All 3 business areas posted higher revenue and operating income in FY2027 1Q; in 1H, the focus will be on the sustainability of growth.

In FY2027 1Q, revenue was ¥67.02 billion, operating income was ¥6.74 billion, ordinary income was ¥7.39 billion, and net income attributable to owners of the parent was ¥6.081 billion. Year on year, revenue increased 23.1%, operating income 54.3%, ordinary income 81.7% and net income 41.7%, with operating income improving at a faster pace than top-line growth.

By segment, Mobility & Imaging reported revenue of ¥26.927 billion and segment profit of ¥3.392 billion, representing year-on-year increases of 20.3% and 43.9%, respectively. Fine Chemicals reported revenue of ¥20.554 billion and profit of ¥3.324 billion, up 23.0% and 33.2%, respectively. Life Sciences reported revenue of ¥19.920 billion and profit of ¥2.184 billion, up 27.2% and 17.3%, respectively. Life Sciences recorded the highest revenue growth, while Mobility & Imaging recorded the highest profit growth, indicating differences in the quality of growth across segments.

The full-year forecasts are revenue of ¥270.9 billion, operating income of ¥27.3 billion, ordinary income of ¥27.0 billion and net income attributable to owners of the parent of ¥22.9 billion. At the end of 1Q, progress was approximately 24.9% for revenue and 24.7% for operating income, broadly in line with the plan after one quarter. However, the 1Q operating margin was approximately 10.0%, close to the full-year forecast of approximately 10.1%. Whether this level can be maintained in 1H will be a benchmark for assessing the validity of the full-year forecasts.

The latest disclosure did not provide figures for regional revenue, orders received or order backlog, or product-level sales volumes and price effects. Accordingly, in FY2027-H1 we will look for additional explanation not only of year-on-year growth across the 3 areas, but also of the extent to which capacity expansion in Mobility & Imaging, semiconductor-related demand, and market penetration of pharmaceutical and agro products contributed to revenue and profit.