During the fiscal year ended June 30, 2025, the Japanese economy showed a moderate recovery, supported by growth in inbound tourism demand and a recovery in personal consumption and capital investment. However, the outlook remained uncertain due to factors including rising labor costs against the backdrop of structural labor shortages, surging raw material prices and energy costs, and concerns over a slowdown in the global economy resulting from U.S. tariff policies.
Under these circumstances, the Group recorded consolidated net sales of ¥129,017 million, up 11.8% from the previous fiscal year. Operating profit was ¥13,749 million, up 2.7%; ordinary profit was ¥13,773 million, up 1.6%; and profit attributable to owners of parent was ¥10,052 million, up 2.8%. Although net sales increased, profit growth was limited, mainly because the Mechatronics Systems Business recorded higher sales but lower profit. Net sales and profit at all levels reached record highs.
Net sales in the Packaging Plant Business increased from the previous consolidated fiscal year. Although seasoning filling lines decreased in food plants, aseptic filling lines for beverages increased for both the domestic and overseas markets. In pharmaceutical and cosmetics plants, vial filling lines for injectable drugs and cosmetics filling lines also increased.
As a result, net sales in this segment were ¥80,081 million, up 21.3% from the previous fiscal year, and operating profit was ¥12,574 million, up 16.1%.
Net sales in the Mechatronics Systems Business increased from the previous consolidated fiscal year. Although sales of semiconductor manufacturing equipment decreased due to restrained capital investment related to EVs and smartphones, sales of medical equipment increased, supported by strong demand in overseas markets, including North America and Europe.
As a result, net sales in this segment were ¥37,765 million, up 2.1% from the previous fiscal year. Operating profit was ¥2,341 million, down 28.0%. This was mainly due to higher expenses in medical equipment associated with the replacement of certain newly adopted components that had durability issues, as well as higher-than-expected manufacturing costs and on-site expenses for semiconductor-related projects involving a high degree of new development.
Net sales in the Agricultural Equipment Business decreased from the previous consolidated fiscal year. Although grading and sorting systems for citrus and deciduous fruits increased, grading and sorting systems for vegetables decreased.
As a result, net sales in this segment were ¥11,170 million, down 10.1% from the previous fiscal year, and operating profit was ¥1,042 million, down 30.7%.
Looking ahead, although positive factors are expected, including continued inbound tourism demand and a recovery in semiconductor demand driven by growing AI adoption, the outlook is expected to remain uncertain due to factors such as the impact of U.S. tariff policies and rising raw material prices and energy costs.
Under these circumstances, net sales in the Packaging Plant Business for the next fiscal year are expected to remain essentially flat overall. In food plants, sales are expected to decrease as orders for aseptic filling lines for beverages, which have remained at a high level, are expected to slow. However, pharmaceutical and cosmetics plants and alcoholic beverage plants are expected to increase, as both already have substantial order backlogs.
In the Mechatronics Systems Business, net sales are expected to increase, reflecting anticipated growth in demand for semiconductor manufacturing equipment driven by growing AI adoption.
In the Agricultural Equipment Business, net sales are expected to increase only slightly. Although investment in grading and sorting systems is expected to remain firm, supported by the continuation of subsidy programs such as the Subsidy Program for Strengthening Production Bases in Agricultural Production Areas and the Comprehensive Support Grant for Building Strong Agriculture, the extent of the increase is expected to be limited.
Based on the above, for the next fiscal year, the Group forecasts consolidated net sales of ¥133,000 million, up 3.1% from the current fiscal year. However, profit is expected to decrease due to the following factors:
As a result, the Group forecasts operating profit of ¥13,000 million, down 5.4%; ordinary profit of ¥13,200 million, down 4.2%; and profit attributable to owners of parent of ¥9,300 million, down 7.5%.
