Earnings Pressure from Higher Raw Material Costs and Foreign Exchange Effects
First written in FY2024-Q2. 6 of 9 entries say "Worsened", first in FY2025. Latest entry: 2026-08-13.
Kidswell Bio moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
1 other company's latest entry also says "Worsened".
- 2026-08-13WorsenedEarnings presentation
「Higher manufacturing costs due to further yen depreciation.」
The company stated that further yen depreciation and higher manufacturing costs affected the first-quarter profit margin, with currency movements and rising manufacturing costs continuing to pressure earnings. - FY2026WorsenedAnnual report
「As exchange rates for payments to overseas CDMOs and other parties for manufacturing biosimilar active pharmaceutical ingredients and related activities moved in the direction of a weaker yen, manufacturing costs and other costs increased, limiting the expansion of gross profit for the current consolidated fiscal year.」
The weaker yen affecting payments to overseas CDMOs materialized as higher manufacturing costs, limiting the increase in gross profit relative to the growth in sales. - FY2026-H1WorsenedAnnual report
「In the biosimilars business, while working to maintain a stable earnings structure for biosimilars already launched, the Company has achieved revisions to payment terms with partner companies for some items to address the increase in manufacturing working capital accompanying growing demand for GBS-007 and GBS-010 and higher overseas manufacturing costs, and is continuing additional negotiations on other items.」
The increase in manufacturing working capital accompanying growing demand for GBS-007 and GBS-010 and higher overseas manufacturing costs continues, and the Company is addressing it through revisions to payment terms and other measures with partner companies. - FY2025WorsenedAnnual report
「Some of the negotiations with partner pharmaceutical companies responsible for selling the biosimilars to revise supply prices in response to higher manufacturing costs caused by overseas inflation and the weaker yen have been successful.」
The Company explained that higher manufacturing costs caused by overseas inflation and the weaker yen had materialized and were partially addressed through negotiations to revise supply prices. - FY2025-H1RestatedAnnual report
「Profit margins have declined due to inflation overseas, where the active pharmaceutical ingredients for the biosimilar products are manufactured, and the weaker yen.」
The Company has reconfirmed the earnings pressure from inflation overseas and the weaker yen affecting overseas manufacturing, together with the actual decline in profit margins. - FY2024-Q3RestatedAnnual report
「The Company will seek to improve profitability, as it is also concerned about future increases in raw material costs for active pharmaceutical ingredient manufacturing and related activities, as well as foreign exchange effects.」
The Company has reaffirmed its intention to improve profitability, citing higher raw material costs in active pharmaceutical ingredient manufacturing and related activities, together with foreign exchange effects, as factors placing pressure on earnings. - FY2024-Q2First statedAnnual report
「The Company will seek to improve profitability, as it is also concerned about future increases in raw material costs for active pharmaceutical ingredient manufacturing and related activities, as well as foreign exchange effects.」
Higher raw material costs in active pharmaceutical ingredient manufacturing and related activities, together with foreign exchange effects, were identified as new concerns affecting future profitability.