Accelerating sales and narrowing losses in the second half are necessary to meet the full-year forecast

First-quarter revenue from April to June 2026 was ¥587 million, down 2.0% from ¥599 million in the same period a year earlier. With the full-year revenue forecast at ¥2,863 million, actual progress was 20.5%. This was approximately 4.5 percentage points below the 25% benchmark based on simply treating the first quarter as one-fourth of the full year, so revenue was not ahead of plan.

The operating loss improved by ¥24 million, from ¥154 million in the same period a year earlier to ¥130 million, but the full-year operating loss forecast is ¥213 million. On a loss basis, the first quarter alone consumed 61.0% of the full-year forecast, meaning that, on a simple run-rate basis, the combined operating loss from the second quarter onward would need to be held to approximately ¥83 million. This does not represent a quarterly profit-and-loss plan provided by the company, but the fact that profit-and-loss progress is lagging more heavily than revenue is an important point to verify in the first-half results.

According to the company's explanation, the broadcast schedule for TV shopping in the Beauty & Wellness business was postponed, early-summer adverse weather affected the Cosmetics business, and delayed delivery times from environmental equipment manufacturers weighed on sales in the Sustainable business. These effects were partly offset by expanded OEM orders in the regenerative medicine-related business and the full-scale launch of the cell processing business. In the second quarter, it will be necessary to verify from business-by-business revenue and profit figures whether the postponed broadcasts translated into actual sales and whether the delivery delays were resolved.

Reaching 50% of the full-year revenue forecast on a cumulative first-half basis requires ¥1,432 million on a simple calculation. After deducting first-quarter actual revenue, standalone second-quarter revenue of approximately ¥845 million would be required. If this level is not reached, the concentration of required revenue in the second half will increase further. At the results announcement, we will check not only whether the full-year forecast is maintained, but also business-by-business progress against the revenue plan, the profit-and-loss outlook for the remaining period until the ¥213 million operating loss forecast is reached, and whether the forecast is revised.