Earth Corporation

Business Details

Manufactures and sells household insect control products (Gokiburi Hoihoi, Earth No Mat, etc.), oral care products (Mondamin), bath additives (Kikiyu, BARTH, etc.), deodorizers/air fresheners, dehumidifiers and other daily necessities, gardening products, and pet products. In addition to domestic sales, the company positions overseas expansion through local subsidiaries in Thailand, Malaysia, Vietnam, China, the Philippines and other ASEAN/China markets, along with exports to approximately 50 countries worldwide, as a growth driver. Main customers include PALTAC Corporation, ARATA Corporation, and OHKI Co., Ltd. Effective January 1, 2026, the company absorbed its wholly owned subsidiary Bathclin Corporation through merger, promoting optimal allocation of group management resources.

Recent Overview

Insect control and gardening products drove a 5.6% increase in sales; bath additives and oral care struggled. Bathclin merger completed.

In Q1 2026 (January-March), the Household Products Business was driven by insect control products (+9.2%) amid higher temperatures and gardening products (+96.4%) due to the contribution from Protoleaf Co., Ltd., achieving sales of ¥42,962 million (up 5.6% year on year) and segment profit of ¥6,276 million (up 3.2% year on year). Meanwhile, bath additives (down 10.0% due to weak Bathroman and Bathclin powder-type products), oral care products (down 4.1%), and pet products (down 6.3%) fell below the prior year. Effective January 1, 2026, the company absorbed its wholly owned subsidiary Bathclin through merger, removing it from the scope of consolidation. As a subsequent event, a resolution was made to dissolve and close the Chinese subsidiary Ansu Household Chemicals (Suzhou) Co., Ltd.

Key Products

Growth Drivers

• A favorable market start for insect control products amid higher temperatures, and growth in new products (Earth OH! No Mat, etc.)
• Rapid expansion of the gardening products segment (up 96.4% year on year) due to the newly consolidated Protoleaf Co., Ltd.
• Expanding market share and overseas sales growth in ASEAN markets such as Thailand and China
• Optimal allocation of group management resources and improved business efficiency through the Bathclin merger
• Continued steady shipments of other daily necessities such as deodorizers/air fresheners
• Sustained strong performance of pet care products such as cat litter, and stable growth in the pet-related market

Risks

• Continued significant decline in powder-type bath additive products such as Bathroman and Bathclin
• Weakening sales strength in oral care products, with shipments falling below the prior year despite market size expansion
• Stagnant domestic consumer spending due to sluggish real wage growth amid rising prices
• Upward pressure on selling, general and administrative expenses due to increased personnel costs, advertising expenses, and transportation costs
• Continued foreign exchange risk and rising raw material prices
• Risk of returns and disposal losses for insect control products (demand fluctuations due to climate change)
• Impact of the contraction of China operations due to the dissolution of the Chinese consolidated subsidiary Ansu Household Chemicals (Suzhou) Co., Ltd.
• Delays in nurturing new businesses due to the continued year-on-year decline in the MA-T business