Kitazato (368A) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY2026 (nine months ended December 31, 2025) reached 7,934 million yen, up 9.3% year-over-year, driven by strong domestic and overseas demand for fertility treatment-related products.

• Net income was 2,817 million yen, a 7.5% increase year-over-year, with operating profit at 4,248 million yen, up 7.0% year-over-year.

• Overseas sales growth was particularly robust in Europe (+19.4%), USA (+16.8%), and India (+43.1%), offsetting a temporary decline in China (-7.9%).

• Cumulative progress for the first three quarters is on track with the full-year forecast, with net sales at 74.8% and net income at 80.5% of the annual target.

• The business environment remains favorable, but uncertainties persist due to international conditions and foreign exchange trends.

Financial highlights

• Gross profit reached 5,264 million yen, up 7.6% year-over-year, despite a higher cost of sales ratio due to more OEM products.

• Ordinary profit was 4,258 million yen, up 6.7% year-over-year, supported by foreign exchange gains.

• Basic earnings per share for the period was 70.43 yen, compared to 65.54 yen in the prior year.

• Equity ratio improved to 95.1% as of Q3 FY2026, up from 92.4% year-over-year.

• Total assets as of December 31, 2025, were 20,433 million yen, with net assets at 19,426 million yen.

Outlook and guidance

• Full-year forecast remains unchanged, with Q4 performance expected to align with the plan.

• Full-year net sales forecast is 10,602 million yen (+2.9% YoY), operating profit projected at 5,374 million yen (-7.1%), and profit attributable to owners of parent at 3,498 million yen (-7.7%).

• Net sales and profits are expected to remain stable, though uncertainties such as international conditions and FX trends persist.

• Most overseas transactions are in yen, limiting FX impact.