Nihon Kohden Corporation (6849) Q1 2027 earnings summary

Executive summary

• Net sales for FY2026 1Q declined 5.2% year-over-year to ¥47,405 million, with domestic sales down 15.0% due to Abbott product discontinuation, but excluding this, domestic sales were flat (+0.3%).

• Overseas sales grew 10.3% year-over-year, with strong performance in Europe and Asia & Other.

• Operating loss of ¥0.98 billion was recorded, compared to ¥1.4 billion operating income in FY2025 1Q, mainly due to lower domestic sales and higher SG&A expenses.

• Loss attributable to owners of parent was ¥756 million, down from a profit of ¥137 million in the same quarter last year.

Financial highlights

• Net sales: ¥47.4 billion (down 5.2% YoY); gross profit: ¥21.95 billion (down YoY); gross margin improved to 53.7%.

• SG&A expenses increased 6.1% YoY to ¥26.4 billion, contributing to the operating loss.

• Operating income: -¥0.98 billion (down from ¥1.4 billion); ordinary income: -¥0.34 billion.

• Cash and cash equivalents at period end: ¥50.6 billion (up ¥4.99 billion YoY).

• Equity ratio improved to 72.0% (from 70.1%).

Outlook and guidance

• FY2026 full-year forecast unchanged: net sales ¥232.5 billion, operating income ¥23.5 billion.

• Domestic sales expected to rise 8% on a comparable basis (excluding Abbott products and DOWELL consolidation); overseas sales forecasted to grow 9% on both yen and local currency basis.

• Gross margin projected to improve to 55.5% for FY2026, with operating margin rising to 10.1%.

• Domestic capital expenditure expected to recover in the second half, with steady international demand anticipated.

• SG&A expenses anticipated to increase due to wage hikes and IT investments.