Business Overview

Business and Performance Overview (The six months ended June 30, 2025)

During the six months (January 1 to June 30, 2025) of the fiscal year under review, the economic environment in Japan saw a gradual recovery due to improvements in the income environment, although inflation caused personal consumption to stall. Overseas, the outlook for the global economy remains uncertain due to factors such as continued inflation in Europe and the U.S., the prolonged slowdown in the Chinese economy, and the effects of the U.S. tariff policies.
In this economic environment, consolidated net sales for the six months under review totaled 64,964 million yen, down 1.0% year on year (YoY). Net sales in the Japanese market came to 14,003 million yen, down 2.9% YoY. Net sales in overseas markets were 50,960 million yen, down 0.5% YoY.
In terms of profit, the Group recorded operating profit of 11,770 million yen, up 18.3% YoY, and ordinary profit of 11,615 million yen, down 8.4% YoY. Profit attributable to owners of parent stood at 7,660 million yen, down 14.2% YoY.

Japan

In the stationery business, sales of S20 high-end mechanical pencils, which are crafted from wood, remained strong in Japan. The Juice up series, which are gel ink pens with our proprietary nib, Synergy Tip, also performed strongly in collaboration with HERALBONY Co., Ltd. and others. In addition, the highlighter pen KIRE-NA, which has been performing well since its launch in October last year, has also become available at hundred-yen stores. However, domestic sales were down YoY due to the large impact of new products FRIXION SYNERGY KNOCK and ballpoint pen Acroball launched in the same period in the previous fiscal year. Furthermore, export sales have decreased. This was mainly due to Pilot Pen (Malaysia) Sdn. Bhd. and PPIN Private Limited being included in the consolidated financial statements, which meant that sales for Malaysia and India that were previously included in the Japan segment are now included in the Asia segment.
In the toys business, sales decreased due to price increases implemented in April 2025 for the Mellchan doll and bath toys series, our mainstay products.
In the industrial materials and other businesses, sales increased thanks to the recovery of orders received for ceramics products, the mainstay of the industrial materials business.
Segment operating profit decreased due to a temporary decline in sales to consolidated subsidiaries and a rising cost rate accompanying a decrease in the production volume of main products as we sought to optimize inventory levels.

The Americas

Sales remained strong for G-2, our mainstay product that continues to hold the top share in the gel ink pen market in the U.S., and for V Board Master whiteboard markers in the Brazilian market. However, net sales fell due to the impact of the yen’s appreciation. Segment operating profit increased mainly due to a decrease in the cost rate.

Europe

Sales of the FRIXION series, our core products in the European market grew thanks to the addition of FRIXION ball+, which uses recycled plastic. Furthermore, in preparation for the back-to-school season, we have expanded promotion for FRIXION and G-2 in collaboration with a popular Japanese animation starting in May 2025, aiming to further boost sales.
However, sales fell due to the impact of the yen’s appreciation, and segment operating profit declined primarily due to an increase in the cost rate.

Asia

In Asia, sales and segment operating profit increased. Although China’s economy remains weak, the Juice series of gel ink pens, our mainstay products in the Chinese market, performed well. Furthermore, Pilot Pen (Malaysia) Sdn. Bhd. and PPIN Private Limited are now included in the consolidated financial statements, and sales for Malaysia and India that were previously included in the Japan segment are now included in the Asia segment.

Products (Japanese language only)