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CEO Message
Thank you for your continued support of the Nissha Group.
Overview of consolidated financial results
for the three months ended March 31, 2026
During the three months ended March 31, 2026, the global economy showed a gradual recovery, despite factors such as the turmoil in the Middle East situation and the rise in the resource prices weighing down on the economy. In the United States, consumer sentiment showed signs of weakening against the backdrop of a softening labor market, slowing the pace of economic expansion. In Europe, the economy was supported mainly by domestic demand and remained firm. In China, despite improvements in external demand, a prolonged stagnant real estate market and sluggish domestic demand led to continued weakness in the economy. Meanwhile, in Japan, the economy recovered modestly, supported by improvements in the employment and income environment as well as solid capital investment.
Under these conditions, during the three months ended March 31, 2026, product demand stayed solid in the Industrial Materials segment in the field of decorations and in the Medical segment. On the other hand, in the Devices segment, product demand for tablets declined significantly and both net sales and operating profit decreased, compared to the same period of the previous year.
As a result, regarding the financial results for the three months ended March 31, 2026, net sales were ¥45,790 million (a decrease of 3.5% as compared to the same period of the previous year), operating profit was ¥750 million (a decrease of 47.6% as compared to the same period of the previous year) and profit attributable to owners of parent was ¥422 million (an increase of 3,358.6% as compared to the same period of the previous year).
Forecast for the fiscal year ending December 31, 2026
Net sales are expected to increase compared to the previous forecast because product demand for the tablet in the Devices segment and the field of decorations in the Industrial Materials segment progressed more than initially expected for the three months ended March 31, 2026, combined with the impact on foreign exchange movements under a weaker yen environment.
Operating profit is also expected to exceed the previous forecast, reflecting increased profits driven by higher net sales while taking into account the risks of fluctuations in raw material costs. Furthermore, profit before tax and profit attributable to owners of parent are expected to exceed the previous forecast, due to the above factors, as well as foreign exchange gains recorded during the three months ended March 31, 2026.
For the consolidated financial results for the fiscal year ending December 31, 2026, we expect net sales of ¥198,000 million, operating profit of ¥7,000 million, profit before tax of ¥5,700 million and profit attributable to owners of parent of ¥3,200 million.
In addition, the foreign exchange rate assumptions are 155 yen per U.S. dollar for the six months ending June 30, 2026 (previous forecast: 145 yen) and 150 yen per U.S. dollar for the full fiscal year (previous forecast: 145 yen).
| Previous forecast (February 12, 2026) |
Revised forecast (May 12, 2026) |
|||
|---|---|---|---|---|
| FY2026 | FY2026 | |||
| H1 | Full-year | H1 | Full-year | |
|
Net sales （Millions of JPY） |
87,500 | 191,500 | 94,000 | 198,000 |
|
Operating profit （Millions of JPY） |
900 | 6,600 | 1,800 | 7,000 |
|
Profit before tax （Millions of JPY） |
100 | 5,000 | 1,300 | 5,700 |
|
Profit attributable to owners of parent （Millions of JPY） |
-1,100 | 2,300 | 300 | 3,200 |
In Conclusion
Once again, I want to thank you, our shareholders and investors, for your support to the Nissha Group.
Junya Suzuki
Chairman of the Board and Group CEO
