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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.
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Q2 2025 earnings summary5 Aug, 2025

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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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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