Thank you very much for waiting, thank you for participating in the business results briefing for the first three months of fiscal year ending March 31st, 2019. Let me introduce today's presenters. We have Yukio Nakajima, Managing Board Member, Senior Executive Officer, Senior Managing Director, CFO, and we have Tomo Aramaki, Executive Vice President of Corporate Business Administration. First, Nakajima will go over the business results for 15 minutes, followed by a Q&A session for half an hour. We'd like to get started now. We are recording this conference call today, just so you know. Nakajima will go over the financial highlights first.
This is Nakajima from Sysmex, and nice talking to you all. Let me go through the business results for the first three months of fiscal year ending March 31st, 2019. Please turn to page one, financial highlights.
Net sales were JPY 65.9 billion. It grew by 6.9%. Operating profit was JPY 13.8 billion, it went up by 11.3%. Net income was JPY 9.42 billion, it went up by 14.6%. Net sales increased, driven by the reagent sales growth centered on hematology and hemostasis, and the OGT that was consolidated in July of last year. Operating income increased by the improved cost of sales ratio by the increased reagent sales mix and the increased other income. Please take a look at the table at the left bottom. FX. Compared to the previous year, the yen trend is stronger by JPY 2 to a USD, yen trend is weaker by JPY 7.9 to a EUR, yen trend is weaker by JPY 0.9 to CNY. The FX impact was JPY 1.31 billion positive impact on the sales, JPY 40 million negative impact on operating income.
Net income increased, driven by the higher operating income, also reduced tax burden rate. The tax rate was 26.6%. It went down by 5.4 percentage points compared to the previous year. The tax rate decreased by receiving the withholding tax refund by the Japan-Germany tax treaty revision and the lowered corporate taxes in the U.S. for our subsidiary by the tax system revision. Please turn to next page. Breakdown of net sales and operating income. The external net sales by regions, they increased in all regions excluding FX impact. The FX impact on the sales was positive despite the stronger yen to a USD, but the weaker yen to EUR and RMB. There was a positive impact of JPY 1.31 billion on the whole. By regions, JPY 260 million negative impact on the Americas. For EMEA, JPY 650 million positive impact. In China, JPY 940 million positive impact.
AP was JPY 20 million negative impact. Operating income increased by the higher gross profit with the increased sales and increased cost of sales, which actually absorbed the increased SG&A. The cost of sales ratio deteriorated due to FX impact, but basically it improved with the increased reagent sales mix. The SG&A increased by transition to direct service in China and consolidation of OGT as well as FX impact. Please turn to the next page. Net sales by geographic regions. Please take a look at the year-on-year number at the right top. In all regions, the sales increased on local currency basis. The Americas saw a slight decline on yen basis due to a stronger yen, but overall, the sales increased by 6.9%. Please turn to the next page. Sales by business. The core business sales increased by 6.7%, driven by the sales growth in hematology and hemostasis.
Hematology sales increased, supported by the strong reagent sales. The urinalysis saw the decline in sales despite the increased reagent sales, but affected by the instrument sales in China and the Americas. Immunochemistry sales increased by the instrument sales in China and reagent sales. The hemostasis saw the increase in sales because of the reagent sales, despite the weak sales of instruments. Non-core business increased by 71.6%. In life science business, the sales increased by the OGT, which was subsidized in July of last year, and ROS1 in Japan for companion diagnostic drug and replacement of OSNA with the new products in Europe. Please turn to the next page. Let me go through geographic segment information. Starting with Americas. The net sales were JPY 13.95 billion. It went down by 0.3%.
The sales decreased slightly despite the growth in hematology reagent for North America, also the hemostasis instrument sales, but affected by the decline in the sales for the Central and South America. Operating profit was JPY 680 million, down by 58.9%. Revision of intragroup transaction prices, also the increased service cost affected the worsening in the cost of sales ratio and SG&A increase. It was higher than the increased sales to see the decline in profit. On a local currency basis, net sales increased by 1.5%, operating income declined by 58.2%. The growth rate by regions, the Americas grew by 6.5%. Despite declined sales of urinalysis, the hematology reagent sales grew by the increased number of installations and upgraded hemostasis instrument for the major commercial laboratories, the sales increased. Central and South America's sales went down by 17.9%.
In Brazil, the sales increased by the sales of urinalysis new products by the direct sales. In other Central and South America, the sales decreased by the weak sales of hematology instruments. Please turn to the next page. EMEA. The net sales was JPY 18.7 billion. It went up by 11.3%. The sales increased by the hematology reagent sales growth by the increased number of installations and the sales increase of OGT. Operating income was JPY 1.32 billion, up by 0.6%. The SG&A increased by reinforcing sales system in emerging countries, such as in Russia. The operating income saw a slight increase by revising the intragroup transaction prices and the increased sales of OGT and the impact of weaker yen. On a local currency basis, net sales increased by 4.6% and operating income went down by 5.5%. The sales growth by regions. 5 major countries grew by 10.3%.
Despite continuing deal declines or delays in the U.K. because of Brexit, so the direct sales of hemostasis grew in France, and also the new products contributed in life science in Spain, which helped to see the growth in sales. East Europe and Russia went down by 0.7%. Eastern Europe sales declined, but the Russia sales increased despite the impact of weaker ruble. It was supported by the sales growth of hemostasis. Middle East and Africa went up by 10.7%. Middle East sales declined, affected by a large deal that we had in the previous year. Africa saw the increased sales by acquiring a large deal in Burkina Faso and the sales growth of hematology reagents. Please turn to the next page. China. The net sales was JPY 17.85 billion. It went up by 10.4%. Centered on hematology, hemostasis and immunochemistry, the reagent sales grew.
With the transition to direct service, the reagent price increased to see the increased sales. Operating profit was JPY 3.47 billion, up by 88%. Despite impact of intragroup transaction price revision, the growth in reagent sales and the improved cost of sales ratio by FX impact, the operating income increased. On a local currency basis, net sales increased by 4.5%, operating income increased by 77.9%. The sales growth by segment, hematology grew by 5.6%. Despite a decline in instrument sales, the reagent sales grew by the increased number of installations to see the sales growth. Hemostasis grew by 10.2%. Despite the weak sales in instruments, the reagent sales for fibrin grew to see the increased sales. Urinalysis declined by 25.2%.
Although the reagent sales grew, in Q1 of last year, we had the initial demand for the new instrument product, and because of that, we saw a decline in sales this year. Immunochemistry increased by 43.9%. In addition to infectious disease reagents, the multiple provinces applied insurances on the hemostasis molecular marker reagents. Such sales growth contributed to see the growth in overall sales. Please turn to the next page. AP. The net sales was JPY 5.32 billion. It went up by 5.1%. The same time last year, there was a large deal in South Asia. However, we had a large deal obtained in Taiwan, which contributed to see the sales growth. Operating income was JPY 490 million, up by 10.2%. Although the intragroup transaction prices were revised, also the SG&A increase impact existed by reinforcing sales system in different countries.
We saw income increase by the reagent sales growth in hematology. Sales growth by regions. Southeast Asia grew by 3.3%. Thailand sales grew by the sales growth of instruments and reagents in hematology. South Asia sales declined by 24.1%. The sales declined due to the absence of large deals in India and Bangladesh that we had in the same time last year. South Korea and Taiwan increased by 28.2%. Sales increased because in Taiwan, we started to offer direct services, and we acquired a large hematology deal with a major hospital group, as well as in South Korea, we had more installations of new urinalysis instruments. Please turn to the next page. Japan. The whole Japan, including both internal, external sales, the net sales were JPY 33.06 billion. It went down by 4.9%.
In Japan, despite a dissolution of a joint venture with bioMérieux, there was a growth in sales in immunochemistry hemostasis, and we had the sales of ROS1 of companion diagnostic drug, which helped to see the growth in sales. Internal sales declined because of reduced exports for our overseas affiliated companies. Operating income was JPY 8.09 billion, down by 14.1%. The income declined despite the reagent sales growth in Japan, because of a decline in sales for the overseas affiliated companies. Please turn to the next page. Consolidated financial forecasts have not been changed since what we have announced in May. This concludes my presentation.