Notice Regarding Revision of Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending March 2026

Details of Earnings Forecast Revision

The full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised. Net sales decreased by 7.7% from the previous forecast of 33,272 million yen to 30,698 million yen; operating income declined by 26.8% from 3,550 million yen to 2,600 million yen; ordinary income fell by 9.7% from 5,927 million yen to 5,353 million yen. Meanwhile, net income attributable to owners of parent increased slightly by 0.3% from 3,550 million yen to 3,561 million yen, and net income per share also slightly rose from 85.27 yen to 85.53 yen.

Reasons for Revision and Future Outlook

The shortfall in net sales is primarily due to delays in large-scale studies and additional testing in the non-clinical business, which caused delays in compound delivery. Although orders in the third quarter (October to December) reached a record high of 10 billion yen, most are expected to be recognized as revenue in the next fiscal year or later. Operating income was affected by increased costs in the second half for the U.S. subsidiary Satsuma Pharmaceuticals and partial failure to meet planned revenues in the non-clinical business. The decline in ordinary income was mitigated by increased equity method investment income from Shin Nippon Biomedical Laboratories PPD. The difference in net income attributable to owners of parent is mainly due to corporate tax adjustments at the Cambodian subsidiary. Future earnings may fluctuate due to various factors.