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Earnings presentation5187CREATE MEDIC CO.,LTD.Electrical Equipment and Precision Instruments

Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026

In the first quarter, revenue increased on strong sales of new products sold directly by the company. However, profit at all levels from operating profit downward declined due to a higher cost of sales ratio attributable to foreign exchange and the sales mix, as well as increased expenses for new businesses and overseas strategies.

Worth reading
51Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-81
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,364 million+4.5%
Operating profit¥140 million-36.6%
Ordinary income¥169 million-21.3%
Net income¥153 million-26.7%
Selling, general and administrative expenses¥1,242 million
Gross Profit Margin41.1%, down 2.9 percentage points year on year (higher cost of sales ratio)
Operating profit margin4.2%, down 2.7 percentage points year on year
Results for the three months of the current quarterRevenue of ¥3,364 million, operating profit of ¥140 million, ordinary profit of ¥169 million, and quarterly net profit of ¥153 million
Full-year earnings forecast
Net Sales
¥13,960 million
Operating profit
¥1,060 million
Ordinary income
¥1,070 million
Net income for the current fiscal year
¥750 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • 2025 operating profit¥1,005 million
  • Higher volume in domestic sales and other businesses+¥168 million
  • Price increases+¥150 million
  • Impact of centralized purchasing in China-¥100 million
  • Increase in selling, general and administrative expenses-¥163 million
  • 2026 planned operating profit¥1,060 million
New initiatives
  • Established the Indian sales company CREATE MEDIC INDIA PVT.LTD. on 7 April 2026
  • Scheduled launch of 3 new products
  • Developing the Indian and Southeast Asian markets
  • Revision of the shareholder return policy (50.0% dividend payout ratio guideline and 4% DOE target)
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas revenue ratio33.8 %
  • Overseas revenue¥45 hundred million
  • Number of employees (consolidated)1,010 people
  • Product lineupMore than 100 types
  • Number of overseas group companies3 companies
Medium-term management plan targets
  • Target fiscal yearFY2027
    Operating profit¥1.3 billion
    Operating profit margin8%
  • Target fiscal year2034
    Operating profit¥3 billion
    Operating profit margin15%
  • Target fiscal year2034
    Overseas revenue ratio50.0%
    Overseas revenue¥10 billion
Financial targets
  • ROE
    2025 actual4.4%
    2027 target7.0%
  • PBR
    2025 actual0.53x
    2027 target0.70x
  • Operating margin
    2025 actual7.4%
    2027 target8.0%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The company refers to the impact of expanded centralized purchasing for sales in China and MDR compliance, but the risk amount is Not disclosed
Number of employees
1,010 consolidated employees (as of 31 December 2025). Changes during the period and hiring plans: Not disclosed
Annual Dividend
¥47 for FY2026 (¥20 interim, ¥27 year-end)
Payout ratio
The company uses a consolidated dividend payout ratio of 50.0% as a guideline and aims to raise DOE to 4% over the medium to long term
Acquisition of treasury shares
The company conducted a ¥200 million share buyback and plans to continue conducting buybacks flexibly. The number of shares to be acquired and the period are Not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥3,364 million (YoY +4.5%)
Operating profit¥140 million (YoY -36.6%)
Ordinary income¥169 million (YoY -21.3%)
Net income¥153 million (YoY -26.7%)
Gross Profit Margin41.1%, down 2.9 percentage points year on year (higher cost of sales ratio)
Operating profit margin4.2%, down 2.7 percentage points year on year
Selling, general and administrative expenses¥1,242 million
Results for the three months of the current quarterRevenue of ¥3,364 million, operating profit of ¥140 million, ordinary profit of ¥169 million, and quarterly net profit of ¥153 million
Full-year earnings forecastNet Sales ¥13,960 million / Operating profit ¥1,060 million / Ordinary income ¥1,070 million / Net income for the current fiscal year ¥750 million
Breakdown of Factors Affecting the ChangeFactors 2025 operating profit / Amount ¥1,005 million, Factors Higher volume in domestic sales and other businesses / Amount +¥168 million, Factors Price increases / Amount +¥150 million, Factors Impact of centralized purchasing in China / Amount -¥100 million, Factors Increase in selling, general and administrative expenses / Amount -¥163 million, Factors 2026 planned operating profit / Amount ¥1,060 million
Key KPIsIndicator name Overseas revenue ratio / Value 33.8 % / Year on year against the same period last year Not disclosed, Indicator name Overseas revenue / Value ¥45 hundred million / Year on year against the same period last year Not disclosed, Indicator name Number of employees (consolidated) / Value 1,010 people / Year on year against the same period last year Not disclosed, Indicator name Product lineup / Value More than 100 types / Year on year against the same period last year Not disclosed, Indicator name Number of overseas group companies / Value 3 companies / Year on year against the same period last year Not disclosed
Number of employees1,010 consolidated employees (as of 31 December 2025). Changes during the period and hiring plans: Not disclosed
Risk amount incorporated into the outlookThe company refers to the impact of expanded centralized purchasing for sales in China and MDR compliance, but the risk amount is Not disclosed
Medium-term management plan targetsTarget fiscal year FY2027 / Operating profit ¥1.3 billion / Operating profit margin 8%, Target fiscal year 2034 / Operating profit ¥3 billion / Operating profit margin 15%, Target fiscal year 2034 / Overseas revenue ratio 50.0% / Overseas revenue ¥10 billion
Financial targetsIndicator ROE / 2025 actual 4.4% / 2027 target 7.0%, Indicator PBR / 2025 actual 0.53x / 2027 target 0.70x, Indicator Operating margin / 2025 actual 7.4% / 2027 target 8.0%
Annual Dividend¥47 for FY2026 (¥20 interim, ¥27 year-end)
Payout ratioThe company uses a consolidated dividend payout ratio of 50.0% as a guideline and aims to raise DOE to 4% over the medium to long term
Acquisition of treasury sharesThe company conducted a ¥200 million share buyback and plans to continue conducting buybacks flexibly. The number of shares to be acquired and the period are Not disclosed
New initiativesEstablished the Indian sales company CREATE MEDIC INDIA PVT.LTD. on 7 April 2026, Scheduled launch of 3 new products, Developing the Indian and Southeast Asian markets, Revision of the shareholder return policy (50.0% dividend payout ratio guideline and 4% DOE target)
Items this document does not state (10)
Progress against full-year forecastSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue benefited from strong sales of new urology products sold directly by the company and overseas exports, while the cost of sales ratio rose due to foreign exchange effects on products purchased overseas and the sales mix of export sales. SG&A expenses increased due to investment in new businesses and overseas strategies, information system expenses, and the front-loading of logistics-related expenses.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | CREATE MEDIC CO.,LTD. (5187) timely disclosure | Komori