FY2027 1Q revenue and profit declined; focus turns to recovery in the first half

Revenue in FY2027 1Q was ¥2,439 million, down ¥58 million, or 2.3%, from ¥2,497 million in the prior-year quarter. Operating profit was ¥214 million, down 23.9% from ¥281 million, ordinary profit was ¥213 million, down 24.4%, and net profit for the quarter was ¥167 million, down 22.3%. Profit declined more sharply than revenue, so it is necessary to confirm that pressure on gross profit from higher material costs occurred alongside the decline, rather than this being merely a temporary fluctuation in sales volume.

In the prior-year interim period, the company recorded revenue of ¥5,057 million and operating profit of ¥676 million. The company’s full-year forecast for FY2027 is revenue of ¥10,500 million, operating profit of ¥840 million, ordinary profit of ¥825 million and net profit of ¥590 million. First-quarter progress toward the full-year forecasts was 23.2% for revenue, 25.5% for operating profit, 25.8% for ordinary profit and 28.3% for net profit. Compared with the 25% benchmark based on the calendar year, revenue is slightly behind while profit is slightly ahead, but first-quarter results alone do not provide enough visibility to judge achievement of the full-year plan.

To achieve the full-year revenue forecast of ¥10,500 million, revenue of ¥8,061 million, or a simple quarterly average of approximately ¥2,687 million, will be required over the three quarters after the first quarter. If interim revenue does not exceed the prior-year figure of ¥5,057 million, the scale of the recovery required in the second half will be greater. In the first quarter, sales of Cude Amy PCA were strong, while suction-device-related products declined. Whether the weakness in core products can be offset by growth in new products is therefore important.

At the next interim results announcement, we will review not only the absolute level of revenue but also sales of suction-device-related and infusion-device-related products, the impact of higher material costs, and operating profit progress. Since no specific interim forecast has been disclosed, the practical benchmarks will be whether revenue exceeds ¥5,057 million in the prior-year period and the extent of recovery toward operating profit of ¥676 million. Even if the full-year forecast remains unchanged, continued revenue and profit declines in the first half would increase the plan’s dependence on the second half.