Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japan GAAP] (Consolidated)

Performance Overview

Consolidated net sales for the third quarter of the fiscal year ending March 2026 were 145,176 million yen, a 6.1% increase year-on-year. Domestic operations recorded 125,543 million yen (up 2.2% YoY), while the China segment grew to 19,632 million yen (up 41.3% YoY). Operating income was 28,862 million yen, down 10.9% YoY, and ordinary income was 31,907 million yen, down 9.2% YoY. Net income attributable to owners of parent for the quarter decreased 12.9% to 23,151 million yen. The revenue growth was driven by an increase in prescriptions of 129 Traditional Chinese Medicine formulations and the expansion of the China business. However, profit margins declined due to a rise in cost of goods sold ratio and increased selling, general and administrative expenses.

Financial Position and Dividend Status

Total assets increased to 549,684 million yen compared to the end of the previous fiscal year, while the equity ratio declined to 55.5%. The annual dividend is forecasted at 144 yen, representing an increase from the previous year's 136 yen. The number of issued shares remains unchanged at 76,758,362 shares. There is no revision to the earnings guidance; full-year net sales are projected at 198,000 million yen, operating income at 35,000 million yen, and net income attributable to owners of parent at 24,300 million yen.