Worth reading
57In focus
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
-17.7
Operating profit year on year (%)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary Materials to the Earnings ReportFirst quarter of the fiscal year ending June 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,771 million-3.0%
Operating profit¥1,113 million-17.7%
Ordinary income¥1,142 million-14.8%
Net income¥777 million-12.8%
Gross Profit Margin30.7%
Operating profit margin19.3%
Selling, general and administrative expenses¥656 million
Results for the three months of the current quarter
Period1 July 2026–30 September 2026
Net Sales
¥5,771 million
Operating profit
¥1,113 million
Ordinary income
¥1,142 million
Net income
¥777 million
Full-year earnings forecast
Net Sales
¥26,700 million
Operating profit
¥5,270 million
Ordinary income
¥5,260 million
Net income
¥3,590 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。
Consolidated
Net Sales21.6%
Operating profit21.1%
Ordinary income21.7%
Net income21.6%
Segment
API sales21.6%
API segment profit21.7%
Pharmaceuticals revenue22.3%
Pharmaceuticals segment profit19.2%
Capital expenditures16.7%
R&D spending17.0%
Depreciation and amortization20.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in the first quarter was generally in line with expectations.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Active pharmaceutical ingredients segment revenue¥-28 million
- Pharmaceuticals segment revenue¥-152 million
- Costs of sales¥26 million
- SG&A expenses¥-85 million
- Non-Operating Income and Expenses¥40 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Start of operations at the Zao No. 2 PlantMarch 2027
Period of earnings growthFourth quarter
New initiatives
- The second Zao Plant is scheduled to begin operations in March 2027.
- Holding a preview event for stakeholders at the second Zao Plant
Key KPIsA metric the company considers important as a management benchmark.
- Depreciation and amortization¥148 millionYear on year against the same period last year+0.7%
- R&D spending¥44 millionYear on year against the same period last year+46.7%
- Capital expenditures¥275 millionYear on year against the same period last year+418.9%
- Earnings per share¥18.46Year on year against the same period last year-12.8%
- Book value per share¥738.99Year on year against the same period last year+9.8%
- Number of employees318 people
Segment results
- APIsNet Sales¥3,952 million (YoY -2.1%)Segment profit¥726 million (YoY -13.6%)
- PharmaceuticalsNet Sales¥2,082 million (YoY -6.8%)Segment profit¥374 million (YoY -31.7%)
Number of employees
Number of Employees318 people
Capital expenditures
¥275 million
Annual Dividend
Annual dividend per share¥19
Year-end dividend¥19
Payout ratio
22.3%| Item | Details |
|---|---|
| Document type | Supplementary Materials to the Earnings Report |
| Fiscal Period Covered | First quarter of the fiscal year ending June 2027 |
| Net Sales | ¥5,771 million (YoY -3.0%) |
| Operating profit | ¥1,113 million (YoY -17.7%) |
| Ordinary income | ¥1,142 million (YoY -14.8%) |
| Net income | ¥777 million (YoY -12.8%) |
| Gross Profit Margin | 30.7% |
| Operating profit margin | 19.3% |
| Selling, general and administrative expenses | ¥656 million |
| Results for the three months of the current quarter | Period 1 July 2026–30 September 2026 / Net Sales ¥5,771 million / Operating profit ¥1,113 million / Ordinary income ¥1,142 million / Net income ¥777 million |
| Full-year earnings forecast | Net Sales ¥26,700 million / Operating profit ¥5,270 million / Ordinary income ¥5,260 million / Net income ¥3,590 million |
| Progress against full-year forecast | Consolidated Net Sales 21.6% / Operating profit 21.1% / Ordinary income 21.7% / Net income 21.6% / Segment API sales 21.6% / API segment profit 21.7% / Pharmaceuticals revenue 22.3% / Pharmaceuticals segment profit 19.2% / Capital expenditures 16.7% / R&D spending 17.0% / Depreciation and amortization 20.2% |
| Self-assessment against the plan | Progress in the first quarter was generally in line with expectations. |
| Segment results | Segment APIs / Net Sales ¥3,952 million (YoY -2.1%) / Segment profit ¥726 million (YoY -13.6%), Segment Pharmaceuticals / Net Sales ¥2,082 million (YoY -6.8%) / Segment profit ¥374 million (YoY -31.7%) |
| Breakdown of Factors Affecting the Change | Factors Active pharmaceutical ingredients segment revenue / Amount ¥-28 million, Factors Pharmaceuticals segment revenue / Amount ¥-152 million, Factors Costs of sales / Amount ¥26 million, Factors SG&A expenses / Amount ¥-85 million, Factors Non-Operating Income and Expenses / Amount ¥40 million |
| Key KPIs | Indicator name Depreciation and amortization / Value ¥148 million / Year on year against the same period last year +0.7%, Indicator name R&D spending / Value ¥44 million / Year on year against the same period last year +46.7%, Indicator name Capital expenditures / Value ¥275 million / Year on year against the same period last year +418.9%, Indicator name Earnings per share / Value ¥18.46 / Year on year against the same period last year -12.8%, Indicator name Book value per share / Value ¥738.99 / Year on year against the same period last year +9.8%, Indicator name Number of employees / Value 318 people / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 318 people / Change during the period Not disclosed / Hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Start of operations at the Zao No. 2 Plant March 2027 / Period of earnings growth Fourth quarter |
| Annual Dividend | Annual dividend per share ¥19 / Interim Dividend Not disclosed / Year-end dividend ¥19 |
| Payout ratio | 22.3% |
| Capital expenditures | ¥275 million |
| New initiatives | The second Zao Plant is scheduled to begin operations in March 2027., Holding a preview event for stakeholders at the second Zao Plant |
Items this document does not state (9)
Unit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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.In the active pharmaceutical ingredients segment, results were affected by the discontinuation of sales following the cessation of production by certain suppliers, customer purchase timing, changes in the sales mix, and increases in taxes and public dues and personnel expenses resulting from tax reforms. In the pharmaceuticals segment, results were affected by drug price revisions, new entries by competitors, an increase in the manufacturing cost ratio resulting from lower production volumes, and increases in personnel expenses and research and development expenses.
How to read this page
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