Paltac (8283) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027 rose 3.4% year-over-year to ¥326.9 billion, driven by an expanded wholesaler portfolio and higher product unit prices.

• Operating profit declined 19.5% year-over-year to ¥6.1 billion due to increased rebates, center fees, and logistics costs.

• Net profit dropped 23.3% year-over-year to ¥4.7 billion.

• The company expects to be delisted following a completed tender offer by MEDIPAL HOLDINGS CORPORATION.

• Dividend payments for FY2027 have been suspended due to the anticipated delisting.

Financial highlights

• Net sales increased by ¥10.8 billion (+3.4%) compared to Q1 FY2026.

• Gross profit margin decreased from 7.49% to 7.19% year-over-year.

• SG&A expenses rose 8.1% year-over-year, outpacing sales growth.

• Ordinary profit decreased 16.0% year-over-year to ¥7,158 million.

• Earnings per share fell to ¥78.86 from ¥101.18 in the prior year period.

Segment performance

• Cosmetics sales grew ¥3.7 billion (+5.0%), now 24.4% of total sales.

• Daily necessities increased ¥5.8 billion (+4.1%), making up 46.0% of sales.

• OTC pharmaceuticals declined ¥0.6 billion (-2.0%), now 10.7% of sales.

• Health and sanitary products rose ¥2.0 billion (+3.8%), 17.4% of sales.