Pigeon (7956): 2Q results: Strong, steady growth in sales of nursing bottles to North America

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

Pigeon (7956)

2Q results: Strong, steady growth in sales of nursing

bottles to North America

Somewhat positive: 2Q operating profit of ¥4.2 billion beat our ¥3.8 billion

estimate by ¥0.4 billion. The China and Lansinoh businesses overshot. The

accelerating growth in sales of nursing bottles to Europe and North America looks

somewhat positive, in our view. Marketing offensives by local competitors in

China seem to have had very limited impact. Management maintained its full-year

FY2026 earnings guidance, but we believe the likelihood of an overshoot has

increased. A results briefing is scheduled for the 7th.

Neutral

7956.T, 7956 JP

Price (06 Aug 26):¥2,033

Price Target (Dec-26):¥1,900

Japan Equity Research

Cosmetics and Personal Care /

Paper and Packaging

Akiko Kuwahara AC

(81-3) 6736-8617

JPMorgan Securities Japan Co., Ltd.

2Q operating profit improved by ¥700 million YoY: Operating profit

increased YoY in the Japan, China, and Lansinoh businesses but declined

slightly in the Singapore business. In the core China business, sales on the

mainland swung to a YoY decline. However, sales in South Korea grew further,

by 10% YoY, on an increase (+150% YoY) in exports of nursing bottles to the

US and yen depreciation. The gross margin declined by only 1ppt YoY. Sell-out

sales of nursing bottles in mainland China accelerated slightly to +1.3% in 2Q

from +0.8% in 1Q. Sales rose 1.4% for online channels and 0.8% for offline

channels. In the Lansinoh business, 2Q nursing bottle sales increased 90%

YoY. Sales expansion in Europe offset a pullback from front-loaded demand in

North America ahead of tariffs in the year-ago quarter. Also, management

noted that it had secured shelf space at Target. We estimate 1H operating profit

beat guidance by around ¥0.5 billion to ¥1 billion. Management maintained its

FY2026 earnings guidance, citing cost increases resulting from the prolonged

tensions in the Middle East.