FY2027 plans to increase operating profit despite assuming lower revenue, with Q1 focused on whether profit-led performance can be replicated.

Consolidated revenue in FY2026 was ¥3,871 million, down 20.2% year on year, while operating profit was ¥275 million, a turnaround from the ¥137 million operating loss recorded in the previous fiscal year. For FY2027, the company forecasts revenue of ¥3,270 million, operating profit of ¥300 million and net income attributable to owners of the parent of ¥250 million. Revenue is expected to decline by approximately 15.5% year on year, while operating profit is planned to increase by approximately 9.1% and net income by approximately 17.9%. The plan appears to prioritize profitability through business restructuring and fixed-cost reductions over a recovery in revenue scale.

In the nine months ended FY2026-Q3, the company recorded revenue of ¥3,236 million and operating profit of ¥325 million. By segment, health supplements generated revenue of ¥1,288 million and operating profit of ¥329 million; healthcare support generated revenue of ¥656 million and operating profit of ¥123 million; cosmetics generated revenue of ¥882 million and operating profit of ¥51 million; functional materials development generated revenue of ¥239 million and operating profit of ¥27 million; and biological evaluation systems generated revenue of ¥168 million and operating profit of ¥20 million. Health supplements and healthcare support were the main sources of profit, making it important to determine whether these two businesses can continue to support group-wide profit in the next Q1.

Against operating profit of ¥325 million for the nine months, full-year actual operating profit was ¥275 million. On a simple difference basis, this implies an operating loss of approximately ¥50 million in Q4. Because the difference reflects seasonality, costs associated with business closures and restructuring-related costs, it cannot be regarded as ordinary earning power. The earnings release does not directly disclose the operating margin on revenue, so investors must calculate the approximately 7.1% FY2026 full-year margin and the Q1 margin from revenue and operating profit.

In the next Q1, the key reference points will be revenue of ¥1,415 million and operating profit of ¥127 million in the year-earlier quarter, with a focus on whether the decline in revenue narrows and operating profitability continues. In addition to progress against the FY2027 full-year forecast of ¥3,270 million in revenue and ¥300 million in operating profit, the focus will be on whether the company discloses a sustainable operating margin excluding temporary profit contributions from restructuring, the factors behind changes by segment, and the effects of reductions in advertising and sales-promotion expenses.