Worth reading
71In 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
1312
Millions of yen (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥71,380 million+9.6%
Operating profit¥6,519 million+25.2%
Ordinary income¥7,941 million+100.9%
Net income¥5,531 million+120.1%
Gross Profit Margin36.6%
Operating profit margin9.1%
Selling, general and administrative expenses¥19,579 million
Results for the three months of the current quarter
Net Sales
¥71,380 million
Operating profit
¥6,519 million
Ordinary income
¥7,941 million
Profit attributable to owners of parent for the quarter
¥5,531 million
Full-year earnings forecast
Net Sales
¥304,000 million
Operating profit
¥32,000 million
Ordinary income
¥30,000 million
Profit attributable to owners of the parent
¥21,500 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。
Consolidated
Net Sales23.5%
Operating profit20.4%
Ordinary income26.5%
Profit attributable to owners of parent for the quarter25.7%
Domestic segment
Net Sales22.9%
Segment profit20.9%
東和薬品 and other businesses
Net Sales23.3%
Segment profit23.6%
三生医薬 and other businesses
Net Sales19.7%
Overseas segment
Net Sales26.0%
Segment profit1.1%
Europe
Net Sales27.3%
United States
Net Sales23.7%
Segment profit12.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated net sales and operating profit are broadly on plan or progressing as planned. 三生医薬 and other businesses may fall short of plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in gross profit due to growth in sales volumes and unit prices+¥1.52 billion
- Increase in R&D expenses-¥290 million
- Increase in other SG&A expenses-¥540 million
- Decrease in amortization of goodwill at 三生医薬+¥0.62 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Assumed exchange rate for €1¥177
- Assumed exchange rate for $1¥154
New initiatives
- Acquisition of shares in 田辺ファーマファクトリー and succession of manufacturing and marketing approvals for 17 active ingredients and 35 products
- Improving production efficiency and increasing production capacity through collaboration at 東和薬品's 3 plants
Key KPIsA metric the company considers important as a management benchmark.
- Sales volume (東和薬品 standalone, tablets and capsules)40.2 100 million tabletsYear on year against the same period last year+4.4%
- Production volume (東和薬品 standalone, tablets and capsules)40.9 100 million tabletsYear on year against the same period last year+6.2%
- Production volume at 田辺ファーマファクトリー15.6 100 million tablets FY2025
- Employees at 田辺ファーマファクトリー538 People as of 1 April 2026
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volume and unit prices both increased at 東和薬品 and other businesses. Sales volume was 4.02 billion tablets (+4.4% year on year), and production volume was 4.09 billion tablets (+6.2%).Segment results
Domestic
Net Sales
¥55,981 million+6.1%
Segment profit
¥7,013 million+2.0%
東和薬品 and other businesses
Net Sales
¥49,746 million+8.7%
Segment profit
¥7,419 million+10.2%
三生医薬 and other businesses
Net Sales
¥6,234 million-11.3%
Segment profit
¥-406 million
Overseas expansion
Net Sales
¥15,612 million+25.0%
Segment profit
¥5 million
Europe
Net Sales
¥10,548 million+38.1%
Segment profit
¥-106 million
United States
Net Sales
¥5,063 million+4.3%
Segment profit
¥112 million-75.7%
Financial targets
Equity ratio: 38.0% (actual as of the end of June 2026). Financial target figures: not disclosedNumber of employees
田辺ファーマファクトリー: 538 people (as of 1 April 2026). Other employee numbers, changes during the period and hiring plans: not disclosedCapital expenditures
¥45 100 million first quarter of the fiscal year ending March 2027
Annual Dividend
¥85 per share
Breakdown¥40 interim dividend and ¥45 year-end dividend (forecast)
Payout ratio
Targeting 20–30%. Forecast for the fiscal year ending March 2027: 19.5%. Targeting a DOE of approximately 2%| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥71,380 million (YoY +9.6%) |
| Operating profit | ¥6,519 million (YoY +25.2%) |
| Ordinary income | ¥7,941 million (YoY +100.9%) |
| Net income | ¥5,531 million (YoY +120.1%) |
| Gross Profit Margin | 36.6% |
| Operating profit margin | 9.1% |
| Selling, general and administrative expenses | ¥19,579 million |
| Results for the three months of the current quarter | Net Sales ¥71,380 million / Operating profit ¥6,519 million / Ordinary income ¥7,941 million / Profit attributable to owners of parent for the quarter ¥5,531 million |
| Full-year earnings forecast | Net Sales ¥304,000 million / Operating profit ¥32,000 million / Ordinary income ¥30,000 million / Profit attributable to owners of the parent ¥21,500 million |
| Progress against full-year forecast | Consolidated Net Sales 23.5% / Operating profit 20.4% / Ordinary income 26.5% / Profit attributable to owners of parent for the quarter 25.7% / Domestic segment Net Sales 22.9% / Segment profit 20.9% / 東和薬品 and other businesses Net Sales 23.3% / Segment profit 23.6% / 三生医薬 and other businesses Net Sales 19.7% / Segment profit Not disclosed / Overseas segment Net Sales 26.0% / Segment profit 1.1% / Europe Net Sales 27.3% / Segment profit Not disclosed / United States Net Sales 23.7% / Segment profit 12.5% |
| Self-assessment against the plan | Consolidated net sales and operating profit are broadly on plan or progressing as planned. 三生医薬 and other businesses may fall short of plan. |
| Segment results | Domestic Net Sales ¥55,981 million (YoY +6.1%) / Segment profit ¥7,013 million (YoY +2.0%) / 東和薬品 and other businesses Net Sales ¥49,746 million (YoY +8.7%) / Segment profit ¥7,419 million (YoY +10.2%) / 三生医薬 and other businesses Net Sales ¥6,234 million (YoY -11.3%) / Segment profit ¥-406 million / Overseas expansion Net Sales ¥15,612 million (YoY +25.0%) / Segment profit ¥5 million / Europe Net Sales ¥10,548 million (YoY +38.1%) / Segment profit ¥-106 million / United States Net Sales ¥5,063 million (YoY +4.3%) / Segment profit ¥112 million (YoY -75.7%) |
| Breakdown of Factors Affecting the Change | Factors Increase in gross profit due to growth in sales volumes and unit prices / Amount +¥1.52 billion, Factors Increase in R&D expenses / Amount -¥290 million, Factors Increase in other SG&A expenses / Amount -¥540 million, Factors Decrease in amortization of goodwill at 三生医薬 / Amount +¥0.62 billion |
| Key KPIs | Indicator name Sales volume (東和薬品 standalone, tablets and capsules) / Value 40.2 100 million tablets / Year on year against the same period last year 4.4 100 million tablets, Indicator name Production volume (東和薬品 standalone, tablets and capsules) / Value 40.9 100 million tablets / Year on year against the same period last year 6.2 100 million tablets, Indicator name Production volume at 田辺ファーマファクトリー / Value 15.6 100 million tablets (FY2025) / Year on year against the same period last year Not disclosed, Indicator name Employees at 田辺ファーマファクトリー / Value 538 People (as of 1 April 2026) / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Sales volume and unit prices both increased at 東和薬品 and other businesses. Sales volume was 4.02 billion tablets (+4.4% year on year), and production volume was 4.09 billion tablets (+6.2%). |
| Number of employees | 田辺ファーマファクトリー: 538 people (as of 1 April 2026). Other employee numbers, changes during the period and hiring plans: not disclosed |
| Assumptions Underlying the Business Outlook | Item Assumed exchange rate for €1 / Value ¥177, Item Assumed exchange rate for $1 / Value ¥154 |
| Financial targets | Equity ratio: 38.0% (actual as of the end of June 2026). Financial target figures: not disclosed |
| Annual Dividend | ¥85 per share |
| Payout ratio | Targeting 20–30%. Forecast for the fiscal year ending March 2027: 19.5%. Targeting a DOE of approximately 2% |
| Capital expenditures | ¥45 100 million (first quarter of the fiscal year ending March 2027) |
| New initiatives | Acquisition of shares in 田辺ファーマファクトリー and succession of manufacturing and marketing approvals for 17 active ingredients and 35 products, Improving production efficiency and increasing production capacity through collaboration at 東和薬品's 3 plants |
Items this document does not state (7)
Number of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition 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.Sales volume and unit prices both increased at 東和薬品 and other businesses, while European B2C and European B2B operations grew at Towa INT. The deterioration in results at 三生医薬 and other businesses was offset by these increases. Operating profit also benefited from delayed spending on selling, general and administrative expenses at 東和薬品 and other businesses.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.