COSMO BIO COMPANY,LIMITED

Business Details

A life science trading company that procures over 10 million research reagent and instrument items from approximately 500 suppliers worldwide, and supplies them to researchers at universities, public research institutions, and companies through its domestic distributor network. The company also develops unique products and services, including proprietary primary cultured cells, Custom Peptide Synthesis & Antibody Production Service, and Contract Protein Manufacturing Using Egg Bioreactors. In the first quarter of FY2026 (ending March 2026), sales composition was Research Reagents ¥2,669 million (80.1%) and instruments ¥661 million (19.9%).

Recent Overview

Net sales rose 7.7% year on year to ¥3,331 million, a strong performance, though operating profit declined slightly due to higher SG&A expenses

In the first quarter of FY2026 (ending December 2026) (January to March 2026), net sales increased to ¥3,331 million (up 7.7% year on year). Both categories grew, with Research Reagents at ¥2,669 million (up 6.9%) and instruments at ¥661 million (up 10.8%). Gross profit increased to ¥1,135 million (up 7.2%), but as selling, general and administrative expenses rose from ¥785 million to ¥864 million (salaries and allowances from ¥233 million to ¥253 million; depreciation from ¥34 million to ¥46 million), operating profit slightly declined to ¥271 million (down 1.0%). Ordinary profit fell to ¥264 million (down 9.7%) due to deterioration in non-operating income and expenses, including the disappearance of foreign exchange gains and an increase in losses on disposal of fixed assets. On the other hand, due to the recording of a gain on sale of investment securities of ¥70 million (versus ¥28 million in the same period last year), quarterly net profit attributable to owners of parent increased to ¥222 million (up 4.7%). The full-year earnings forecast (net sales of ¥11,400 million, operating profit of ¥270 million) remains unchanged.

Key Products

Growth Drivers

• Sustained demand for research reagents and instruments driven by steady research budget execution at universities and public research institutions (reagents up 6.9% year on year, instruments up 10.8%)
• Improved customer service and sales expansion through inventory optimization and rapid shipping initiatives as the first year of the three-year plan
• Expansion of overseas sales through COSMO BIO USA, INC. and global reinforcement under the new medium-term plan
• Diversification of revenue sources through full-scale development of new businesses such as Contract Protein Manufacturing Using Egg Bioreactors and Scientist³
• Enhanced added value through expansion of proprietary products and services (such as Custom Peptide Synthesis & Antibody Production)

Risks

• Risk of margin pressure due to intensifying price competition with industry peers (market conditions remain challenging)
• Risk of rising procurement costs due to continued yen depreciation (average of ¥153/USD in Q1 versus ¥152/USD in the same period last year)
• Deterioration of the business environment due to US tariff policy and geopolitical risks (prolonged situation in Ukraine, escalating tensions in the Middle East)
• Risk of declining operating margin due to increased selling, general and administrative expenses (higher salaries and allowances, higher depreciation)
• Risk of fluctuations in the market value of investment securities (balance of ¥3,346 million at end of Q1, down ¥462 million from the end of the previous fiscal year)
• Uncertainty regarding the monetization of new businesses (Egg Bioreactors and Scientist³)