Kaken Pharmaceutical (4521) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, rose 3.4% year-over-year to ¥18,867 million, but operating profit plummeted 99.5% to ¥14 million.

• Ordinary profit dropped 86.1% to ¥417 million, and profit attributable to owners of the parent fell 84.5% to ¥271 million year-over-year.

• Comprehensive income decreased sharply to ¥40 million, down 97.5% from the prior year period.

Financial highlights

• Gross profit increased to ¥8,995 million from ¥8,202 million year-over-year.

• Selling, general and administrative expenses rose to ¥9,858 million, driven by a significant increase in R&D expenses to ¥5,382 million.

• Basic earnings per share for the quarter were ¥7.13, down from ¥46.32 in the prior year period.

• Total assets decreased to ¥176,341 million as of June 30, 2025, from ¥190,422 million at March 31, 2025.

• Equity-to-asset ratio improved to 83.6% from 80.2% sequentially.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥88,000 million (up 6.4% year-over-year), operating profit of ¥5,200 million (up 75.3%), ordinary profit of ¥6,000 million (up 71.8%), and profit attributable to owners of the parent of ¥3,400 million (up 75.6%).

• Basic earnings per share for the full year projected at ¥89.79.

• No revisions to previously announced forecasts.