The revenue growth plan remains unchanged, but 1Q sales were only 22.0% of the full-year plan.

Sales for the fiscal year ended March 2026 were ¥9,906 million, a substantial 27.2% increase year on year. For the fiscal year ending March 2027, the company is planning sales of ¥11,000 million, up 11.0% year on year. 1Q sales were ¥2,425 million, representing approximately 22.0% progress against the full-year plan, about 3 percentage points below the simple quarterly elapsed rate of 25%. The company cannot yet be said to be significantly behind plan, but it will be necessary to assess sales seasonality and whether sales are weighted toward the first half by 2Q.

The company attributed the 1Q revenue increase to growth in sales of Kyoryoku Wakamoto in Japan and overseas and an increase in contract manufacturing of ophthalmic products in Global Business. However, it has not disclosed a breakdown of sales by factor in terms of value or units sold. Based on the current disclosure alone, it is therefore not possible to determine whether the 11.9% increase in 1Q was due to temporary shipment timing or to sustained volume growth and an accumulation of contract manufacturing projects from 2Q onward.

By segment, Pharmaceutical Business sales were ¥1,150.187 million, up 4.5% year on year; Healthcare Business sales were ¥625.500 million, up 4.3%; Global Business sales were ¥600.947 million, up 41.7%; and Real Estate Leasing Business sales were ¥48.893 million, up 11.3%. Global Business recorded the highest growth rate and is lifting the company-wide growth rate, while growth in Pharmaceutical Business, the largest segment by sales, was comparatively modest.

At the next earnings announcement, the key points will be whether cumulative first-half sales reach ¥5,500 million and whether the revenue growth rate can be maintained at around 11.9%, as in 1Q. In addition, even if the full-year plan of ¥11,000 million is left unchanged, it will be important to see whether the company provides further detail by volume, unit price and project on which of domestic and overseas Kyoryoku Wakamoto sales, contract manufacturing of ophthalmic products and other products drove the 2Q revenue increase.