Impact on Results from Manufacturing and Shipping Delays for Hyalo Deep Patch

「1Qで一部商品の受注が想定以上に好調で生産が追い付かず、受注済み売上未計上だったものは概ね解消（残31百万円）」

「During the first quarter of the current consolidated fiscal year (1 March 2026 to 31 May 2026), production could not keep pace with increased demand for certain products as new-customer acquisition expanded rapidly, resulting in approximately ¥286 million of “back orders,” meaning orders received but not yet shipped. By the end of the current interim consolidated accounting period, the back-order balance had been substantially cleared to approximately ¥31 million, and it was fully cleared in September 2026.」

「In addition, orders surged following strong promotional activity for certain products, leaving production unable to keep pace, and we are therefore accepting pre-orders. As a result, the timing of recognition for revenue and customer acquisition costs related to these orders has shifted between periods.」

「In the previous fiscal year, orders surged after promotional activities for some products performed well. Although the orders had been accepted, production could not keep up, resulting in waiting times of several months before shipment. During the first quarter accounting period, the delays were completely resolved and the Company shipped the products to all customers who had been waiting.」

「In the previous fiscal year, orders surged after promotional activities for some products performed well. Although the orders had been accepted, production could not keep up, resulting in waiting times of several months before shipment. During the first quarter accounting period, the delays were resolved and the Company shipped the products to all customers who had been waiting.」

「Because of the shipping delays, the advertising expenses incurred for the orders were recognized ahead of schedule during the consolidated fiscal year, while the corresponding net sales of ¥178.040 million and operating profit of ¥129.397 million that would otherwise have been recognized were deferred until the following consolidated fiscal year, resulting in figures below forecast. The shipping delays are expected to be resolved during the following consolidated fiscal year.」

「Operating profit was below forecast because of the shipping delays. Orders surged after promotional activities for some products performed well, and although the orders had been accepted, production could not keep up, resulting in waiting times of several months before shipment. As a result of the delays, the advertising expenses incurred for those orders were recognized ahead of schedule during the cumulative second quarter of the consolidated fiscal year, while the corresponding net sales of ¥83.527 million and operating profit of ¥70.458 million that would otherwise have been recognized were deferred until the third quarter accounting period and thereafter. Consequently, the figures for the cumulative second quarter were below forecast.」

「In addition, orders surged after promotional creative for some products proved effective, and although the orders had been accepted, production could not keep up, resulting in waiting times of several months before shipment.」

「During the fourth quarter accounting period, orders surged after creative materials for some products proved effective, and production could not keep up, resulting in waiting times of several months from ordering to delivery.」

「The shipping delays have been completely resolved as of December 2019 through increased production capacity, and shipments are currently proceeding normally.」

「For “Hialo Deep Patch” in the “Puncture Cosmetics—Deep Patch Series,” shipments had to be temporarily rescheduled during the third quarter accounting period to balance new customer acquisitions and inventory levels, and customers placing new orders had to wait several months for delivery.」

「The shipping delays had a negative impact of approximately ¥247 million on net sales and approximately ¥158 million on operating profit for the cumulative first quarter. The delays have been gradually resolved since late June, and the net sales and operating profit that could not be recognized during the cumulative first quarter because of the delays are expected to be added from the second quarter onward.」

「Because production is currently unable to keep up, customers must wait 2 to 3 months from placing an order until delivery. Nevertheless, orders from customers willing to wait continue to come in, and the number of customers on the reservation waiting list continues to increase. The Company expects the shipping delays to have a temporary negative impact on financial results for the cumulative first quarter of the fiscal year ending February 2020, of approximately ¥250 million in net sales and approximately ¥160 million in operating profit.」