ZACROS Corporation

Business Details

A business that promotes the realization of physical and mental health through products and services. Key products include Pharmaceutical & Medical Packaging Materials, Release Film for Pharmaceutical Use, single-use bags for manufacturing biopharmaceuticals, etc. (BioPhaS®), and Medical Device & In Vitro Diagnostics Related Products and diagnostic reagent-related products. Customers are domestic and overseas pharmaceutical and medical device manufacturers, with manufacturing and sales handled by ZACROS Corporation and overseas group companies such as ZACROS (THAILAND) CO., LTD. The segment accounts for 17.6% of consolidated net sales, but recorded an operating loss, reflecting its current phase of upfront investment.

Recent Overview

Recorded an impairment loss of ¥1,029 million, resulting in an operating loss of ¥201 million

In FY2026 (ending March 2026), the Wellness segment achieved higher net sales of ¥27,849 million (up ¥710 million year on year), but the recording of an impairment loss of ¥1,029 million combined with an increase in depreciation and amortization (up ¥622 million year on year to ¥1,974 million) resulted in an operating loss of ¥201 million. This marked a shift from operating income of ¥523 million in the prior period to a loss, as the burden of upfront investment became apparent. Note that, following the correction of the financial results report dated June 10, 2026, an error in the breakdown of impairment losses (Environmental Solutions: ¥367 million; Information & Electronics: ¥18 million) was corrected, but there was no change to the Wellness segment's impairment loss of ¥1,029 million itself.

Key Products

Growth Drivers

• Expansion of BioPhaS® customer base and increased production capacity through the operation of the new building at the Mie Plant
• Strengthening of production in Southeast Asia and acceleration of overseas expansion for Pharmaceutical & Medical Packaging Materials
• Advancement of business development for medical devices for in vitro diagnostics and expansion into the North American and Asian markets
• Establishment of a steady track record in the contract development and manufacturing business for cell therapy products

Risks

• Profit pressure from increased depreciation and amortization associated with construction of the new building at the Mie Plant (upfront investment phase)
• Short-term earnings deterioration due to continued upfront spending for BioPhaS® sales expansion and medical device development costs
• Risk of additional impairment losses (¥1,029 million already recorded in the current period)
• Rising costs of raw materials, energy, and transportation
• Risk of deteriorating profitability at overseas group companies (Southeast Asia)
• Risk of delays in the development of medical device and in vitro diagnostics related products