MediPal Holdings (7459) Q1 2027 earnings summary

Executive summary

• Consolidated net sales for 1Q FY2026 rose 4.7% year-over-year to ¥989.5 billion, with all business segments contributing to growth.

• Operating profit declined 4.7% year-over-year to ¥13.3 billion due to higher SG&A expenses and a lower gross margin.

• Net profit attributable to owners of the parent surged 42.3% to ¥13.6 billion, driven by improved non-operating balance and gains on sale of investment securities.

• The impact of the PALTAC tender offer was immaterial in the first quarter, but full-year forecasts were revised to reflect the integration.

Financial highlights

• Net sales: ¥989.5 billion (+4.7% YoY); Gross profit: ¥65.7 billion (+1.6% YoY); Operating profit: ¥13.3 billion (−4.7% YoY); Net profit attributable to owners: ¥13.6 billion (+42.3% YoY).

• Gross profit margin slightly decreased to 6.64% from 6.84% YoY.

• SG&A expenses increased 3.4% YoY to ¥52.3 billion, with the ratio to net sales improving by 0.07pp.

• Ordinary profit decreased 1.7% YoY to ¥17.9 billion.

• Comprehensive income dropped 40.1% YoY to ¥5.87 billion, mainly due to a decline in valuation difference on available-for-sale securities.

• Extraordinary income included a ¥5.1 billion gain on sale of investment securities.

Outlook and guidance

• Full-year FY2026 net sales forecast maintained at ¥3,944.0 billion (+3.3% YoY); profit attributable to owners revised upward by ¥4.0 billion to ¥43.0 billion (+1.1% YoY) due to PALTAC integration.

• Operating profit forecast revised downward by ¥1.5 billion to ¥53.5 billion due to temporary SG&A and financial expenses related to the PALTAC acquisition.

• Ordinary profit projected at ¥67.5 billion (down 10.9% YoY).

• Dividend forecast for FY2026 revised upward to ¥88.00 per share (from ¥68.00), reflecting improved profitability and shareholder return policy.