Full-year sales plan on track as of 1Q, but sustained growth in the regenerative medicine products business is key to achievement

Sales in the first quarter of the fiscal year ending March 2027 were ¥766 million, up ¥340 million from ¥426 million in the same quarter of the previous year, an increase of 79.9%. With the full-year sales forecast at ¥3,070 million, 1Q progress was approximately 25.0%, broadly in line with the proportion of the fiscal year elapsed. The full-year forecast was not revised as of 1Q, so the start appears to be on plan, although the company has not stated that sales are planned to be evenly distributed across quarters.

The sources of sales growth were uneven. Sales in the regenerative medicine products business were ¥603 million, up 129.8% year on year, accounting for approximately 78.7% of company-wide sales. By contrast, sales in the regenerative medicine contract services business were ¥94 million, down 5.4%, while Labsite sales were ¥68 million, up 8.3%. The year-on-year increase included ¥140 million of additional sales from JACE, ¥177 million from JACK and ¥12 million from Jasmine, while Teijin contract services declined by ¥46 million. Accordingly, the degree of recovery outside the products business, as well as the company-wide growth rate, will be an important point to verify in the first half.

The full-year sales forecast is divided into ¥2,070 million for the regenerative medicine products business, ¥640 million for the regenerative medicine contract services business and ¥360 million for the Labsite business. Simple 1Q progress rates were approximately 29.1%, 14.8% and 18.9%, respectively. The products business is ahead, while the contract services and Labsite businesses are below a simple quarterly allocation. The materials do not provide formal company-wide or segment-level progress rates against the full-year forecast, or management’s assessment against the plan. The focus will therefore be how specifically the interim results clarify actual performance and the outlook for the remaining period.

Whether cumulative 2Q sales exceed ¥1,535 million will be a benchmark for simple half-year progress. However, the company has indicated that a milestone from Teijin contract services is assumed to be recognized in 4Q, so failure to reach ¥1,535 million does not immediately mean that the full-year target will be missed. In the interim results, it will be important to see whether the company can separately disclose sales by product, the phase of contract projects, contract services for general customers other than Teijin, and the number of regular Labsite customers, and explain the likelihood of reaching full-year sales of ¥3,070 million.