FY2027 growth plan entails lower margins, making the quality of the recovery a key Q1 test

For the fiscal year ended June 2026, revenue was ¥14,369 million and operating profit was ¥4,200 million, representing declines of 22.9% and 49.2%, respectively, from the previous fiscal year. The operating margin also fell 15.2 percentage points, from approximately 44.4% in FY2025 to 29.2%. This suggests that, in addition to weaker demand, the fixed-cost burden associated with expanding factory operations and staffing may have weighed on profit.

The company forecasts revenue of ¥16,730 million, operating profit of ¥4,374 million and ordinary profit of ¥4,026 million for the fiscal year ending June 2027. With revenue projected to increase 16.4% but operating profit only 4.1%, the planned operating margin is approximately 26.1%. Even after returning to revenue growth, the plan assumes a margin below the 29.2% recorded in FY2026. The recovery in revenue therefore needs to be assessed alongside changes in product pricing, manufacturing costs, depreciation and personnel expenses.

The FY2026-Q1 results used for comparison with FY2027-Q1 were revenue of ¥2,368 million and operating profit of ¥547 million. In the next earnings release, it will be necessary to check whether these levels are exceeded and whether the margin has deteriorated further, even if new products are launched or demand related to infectious diseases recovers. Because the company operates in a single segment, profit contributions by segment are unlikely to be disclosed. If the breakdown of revenue by product, volume and pricing, cost movements and selling, general and administrative expenses remains limited, it will also be difficult to assess the likelihood of achieving the full-year forecast.