Kobayashi Pharmaceutical
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Kobayashi Pharmaceutical (4967) investor relations material

Kobayashi Pharmaceutical Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary10 Feb, 2026

Executive summary

  • Net sales for FY2025 were 165.7 billion yen, up 0.1% YoY, but operating income dropped 40.0% to 14.9 billion yen and net income fell 63.7% due to impairment and recall losses, mainly from the red yeast rice incident.

  • Extraordinary impairment losses of 14.6–14.8 billion yen were recorded for the Sendai and Thai plants, reflecting delays and reduced profitability.

  • Product recall-related losses of 3.69 billion yen were recognized, mainly for red yeast rice products.

  • Compensation for health damage is ongoing, with 260 out of 510 eligible individuals paid as of January 2026.

  • Most measures to prevent recurrence after the red yeast rice incident have been implemented, focusing on quality, safety, and governance reforms.

Financial highlights

  • Net sales: 165.7 billion yen (+0.1% YoY); operating income: 14.9 billion yen (−40.0% YoY); net income: 3.6 billion yen (−63.7% YoY).

  • EBITDA: 23.6 billion yen (−28.0% YoY); gross profit margin: 51.1%.

  • Domestic business net sales: 118.0–122.9 billion yen (−0.8% to −1.5% YoY); international business: 46.9–48.4 billion yen (+3.4% to +4.0% YoY).

  • Dividend maintained at 104 yen per share for FY2025; FY2026 forecast is 106 yen.

  • Comprehensive income dropped 68.0% to 5.09 billion yen.

Outlook and guidance

  • FY2026 forecast: net sales to rise to 173.0 billion yen (+4.4% YoY), operating income to fall to 12.5 billion yen (−16.2% YoY), net income to increase to 10.0 billion yen (+173.5% YoY).

  • Domestic and international sales expected to grow, but profit to decline due to higher advertising, depreciation, and capital expenditures.

  • No contribution from new M&A deals expected.

  • Launch of a new three-year medium-term management plan starting FY2026.

  • Dividend forecast for FY2026 is 106 yen per share.

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Frequently asked questions

Kobayashi Pharmaceutical Co., Ltd. is a diversified company engaged in the manufacturing and distribution of pharmaceutical, health, and personal care products. Its diverse product range includes over-the-counter (OTC) pharmaceuticals, oral hygiene products, deodorizing air fresheners, cooling gel sheets, sanitary products, household sundries, eyeglasses cleaners, and body warmers. Kobayashi extends its offerings to health food products, dietary food products, nutritional supplements, skincare products, and medical equipment and devices, catering to medical institutes and hospitals. Additionally, the company provides services in transportation, insurance, production, advertising planning, synthetic resin products, and real estate management. The company is headquartered in Osaka, Japan, and its shares are listed on the Tokyo Stock Exchange.

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