*Please note that this translation is to be used solely as reference.
In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.
Supplementary Information of Consolidated Financial Results
for the Three Months ended June 30, 2025
Aug 14, 2025
Linical Co., Ltd.
Consolidated Financial Results
Units: Millions of yen, % | Three Months ended June 30, 2024 | Three Months ended June 30, 2025 | |||
Amount | Net Sales | Amount | Net Sales | Year-on-Year | |
Net Sales | 2,926 | 100.0% | 2,626 | 100.0% | △10.3 |
Cost of Sales | 2,202 | 75.2% | 1,917 | 73.0% | △12.9 |
SG&A Expenses | 790 | 27.0% | 813 | 31.0% | 2.8 |
Operating Profit | △66 | △2.3% | △104 | △4.0% | - |
Ordinary Profit | △47 | △1.6% | △164 | △6.3% | - |
Net Profit | △82 | △2.8% | △176 | △6.7% | - |
Net Sales
Compared to the same period of the previous year, Europe and Taiwan saw increased revenue due to change orders for existing projects and the acquisition of new projects. However, a decrease in revenue in the US, South Korea, Japan, and China resulted in an overall decline in consolidated revenue.
Operating Profit
Europe recorded an increase in profit, and Taiwan and China returned to operating profitability. However, due to a decline in profit in the US and operating losses in Japan and South Korea, the consolidated operating loss
Financial Results by Region
Unit: Millions of yen | Three Months ended June 30, 2024 | Three Months ended June 30, 2025 | |||||||
Net Sales ** | Operating Profit | Ordinary Profit | Net Sales ** | Rate of Change % | Operating Profit | Rate of Change % | Ordinary Profit | Rate of Change % | |
Japan | 1,006 | △163 | △124 | 960 | △4.7 | △104 | - | △98 | - |
United States | 1,326 | 253 | 267 | 1,228 | △7.4 | 100 | △60.4 | 115 | △56.8 |
Europe | 828 | 2 | △20 | 954 | 15.1 | 40 | 1,894.8 | △1 | - |
Korea | 200 | △37 | △43 | 134 | △32.6 | △44 | - | △83 | - |
Taiwan | 18 | △15 | △16 | 36 | 93.0 | 1 | - | △1 | - |
China | 54 | △4 | △5 | 45 | △16.0 | 1 | - | 1 | - |
Consolidation Adjustments* | △509 | △101 | △105 | △733 | - | △98 | - | △96 | - |
Total | 2,926 | △66 | △47 | 2,626 | △10.3 | △104 | - | △164 | - |
Financial Results by Region
Japan:
Although multiple large-scale projects were contracted with domestic and international pharmaceutical companies, showing a recovery trend in orders, their contribution in the first quarter was partial, resulting in a decline in revenue. On the profit side, due to reductions in personnel and outsourcing costs, the operating loss was reduced.
US:
While there was an increase in revenue from change orders, revenue decreased compared to the same period of the previous year, which had been strong. Additionally, an increase in outsourcing costs led to a decline in profit.
Europe:
Existing projects progressed smoothly, and revenue from change orders also increased, resulting in higher revenue and profit compared to the same period of the previous year.
Asia:
South Korea: A significant decline in revenue and an operating loss incurred due to medical strikes and the suspension of multiple projects for client-related reasons.
China: While revenue decreased due to the termination of existing projects, operating profitability was achieved through cost reductions and other measures.
Taiwan: Revenue increased, and operating profitability was achieved due to the acquisition of new projects.
Hard Backlog by Region
* Hard backlog:
The balance of the amount for orders for contract business already concluded. This is an indicator that shows the amount of sales to be generated over the next one to five years and serves as the basis for the group's future results forecasts.
(Millions of yen)
11,737
10,898
12,469
4,494
4,191
4,350
2,212
2,756
2,705
3,192
1,790
1,437
3,317
2,795
1,861
15,000
10,000
5,000
0
2025/3 2025/6 2025/8/14
The hard backlog as of August 14, 2025 was 12.4 billion yen, up 6.2% from the end of March 2025