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Financial Results Presentation4574TAIKO PHARMACEUTICAL CO.,LTD.Pharmaceuticals

Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 (FY2026)

Revenue increased in the first half, driven by higher sales of overseas pharmaceuticals, while operating income and net income fell below the year-earlier period due to a decline in gross margin and increases in selling, general and administrative expenses and costs. The full-year earnings and dividend forecasts remain unchanged from the initial plan, and the company is aiming to meet them through improved supply in the second half and price revisions.

Worth reading
81Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-29
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter (interim period) of the fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,636 Millions of yen+9.3%
Operating profit17 Millions of yen-63.4%
Ordinary income41 Millions of yen+101.4%
Net income44 Millions of yen-84.1%
Selling, general and administrative expenses1,321 Millions of yen
Gross Profit Margin
Rate50.8%
Year-on-year change (points)-3.9
Operating profit margin
Rate0.6%
Year-on-year change (points)-1.3
Results for the three months of the current quarterQuarterly revenue trends are presented. Consolidated revenue for April-June of FY2026 was ¥1,720 million (pharmaceuticals: ¥1,664 million; infection control: ¥54 million). Profit for the three months of the quarter: Not disclosed.
Full-year earnings forecast
Net Sales
7,200 Millions of yen
Pharmaceuticals revenue
6,695 Millions of yen
Infection control revenue
500 Millions of yen
Other net sales
5 Millions of yen
Operating profit
500 Millions of yen
Ordinary income
520 Millions of yen
Net income for the current fiscal year
550 Millions of yen
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。
Infection control business revenue22.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally tracking in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • FY2025 interim operating income46 Millions of yen
  • Higher revenue from the pharmaceuticals business91 Millions of yen
  • Impact of price-per-unit revisions for pharmaceuticals36 Millions of yen
  • Lower revenue from the infection control business-48 Millions of yen
  • Cost impact-134 Millions of yen
  • Foreign Exchange Effects-47 Millions of yen
  • Selling, General and Administrative Expenses-3 Millions of yen
  • Other76 Millions of yen
  • FY2026 interim operating income17 Millions of yen
New initiatives
  • Updating Seirogan production facilities and increasing the number of operating pill-making machines from 4 to 6
  • New promotion for the domestic market, “We are Rappers!”
  • Strengthening point-of-sale materials and inbound marketing and merchandising
  • Launching IP merchandise and official apparel featuring the trumpet logo
  • Launching Seirogan Sugar-Coated A in the Chinese market
  • Increasing advertising and promotional expenses for the overseas pharmaceuticals business from ¥370 million to more than ¥600 million
  • Initiatives to expand the number of stores carrying Seirogan in China to 80,000 by 2028
  • Expanding orders for Cleverin pouches for the funeral-services industry in the infection control business
Key KPIsA metric the company considers important as a management benchmark.
  • Domestic antidiarrheal market size
    Year on year against the same period last year94.9%
  • Taiko Pharmaceutical share44.4 %
    Year on year against the same period last year+0.4 percentage points quarter on quarter
  • Seirogan production volume
    Year on year against the same period last yearMore than +20%
  • Stores carrying Seirogan (current)4.5 10,000 stores
  • Stores carrying Seirogan (2028 target)8 10,000 stores
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The materials refer to higher shipment volumes and price revisions (price increases), but a numerical metric linking volume and price is not disclosed.
Segment results
  • Pharmaceuticals Business
    Net Sales2,523 Millions of yen (YoY +14.3%)
    Segment Profit or Loss557 Millions of yen (YoY -7.3%)
  • Infection-Control Business
    Net Sales111 Millions of yen (YoY -45.4%)
    Segment Profit or Loss-92 Millions of yen
  • Other Businesses
    Net Sales2 Millions of yen (YoY +4.6%)
    Segment Profit or Loss-14 Millions of yen
Medium-term management plan targets
Target fiscal yearFY2028
Net Sales¥8.5 billion
Operating profit¥1 billion
ROEAt least 10%-11%
Shareholder ReturnsDOE of at least 3.0%
Financial targets
ROE targetAt least 10%-11%
Actual equity ratio76.0%
Market Size / Share
Domestic antidiarrheal market sizeJanuary-June 2026: ¥3,241 million
Taiko Pharmaceutical share44.4%
Number of stores and locations
Seirogan is currently carried by 45,000 stores, with a target of 80,000 stores in 2028. The number of store openings and closures is not disclosed.
Capital expenditures
¥185 million capital expenditures
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales2,636 Millions of yen (YoY +9.3%)
Operating profit17 Millions of yen (YoY -63.4%)
Ordinary income41 Millions of yen (YoY +101.4%)
Net income44 Millions of yen (YoY -84.1%)
Gross Profit MarginRate 50.8% / Year-on-year change (points) -3.9
Operating profit marginRate 0.6% / Year-on-year change (points) -1.3
Selling, general and administrative expenses1,321 Millions of yen
Results for the three months of the current quarterQuarterly revenue trends are presented. Consolidated revenue for April-June of FY2026 was ¥1,720 million (pharmaceuticals: ¥1,664 million; infection control: ¥54 million). Profit for the three months of the quarter: Not disclosed.
Full-year earnings forecastNet Sales 7,200 Millions of yen / Pharmaceuticals revenue 6,695 Millions of yen / Infection control revenue 500 Millions of yen / Other net sales 5 Millions of yen / Operating profit 500 Millions of yen / Ordinary income 520 Millions of yen / Net income for the current fiscal year 550 Millions of yen
Progress against full-year forecastInfection control business revenue 22.2%
Self-assessment against the planGenerally tracking in line with plan
Segment resultsSegment Pharmaceuticals Business / Net Sales 2,523 Millions of yen (YoY +14.3%) / Segment Profit or Loss 557 Millions of yen (YoY -7.3%), Segment Infection-Control Business / Net Sales 111 Millions of yen (YoY -45.4%) / Segment Profit or Loss -92 Millions of yen, Segment Other Businesses / Net Sales 2 Millions of yen (YoY +4.6%) / Segment Profit or Loss -14 Millions of yen
Breakdown of Factors Affecting the ChangeFactors FY2025 interim operating income / Amount 46 Millions of yen, Factors Higher revenue from the pharmaceuticals business / Amount 91 Millions of yen, Factors Impact of price-per-unit revisions for pharmaceuticals / Amount 36 Millions of yen, Factors Lower revenue from the infection control business / Amount -48 Millions of yen, Factors Cost impact / Amount -134 Millions of yen, Factors Foreign Exchange Effects / Amount -47 Millions of yen, Factors Selling, General and Administrative Expenses / Amount -3 Millions of yen, Factors Other / Amount 76 Millions of yen, Factors FY2026 interim operating income / Amount 17 Millions of yen
Key KPIsIndicator name Domestic antidiarrheal market size / Value Not disclosed / Year on year against the same period last year 94.9%, Indicator name Taiko Pharmaceutical share / Value 44.4 % / Year on year against the same period last year +0.4 percentage points quarter on quarter, Indicator name Seirogan production volume / Value Not disclosed / Year on year against the same period last year More than +20%, Indicator name Stores carrying Seirogan (current) / Value 4.5 10,000 stores / Year on year against the same period last year Not disclosed, Indicator name Stores carrying Seirogan (2028 target) / Value 8 10,000 stores / Year on year against the same period last year Not disclosed
Unit price and quantity metricsThe materials refer to higher shipment volumes and price revisions (price increases), but a numerical metric linking volume and price is not disclosed.
Number of stores and locationsSeirogan is currently carried by 45,000 stores, with a target of 80,000 stores in 2028. The number of store openings and closures is not disclosed.
Medium-term management plan targetsTarget fiscal year FY2028 / Net Sales ¥8.5 billion / Operating profit ¥1 billion / ROE At least 10%-11% / Shareholder Returns DOE of at least 3.0%
Financial targetsROE target At least 10%-11% / Actual equity ratio 76.0%
Capital expenditures¥185 million (capital expenditures)
Market Size / ShareDomestic antidiarrheal market size January-June 2026: ¥3,241 million / Taiko Pharmaceutical share 44.4%
New initiativesUpdating Seirogan production facilities and increasing the number of operating pill-making machines from 4 to 6, New promotion for the domestic market, “We are Rappers!”, Strengthening point-of-sale materials and inbound marketing and merchandising, Launching IP merchandise and official apparel featuring the trumpet logo, Launching Seirogan Sugar-Coated A in the Chinese market, Increasing advertising and promotional expenses for the overseas pharmaceuticals business from ¥370 million to more than ¥600 million, Initiatives to expand the number of stores carrying Seirogan in China to 80,000 by 2028, Expanding orders for Cleverin pouches for the funeral-services industry in the infection control business
Items this document does not state (8)
Number of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey 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.

Higher revenue from the overseas pharmaceuticals business and price-per-unit revisions contributed to higher earnings, while higher raw material and supplies costs, increased costs associated with strengthening the supply structure, higher costs due to a temporary decline in yield, increased advertising and promotional expenses resulting from marketing initiatives, and higher personnel expenses weighed on operating income. Net income declined due to the absence of gains on the sale of investment securities recorded in the year-earlier period.

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Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 (FY2026) | TAIKO PHARMACEUTICAL CO.,LTD. (4574) timely disclosure | Komori