NIHON KOHDEN CORPORATION
6849・Prime Market・Electric Appliances
Japan
Core segment responsible for domestic R&D, manufacturing, and sales of medical electronic equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (External Customers) | ¥145,141 million | ¥146,525 million | ↓ |
| Segment Profit | ¥14,094 million | ¥21,926 million | ↓ |
| Segment Sales YoY Change | -0.9% | ― | ↓ |
| Segment Profit YoY Change | -35.7% | ― | ↓ |
| Domestic Sales (by Region, Customer Location Basis) | ¥144,406 million | ¥145,237 million | ↓ |
Business Details
The Japan segment centers on R&D and manufacturing of medical electronic equipment by the Company and Nihon Kohden Tomioka Co., Ltd., with sales conducted through domestic branch offices. It offers four product groups—Biological Measurement Equipment, Patient Monitor, Therapeutic Equipment, and Other (Clinical Laboratory Testing, IT Solutions, etc.)—to a diverse customer base including acute care hospitals, small and medium-sized hospitals, clinics, public hospitals, and the PAD market. The pillars of its growth strategy are expansion of the consumables and services business and enhancement of customer value propositions. Sales to external customers for FY2026 (ending March 2026) were ¥145,141 million, accounting for approximately 61.7% of consolidated sales, making it the mainstay segment.
Recent Overview
Domestic sales declined and segment profit fell sharply by 35.7%, with a significant deterioration in profitability
In FY2026 (ending March 2026), the Japan segment saw a decline in sales due to progress in curbing locally sourced products and a decrease in Abbott products. AED sales in the PAD market declined due to distributor inventory adjustments, and sales to the public hospital market also declined. SG&A expenses increased due to wage increases, R&D investment, and higher depreciation expenses associated with M&A and capital expenditures, resulting in a significant decline in segment profit to ¥14,094 million (down 35.7% year on year). On the other hand, in February 2026 the Company made Dwell Corporation a consolidated subsidiary, strengthening its perioperative solutions business. In March 2026, the Tsurugashima Production Center began operations. Handling of Abbott products has been decided to end upon contract expiration at the end of December 2026, and domestic sales in FY2027 (ending March 2027) are expected to decline in the high single digits.
Key Products
Growth Drivers
- Strengthening a stable revenue base through expansion of the consumables and services business (consolidated consumables and services sales for FY2026 (ending March 2026) were ¥119,103 million, up 6.2% year on year)
- Expanding demand for IT solutions and Digital Health Solutions (DHS) driven by the promotion of medical DX (clinical information systems achieved double-digit growth)
- Strengthening the perioperative solutions business and advancing the utilization of medical field data through the consolidation of Dwell Corporation as a subsidiary (February 2026)
- Enhancing production capacity and product competitiveness through the operation of the Tsurugashima Production Center (March 2026)
- Improving gross profit margin by focusing on sales of proprietary products following the discontinuation of Abbott products (improving the revenue structure toward FY2027 (ending March 2027))
- Improving profitability through pricing initiatives such as sales price increases
Risks
- Risk of a high single-digit decline in domestic sales in FY2027 (ending March 2027) due to the discontinuation of Abbott products (end of December 2026)
- Restraint and postponement of capital investment in medical equipment due to deteriorating hospital finances (increasing proportion of hospitals with ordinary losses due to rising prices and wages)
- Risk of delayed or reduced budget execution in the public hospital market (structure of sales concentration in the fourth quarter)
- Decline in sales in the PAD market (AEDs) due to distributor inventory adjustments
- Rising SG&A expenses and pressure on profit margins due to increased depreciation expenses associated with wage increases, increased R&D investment, and IT system investments such as PLM/MES
- Risk of changes in demand structure due to the reorganization of medical institutions toward the 2040 Regional Healthcare Vision
Last updated: June 24, 2026