Quick View
| Metric | Current Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥9.2B | ¥11.5B | −20.4% |
| Operating Income / Operating Profit | −¥1.0B | ¥0.4B | −79.5% |
| Ordinary Income | −¥0.9B | ¥0.1B | −95.1% |
| Net Income / Net Profit | −¥0.9B | ¥2.9B | −132.5% |
| ROE | −1.1% | 3.4% | - |
Executive Summary
FY2026 Q1 results started harshly with Revenue ¥9.2B (YoY -¥2.3B -20.4%), Operating Loss ¥1.0B (YoY -¥1.4B -79.5%), Ordinary Loss ¥0.9B (YoY -¥1.0B -95.1%), and Net Loss ¥0.9B (YoY -¥3.8B -132.5%). The Pharmaceuticals segment (Pharmaceuticals Business), the core business, remained resilient with Revenue ¥8.6B (-13.2%) and maintained Operating Income ¥1.6B, but the Infection Control segment (Infection Control Business) plunged to Revenue ¥0.6B (-65.0%) and continued an Operating Loss of ¥0.4B, making it difficult to absorb corporate-level expenses of ¥2.1B and leading to an operating-stage loss. Gross margin fell to 54.6% (from 59.0% YoY, -4.4pt) and operating margin declined to -10.7% (from +3.8% YoY, -14.5pt), indicating significant deterioration in profitability. A non-recurring gain of ¥3.6B (gain on sale of investment securities ¥3.5B) was recorded but was insufficient to offset the operating loss, resulting in a final loss.
Drivers of Performance
[Revenue] Revenue ¥9.2B (YoY -20.4%) contracted by ¥2.3B overall due to a substantial decline in the Infection Control business and a double-digit decline in the Pharmaceuticals business. By segment, Pharmaceuticals recorded Revenue ¥8.6B (93.8% of total, YoY -13.2%) and Operating Income ¥1.6B (margin 18.6%), though Operating Income declined sharply YoY by -49.0%. Infection Control fell rapidly to Revenue ¥0.6B (6.1% of total, -65.0%) with an Operating Loss of ¥0.4B (margin -73.2%); while the deficit narrowed 33.9% YoY, the absolute loss remains large. Other businesses posted Revenue ¥0.0B and Operating Loss ¥0.1B and are immaterial. After allocation of corporate expenses of ¥2.1B, consolidated Operating Loss was ¥1.0B; negative operating leverage was pronounced due to insufficient absorption of fixed costs amid revenue decline. The decline in gross margin appears attributable to a worse product mix and pricing pressure.
[Profit & Loss] Against an Operating Loss of ¥1.0B, non-operating income was ¥0.1B (interest income ¥0.1B, compensation income ¥0.0B) and non-operating expenses were ¥0.1B (foreign exchange losses ¥0.0B, etc.), resulting in an Ordinary Loss of ¥0.9B. A special gain of ¥3.6B (gain on sale of investment securities ¥3.5B) was recorded and special losses were ¥0.0B, producing a pre-tax loss of ¥0.9B. Income taxes were ¥0.0B (tax adjustment -¥0.0B, resulting in an effective tax burden of almost zero), yielding a Net Loss of ¥0.9B. Comprehensive income was -¥0.9B, with Other Comprehensive Income ¥0.0B (foreign currency translation adjustment ¥0.1B, valuation differences on available-for-sale securities -¥2.3B) having limited effect. Due to the operating-stage loss and the temporary nature of the special gain, earnings quality is weak. In conclusion, the company is in a revenue-decline and operating-loss position; after the special gain, the result remains a final loss — a downturn of declining revenue and declining profit.
Segment Analysis
The Pharmaceuticals segment reported Revenue ¥8.6B (93.8% of total) and Operating Income ¥1.6B (margin 18.6%), down YoY -49.0% in Operating Income. It is the company’s profit source but profitability fell significantly from 31.8% last year. The Infection Control segment recorded Revenue ¥0.6B (6.1% of total) and an Operating Loss ¥0.4B (margin -73.2%), with Revenue down from ¥1.6B and Operating Loss down from ¥0.6B YoY (absolute deficit narrowed by 33.9%). Other businesses are minor with Revenue ¥0.0B and Operating Loss ¥0.1B. Corporate expenses of ¥2.1B were allocated, and profits from the profitable segment could not absorb the losses of the unprofitable segment and corporate expenses, causing the operating loss.
Key Financial Metrics
[Profitability] Operating margin -10.7% (from +3.8% YoY, -14.5pt), Net margin -10.4% (from +25.4% YoY, -35.8pt) — substantial deterioration. ROE -1.1% (prior year not stated), investment efficiency declined sharply due to the return to loss. Gross margin 54.6% (from 59.0% YoY, -4.4pt) reflects product mix deterioration and price pressure. SG&A ratio 65.3% (from 55.1% YoY, +10.2pt) indicates the relative persistence of fixed costs amid revenue decline and the impact of negative operating leverage. [Cash Quality] DSO 611 days (from 777 days YoY, improved -166 days), DIO 1,697 days (from 718 days YoY, worsened +979 days), CCC 2,046 days (from 1,323 days YoY, worsened +723 days) — inventory and work-in-progress stagnation is severe and the working capital cycle deteriorated significantly. Cash and deposits ¥33.3B provide stability on a free-cash-flow basis but declined ¥9.2B from ¥42.6B prior year. [Investment Efficiency] Total asset turnover 0.08x (from 0.09x prior year) remains low and asset efficiency has worsened. [Financial Soundness] Equity Ratio 73.0% (from 69.4% YoY, +3.6pt), Current Ratio 413.8% (from 336.1%), Quick Ratio 382.4% (from 323.7%) — high liquidity maintained and a conservative financial base. D/E Ratio 0.37x (from 0.44x) indicates low interest-bearing debt burden. Retirement benefit liabilities ¥6.2B are 7.5% of net assets and relatively small.
Cash Flow Analysis
Operating Cash Flow data were not disclosed, but funding trends can be inferred from BS movements. Cash and deposits ¥33.3B decreased ¥9.2B YoY, suggesting funding for operating and investing activities. Inventories rose significantly to ¥5.7B (from ¥3.1B YoY, +¥2.6B, +83.5%), with WIP ¥8.5B (from ¥8.0B, +¥0.5B) and Finished Goods ¥5.7B (from ¥3.1B, +¥2.6B) showing marked stagnation. Accounts receivable ¥15.3B (from ¥24.5B YoY, -¥9.2B, -37.4%) declined substantially, reflecting demand weakness and improved collections. Accounts payable ¥3.0B (from ¥2.7B, +¥0.3B) and bonus reserves ¥0.6B (from ¥2.5B, -¥1.9B) indicate a reduction in operating liabilities, while working capital enlarged due to inventory increases. The special gain ¥3.6B on sale of investment securities contributed to cash generation, but overall cash position weakened due to operating losses and working capital deterioration. Inventory reduction and profitability recovery will be key to future cash generation.
Earnings Quality
With an Operating Loss of ¥1.0B, recurring earning power is weak; the ¥0.1B difference to the Ordinary Loss of ¥0.9B reflects minor non-operating income/expense items. The special gain ¥3.6B (gain on sale of investment securities ¥3.5B) is temporary, and non-operating income ¥0.1B (1.1% of Sales) largely reflects recurring items such as interest income. Pre-tax loss ¥0.9B resulted in almost zero effective tax burden (tax adjustment -¥0.0B), yielding Net Loss ¥0.9B. The divergence between Ordinary Income and Net Income is small (difference ¥0.0B); the tax effect adjusted the impact of special items. Comprehensive income -¥0.9B aligns closely with Net Income; Other Comprehensive Income ¥0.0B (foreign currency translation adjustment ¥0.1B and valuation differences on securities -¥2.3B offset) had limited impact. Dependence on temporary special gains amid operating losses weakens earnings quality and sustainability. Declining gross margin and rising SG&A ratio indicate deteriorating underlying profitability; improvements require product mix/pricing measures and fixed-cost reductions.
Earnings Forecast / Guidance
Full Year (FY) forecast remains Revenue ¥72.0B (YoY +12.5%), Operating Income ¥5.0B (+8.9%), Ordinary Income ¥5.2B (+7.7%), Net Income ¥5.5B (EPS ¥10.95), Dividend ¥0.0 maintained. Q1 Revenue ¥9.2B (progress rate 12.7%) lags the standard 25% pace by -12.3pt, and the Operating Loss ¥1.0B shows a negative progress rate and significant divergence from forecast. Main causes are the sharp decline in Infection Control and reduced profitability in Pharmaceuticals plus insufficient fixed-cost absorption. To achieve the full-year forecast, the company needs Revenue ¥62.8B in the remaining three quarters (Q2 onward quarterly average ¥20.9B, +228% vs Q1) and Operating Income ¥6.0B (i.e., ¥2.0B per quarter Q2 onward and turning to operating profit from Q1), which presumes substantial recovery via inventory reduction, SG&A restraint, and gross margin improvement. Q1’s sluggish progress is notable and the possibility of forecast revision should be monitored.
Shareholder Returns
Q1 dividend ¥0.0, Full Year forecast dividend ¥0.0 — maintaining no dividend. Payout Ratio is not calculable due to the loss. Although Cash and deposits ¥33.3B (40.3% of net assets) are held, prioritizing preservation of internal funds given operating losses and working capital deterioration is reasonable. Resumption of dividends requires operating profitability and stable cash generation; progress in profitability recovery and inventory reduction would be triggers to reconsider dividend policy. No share buyback has been disclosed and Total Return Ratio is not implemented.
Risk Factors
-
Business concentration risk: Pharmaceuticals accounts for 93.8% of Revenue, indicating high reliance on specific products and channels. This increases vulnerability to demand fluctuations and price competition; the -4.4pt decline in gross margin and -49.0% drop in Operating Income underscore that portfolio concentration amplifies volatility.
-
Inventory and WIP stagnation risk: Inventories ¥5.7B (YoY +83.5%) and DIO 1,697 days (YoY +979 days) show marked stagnation. Composed of Finished Goods ¥5.7B, WIP ¥8.5B, and Raw Materials ¥5.2B, there are risks of valuation losses, obsolescence, and prolonged cash lock-up. The extreme CCC of 2,046 days will continue to burden working capital.
-
Structural deterioration of profitability risk: Operating margin -10.7% (from +3.8% YoY, -14.5pt), Net margin -10.4% (from +25.4% YoY, -35.8pt) — significant deterioration. If SG&A ratio remains high at 65.3% and Gross margin stays depressed at 54.6%, recovery to profitability may be delayed and full-year targets could be missed.
Industry Benchmark (Reference — Company Analysis)
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | −10.7% | – | – |
| Net Margin | −10.4% | – | – |
Both operating and net margins are negative; industry comparative data are unavailable, but given the return to loss, the company’s profitability likely lags materially.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | −20.4% | – | – |
Revenue declined -20.4% YoY indicating significant negative growth. Industry comparatives are not available, but the sharp decline in Infection Control and contraction in the core Pharmaceuticals business have worsened the growth trend.
※ Source: Company aggregation
Key Points from the Results
-
The sharp decline in Infection Control (Revenue -65.0%) and reduced profitability in Pharmaceuticals (Operating Income -49.0%) led to an operating loss; achieving the full-year forecast requires a substantial rebound from Q2 onward. Q1 progress rate 12.7% (standard 25% comparison -12.3pt) is notably delayed; execution on inventory reduction, SG&A cuts, and gross margin improvement are monitoring points.
-
Inventories ¥5.7B (+83.5%), DIO 1,697 days (+979 days), CCC 2,046 days (+723 days) — the working capital cycle has deteriorated extremely. WIP ¥8.5B and Finished Goods ¥5.7B stagnation raise valuation loss risk and prolong cash lock-up, inhibiting operating cash flow generation. Progress in inventory normalization is key to profitability recovery and cash generation.
-
Current liquidity and balance-sheet strength are conservative with Current Ratio 413.8%, Equity Ratio 73.0%, and Cash and deposits ¥33.3B; short-term liquidity resilience is high. The special gain ¥3.6B (gain on sale of investment securities) is temporary; sustained growth requires operating profitability and persistent cash generation.
This report is an analytical financial document automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are reference information aggregated by the Company based on public financial statements. Investment decisions should be made at your own responsibility and, where appropriate, after consulting a professional advisor.
AI Financial Analysis
Executive Summary
FY2026 Q1 was a weak start, with the group returning to an operating loss as sales contracted and the gross-margin and fixed-cost burden worsened. Revenue fell 20.4% year on year to ¥916 million. Operating income moved to a ¥98 million loss from a ¥44 million profit in the prior-year quarter. Ordinary income was a ¥93 million loss, compared with a ¥11 million profit previously. Net income attributable to owners was a ¥95 million loss, versus prior-year profit of ¥292 million. The year-on-year decline in reported net income was amplified by the absence of the prior-year ¥357 million extraordinary gain, principally from investment-security sales. On an underlying operating basis, the deterioration is more direct: the operating margin fell from 3.8% to negative 10.7%, a 1,450bp compression. Gross margin declined from 59.0% to 54.6%, down 440bp. SG&A expense declined 5.7% to ¥598 million, but this was materially slower than the 20.4% revenue decline. Consequently, SG&A rose to 65.3% of revenue from 55.1%, increasing the fixed-cost burden by roughly 1,020bp. The pharmaceutical business remained profitable but experienced lower revenue and a significant reduction in segment profit. The infection-control business remained loss-making and its losses widened relative to its much smaller revenue base. Corporate and unallocated costs also increased to ¥211 million from ¥202 million, exceeding the aggregate ¥113 million segment profit and driving the consolidated operating loss. The balance sheet remains liquid, with a 413.8% current ratio, ¥3.33 billion of cash and deposits, and a conservative 0.37x debt-to-equity ratio. However, inventory increased 83.5% year on year while sales declined, creating an important operating-capital and demand-matching concern. Full-year guidance implies a substantial recovery after Q1, with planned full-year revenue of ¥7.20 billion, operating income of ¥500 million, and net income of ¥550 million. Achieving this outlook requires a pronounced acceleration in subsequent quarters, particularly in revenue conversion, gross-margin recovery, infection-control losses, and corporate-cost absorption.
Profitability Analysis
Annualized Q1 DuPont ROE was negative 4.6%, decomposed into a negative 10.4% net profit margin, 0.324x asset turnover, and 1.37x financial leverage. The negative net margin was the decisive source of the negative return, rather than balance-sheet leverage, which remains modest. EBIT margin was negative 10.7%, triggering the low-operating-efficiency alert and reflecting insufficient revenue to absorb SG&A and corporate costs. Gross profit declined 26.4% to ¥500 million, faster than the 20.4% revenue decrease, resulting in a 440bp gross-margin contraction to 54.6%. This indicates that the earnings decline was not solely a volume issue; product mix, pricing, production absorption, or input-cost factors also weakened gross profitability. SG&A fell by ¥36 million year on year, but the reduction lagged the ¥234 million decline in revenue, indicating adverse operating leverage. The pharmaceutical business is the core business by operating-income contribution: revenue declined 13.2% to ¥858 million and segment profit declined 49.0% to ¥160 million, with segment margin falling from 31.7% to 18.6%. Infection-control revenue fell 65.0% to ¥56 million and its segment loss widened to ¥41 million from ¥62 million loss? Actually, the loss improved in absolute terms by ¥21 million, but the segment margin deteriorated to negative 73.2% from negative 38.8% because revenue contracted more sharply than costs. Other business recorded revenue of ¥1 million and a ¥5 million segment loss, unchanged year on year. Aggregate segment profit fell to ¥113 million from ¥246 million, while unallocated corporate costs increased to ¥211 million, producing the consolidated operating loss. Financial leverage of 1.37x is restrained and is not being used to magnify returns materially. The extended DuPont interest burden of 0.959 indicates that financing costs are not the core earnings constraint. The tax burden above 1.0 reflects the relationship between a pre-tax loss and net loss in the quarter and should not be read as recurring tax efficiency. ROIC of negative 5.6% is below the 5% warning threshold, confirming that capital employed is currently generating sub-economic returns. A sustained return to profitability depends principally on margin and asset-utilization recovery, not on additional leverage.
Growth Assessment
Revenue contraction was broad but concentrated in the infection-control business, where sales fell ¥104 million year on year, versus a ¥131 million decline in pharmaceutical sales. Pharmaceutical sales represented 93.7% of group revenue in Q1, up from 86.0% in the prior-year quarter, reflecting the sharper decline in infection-control sales rather than growth in the core business. The core pharmaceutical segment's positive ¥160 million segment profit provides an underlying earnings base, but the 49.0% profit decline signals materially weaker operating conversion. Infection-control sales of ¥56 million were only 35.0% of the prior-year level, leaving the segment with a severely negative margin and making a near-term turnaround uncertain. The group gross margin remains relatively high at 54.6%, consistent with branded consumer-healthcare characteristics, but its direction is unfavorable. Inventory build-up alongside falling revenue raises the risk that future sales growth may require discounting or promotional activity if demand does not normalize. Full-year guidance calls for 12.5% revenue growth to ¥7.20 billion and 8.9% operating-income growth to ¥500 million. Q1 revenue represents only 12.7% of the full-year sales target, versus a 25% standard Q1 run rate, a 12.3 percentage-point shortfall. Q1 operating income of negative ¥98 million represents negative 19.6% of the ¥500 million full-year target, compared with a standard 25% progress rate. Q1 net income of negative ¥95 million represents negative 17.3% of the ¥550 million full-year target. The forecast therefore embeds a strong seasonal or second-half weighted recovery, along with a return from loss to meaningful operating profitability. Management has not revised either its earnings forecast or dividend plan. The absence of a forecast revision preserves the stated recovery target, but quarterly execution needs to improve substantially for the plan to remain credible. For this OTC-oriented healthcare business, consumer demand volatility, retail-channel inventory behavior, competitive promotional intensity, and infection-prevention demand normalization are central determinants of revenue sustainability.
Financial Health
Liquidity is strong on reported balance-sheet measures. Current assets of ¥7.47 billion covered current liabilities of ¥1.81 billion by 4.14x, and the quick ratio was also high at 3.82x. Working capital was ¥5.66 billion. Cash and deposits of ¥3.33 billion, together with ¥500 million of short-term investment securities, provide substantial near-term liquidity relative to the ¥421 million current portion of long-term loans. The debt-to-equity ratio of 0.37x is conservative and well below the 2.0x risk threshold. Total equity was ¥8.26 billion, equivalent to a 73.0% capital adequacy ratio, up from 69.4% in the prior-year period despite the quarterly loss. Total liabilities declined ¥692 million year on year to ¥3.06 billion, led by lower current liabilities. The current portion of long-term loans declined by ¥371 million to ¥421 million, reducing refinancing pressure. Net defined-benefit liability was ¥624 million and represents a meaningful long-term obligation to monitor, although it is supported by the group's substantial equity base. Accounts receivable declined ¥916 million, or 37.4%, to ¥1.53 billion, which reduced the balance-sheet commitment to trade credit. Despite this decline, the quality alert indicates DSO of 153 days, above the 60-day threshold; collection cadence and the composition of receivables remain material monitoring items. Inventories increased ¥258 million, or 83.5%, to ¥567 million despite declining sales. Finished goods were ¥567 million, while disclosed raw materials and work in process were ¥515 million and ¥848 million respectively, highlighting substantial production-related inventory commitments. The high inventory-days alerts of 424 days and 125 days, each above their respective thresholds, point to slow inventory conversion under the relevant inventory measures. Work in process represented 43.9% of the relevant inventory base, above the 40% alert threshold, indicating elevated production-cycle capital and potential demand, production-planning, or obsolescence risk. The cash conversion cycle alert of 512 days is substantially above the 120-day benchmark and is a major operating-capital concern even though headline liquidity is strong.
Notable B/S Changes
Inventories: +¥258 million (+83.5%) to ¥567 million - increase occurred alongside a 20.4% revenue decline; elevated inventory days and work-in-process intensity heighten sell-through, obsolescence, and margin-risk monitoring. Accounts receivable: -¥916 million (-37.4%) to ¥1.53 billion - reduced balance-sheet exposure to trade receivables, although reported DSO of 153 days remains high and warrants monitoring of collection timing. Current portion of long-term loans: -¥371 million (-46.8%) to ¥421 million - lowers near-term refinancing requirements and supports the already strong liquidity profile. Total liabilities: -¥692 million (-18.4%) to ¥3.06 billion - deleveraging improved the capital adequacy ratio to 73.0% from 69.4%.
Cash Flow Quality
Dividend Sustainability
The full-year dividend forecast is ¥3.50 per share. Against forecast EPS of ¥10.95, the implied dividend payout ratio is approximately 32.0%, below the 60% sustainability benchmark. This indicates that the stated dividend plan is modest relative to management's full-year earnings target. The Q1 loss of ¥1.89 per share means that dividend coverage is dependent on the forecasted recovery in later quarters rather than first-quarter profitability. The company has not revised its dividend forecast. The large liquidity buffer and conservative debt-to-equity ratio support near-term financial flexibility. Dividend sustainability will nevertheless depend on delivery of the full-year profit plan and on containment of working-capital absorption from elevated inventories.
Risk Assessment
Business risks include Core pharmaceutical business risk: pharmaceutical segment revenue declined 13.2% and segment profit declined 49.0%, reducing the earnings cushion available to cover corporate costs., Infection-control demand risk: segment revenue fell 65.0% to ¥56 million and the segment margin was negative 73.2%, exposing the group to continued losses if demand fails to stabilize., Consumer healthcare and OTC market risk: retail sell-through, promotional competition, channel inventory adjustments, and changes in consumer infection-prevention behavior can materially affect sales and margin., Inventory valuation and obsolescence risk: inventories increased 83.5% despite a 20.4% sales decline, while high inventory-days and high work-in-process alerts indicate slow conversion and potential markdown or write-down exposure., Production-planning risk: work in process at 43.9% of the relevant inventory base exceeds the 40% alert threshold, suggesting a longer production cycle and heightened risk of mismatch between output and realized demand..
Financial risks include Profitability risk: EBIT margin was negative 10.7%, annualized ROE was negative 4.6%, and ROIC was negative 5.6%, indicating current operations are not earning an adequate return on capital., Working-capital risk: DSO of 153 days, inventory-days alerts of 424 days and 125 days, and a 512-day cash conversion cycle indicate capital is tied up for an extended period., Forecast-execution risk: Q1 revenue progress was 12.7% versus a standard 25% pace, while operating income and net income were losses against full-year profit targets., Defined-benefit obligation risk: net defined-benefit liability was ¥624 million, which is a notable long-term obligation relative to the current quarterly operating loss..
Key concerns include Highest priority: recovery in revenue and operating leverage is required to reverse the ¥98 million operating loss and meet the ¥500 million full-year operating-income forecast., Highest priority: elevated inventories and lengthy cash conversion metrics may precede additional margin pressure or inventory valuation charges if sales recovery is delayed., High priority: infection-control business losses remain structurally dilutive, and the sharp sales decline limits visibility on cost absorption., Moderate priority: corporate costs of ¥211 million exceeded total segment profit of ¥113 million; cost discipline is necessary even if segment sales improve., Moderate priority: the prior-year net profit included a ¥357 million extraordinary gain, so comparisons should focus on operating and ordinary earnings rather than reported net income..
Investment Implications
Key takeaways include The quarter reflects operating deterioration rather than a balance-sheet stress event: revenue fell 20.4%, gross margin contracted 440bp, and operating margin moved to negative 10.7%., The pharmaceutical segment remains the core profit contributor, but its segment margin declined 1,310bp to 18.6%., The infection-control business remains a material drag, with ¥56 million of revenue and a ¥41 million segment loss., Liquidity and leverage are favorable, with a 413.8% current ratio, ¥3.33 billion of cash and deposits, and 0.37x debt-to-equity., Inventory growth, long cash conversion metrics, and weak Q1 progress against guidance are the principal operational issues shaping the earnings outlook., The full-year plan requires a substantial sequential improvement and should be assessed through evidence of demand recovery, margin restoration, and overhead absorption..
Metrics to watch include Pharmaceutical segment revenue growth and segment margin relative to the Q1 18.6% level, Infection-control revenue, segment loss, and evidence of fixed-cost reduction, Consolidated gross margin relative to the Q1 54.6% level, SG&A as a percentage of revenue relative to the Q1 65.3% level, Inventory balance, inventory days, work-in-process ratio, and any inventory valuation charges, DSO and cash conversion cycle, Quarterly progress toward full-year targets of ¥7.20 billion revenue, ¥500 million operating income, and ¥550 million net income, Corporate and unallocated costs relative to segment profit.
Regarding relative positioning, The company combines a strong liquidity position and conservative leverage with presently weak operating efficiency. Its 54.6% gross margin remains consistent with a branded healthcare model, but negative EBIT margin, negative ROIC, a loss-making infection-control operation, and elevated working-capital intensity place current operating performance below healthy consumer-healthcare and pharmaceutical profitability benchmarks.