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Kobayashi Pharmaceutical (4967) investor relations material
Kobayashi Pharmaceutical Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Net sales for the first half of FY2025 declined 5.6% year-over-year to ¥69.0 billion, with operating income down 29.8% to ¥6.6 billion and net income up 120.5% to ¥3.1 billion due to a low prior-year base and reduced extraordinary losses.
The company faced ongoing challenges from the red yeast rice product recall, impacting sales and incurring special losses totaling ¥2.9 billion in the first half.
Domestic sales were impacted by the recall, advertising suspension, and direct marketing contraction, but inbound tourism and new products provided some offset.
International sales fell 6.2% year-over-year, with strong U.S. performance offset by declines in China and Southeast Asia.
Financial highlights
Gross profit margin for H1 FY2025 was 52.4%, down from 55.7% the previous year; gross profit was ¥32,873 million on sales of ¥69,018 million.
EBITDA for H1 FY2025 was ¥10.9 billion, down 17.8% year-over-year.
Operating margin declined to 9.6% from 12.9% year-over-year.
Cash and cash equivalents at period-end increased to ¥47,032 million, up ¥1,058 million from the previous year-end.
Total assets decreased to ¥260,710 million, and equity ratio remained high at 79.6%.
Outlook and guidance
Full-year FY2025 guidance is unchanged: net sales ¥171.0 billion (+3.3%), operating income ¥14.0 billion (-43.7%), net income ¥10.5 billion (+4.3%).
Risks to H2 include delayed advertising resumption, weak China sales, and potential further compensation costs.
Dividend forecast is ¥104 per share.
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