BML, INC.

Business Details

Comprises the Clinical Laboratory Testing Business, which accepts general and specialized testing orders from hospitals and clinics nationwide, and the Food & Hygiene Business, which conducts food and hygiene testing. Testing items exceed 4,000 in number, covering biochemical, hematological, immunological, microbiological, pathological, and other tests. 16 consolidated subsidiaries accept specimens in their respective regions and outsource specialized tests to the parent company under a division-of-labor system. This is the Group's core business, accounting for approximately 95% of consolidated net sales.

Recent Overview

New customer acquisition and price optimization drove a 5.1% year-on-year increase in overall Testing Business sales

Sales results for the Testing Business in FY2026 (ending March 2026) were ¥143,191 million (up 5.1% year on year). In the Clinical Laboratory Testing Business, the company promoted enhanced new customer acquisition, price optimization, and deeper sales engagement with existing users. In the Food & Hygiene Business, in addition to optimizing transaction terms with major customers, food consulting and norovirus testing performed steadily. Although depreciation expenses increased following the launch of the new BML General Research Institute building (January 2025), the company secured earnings growth through the effect of higher sales.

Key Products

Growth Drivers

• Strengthening new customer acquisition and promoting deeper sales engagement with existing users for new and priority testing items
• Continued progress on sales price optimization measures (review of transaction terms including with major customers)
• Expansion of testing capacity through the launch of the new BML General Research Institute building, the new BML Food Science testing building, and the new PCL Japan Tokyo laboratory
• Expansion of advanced and specialized testing driving growth in other testing (up 10.2% year on year)
• Increased orders for store inspections and certification work in the food consulting business, and steady trends in norovirus testing
• Development of advanced testing through the introduction of cutting-edge genomic analysis devices and collaboration with biotech companies and universities
• Enhanced customer experience value and operational efficiency through DX promotion (approximately ¥10 billion investment plan over 10 years)

Risks

• Risk of reduced reimbursement fees for specimen testing due to biennial revisions to the medical fee schedule (next revision in FY2027)
• Pressure on profitability from rising costs across raw materials, energy, and labor
• Increased personnel acquisition costs amid labor shortages
• Continued price pressure from competition among operators (difficulty in gaining customer understanding for price optimization measures)
• Impact on raw material and reagent costs from geopolitical risks such as US trade policy and Middle East tensions
• Risk of impairment of fixed assets (an impairment loss of ¥372 million was recorded on a consolidated basis in FY2026, ending March 2026)
• Increased depreciation expenses from large-scale capital investment associated with next-generation laboratory construction (already increasing following the launch of the new BML General Research Institute building)