Worth reading
77Important
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
11778
¥ million (year-on-year increase in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportSecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥142,254 million+9.0%
Operating profit¥12,745 million+22.0%
Ordinary income¥10,093 million-15.7%
Net income¥6,866 million -16.4%interim net income attributable to owners of the parent
Gross Profit Margin36.2 %
Operating profit margin9 %
Selling, general and administrative expenses¥38,699 million
Full-year earnings forecast
Net Sales
¥304,000 million
Cost of sales
¥190,000 million
Gross profit
¥114,000 million
Selling, general and administrative expenses
¥82,000 million
Operating profit
¥32,000 million
Ordinary income
¥30,000 million
Interim net income 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。
Net Sales46.8%
Cost of sales47.8%
Gross profit45.1%
Selling, general and administrative expenses47.2%
Operating profit39.8%
Ordinary income33.6%
Interim net income attributable to owners of the parent31.9%
Domestic segment revenue45.5%
Domestic segment profit39.2%
Towa Pharmaceutical and other revenue46.2%
Towa Pharmaceutical and other segment profit43.4%
Sansho Pharmaceutical and other revenue41.2%
Sansho Pharmaceutical and other segment profit-27.8%
Overseas segment revenue51.9%
Overseas segment profit126.6%
European net sales53.5%
US sales49.0%
U.S. segment profit105.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell short of the first-half plan, operating profit met the first-half plan, and ordinary profit fell short of the first-half plan. Full-year segment profit at 三生医薬 and other businesses is expected to fall short of plan, while full-year segment profit at Towa INT is expected to exceed 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¥30 100 million
- Increase in research and development expenses¥-10.1 100 million
- Increase in other SG&A expenses¥-7.8 100 million
- Decrease in gross profit due to lower revenue at 三生医薬 and other businesses¥-12.4 100 million
- Decrease in amortization of goodwill at 三生医薬¥12.5 100 million
- Towa INT¥23 100 million
- Adjustments¥12 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Assumed euro exchange rate¥177
- Assumed dollar exchange rate¥154
New initiatives
- Plans to launch 20 new products containing 8 active ingredients in December 2026, with planned first-year sales of approximately ¥2.1 billion
- The planned execution date for the transfer of shares in 田辺ファーマファクトリー株式会社 changed from the end of November 2026 to the end of December 2026
- Change in the EPS calculation formula accompanying the payment of dividends on Class A preferred shares
Key KPIsA metric the company considers important as a management benchmark.
- Actual sales volume (Towa Pharmaceutical standalone, tablets and capsules)79.3 100 million tabletsYear on year against the same period last year+3.4%
- Actual production volume (Towa Pharmaceutical standalone, tablets and capsules)80.2 100 million tabletsYear on year against the same period last year+0.1%
- Production volume at the company’s 3 plantsYear on year against the same period last year+2.2%
- Number of products under restricted shipment (as of the end of September 2026)232 Options
- Number of products with supply suspended (as of the end of September 2026)21 Options
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Actual sales volume79.3 100 million tabletsYear on year against the same period last year+3.4%
- Price per shareIncreased
Segment results
Domestic segment
Net Sales
¥111,477 million+6.3%
Segment profit
¥13,126 million-1.0%
東和薬品 and other businesses
Net Sales
¥98,443 million+8.9%
Segment profit
¥13,683 million+9.6%
三生医薬 and other businesses
Net Sales
¥13,034 million-10.2%
Segment profit
¥-556 million
Overseas segment
Net Sales
¥31,134 million+20.4%
Segment profit
¥632 million
Europe
Net Sales
¥20,640 million+28.4%
Segment profit
¥-313 million
United States
Net Sales
¥10,493 million+7.4%
Segment profit
¥945 million+15.1%
Financial targets
Equity ratio
Actual results39.6 %
Number of stores and locations
The number of sales offices is stated to have decreased following the closure of the Minami-Osaka Sales Office at the end of August in the fiscal year ending March 2027, but the total number at the fiscal year-end and the overall number of openings and closures are not disclosedCapital expenditures
¥93 100 million second quarter of the fiscal year ending March 2027
| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥142,254 million (YoY +9.0%) |
| Operating profit | ¥12,745 million (YoY +22.0%) |
| Ordinary income | ¥10,093 million (YoY -15.7%) |
| Net income | ¥6,866 million (interim net income attributable to owners of the parent) (YoY -16.4%) |
| Gross Profit Margin | 36.2 % |
| Operating profit margin | 9 % |
| Selling, general and administrative expenses | ¥38,699 million |
| Full-year earnings forecast | Net Sales ¥304,000 million / Cost of sales ¥190,000 million / Gross profit ¥114,000 million / Selling, general and administrative expenses ¥82,000 million / Operating profit ¥32,000 million / Ordinary income ¥30,000 million / Interim net income attributable to owners of the parent ¥21,500 million |
| Progress against full-year forecast | Net Sales 46.8% / Cost of sales 47.8% / Gross profit 45.1% / Selling, general and administrative expenses 47.2% / Operating profit 39.8% / Ordinary income 33.6% / Interim net income attributable to owners of the parent 31.9% / Domestic segment revenue 45.5% / Domestic segment profit 39.2% / Towa Pharmaceutical and other revenue 46.2% / Towa Pharmaceutical and other segment profit 43.4% / Sansho Pharmaceutical and other revenue 41.2% / Sansho Pharmaceutical and other segment profit -27.8% / Overseas segment revenue 51.9% / Overseas segment profit 126.6% / European net sales 53.5% / US sales 49.0% / U.S. segment profit 105.1% |
| Self-assessment against the plan | Revenue fell short of the first-half plan, operating profit met the first-half plan, and ordinary profit fell short of the first-half plan. Full-year segment profit at 三生医薬 and other businesses is expected to fall short of plan, while full-year segment profit at Towa INT is expected to exceed plan. |
| Segment results | Domestic segment Net Sales ¥111,477 million (YoY +6.3%) / Segment profit ¥13,126 million (YoY -1.0%) / 東和薬品 and other businesses Net Sales ¥98,443 million (YoY +8.9%) / Segment profit ¥13,683 million (YoY +9.6%) / 三生医薬 and other businesses Net Sales ¥13,034 million (YoY -10.2%) / Segment profit ¥-556 million / Overseas segment Net Sales ¥31,134 million (YoY +20.4%) / Segment profit ¥632 million / Europe Net Sales ¥20,640 million (YoY +28.4%) / Segment profit ¥-313 million / United States Net Sales ¥10,493 million (YoY +7.4%) / Segment profit ¥945 million (YoY +15.1%) |
| Breakdown of Factors Affecting the Change | Factors Increase in gross profit due to growth in sales volumes and unit prices / Amount ¥30 100 million, Factors Increase in research and development expenses / Amount ¥-10.1 100 million, Factors Increase in other SG&A expenses / Amount ¥-7.8 100 million, Factors Decrease in gross profit due to lower revenue at 三生医薬 and other businesses / Amount ¥-12.4 100 million, Factors Decrease in amortization of goodwill at 三生医薬 / Amount ¥12.5 100 million, Factors Towa INT / Amount ¥23 100 million, Factors Adjustments / Amount ¥12 100 million |
| Key KPIs | Indicator name Actual sales volume (Towa Pharmaceutical standalone, tablets and capsules) / Value 79.3 100 million tablets / Year on year against the same period last year 3.4 100 million tablets, Indicator name Actual production volume (Towa Pharmaceutical standalone, tablets and capsules) / Value 80.2 100 million tablets / Year on year against the same period last year 0.1 100 million tablets, Indicator name Production volume at the company’s 3 plants / Value Not disclosed / Year on year against the same period last year 2.2 Up 2.2% year on year, Indicator name Number of products under restricted shipment (as of the end of September 2026) / Value 232 Options / Year on year against the same period last year Not disclosed, Indicator name Number of products with supply suspended (as of the end of September 2026) / Value 21 Options / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Indicator name Actual sales volume / Value 79.3 100 million tablets / Year on year against the same period last year 3.4 100 million tablets, Indicator name Price per share / Value Increased / Year on year against the same period last year Not disclosed |
| Number of stores and locations | The number of sales offices is stated to have decreased following the closure of the Minami-Osaka Sales Office at the end of August in the fiscal year ending March 2027, but the total number at the fiscal year-end and the overall number of openings and closures are not disclosed |
| Assumptions Underlying the Business Outlook | Item Assumed euro exchange rate / Value ¥177, Item Assumed dollar exchange rate / Value ¥154 |
| Financial targets | Equity ratio Actual results 39.6 % / Target Not disclosed |
| Capital expenditures | ¥93 100 million (second quarter of the fiscal year ending March 2027) |
| New initiatives | Plans to launch 20 new products containing 8 active ingredients in December 2026, with planned first-year sales of approximately ¥2.1 billion, The planned execution date for the transfer of shares in 田辺ファーマファクトリー株式会社 changed from the end of November 2026 to the end of December 2026, Change in the EPS calculation formula accompanying the payment of dividends on Class A preferred shares |
Items this document does not state (10)
Results for the three months of the current quarterNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition 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 and operating profit increased because both sales volume and unit prices rose at Towa Pharmaceutical and other businesses, while European B2C and European B2B operations grew at Towa INT. 三生医薬 and other businesses performed poorly due to delays in expanding sales to existing customers and developing new customers, as well as lost orders in the pharmaceutical business. Ordinary profit and interim net income declined mainly because a loss on valuation of derivatives of approximately ¥2.3 billion was recognized.
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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.