Financial Highlights

In the fiscal year under review, the Japanese economy saw a gradual improvements in the employment and income environment, and a gradual recovery in the personal consumption despite the impacts of rising prices. However, the outlook remains uncertain due to concerns regarding soaring resource prices caused by international instability and fluctuations in financial and capital markets.
In the infertility treatment field, the rise in demand for infertility treatment brought on by global lifestyle changes, declining birthrates and shrinking population is driving overall market growth. In addition, we believe that the increase in social understanding and recognition of assisted reproductive technology, and improvements in the government’s support policies and compensation programs, are important factors in driving market growth.
In this business environment, the Kitazato Group develops and manufactures products for infertility treatment and delivers proprietary products across global markets. Specializing in reproductive engineering technologies in artificial insemination, in vitro fertilization, cell cryopreservation, and regenerative medicine, we supply products that respond to market needs.
The Group’s consolidated financial results in the fiscal year under review is as below.

[Net sales]
The Group’s net sales in the fiscal year under review amounted to 10,302 million yen (up 2.2% year on year).
In Japan, although we have been proceeding with efforts to increase sales, such as through the launch of new products of oocyte/embryo vitrification solution and the establishment of an online store to simplify the ordering process between the Company and its customers, net sales amounted to 3,496 million yen (down 4.4% year on year) as severe business conditions continued due to price wars with competitors.
Overseas, although sales of embryo transfer catheter in China were delayed due to the time taken to apply for the products’ certification, net sales amounted to 6,805 million yen (up 6.0% year on year) thanks to the launch of new products, such as “RYDEN” embryo transfer catheter, and the new rollout of sperm processing reagents and intracytoplasmic sperm injection reagents in Europe, and an improved sales structure at our retailer in the U.S.A., which changed from California Cryobank LLC to Biomedical Supply US, Inc. in July 2023.

[Profit]
Gross profit amounted to 6,974 million yen (down 0.9% year on year) due to the impact of an increase in the cost of sales ratio caused by changes in the combination of production volume and sales volume.
Operating profit amounted to 5,782 million yen (down 2.2% year on year) due to an increase in personnel expenses in line with the reinforcement of our management structure and an increase in remuneration payments.
Ordinary profit amounted to 5,767 million yen (down 3.8% year on year) due to the recording of listing preparation expenses. Moreover, due to the recording of extraordinary losses caused by overseas remittance fraud in April and May 2024, profit attributable to owners of parent amounted to 3,788 million yen (down 4.6% year on year).