During the fiscal year ended December 31, 2025, the global economy experienced restrained economic activity due to disruptions caused by the U.S. tariff policies and heightened geopolitical risks; however, the economy showed a gradual recovery. In the United States, inflation and a softening labor market dampened consumer sentiment, slowing the pace of economic expansion. In Europe, while some stagnation was observed, the economy trended toward recovery amid easing inflationary pressures and gradual interest rate cuts. In China, despite the implementation of measures to promote replacement purchases of durable consumer goods, the stagnant real estate market led to continued weakness in the economy. Meanwhile, in Japan, although the impact of the U.S. tariff policies was observed mainly in the automotive industry, the economy trended toward a moderate recovery.
Under these conditions, during the fiscal year ended December 31, 2025, product demand remained firm in the Industrial Materials and the Medical Technologies segments. On the other hand, in the Devices segment, product demand for tablets declined compared to the previous fiscal year, when demand grew due to new product launches. The contract design/development and manufacturing organization (CDMO) of over-the-counter (OTC) drugs that we have recently been focusing on have seen increased demand due to the effects of the corporate acquisition. As for profit, profitability was also pressured by upfront expenses for future growth, including the production start-up of new products for mobility components in the Industrial Materials segment and the impairment losses of existing facilities to expand production capacity in the CDMO business for OTC drugs.
As a result, regarding the financial results for the fiscal year ended December 31, 2025, net sales were ¥194,898 million (a decrease of 0.4% as compared to the previous year), operating profit was ¥4,040 million (a decrease of 26.0% as compared to the previous year) and profit attributable to owners of parent was ¥1,001 million (a decrease of 74.0% as compared to the previous year).