Daily Brief Consumer: Light & Wonder , Yakult Honsha, Pacific Industrial, Delfi Ltd, DigiPlus Interactive , New Oriental Education & Techn, Kohnan Shoji, Kimberly Clark, Papa John’S Intl, Estee Lauder Companies Cl A and more

• In August, Light & Wonder (LNW AU) / Light & Wonder (LNW US) announced that the company would give up its US listing and move to an ASX Primary Listing.
• The NASDAQ delisting has been confirmed (as expected) for 12 November. October saw significant CDI conversions. More have come in the last few days. 
• This creates a significant, and interesting set of index events to track. 

• A major global index provider announced its quarterly review on 5th November 2025. The rebalance will take place on 24th November 2025.
• There were 133 changes announced. We got 115 of these 133 changes – around 86%.
• In this insight, we have presented our final flow expectations for the confirmed index changes and provide a few comments on specific situations.

• On 23 October, the MBO price for Pacific Industrial (7250 JP) was increased by 42.4% to JPY2,919 per share. The offer closes on 7 November. 
• Today, Effissimo further increased its stake to 8.6 million shares, representing 13.97% of outstanding shares and a 14.82% ownership ratio. The implication is that Effissimo remains unsupportive.  
• The shares trade above terms, and the close is likely to be extended. Another bump is possible, but likely, the Ogawas will first try to lower the minimum acceptance condition. 

• Number 1 chocolate company in Indonesia with own brands like SilverQueen, Ceres etc. The company also distributes third party brands across South Asia.
• Cocoa prices have halved from their recent peak but still they are higher than historical average
• Stock trades at reasonable multiple to its 2023 earnings when cocoa prices were stable

• DigiPlus Interactive (PLUS PM) reported revenue/profit of 0%/-52% YoY, reflecting a slowdown in revenue due to the e-wallet redirection policy taking effect in mid-August.
• A&P spends on billboards and events contracted for the full year are effectively fixed costs for the short term, resulting in a higher opex% of sales. 
• We expect these to normalize and for sales to recover, with PAGCOR announcing a sales recovery in late September/early October.  Stock trades at 8.5x/7.2x PE FY25e/26e.

• New Oriental Education & Technology Group reported its first-quarter fiscal 2026 financial results, highlighting both strengths and challenges for its future trajectory.
• The company showcased a moderate 6.1% year-over-year increase in total net revenue, which indicates stable growth following a period of strategic adjustments.
• This growth is credited to enhancing capabilities, operational resilience, and a focus on sustainable profitability.

• Kohnan Shoji is a leading home improvement retailer in Japan, demonstrating resilient growth through strategic store network expansion, particularly its successful ‘KOHNAN PRO’ format catering to professional customers.
• The company’s focus on developing high-margin Private Brand (PB) products is a key pillar of its strategy to enhance profitability and differentiate itself in a competitive market.
• While facing challenges from a mature domestic market and intense competition, Kohnan’s active M&A strategy and consistent dividend growth present a compelling case for long-term value creation.

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• Kimberly-Clark, a prominent name in the consumer goods sector, delivered a robust performance in its latest earnings report for the second quarter of 2025.
• The company demonstrated strong momentum, particularly in the area of organic sales growth, bolstered by the most significant volume quarter it has experienced in five years.
• A core driver of this growth was Kimberly-Clark’s ability to gain market share across several key categories in its largest markets, with notable success in China and broader global applications of their strategic playbook.

• Papa John’s International Inc.’s first-quarter 2025 performance was marked by strategic progress along with challenges within a difficult consumer environment.
• The company reported global system-wide restaurant sales of $1.22 billion, a 1% increase from the prior year in constant currency terms, underscoring some growth despite challenging market conditions.
• In North America, same-store sales decreased by 2.7%, although this figure represents an improvement over previous periods, suggesting some positive momentum.

• The Estée Lauder Companies recently shared its fiscal year 2025 fourth-quarter and full-year earnings.
• The results were characterized by some significant challenges as well as positive strides, outlining both areas of promise and concern for potential investors.
• For fiscal year 2025, Estée Lauder reported an 8% decline in organic sales, largely driven by a 28% decline in travel retail sales, which constitutes about 15% of their total sales.