Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Financial Performance

Consolidated net sales for the third quarter of fiscal year ending March 2026 amounted to JPY 64,077 million, a decrease of 1.1% year-over-year. Operating income decreased to JPY 8,566 million (down 16.4% YoY) due to lower sales, increased costs including raw materials, and higher expenses related to core system investments at overseas subsidiaries. Ordinary income declined to JPY 7,286 million (down 31.7% YoY), affected by foreign exchange losses. Net income attributable to owners of parent for the quarter was JPY 5,554 million, down 32.5% YoY. By segment, the prescription pharmaceutical business recorded net sales of JPY 42,403 million (down 0.6% YoY), while the consumer healthcare business posted JPY 21,560 million (down 1.9% YoY).

Financial Position and Outlook

At the end of the third quarter, total assets stood at JPY 166,225 million, net assets at JPY 96,176 million, and the equity ratio improved to 57.8%, up 1.5% year-over-year. The number of issued shares was 51,119,190, a decrease of 2,000,000 shares from the prior year period, with treasury stock also reduced to 7,039,792 shares. Full-year earnings guidance remains unchanged, projecting net sales of JPY 90,000 million (up 3.1% YoY), operating income of JPY 12,000 million (down 1.6% YoY), and net income attributable to owners of parent of JPY 9,500 million (down 4.4% YoY). Despite exchange rate uncertainty, a recovery in the overseas prescription pharmaceutical business is anticipated.