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Presentation materials on financial results4577Daito Pharmaceutical Co.,Ltd.Pharmaceuticals

Financial Results Presentation for the Fiscal Year Ending May 2026

For the fiscal year ending May 2026, revenue was largely unchanged, but operating income and net income increased substantially due to improvements in inventory write-downs and cost control, exceeding the forecast revised upward in April. For the fiscal year ending May 2027, revenue and operating income are expected to increase, while net income is planned to decline.

Worth reading
61In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
38.8
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFiscal year ending May 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥50,650 million0.0%
Operating profit¥3,637 million+38.8%
Ordinary income¥3,812 million+40.9%
Net income¥3,161 million+65.7%
Selling, general and administrative expenses¥6,260 million
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending May 2027
Net Sales
¥54,000 million
EBITDA
¥8,400 million
Operating profit
¥4,000 million
Ordinary income
¥4,000 million
Net income
¥3,000 million
Research and development costs
¥2,850 million
Depreciation and amortization
¥4,400 million
Capital expenditures
¥3,800 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results came in above the forecast revised upward
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Changes in net sales, product mix, etc.¥178 million
Impact of the temporary shutdown of the Shimo-Okui Plant, etc.¥-164 million
Foreign exchange impact¥9 million
Impact of inventory valuation, etc.¥394 million
Depreciation and amortization¥-99 million
Personnel Expenses¥-47 million
Research and development costs¥297 million
Utilities expenses¥157 million
Other expenses, etc.¥293 million
Total change¥1,017 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign Exchange
Fiscal year ending May 2027150 Yen/Dollar
New initiatives
  • Basic agreement to jointly establish 株式会社医薬品共創機構 (provisional name) with other companies and transfer Kyorin Pharmaceutical's generic drug business to the new entity
  • Establishment of the Business Development Division
  • Upgrading the human resources-related departments to headquarters-level divisions
  • Collaboration with Dai Nippon Printing and Toyochem on value-added formulations
  • Continuation of development of the rare disease drug NPC-29 with Nobelpharma
  • Introduction of a Choice-Based Defined Contribution Pension Plan
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥8,024 million
    Year-on-year (%)15.4
  • EPS¥107.49
    Year-on-year (%)71.3
  • Operating Cash Flow¥9,377 million
    Year-on-year (%)59
  • Free cash flow¥4,980 million
  • CCC232 days
  • End-to-end ratio46 %
    Year on year against the same period last year65% for the fiscal year ending May 2025
  • ROIC4.5 %
    Year on year against the same period last year3.1% for the fiscal year ending May 2025
  • ROE6 %
    Year on year against the same period last year3.7% for the fiscal year ending May 2025
  • DOE2.29 %
    Year on year against the same period last year2.01% for the fiscal year ending May 2025
Segment results
APIs
Net Sales
Fiscal year ending May 2025¥22,872 million
Fiscal year ending May 2026¥22,482 million
Year-on-year (%)-1.7
Drug products
Net Sales
Fiscal year ending May 2025¥27,592 million
Fiscal year ending May 2026¥27,984 million
Year-on-year (%)1.4
Health Foods
Net Sales
Fiscal year ending May 2025¥178 million
Fiscal year ending May 2026¥184 million
Year-on-year (%)3
Medium-term management plan targets
Plan nameDTP2027
Revised target for the fiscal year ending May 2027
Net Sales
¥54,000 million
EBITDA
¥8,400 million
EBITDA margin
15.6 %
End-to-end ratio
60 %
CCC
220 days
ROIC
5.0～6.0
ROE
6.0～7.0
DOE
2 % or higher
Comparison with actual resultsThe fiscal year ending May 2026 results are stated as revenue of ¥50,650 million, EBITDA of ¥8,024 million, ROIC of 4.5%, ROE of 6.0%, CCC of 232 days, an end-to-end ratio of 46% and DOE of 2.29%.
Financial targets
ROIC
Actual results4.5 %
Target for the fiscal year ending May 20275.0～6.0%
ROE
Actual results6 %
Target for the fiscal year ending May 20276.0～7.0%
DOE
Actual results2.29 %
Target for the fiscal year ending May 20272% or more
Capital expenditures
¥4,559 million
Annual Dividend
Fiscal year ending May 2026
Annual¥40 per share
Fiscal year ending May 2027
Annual¥45 per share
Interim¥22.5 per share
Payout ratio
Fiscal year ending May 2027Over 40%
DOEApproximately 2.5%
Acquisition of treasury shares
Buyback limit
Number of Shares500,000 Shares
Percentage of total issued shares excluding treasury shares1.7 Shares
Unit: ratio%
Acquisition decision date10 July 2026
Actual purchases
Number of Shares484,000 Shares
Acquisition completion date13 July 2026
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFiscal year ending May 2026
Net Sales¥50,650 million (YoY 0.0%)
Operating profit¥3,637 million (YoY +38.8%)
Ordinary income¥3,812 million (YoY +40.9%)
Net income¥3,161 million (YoY +65.7%)
Selling, general and administrative expenses¥6,260 million
Full-year earnings forecastFiscal Period Covered Fiscal year ending May 2027 / Net Sales ¥54,000 million / EBITDA ¥8,400 million / Operating profit ¥4,000 million / Ordinary income ¥4,000 million / Net income ¥3,000 million / Research and development costs ¥2,850 million / Depreciation and amortization ¥4,400 million / Capital expenditures ¥3,800 million
Self-assessment against the planResults came in above the forecast revised upward
Segment resultsAPIs Net Sales Fiscal year ending May 2025 ¥22,872 million / Fiscal year ending May 2026 ¥22,482 million / Year-on-year (%) -1.7 / Drug products Net Sales Fiscal year ending May 2025 ¥27,592 million / Fiscal year ending May 2026 ¥27,984 million / Year-on-year (%) 1.4 / Health Foods Net Sales Fiscal year ending May 2025 ¥178 million / Fiscal year ending May 2026 ¥184 million / Year-on-year (%) 3
Breakdown of Factors Affecting the ChangeChange in operating profit Changes in net sales, product mix, etc. ¥178 million / Impact of the temporary shutdown of the Shimo-Okui Plant, etc. ¥-164 million / Foreign exchange impact ¥9 million / Impact of inventory valuation, etc. ¥394 million / Depreciation and amortization ¥-99 million / Personnel Expenses ¥-47 million / Research and development costs ¥297 million / Utilities expenses ¥157 million / Other expenses, etc. ¥293 million / Total change ¥1,017 million
Key KPIsIndicator name EBITDA / Value ¥8,024 million / Year-on-year (%) ¥15.4 million, Indicator name EPS / Value ¥107.49 / Year-on-year (%) ¥71.3, Indicator name Operating Cash Flow / Value ¥9,377 million / Year-on-year (%) ¥59 million, Indicator name Free cash flow / Value ¥4,980 million / Year on year against the same period last year Not disclosed, Indicator name CCC / Value 232 days / Year on year against the same period last year Not disclosed, Indicator name End-to-end ratio / Value 46 % / Year on year against the same period last year 65% for the fiscal year ending May 2025, Indicator name ROIC / Value 4.5 % / Year on year against the same period last year 3.1% for the fiscal year ending May 2025, Indicator name ROE / Value 6 % / Year on year against the same period last year 3.7% for the fiscal year ending May 2025, Indicator name DOE / Value 2.29 % / Year on year against the same period last year 2.01% for the fiscal year ending May 2025
Assumptions Underlying the Business OutlookForeign Exchange Fiscal year ending May 2027 150 Yen/Dollar
Medium-term management plan targetsPlan name DTP2027 / Revised target for the fiscal year ending May 2027 Net Sales ¥54,000 million / EBITDA ¥8,400 million / EBITDA margin 15.6 % / End-to-end ratio 60 % / CCC 220 days / ROIC 5.0～6.0 / ROE 6.0～7.0 / DOE 2 % or higher / Comparison with actual results The fiscal year ending May 2026 results are stated as revenue of ¥50,650 million, EBITDA of ¥8,024 million, ROIC of 4.5%, ROE of 6.0%, CCC of 232 days, an end-to-end ratio of 46% and DOE of 2.29%.
Financial targetsROIC Actual results 4.5 % / Target for the fiscal year ending May 2027 5.0～6.0% / ROE Actual results 6 % / Target for the fiscal year ending May 2027 6.0～7.0% / DOE Actual results 2.29 % / Target for the fiscal year ending May 2027 2% or more
Annual DividendFiscal year ending May 2026 Annual ¥40 per share / Interim Not disclosed / Fiscal year ending May 2027 Annual ¥45 per share / Interim ¥22.5 per share
Payout ratioFiscal year ending May 2027 Over 40% / DOE Approximately 2.5%
Acquisition of treasury sharesBuyback limit Number of Shares 500,000 Shares / Percentage of total issued shares excluding treasury shares 1.7 Shares / Unit: ratio % / Acquisition decision date 10 July 2026 / Actual purchases Number of Shares 484,000 Shares / Acquisition completion date 13 July 2026
Capital expenditures¥4,559 million
New initiativesBasic agreement to jointly establish 株式会社医薬品共創機構 (provisional name) with other companies and transfer Kyorin Pharmaceutical's generic drug business to the new entity, Establishment of the Business Development Division, Upgrading the human resources-related departments to headquarters-level divisions, Collaboration with Dai Nippon Printing and Toyochem on value-added formulations, Continuation of development of the rare disease drug NPC-29 with Nobelpharma, Introduction of a Choice-Based Defined Contribution Pension Plan
Items this document does not state (11)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

For the fiscal year ending May 2026, profit was lifted by contributions from sales of Opalmon tablets, improved inventory write-downs resulting from the reduction of long-outstanding inventory, the withdrawal from low-efficiency distribution channels, and thorough cost control. For the fiscal year ending May 2027, revenue growth is expected from shipments of products related to long-listed assets, newly launched products and products consolidated at manufacturing sites, as well as participation in centralized purchasing in China. Cost reductions are expected from product consolidation, bringing outsourced testing in-house and smart spending.

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Financial Results Presentation for the Fiscal Year Ending May 2026 | Daito Pharmaceutical Co.,Ltd. (4577) timely disclosure | Komori