Worth reading
50Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
-1242
¥ million (year-on-year change in net sales)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary Materials to the Earnings ReportFiscal year ending March 2027, second quarter (first half)7 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥57,489 million-2.1%
Operating profit¥306 million-77.6%
Ordinary income¥689 million-56.4%
Net income¥-1,566 million
Gross Profit Margin38.9%
Operating profit margin0.5%
Selling, general and administrative expenses¥22,076 million
Full-year earnings forecast
Net Sales
¥121,800 million
Operating profit
¥-4,900 million
Ordinary income
¥-4,600 million
Profit attributable to owners of the parent
¥-5,100 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。
By productBeova 53.8%, Lasvic 39.2%, Fultiform 47.9%, Lyfnua 41.7%, Mucodyne 35.7%, Pentasa 51.7%, Desalex 70.0%, Kipres 55.9%, Milton 44.5%, Rubista 49.5%, Montelukast Tablets “KM” 46.9%, Mometasone Nasal Solution “Kyorin” 24.6%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Revenue decline-¥1,242 million
- Decrease in gross profit-¥2,513 million
- Decrease in selling, general and administrative expenses-¥1,456 million
- Decrease in R&D Expenses-¥980 million
- Increase in extraordinary losses+¥2,662 million
New initiatives
- Exclusive license agreement with Edesa for development and marketing rights in Japan for EB05, an ARDS treatment (November 2026)
- Commencement of standalone promotion under the exclusive sales agreement for SIRTURO in Japan with Janssen Pharma
- Co-promotion agreement with Santen Pharmaceutical for Alezion ophthalmic cream 0.5%
Key KPIsA metric the company considers important as a management benchmark.
- Cost of sales ratio61.1 %Year on year against the same period last year+3.5 percentage points
- R&D expense ratio7.8 %Year on year against the same period last year-1.5 percentage points
- SG&A ratio (excluding R&D expenses)30.6 %Year on year against the same period last year-0.2 percentage points
- Return on equity-1.1 %Year on year against the same period last year-2.2 percentage points
- Equity ratio73.9 %Year on year against the same period last year+0.5 percentage points year on year
Segment results
New drugs, etc. (Japan)
Sales¥40,371 million
Year on year against the same period last year-2.5%
New drugs (overseas)
Sales¥236 million
Year on year against the same period last year-53.0%
Generic Drugs
Sales¥16,881 million
Year on year against the same period last year+0.4%
Number of employees
Number of Employees2,008 people
Capital expenditures
¥1,138 million
Annual Dividend
¥25 per share (interim and year-end breakdown: Not disclosed)| Item | Details |
|---|---|
| Document type | Supplementary Materials to the Earnings Report |
| Fiscal Period Covered | Fiscal year ending March 2027, second quarter (first half) |
| Net Sales | ¥57,489 million (YoY -2.1%) |
| Operating profit | ¥306 million (YoY -77.6%) |
| Ordinary income | ¥689 million (YoY -56.4%) |
| Net income | ¥-1,566 million |
| Gross Profit Margin | 38.9% |
| Operating profit margin | 0.5% |
| Selling, general and administrative expenses | ¥22,076 million |
| Full-year earnings forecast | Net Sales ¥121,800 million / Operating profit ¥-4,900 million / Ordinary income ¥-4,600 million / Profit attributable to owners of the parent ¥-5,100 million |
| Progress against full-year forecast | By product Beova 53.8%, Lasvic 39.2%, Fultiform 47.9%, Lyfnua 41.7%, Mucodyne 35.7%, Pentasa 51.7%, Desalex 70.0%, Kipres 55.9%, Milton 44.5%, Rubista 49.5%, Montelukast Tablets “KM” 46.9%, Mometasone Nasal Solution “Kyorin” 24.6% |
| Segment results | New drugs, etc. (Japan) Sales ¥40,371 million / Year on year against the same period last year -2.5% / New drugs (overseas) Sales ¥236 million / Year on year against the same period last year -53.0% / Generic Drugs Sales ¥16,881 million / Year on year against the same period last year +0.4% |
| Breakdown of Factors Affecting the Change | Factors Revenue decline / Amount -¥1,242 million, Factors Decrease in gross profit / Amount -¥2,513 million, Factors Decrease in selling, general and administrative expenses / Amount -¥1,456 million, Factors Decrease in R&D Expenses / Amount -¥980 million, Factors Increase in extraordinary losses / Amount +¥2,662 million |
| Key KPIs | Indicator Cost of sales ratio / Value 61.1 % / Year on year against the same period last year +3.5 percentage points, Indicator R&D expense ratio / Value 7.8 % / Year on year against the same period last year -1.5 percentage points, Indicator SG&A ratio (excluding R&D expenses) / Value 30.6 % / Year on year against the same period last year -0.2 percentage points, Indicator Return on equity / Value -1.1 % / Year on year against the same period last year -2.2 percentage points, Indicator Equity ratio / Value 73.9 % / Year on year against the same period last year +0.5 percentage points year on year |
| Number of employees | Number of Employees 2,008 people / Change during the period Not disclosed / Hiring plan Not disclosed |
| Annual Dividend | ¥25 per share (interim and year-end breakdown: Not disclosed) |
| Capital expenditures | ¥1,138 million |
| New initiatives | Exclusive license agreement with Edesa for development and marketing rights in Japan for EB05, an ARDS treatment (November 2026), Commencement of standalone promotion under the exclusive sales agreement for SIRTURO in Japan with Janssen Pharma, Co-promotion agreement with Santen Pharmaceutical for Alezion ophthalmic cream 0.5% |
Items this document does not state (13)
Results for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout 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 declined due to drug price revisions, the entry of generic drugs for Desalex, and a decrease in Gatifloxacin-related revenue from new-drug overseas sales following the previous year's increase. Operating profit declined as a result of lower revenue. The interim net loss attributable to owners of the parent resulted from the recognition of a loss on the business transfer associated with the succession of the generic drug business and other items as extraordinary losses. The full-year forecast was revised to reflect the upfront contractual payment under the licensing agreement and the loss on the business transfer.
How to read this page
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