FY2027 assumes a return to revenue growth and higher operating profit

Consolidated revenue in FY2026 was ¥6.4149 billion, down 0.5% year on year, while operating profit was ¥737 million, down 12.1%. Operating profit declined more sharply than revenue, indicating that higher selling, general and administrative expenses, in addition to weak demand, weighed on earnings. Meanwhile, the FY2027 company forecast assumes a recovery in both revenue and operating profit, with revenue of ¥6.9794 billion, up 8.8%, and operating profit of ¥833 million, up 13.1%.

However, the recovery is limited to operating profit. The FY2027 forecast for ordinary profit is ¥855 million, down 2.4% year on year, while net income attributable to owners of the parent is forecast at ¥553 million, down 14.6%. Higher costs associated with investments in human capital and the renovation of the logistics center are anticipated. Thus, even if revenue and operating profit recover, the plan does not assume a recovery in bottom-line profit after incorporating non-operating and extraordinary items.

In the latest quarter, FY2026-Q1, revenue was ¥1.5078 billion and operating profit was ¥36 million. In FY2027-Q1, the first point to verify will be whether earnings improve from this low base. Because simply dividing the full-year forecast by four does not account for seasonality, priority should be given to whether revenue exceeds the year-earlier quarter and whether the operating margin improves from approximately 0.24% in the prior-year quarter.

The FY2026 earnings explanation also stated that increases in examination and surgical volumes and in the number of facilities under SPD contracts supported demand for consumables, while demand for capital equipment such as radiology and diagnostic imaging equipment fell below the prior year. In FY2027-Q1, it will be important to determine whether the recovery in capital spending demand underpinning the company’s 8.8% revenue growth forecast is actually emerging, or whether consumables and SPD alone are driving the plan, together with the sales breakdown by product category.