 ending March 2026)
• Cost pressure risk from persistently high energy prices and rising raw material prices amid escalating tensions in the Middle East
• Impact on the supply chain from geopolitical risks, including uncertainty over U.S. trade policy (tariffs) and the state of Japan-China relations
• Risk of sales concentration in two major distributors, PALTAC Corporation and ARATA Corporation (accounting for approximately 59% of net sales combined)
• Recording of business restructuring costs (¥50 million in FY2026 ending March 2026) associated with the withdrawal from the hand care manufacturing business at Thai subsidiary S.T. (Thailand), and risk of further costs going forward
• Decline in net profit level due to the disappearance of one-time gains recorded in the prior year, including gain on negative goodwill (¥1,101 million) and gain on sale of fixed assets (¥551 million)