Fiscal 2027 Q1 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

Consolidated results for the first quarter of fiscal 2027 recorded net sales of 5,771 million yen (down 3.0% YoY) and declines in profit indicators. Operating income was 1,113 million yen (down 17.7%), ordinary income was 1,142 million yen (down 14.8%), and net income attributable to owners of parent for the quarter was 777 million yen (down 12.8%). Full-year earnings forecasts remain unchanged from previously announced figures. While monitoring changes in the business environment, the company will continue optimizing its production system in line with its long-term plan and strengthen quality and stable supply. By segment, sales of active pharmaceutical ingredients increased for some items, but overall sales declined due to a decrease in core tablet products. With the Zao No.2 Plant scheduled to begin operations in March 2027, the company is increasing production of prefilled syringes and pursuing new contract manufacturing opportunities to drive future growth.

Outlook and Financial Position

Financial position shows total assets of 39,082 million yen, an equity ratio of 79.6%, and shareholders' equity of 31,125 million yen, maintaining capital while preventing excessive expansion. Attention is required regarding cash management, including increases in short-term borrowings, but the start-up of the Zao plant and business expansion under the long-term plan are expected to be pillars of medium- to long-term growth. The earnings forecast remains as disclosed, and the company aims to improve profitability and stability through strengthening its product portfolio centered on active pharmaceutical ingredients and injectables and through cost management.