Financial Highlights

In the fiscal year under review, the Japanese economy showed a gradual recovery trend, supported by improvements in employment and income conditions. On the other hand, the global economic outlook remains uncertain due to factors such as policy developments in the United States, a slowdown in the Chinese economy, and geopolitical risks in the Middle East.
In the fertility treatment field, in which the Kitazato Group operates, demand remains firm both in Japan and overseas supported by the trend toward later marriage and childbearing. In particular, overseas markets are expected to continue to grow over the medium to long term, driven by improvements in medical standards and expanded access to treatment.
Under these circumstances, the Kitazato Group has been strengthening its business foundation by enhancing its product supply system centered on cryopreservation-related products, reinforcing its sales capabilities in each region, and promoting product improvements and the launch of new products.
The Group’s consolidated financial results for the fiscal year under review are as follows.

[Net sales]
Net sales for the fiscal year under review increased by 6.3% year on year to 10,947 million yen.
In Japan, net sales amounted to 3,660 million yen (up 4.7% year on year), reflecting steady demand for medical devices and strengthened sales activities, including thorough follow-up with both existing and new customers.
Overseas, in Europe, demand for Media and Cryodevice remained solid, supported by progress in acquiring new customers and expanding new product offerings. In China, sales temporarily declined due to the reversal effect of spot sales recorded in the previous fiscal year. Meanwhile, in the United States and India, sales increased as a result of continued customer development. As a result, overseas sales amounted to 7,287 million yen (up 7.1% year on year).
By product category, Cryodevice recorded a temporary decline due to the impact of spot sales in China in the previous fiscal year, while all other product categories exceeded the previous year’s results.

[Profit]
Gross profit increased by 3.4% year on year to 7,214 million yen, driven by higher net sales, despite product mix deterioration and an increase in certain cost ratios associated with a higher proportion of OEM products.
Operating profit rose by 1.3% year on year to 5,858 million yen, reflecting an increase in selling, general and administrative expenses, including costs for participation in academic conferences, expenses related to obtaining regulatory approvals in various countries, and costs associated with maintaining the Company’s listed status.
Ordinary profit increased by 2.4% year on year to 5,903 million yen, despite the recording of listing-related expenses, mainly due to an increase in non-operating income, including foreign exchange gains.
As a result, profit attributable to owners of parent increased by 2.8% year on year to 3,895 million yen.