PHC Holdings Corporation

Business Details

Centered on the development, manufacturing, and sale of Blood Glucose Monitoring (BGM) Systems, the business is deployed in more than 110 countries and regions worldwide through the sales network of Ascensia Diabetes Care. In January 2026, the transfer of the U.S. sales business for the CGM business (Eversense) to Senseonics Holdings, Inc. was completed. Amid the continued contraction of the BGM market in developed countries, profitability improved substantially through measures to raise unit prices and increase sales volume, together with cost reductions from structural reforms.

Recent Overview

Operating profit increased sharply by 44.6% year on year, driven by improved profitability in the BGM business and the CGM transfer

Revenue for FY2026 (ending March 2026) was ¥101,581 million (up 2.9% year on year). The BGM business achieved revenue growth as measures to raise unit prices and increase sales volume in the United States proved effective, with solid sales in Europe and favorable foreign exchange effects also contributing. Operating profit rose sharply to ¥20,085 million (up 44.6% year on year). The main drivers were cost reductions from structural reforms, a decrease in depreciation and amortization (down 22.1% year on year), and improved profitability associated with the CGM business transfer. The impact of the review of head office functions was ¥(302) million. For FY2027 (ending March 2027), revenue is forecast at ¥92,300 million (a decrease due to the impact of the CGM transfer, among other factors) and operating profit at ¥24,000 million (an increase).

Key Products

Growth Drivers

• Continued success of measures to raise unit prices and increase sales volume in the United States in the BGM business
• Expansion of market share and continued solid sales in the European BGM market
• Improved profit margin from the divestiture of unprofitable operations associated with the CGM business transfer
• Cost reduction effects from business structural reforms and a decrease in depreciation and amortization
• Progress in localization measures and expanding BGM demand in emerging markets such as Algeria

Risks

• Continued structural contraction of the BGM market in developed countries and ongoing shift toward lower-priced channels
• Risk of BGM market substitution due to the expanding adoption of CGM
• Impact on revenue and profit from foreign exchange fluctuations (particularly the U.S. dollar and euro) (a negative factor for FY2027 (ending March 2027) assuming yen appreciation)
• Risk of rising procurement costs due to trends in U.S. tariff policy
• Reduction in revenue scale following the CGM business transfer (expected to be a factor reducing revenue by approximately ¥9,000 million year on year in the FY2027 (ending March 2027) forecast)