Fiscal 2027 First Quarter Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

In this quarter's consolidated results, net sales were almost flat year-over-year, but profit was pressured by increased expenses related to automation investments in logistics and higher personnel costs. In the segment centered on medical device sales, despite an increase in examinations and surgical procedures, a decline in demand for capital equipment led to a reduction in gross profit margin and higher selling, general and administrative expenses, resulting in an operating loss. Automation investments at the logistics center of a core subsidiary and the introduction of material handling equipment are progressing to achieve long-term operational efficiency. The full-year forecast remains at the previously announced level.

Outlook and Impact

As this is the final year of the mid-term management plan, we will promote strengthening our management base and improving the human resources foundation. In the short term, it is expected to take time to stabilize sales and improve profitability; however, through operational efficiencies from logistics automation and strict cost management, we aim to improve long-term profitability. By segment, despite a challenging environment for medical device sales, we will continue to expand sales in minimally invasive and specialty fields.