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Financial results presentation4549EIKEN CHEMICAL CO.,LTD.Pharmaceuticals

Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue increased 4.7% year on year, while operating profit declined 8.2% and net income declined 62.2%. Revenue met the first-half budget, but profit fell short.

Worth reading
59In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-141
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥21,388 million+4.7%
Operating profit¥1,587 million-8.2%
Ordinary income¥1,616 million-6.6%
Net income¥1,125 million-62.2%
Selling, general and administrative expenses¥6,502 million
Gross Profit Margin37.8%, down 3.2 percentage points year on year (reference figure calculated as gross profit of ¥8,089 million ÷ revenue of ¥21,388 million; the percentage was not stated in the materials)
Operating profit margin7.4%, down 1.0 percentage point year on year (reference figure calculated as operating profit of ¥1,587 million ÷ revenue of ¥21,388 million; the percentage was not stated in the materials)
Full-year earnings forecast
Net Sales
¥42,000 million
Operating profit
¥3,070 million
Ordinary income
¥2,900 million
Net income
¥2,070 million
Cost of sales
¥25,650 million
Gross profit
¥16,350 million
Selling, general and administrative expenses
¥13,280 million
R&D Expenses
¥3,600 million
Capital Expenditures
¥2,318 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales50.9%
Cost of sales51.8%
Gross profit49.5%
Selling, general and administrative expenses49.0%
Operating profit51.7%
Ordinary income55.7%
Net income54.4%
Fecal Occult Blood Revenue51.0%
Immunoserology (excluding fecal occult blood)50.3%
Urine testing49.2%
Microbiology46.8%
Biochemistry45.2%
Instruments, food and environmental testing49.4%
Genetic testing56.8%
Medical equipment and other57.0%
Domestic revenue50.5%
Overseas revenue52.1%
Americas revenue42.2%
EMEA Revenue56.7%
APAC Revenue52.3%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue met the first-half budget, but profit fell short
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Segment revenue
Fecal occult blood testing398
Immunoserology (excluding fecal occult blood)144
Urine testing-74
Microbiology-7
Biochemistry-11
Instruments, food and environmental testing-149
Genetic testing-58
Medical equipment and other714
Regional sales
Domestic270
Americas-136
EMEA819
APAC5
New initiatives
  • Launch of the OC Sensor R70 fecal occult blood analyzer
  • Launch of LZ-Test ‘Eiken’ FER II
  • Approval obtained for LZ-Test ‘Eiken’ NT-proBNP; launch scheduled shortly
  • Sales collaboration with TAUNS Laboratories for POCT products
  • Manufacturing and sales collaboration with Kyokuto Pharmaceutical Industrial for culture media products
  • Introduction of a Shareholder Benefit Program
  • Introduction of the CxO System
Key KPIsA metric the company considers important as a management benchmark.
Overseas revenue ratio
28.7 %+2.0%
CCC
Improved year on year
Fecal Occult Blood Revenue
¥7,256 million+5.8%
Overseas revenue
¥6,137 million+12.6%
Segment results
Fecal occult blood testing
¥7,256 million+5.8%
Immunoserology (excluding fecal occult blood)
¥5,030 million+2.9%
Urine testing
¥2,288 million-3.1%
Microbiology
¥2,141 million-0.3%
Biochemistry
¥289 million-3.6%
Instruments, food and environmental testing
¥800 million-15.8%
Genetic testing
¥954 million-5.7%
Medical equipment and other
¥2,627 million+37.4%
Medium-term management plan targets
Management Plan 2030
Operating profit margin14% or higher
ROIC10% or higher
CCC85 days or less
Target fiscal yearFY2030
Financial targets
ROIC10% or higher
Operating profit margin14% or higher
CCC85 days or less
Capital expenditures
¥266 million cumulative actual results for Q2 of the fiscal year ending March 2027
Payout ratio
Total payout ratio of 50% or more
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥21,388 million (YoY +4.7%)
Operating profit¥1,587 million (YoY -8.2%)
Ordinary income¥1,616 million (YoY -6.6%)
Net income¥1,125 million (YoY -62.2%)
Gross Profit Margin37.8%, down 3.2 percentage points year on year (reference figure calculated as gross profit of ¥8,089 million ÷ revenue of ¥21,388 million; the percentage was not stated in the materials)
Operating profit margin7.4%, down 1.0 percentage point year on year (reference figure calculated as operating profit of ¥1,587 million ÷ revenue of ¥21,388 million; the percentage was not stated in the materials)
Selling, general and administrative expenses¥6,502 million
Full-year earnings forecastNet Sales ¥42,000 million / Operating profit ¥3,070 million / Ordinary income ¥2,900 million / Net income ¥2,070 million / Cost of sales ¥25,650 million / Gross profit ¥16,350 million / Selling, general and administrative expenses ¥13,280 million / R&D Expenses ¥3,600 million / Capital Expenditures ¥2,318 million
Progress against full-year forecastNet Sales 50.9% / Cost of sales 51.8% / Gross profit 49.5% / Selling, general and administrative expenses 49.0% / Operating profit 51.7% / Ordinary income 55.7% / Net income 54.4% / Fecal Occult Blood Revenue 51.0% / Immunoserology (excluding fecal occult blood) 50.3% / Urine testing 49.2% / Microbiology 46.8% / Biochemistry 45.2% / Instruments, food and environmental testing 49.4% / Genetic testing 56.8% / Medical equipment and other 57.0% / Domestic revenue 50.5% / Overseas revenue 52.1% / Americas revenue 42.2% / EMEA Revenue 56.7% / APAC Revenue 52.3%
Self-assessment against the planRevenue met the first-half budget, but profit fell short
Segment resultsFecal occult blood testing ¥7,256 million (YoY +5.8%) / Immunoserology (excluding fecal occult blood) ¥5,030 million (YoY +2.9%) / Urine testing ¥2,288 million (YoY -3.1%) / Microbiology ¥2,141 million (YoY -0.3%) / Biochemistry ¥289 million (YoY -3.6%) / Instruments, food and environmental testing ¥800 million (YoY -15.8%) / Genetic testing ¥954 million (YoY -5.7%) / Medical equipment and other ¥2,627 million (YoY +37.4%)
Breakdown of Factors Affecting the ChangeSegment revenue Fecal occult blood testing 398 / Immunoserology (excluding fecal occult blood) 144 / Urine testing -74 / Microbiology -7 / Biochemistry -11 / Instruments, food and environmental testing -149 / Genetic testing -58 / Medical equipment and other 714 / Regional sales Domestic 270 / Americas -136 / EMEA 819 / APAC 5
Key KPIsOverseas revenue ratio 28.7 % (YoY +2.0%) / CCC Improved year on year / Fecal Occult Blood Revenue ¥7,256 million (YoY +5.8%) / Overseas revenue ¥6,137 million (YoY +12.6%)
Medium-term management plan targetsManagement Plan 2030 Operating profit margin 14% or higher / ROIC 10% or higher / CCC 85 days or less / Target fiscal year FY2030
Financial targetsROIC 10% or higher / Operating profit margin 14% or higher / CCC 85 days or less
Payout ratioTotal payout ratio of 50% or more
Capital expenditures¥266 million (cumulative actual results for Q2 of the fiscal year ending March 2027)
New initiativesLaunch of the OC Sensor R70 fecal occult blood analyzer, Launch of LZ-Test ‘Eiken’ FER II, Approval obtained for LZ-Test ‘Eiken’ NT-proBNP; launch scheduled shortly, Sales collaboration with TAUNS Laboratories for POCT products, Manufacturing and sales collaboration with Kyokuto Pharmaceutical Industrial for culture media products, Introduction of a Shareholder Benefit Program, Introduction of the CxO System
Items this document does not state (11)
Results for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased on growth in fecal occult blood and tuberculosis genetic testing reagents for overseas markets and domestic medical devices. Profit declined due to factors including temporary patent fee income in the same period of the previous year and changes in the sales mix. Net income declined due to the reversal of the approximately ¥1.9 billion one-off extraordinary gain from the transfer of an interest in a consolidated subsidiary in the same period of the previous year.

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Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027 | EIKEN CHEMICAL CO.,LTD. (4549) timely disclosure | Komori