Kitazato (368A) investor relations material

Executive summary

• Net sales rose 24.0% year-over-year to JPY3,017 million in Q1 FY2027, with robust growth in both domestic and overseas markets.

• Net income increased 35.1% year-over-year to JPY1,007 million, driven by higher sales and improved profitability.

• Operating profit increased 27.0% year-over-year to JPY1,517 million, aided by lower SG&A expenses and foreign exchange gains.

• All product categories and most regions contributed to growth, with notable expansion in Europe and the U.S.

• Launched a medium-term management plan, "Kitazato Challenge 2036," to drive sustainable growth.

Financial highlights

• Gross profit increased 20.2% year-over-year, partly offset by a higher cost ratio due to product mix changes.

• Basic earnings per share increased to JPY25.18 from JPY18.64 in the prior year period.

• Comprehensive income was JPY1,007 million, up from JPY745 million a year earlier.

• Operating profit margin improved by 1.2 pts to 50.3%; overseas sales ratio rose to 67.1%.

• Ordinary profit up 37% year-over-year, aided by foreign exchange gains and absence of prior year listing-related expenses.

Outlook and guidance

• No change to the full-year FY2027 earnings forecast: net sales JPY11,346 million (+3.6% YoY), operating profit JPY6,115 million (+4.4% YoY), net income JPY4,059 million (+4.2% YoY), and EPS JPY101.50.

• Long-term vision targets JPY33.3 billion in net sales by FY2029, with staged growth plans through FY2036.

• No revisions to dividend or earnings forecasts.