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Starting this quarter, I, Muto, will explain our results overview.
First, the overall results. In addition to the Cardiac and Vascular Company starting out strong, spending progress was slightly delayed, resulting in a start to the fiscal year in which profit grew in double digits to exceed guidance. In revenue, even when excluding the recovery from last year's shipping delay, Cardiac and Vascular Company showed double-digit growth before FX impact, driving overall group growth to 7%. Due to slight delays in the progress of spending on SG&A, especially salaries and wages, adjusted operating profit grew 11% despite some FX impact for double-digit growth. Profit before taxes grew 26% year-on-year due to far less FX loss than the same period of the previous fiscal year.
Next slide, please. This is the variance analysis of adjusted operating profit compared to the previous fiscal year. The gross profit increment by sales increase may appear small compared to guidance of JPY 33 billion for the entire year. However, that is the result of there being some impact in the previous fiscal year from the Ashitaka Factory shipping delay. In the second quarter of this fiscal year, we expect the gross profit increment to greatly increase and progress according to plan.
The JPY 100 million amount of gross margin might appear similarly low in light of the $4.8 billion annual guidance, but this, too, is on schedule. It reflects the production cost increase that came with bringing new production online at the Yamaguchi factory, which was offset by improved business mix, resulting in a similarly high gross profitability to the same quarter of the previous fiscal year.
Progress on price erosion impact is delayed due to new price negotiations with some customers not being complete yet. However, price corrections compensating for this past portion will be reflected in the second quarter and beyond, meaning the annual guidance remains on schedule.
SG&A increase includes some planned promotional expenses that did not occur in this fiscal year. From the second quarter onward, this will catch up to plan, getting closer to the annual guidance of JPY 12.5 billion.
The R&D increase appears small compared to the annual guidance of JPY 5.7 billion. This is actually on schedule with our plan to gradually increase this throughout the year.
Regarding FX, the overall impact was more or less in line with the annual guidance.
Next slide, please. Next is revenue by region. In Japan, the TIS business returned to double-digit growth, and all companies showed positive growth. Outside Japan, all regions were driven by the Cardiac and Vascular Company. In China especially, the shipping delays had already begun to affect revenue during the first quarter of last fiscal year. In addition to the recovery from that, the DES business of Essen Technology was added this fiscal year for a total positive year-on-year growth of 25%.
Next slide, please. Next is revenue by company. In Cardiac and Vascular, the primary drivers were recovery in the TIS business and Neurovascular growth that exceeded 30%. In General Hospital, the Alliance business continued to grow at over 30%, and overall, the company performed well. Blood Management started out negatively year-on-year due to strong FX impacts and some expected revenue happening at the end of the last fiscal year instead of this first quarter, primarily in the U.S. and Europe.
I will give more detail by company in the next slides. First, Cardiac and Vascular Company. Revenue was affected negatively by FX but still grew 11%. TIS showed double-digit growth both inside and outside Japan, driven by strong growth of both access and therapeutic devices, even without the recovery from last fiscal year's shipping delay. Neurovascular, in addition to seeing a strong launch of the WEB product in the United States, grew its SOFIA aspiration catheter well, leading to overall revenue growth of 30%.
In profit, the increase in sales of high-profitability TIS and Neurovascular products and improved product mix both contributed to a strong result. With delays in the progress of spending on promotions and salaries and wages also having an impact, profit grew 23% year-on-year. In the second quarter and beyond, this spending will catch up. Also, in October, reimbursement price revision will have impact. So we expect our annual results to trend back towards guidance.
Next slide, please. The General Hospital Company began this year approximately according to plan. In revenue, there was a decrease in General Hospital products demand outside Japan. The Alliance business saw continued 30% growth both inside and outside Japan, and the company posted overall year-on-year growth of 2%.
In profit, as mentioned when we announced our guidance, depreciation of our Yamaguchi factory in the Alliance business began in the first quarter. Also, expenses were incurred that were expected in the first quarter, so profit is approximately on plan.
Next slide, please. Next is Blood Management. Revenue saw a first quarter decrease due to some sales happening ahead of schedule at the end of last fiscal year, depressing April 2019 sales. In addition, there was negative FX impact. All told, revenue growth came out negative year-on-year.
Profits sustained heavy FX impact, and some R&D expenses happened earlier than expected, resulting in double-digit negative profit growth. However, this was approximately in line with our quarterly plan expectation.
Next slide, please. Next, the major topics from the quarter. Terumo instituted staggered working hours and an improved teleworking system as part of its promotion of work style reform. We also strengthened our corporate identity and values system while restructuring executive compensation, both measures towards stronger corporate governance.
In business, there was a lot of news related to accelerated deployment of therapeutic devices by the Cardiac and Vascular Company. The Neurovascular product, WEB, launched in the United States, while stentriever, Tron FX, launched in Japan. The company also acquired exclusive sales rights for a drug-eluting balloon from the U.S. company, Orchestra BioMed.
Next slide, please. This slide shows our new product pipeline for this fiscal year. Currently, product launches are on schedule.
Next slide, please. As I mentioned, we acquired exclusive sales rights to the drug-eluting angioplasty balloon, Virtue, from a U.S. company called Orchestra BioMed. The product is the first and only non-coated drug-eluting angioplasty balloon that delivers a proprietary bioabsorbable, sustained-release formulation of sirolimus, the gold standard drug for drug-eluting stents. The product has received breakthrough device designation from the United States FDA. We plan to begin clinical trials in 2020 and initially launch in the U.S. within a few years of that.
That concludes my explanation. Thank you..