Harima-Kyowa (7444) Q4 2025 earnings summary

Executive summary

• Revenue increased 0.4% year-over-year to ¥61,824 million, with operating profit up 4.8% to ¥1,911 million, but net income attributable to shareholders declined 8.4% to ¥1,289 million due to higher personnel costs and one-off losses related to bad debt and equity-method losses.

• The company operates as a single wholesale segment, with over 90% of sales from one product/service category and major customers including Sugi Pharmacy and Don Quijote.

Financial highlights

• Operating profit margin improved to 3.1% from 3.0% year-over-year.

• Comprehensive income dropped 59.5% year-over-year to ¥874 million.

• Cash and equivalents at year-end rose by ¥832 million to ¥3,424 million.

• Dividend per share increased to ¥50 (from ¥45), with a payout ratio of 20.9%.

Outlook and guidance

• FY2026 revenue is forecast to decrease 4.6% to ¥59,000 million due to customer contract changes.

• Operating profit is expected to fall 26.8% to ¥1,400 million, with net income down 4.6% to ¥1,230 million, reflecting initial costs for a new logistics center.

• Dividend forecast for FY2026 is ¥55 per share.