Shibuya operating profit fell 4.9%
Packaging plant operating profit rose 5.3% from the preceding fiscal year.
Shibuya Corporation (TSE-6340) reported a 4.9% decline in consolidated operating profit for the fiscal year ended June 30, 2026, as lower earnings in its mechatronics systems and agricultural equipment businesses weighed on the group’s operating result.
Shibuya’s consolidated revenue increased 5.1% from the preceding fiscal year, extending the group’s sales growth for the annual reporting period ended June 30, 2026.
Mechatronics operating profit fell 23.9% as higher-value models accounted for a smaller share of semiconductor manufacturing system sales and the medical equipment business incurred additional replacement costs associated with a component durability problem that had arisen in the preceding fiscal year.
Shibuya’s semiconductor manufacturing system sales increased on the strength of demand for bonders used in optical communications modules for data centers, explaining the mechatronics business’s revenue performance.
Shibuya’s medical equipment sales increased as the resolution of component shortages enabled a production increase from the third quarter, leading to higher sales to overseas destinations, including North America.
Shibuya strengthened its ability to develop and supply high-quality semiconductor and electronic component equipment with short lead times, alongside overseas service capabilities, to respond to customer requirements and rapid technological change.
Agricultural equipment operating profit declined 50.1% because some large plant projects had low profitability and the completion of a new headquarters factory increased the depreciation burden, explaining the business’s earnings performance.
Shibuya’s agricultural equipment revenue increased as higher sales of sorting and grading plants for citrus fruit and vegetables outweighed a reduction in sales of plants serving deciduous fruit crops.
Shibuya generated less cash from operating activities during the fiscal year than in the preceding fiscal year, when operating activities had also produced a net cash inflow.
Shibuya’s packaging plant business recorded a 5.3% increase in operating profit from the preceding fiscal year for the annual period ended June 30, 2026.
Packaging plant revenue increased as growth in sake filling systems and filling equipment for injectable drug syringes, eye drops and cosmetics outweighed lower sales of seasoning filling systems and aseptic beverage filling systems.
Shibuya expects overseas demand for aseptic beverage filling systems to increase as changing preferences and rising incomes heighten hygiene awareness in emerging markets, including Asia, and greater health consciousness raises demand for low-acid beverages in North America.
Shibuya expects greater market demand for its aseptic filling systems that sterilize bottles with electron beams and substantially reduce chemical and sterile-water use, and says its future sales expansion strategy can stimulate additional demand for those systems.
Shibuya expects domestic demand for dialysis equipment to decline as the number of dialysis patients in Japan has begun to fall.
Shibuya’s overseas sales accounted for more than 80% of dialysis equipment revenue as patient numbers increased internationally, particularly in China and India, and shipments to North America entered full swing.
Shibuya began expanding its Wakamiya medical equipment factory to accommodate increased production, with the company also developing new products for individual markets as part of its response to the medical equipment business’s operating environment.