Concentration on the IT Hanabiratake business following the sale of the healthcare mail-order business

「機能性表示食品としての優位性を十分に活かしきれず、認知度不足により販売計画が未達となりました。」

「Because sales of IT Hanabiratake products were delayed from the plan, sales were essentially flat at ¥55 million, or 100.8% of the same period of the previous year. The company will seek to expand the business by developing EstroRich Pure, a new product that states the functionality of IT Hanabiratake.」

「As announced on 28 March 2025, after obtaining a Foods with Function Claims notification number from the Consumer Affairs Agency, the company will launch “EstroRich Pure,” a new product that clearly states the functionality of “IT Hanabiratake,” from the third quarter of fiscal 2025 onward, with the aim of expanding the business.」

「The company aimed to obtain the notification number for the Foods with Function Claims designation during the fiscal year ending September 2024, but was unable to do so during that period. As a result, it was also unable to launch the new product, causing a substantial delay in the sales plan. The company is currently making intensive preparations to launch the new product at an early stage of the fiscal year ending September 2025.」

「We continue to take steps toward obtaining the Foods with Function Claims designation, with the aim of obtaining it during the fiscal year ending September 2024. By stating the functionality of IT Hanabiratake, we will develop products with greater appeal to consumers.」

「Although obtaining the Foods with Function Claims designation for IT Hanabiratake has been delayed from the initial plan, the company is in the final stage and aims to obtain it during the current fiscal year. It is focusing on sales activities to make up for the delayed launch of new products with raw-material sales and OEM products.」

「In terms of earnings, the segment loss improved to ¥19 million from ¥24 million a year earlier as higher revenue and continued efforts to improve the earnings structure through expense reductions and other measures took effect.」

「In terms of earnings, gross profit increased as the number of inventory items subject to write-downs declined and the sales mix shifted toward the company's own products. As a result of efforts to reduce fixed costs, the segment loss improved by ¥32 million from the previous fiscal year to ¥51 million.」

「Third-quarter revenue rose to ¥105 million, or 106.9% of the year-earlier level. Supported by higher revenue and the continued effect of expense reductions, the segment loss improved to ¥34 million from ¥53 million a year earlier.」

「Second-quarter revenue declined to ¥68 million, or 94.4% of the year-earlier level. However, the segment loss improved to ¥24 million from ¥34 million a year earlier as the earnings structure continued to improve through expense reductions and other measures.」

「In terms of earnings, continued improvement in the earnings structure through the impact of higher revenue and expense reductions reduced the segment loss from ¥19 million to ¥11 million.」

「In terms of earnings, the segment loss improved to ¥84 million from the previous fiscal year through efforts to reduce fixed costs and the streamlining of unprofitable businesses.」

「Following the sale of the mail-order business during the second quarter of the previous fiscal year and the narrowing of the product range in order to focus on developing the business as a raw-materials manufacturer, revenue declined to ¥99 million, or 63.0% of the year-earlier level. However, the segment loss improved to ¥53 million from ¥80 million a year earlier, owing to the streamlining of unprofitable businesses and other measures.」

「Following the sale of InterTrade Healthcare's mail-order business during the second quarter of the previous fiscal year, second-quarter revenue declined to ¥72 million, or 74.3% of the year-earlier level. However, the segment loss improved to ¥34 million from ¥61 million a year earlier, as the unprofitable division with a deteriorating earnings structure was divested.」

「Revenue declined to ¥34 million, or 62.8% of the same period of the previous year, due to the sale of the mail-order business during the second quarter of the previous fiscal year as the company focused on developing its business as an IT Hanabiratake manufacturer. On the profit-and-loss side, the segment loss improved from ¥30 million to ¥19 million as the company divested the business whose earnings structure had deteriorated and concentrated its management resources.」

「Following the sale of Intertrade Healthcare's mail-order business, the company focused on developing its business as a raw-materials manufacturer, including products related to the silent estrogenic activity of the IT Hanabiratake it produces, OEM products and raw-material sales. As a result, sales were ¥193 million, or 65.8% of the previous fiscal year's level. In terms of earnings, the company separated the business whose earnings structure had deteriorated and concentrated management resources, reducing the segment loss to ¥118 million, an improvement from the previous fiscal year.」

「Due to the sale of Intertrade Healthcare's mail-order business, third-quarter revenue was ¥157 million, or 70.2% of the same period of the previous year. On the profit-and-loss side, the segment loss improved to ¥80 million from the same period of the previous year as the company divested the business whose earnings structure had deteriorated and concentrated its management resources.」

「Following the sale of Intertrade Healthcare’s mail-order business in order to focus on developing the business as an “IT Hanabiratake” manufacturer, second-quarter net sales were ¥97 million, or 66.0% of the year-earlier period. However, separating the business with a deteriorating earnings structure and concentrating management resources led to a slight improvement in profitability, with the segment loss narrowing to ¥61 million from the previous year.」