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Earnings4967KOBAYASHI PHARMACEUTICAL CO.,LTD.Materials and Chemicals

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

In the interim period of 2026, net sales increased 2.5% year on year, while operating profit declined 67.5% and interim net income attributable to owners of the parent declined 64.1%. The full-year earnings forecast and dividend forecast have not been revised.

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Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales70,749¥ millionYear on year +2.5%Progress 40.9%
Operating profit2,162¥ millionYear on year -67.5%Progress 17.3%
Ordinary income3,006¥ millionYear on year -58.5%Progress 23.1%
Net income attributable to owners of the parent1,136¥ millionYear on year -64.1%Progress 11.4%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥15.29
Financial position at period-end
Total assets251,891¥ million
of which net assets 209,699 ¥ millionEquity ratio 82.9%vs. prior year-end +6.6pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+460
Investment-10,220
Financials-4,587
Net change-14,347

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ million).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥50,797 million
Segment revenueDomestic Business ¥54,617 million (YoY +1.8%), International Business ¥19,195 million (YoY +8.1%), Other (outside reportable segments) ¥3,402 million (YoY +9.5%)
Segment profitDomestic Business ¥4,291 million (YoY -47.6%), International Business ¥-2,175 million, Other (outside reportable segments) ¥133 million (YoY +92.2%)
Regional sales¥51,999 million, ¥7,217 million (YoY -8.5%), ¥4,954 million (YoY +34.0%), ¥3,999 million (YoY +12.4%), ¥2,231 million (YoY +19.3%)
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥173,000 million (YoY +4.4%)
Operating profit¥12,500 million (YoY -16.2%)
Ordinary income¥13,000 million (YoY -23.5%)
Net income¥10,000 million (YoY +173.5%)
Annual Dividend Forecast¥104 → ¥106
Factors Behind Changes in Business Performance

The 9 new products launched this spring and marketing activities following the resumption of television advertising contributed to domestic sales. Revenue declined in the United States due to supply issues involving healthcare-related products. Revenue increased significantly in China, driven by strong sales of Netsusama Sheet, Anmerutsu and other products, while revenue also increased in Southeast Asia. Although advertising and promotional activities were partially restricted due to the situation in the Middle East, the impact was minor.

Disclosure regarding the going concern assumption

Not applicable.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNo material changes (the number and names of companies newly included in or excluded from consolidation are Not disclosed)
Material subsequent eventsThe company plans to transfer all of its equity interest in Jiangsu Kobayashi Pharmaceutical Co., Ltd., a consolidated subsidiary (sub-subsidiary), at the end of October 2026. An extraordinary loss is expected to be recognized in connection with the transfer, but the amount is still being reviewed. In addition, following the sale of PALTAC shares, a gain on sale of investment securities of ¥3,282 million is scheduled to be recognized as an extraordinary gain in the third quarter.
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥5 million, Gain on sale of investment securities ¥461 million, Insurance proceeds received ¥372 million, Other ¥12 million / Extraordinary loss Losses on disposal of fixed assets ¥84 million, Product Recall-Related Losses ¥661 million, Business-site consolidation costs ¥683 million, Other ¥206 million
Depreciation and amortization¥4,034 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingAvailable (for institutional investors and analysts)
Issued Shares at Period-End78,050,000 shares
Treasury Shares at Period-End3,711,379 shares
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales¥70,749 million (YoY +2.5%)
Operating profit¥2,162 million (YoY -67.5%)
Ordinary income¥3,006 million (YoY -58.5%)
Profit attributable to owners of the parent¥1,136 million (YoY -64.1%)
Net income per share¥15.29
Equity ratioEnd of the current fiscal period 82.9 / End of previous period 76.3
Total assets¥251,891 million
Net assets¥209,699 million
Cash flows from operating activities¥460 million
Cash flows from investing activities¥-10,220 million
Cash flows from financing activities¥-4,587 million
Cash and cash equivalents at end of period¥50,797 million
Full-year earnings forecastNet Sales ¥173,000 million (YoY +4.4%) / Operating profit ¥12,500 million (YoY -16.2%) / Ordinary income ¥13,000 million (YoY -23.5%) / Net income ¥10,000 million (YoY +173.5%)
Annual Dividend Forecast¥104 → ¥106
Segment revenueDomestic Business ¥54,617 million (YoY +1.8%), International Business ¥19,195 million (YoY +8.1%), Other (outside reportable segments) ¥3,402 million (YoY +9.5%)
Segment profitDomestic Business ¥4,291 million (YoY -47.6%), International Business ¥-2,175 million, Other (outside reportable segments) ¥133 million (YoY +92.2%)
Regional sales¥51,999 million, ¥7,217 million (YoY -8.5%), ¥4,954 million (YoY +34.0%), ¥3,999 million (YoY +12.4%), ¥2,231 million (YoY +19.3%)
Depreciation and amortization¥4,034 million
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥5 million, Gain on sale of investment securities ¥461 million, Insurance proceeds received ¥372 million, Other ¥12 million / Extraordinary loss Losses on disposal of fixed assets ¥84 million, Product Recall-Related Losses ¥661 million, Business-site consolidation costs ¥683 million, Other ¥206 million
Disclosure regarding the going concern assumptionNot applicable.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNo material changes (the number and names of companies newly included in or excluded from consolidation are Not disclosed)
Material subsequent eventsThe company plans to transfer all of its equity interest in Jiangsu Kobayashi Pharmaceutical Co., Ltd., a consolidated subsidiary (sub-subsidiary), at the end of October 2026. An extraordinary loss is expected to be recognized in connection with the transfer, but the amount is still being reviewed. In addition, following the sale of PALTAC shares, a gain on sale of investment securities of ¥3,282 million is scheduled to be recognized as an extraordinary gain in the third quarter.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingAvailable (for institutional investors and analysts)
Issued Shares at Period-End78,050,000 shares
Treasury Shares at Period-End3,711,379 shares
Factors Behind Changes in Business PerformanceThe 9 new products launched this spring and marketing activities following the resumption of television advertising contributed to domestic sales. Revenue declined in the United States due to supply issues involving healthcare-related products. Revenue increased significantly in China, driven by strong sales of Netsusama Sheet, Anmerutsu and other products, while revenue also increased in Southeast Asia. Although advertising and promotional activities were partially restricted due to the situation in the Middle East, the impact was minor.
Items this document does not state (6)
Operating MarginRevision to Earnings ForecastPayout ratioShareholder Return PolicyOrders received and order backlogImpairment loss

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.

The launch of 9 new products and advertising and marketing activities contributed to higher sales, while supply issues involving healthcare-related products in the United States resulted in lower revenue. Core products performed well in China and Southeast Asia. The company also cited partial restrictions on advertising and promotional activities due to the situation in the Middle East, disruptions to international logistics, higher energy prices, difficulties securing materials, foreign exchange fluctuations, and tighter regulations in various countries.

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Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 (Japanese GAAP) (Consolidated) | KOBAYASHI PHARMACEUTICAL CO.,LTD. (4967) timely disclosure | Komori