ENVALITH
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PIGEON CORPORATION

7956・Prime Market・Other Products

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ピジョン株式会社 logo
PIGEON CORPORATION7956

Business

Pigeon Corporation, founded in 1957, is a specialized manufacturer of childcare and nursing care products, forming a group consisting of the parent company and 26 subsidiaries. The business is divided into four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. With Nursing Bottles & Nipples as its core products, the company offers a wide range of products and services including Baby Skin Care, Breast Pumps, Drinking Cups, nursing care products, and Childcare Support Services. Its main customers are households with infants and young children, and it maintains sales networks across multiple regions including Japan, China, ASEAN, India, the Americas, and Europe. Consolidated net sales for FY2025 (ending December 2025) were ¥109,170 million. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Products manufactured at group production sites in Thailand, China, Indonesia and elsewhere are sold in local markets by regional sales subsidiaries (China: PIGEON SHANGHAI, etc.; ASEAN: PIGEON SINGAPORE, etc.; US/Europe: LANSINOH, etc.). In Japan, wholesale distribution is also utilized through the major sales partner Pip Co., Ltd. (net sales of ¥17,629 million, 16.1% of the composition). The China Business, with segment profit of ¥10,496 million, underpins a highly profitable structure that stands out from the rest.

Company Strengths

The company holds the No.1 domestic market share (per company research) with its Bonyu Jikkan® series, backed by approximately 70 years of childcare research underpinning its product development capabilities. The brand is also deployed in China, ASEAN, Europe and the US, and in FY2025 (ending December 2025), sales of Nursing Bottles & Nipples showed steady growth across all four segments.

The China Business recorded segment profit of ¥10,496 million in FY2025 (ending December 2025), against external customer sales of ¥41,098 million, resulting in an outstandingly high segment profit margin of approximately 25.5%. This profit structure is supported by enhanced digital marketing on platforms such as Douyin and RED, along with steady sales during the Double Eleven shopping season.

Centered on its Central Research Institute, the company employs 256 R&D personnel and invested ¥3,511 million in R&D expenses (FY2025, ending December 2025), building an integrated system spanning basic research on feeding and nursing through to mass production. The combination of manufacturing bases in Thailand, China, Indonesia and other locations with regional sales subsidiaries diversifies dependence on any single region.

ENVALITH's Perspective

For 1Q FY2026 (ending December 2026), operating profit of ¥3,645 million (+14.1% YoY) and ordinary profit of ¥3,697 million (+15.0% YoY) were solid. However, net income attributable to owners of the parent came in at ¥2,309 million (-0.9% YoY), a slight decline. This was mainly because the same period last year included an extraordinary gain of ¥331 million from compensation received for damages, while the current period incurred a business restructuring loss of ¥71 million. On an ordinary profit basis, improvement in underlying performance is confirmed. The full-year earnings forecast (net sales of ¥113,500 million, operating profit of ¥13,900 million) remains unchanged, and progress against the full-year forecast after 1Q was generally on track at 24.4% for net sales and 26.2% for operating profit.

Segment profit for the Americas & Europe Business in 1Q FY2026 (ending December 2026) was ¥453 million (-2.5% YoY), making it the only segment to post a profit decline. Increased marketing expenditure aimed at capturing the Nursing Bottles & Nipples market in North America weighed on profit. In the Breast Pump category, local-currency sales fell below the same period last year amid intensifying competition. Trends in U.S. tariff policy could affect raw material costs and prices of imported goods, and this remains an external factor requiring continued monitoring. This stands in contrast to Europe, where all major countries posted substantial growth.

As the first year of the 9th Medium-Term Management Plan (FY2026-FY2028, ending December 2028), the company achieved revenue and operating profit growth across all segments, marking a good start toward "sustainable growth accompanied by profitability." On the other hand, the ongoing global trend of declining birth rates, including in Japan and China, remains a persistent headwind in the market environment. The company itself has cited uncertainty over raw material trends stemming from the situation in the Middle East as a downside risk to its earnings forecast. Regarding foreign exchange, the U.S. dollar traded at ¥156.89 and the Chinese yuan at ¥22.65, both weaker yen levels compared to the same period last year, which functioned as an external factor boosting yen-denominated sales from overseas operations.

Growth Strategy

With a 10-year target of 20% global market share in nursing bottles, a dual-axis strategy combining accelerated growth in the Americas/Europe/ASEAN with stable earnings in Japan and China

As a core initiative of the 9th Medium-Term Management Plan, the Company is advancing concentrated investment in the Nursing Bottles & Nipples category. In Q1 FY2026 (ending December 2026), Nursing Bottles & Nipples drove sales across all segments—Japan, China, Singapore, and the Americas & Europe—and efforts to strengthen global product competitiveness are underway.

Strengthened promotional measures to acquire new customers and raise brand awareness in North America drove significant growth in nursing bottle sales. In Europe, major markets including Germany, the UK, Turkey, and France all achieved substantial growth. However, segment profit declined by 2.5% year on year due to increased marketing investment in North America.

Higher value-added products such as childcare electronics, baby food, and skin care performed well, with Japan Business segment profit in Q1 FY2026 (ending December 2026) reaching ¥815 million (up 84.7% year on year). This was supported by LTV expansion driven by Age Up products (such as Pigeon Kids) and robust growth in the Company's own e-commerce operations.

Sell-out continued to grow, led by online channels. GMV for Women's Day increased 20% year on year. Despite upfront investment in new product promotions ahead of the 618 e-commerce shopping festival, this was offset by the effect of higher sales, resulting in segment profit growth of 6.8% year on year.

As one of the three basic strategies of the 9th Medium-Term Management Plan, the Company is strengthening its management foundation to enable swift decision-making and strategy execution. It has also begun incorporating ESG into product development, including through Bonyu Jikkan® Sheer, which uses environmentally friendly silicone materials.

Last updated: July 17, 2026