SHOBIDO Corporation

Business Details

The Group is a single-segment company that sells cosmetics, cosmetic sundries, fashion accessories, character merchandise, Contact Lens Related products, and more to retailers, wholesalers, and general consumers. As a fabless manufacturer, it conducts everything from marketing to planning, design, development, and sales in an integrated manner, operating a two-pronged business model of NB (in-house brands) and PB (OEM). Major customers are Seria Co., Ltd. (13.5% of sales) and Don Quijote Co., Ltd. (11.6% of sales). Over 90% of sales are domestic.

Recent Overview

In the first half of FY2026 (ending September 2026), net sales rose 6.8% and operating profit rose 53.8%; the full-year forecast was revised upward and a dividend increase was also decided

In the first half of FY2026 (ending September 2026, October 2025 to March 2026), net sales were ¥11,466 million (up 6.8% year on year), operating profit was ¥1,131 million (up 53.8%), and ordinary profit was ¥1,088 million (up 56.9%), with significant profit growth at every stage. Gross profit margin improved to 34.3% (up 3.8 points year on year). The main factors were an increase in unit prices driven by a higher proportion of NB products and a shift toward higher value-added products, as well as the contribution from Picomonte Japan Co., Ltd. (in which the voting rights ratio was raised to 70% in January 2026). The full-year earnings forecast was revised upward to net sales of ¥23,000 million and operating profit of ¥1,800 million, and the annual dividend forecast was also raised from ¥28.00 to ¥33.00 (interim ¥16.50, year-end ¥16.50). On the other hand, the acquisition of 600,000 treasury shares (expenditure of ¥761 million) caused the equity ratio to decline to 42.7% (from 45.5% at the previous fiscal year-end).

Key Products

Growth Drivers

• Improvement in unit prices and gross profit margin (34.3% in the first half of FY2026 (ending September 2026), up 3.8 points year on year) driven by an increasing proportion of NB (national brand) products and a shift to higher value-added items
• Strong performance of collaboration products with popular characters and food IP in the Cosmetics (up 14.5% year on year) and Fashion Accessories (up 12.4%) categories
• Contribution to sales and profit through strengthened planning and procurement capabilities in the cosmetics OEM/ODM domain following the additional acquisition of Picomonte Japan Co., Ltd. to a 70% voting rights ratio (January 2026)
• Cost reduction, quality improvement, expanded product categories, and increased share with major priority customers through the expansion of new overseas production partner facilities in the PB business
• Faster decision-making and enhanced product development capabilities and productivity through BI tool implementation and shipment data analysis and visualization by the DX Promotion Office

Risks

• Continued decline in sales in the Contact Lens Related category (down 1.2% in the first half of FY2026 (ending September 2026)); limited short-term sales recovery due to the continuation of the selective OEM order-taking policy
• Risk that the increase in selling, general and administrative expenses (up 10.5% to ¥2,801 million in the first half of FY2026 (ending September 2026)) will partially offset the improvement in gross profit
• Rising financial leverage and declining equity ratio (42.7%) due to treasury stock acquisition (600,000 shares, ¥761 million) and increased borrowings (short-term +¥700 million, net long-term increase +¥653 million)
• Risk of stagnant personal consumption due to soaring raw material and resource prices and declining real wages amid rising prices
• Risk of deteriorating business environment due to geopolitical risks such as uncertainty over U.S. policy trends, the prolonged Russia-Ukraine war, and escalating tensions in the Middle East (including the Strait of Hormuz issue)
• Foreign exchange risk (interest expense of ¥29 million and foreign exchange losses of ¥44 million recorded as non-operating expenses; hedged via forward exchange contracts with a balance of ¥976 million)