Kaken Pharmaceutical (4521) Q1 2027 earnings summary

Executive summary

• Consolidated net sales for the three months ended June 30, 2026, rose 59.8% year-over-year to ¥30,154 million, with significant growth in pharmaceuticals and overseas sales.

• Operating profit increased to ¥10,902 million from ¥14 million in the prior year period, reflecting a sharp improvement in profitability.

• Profit attributable to owners of the parent reached ¥8,439 million, up from ¥2,313 million, and comprehensive income surged to ¥8,880 million from ¥40 million.

• Overseas sales surged 733.7% year-over-year, driven by pharmaceuticals and crop protection segments.

Financial highlights

• Gross profit margin improved to 69.5% from 52.3% year-over-year, with gross profit at ¥20,970 million.

• Ordinary profit rose to ¥11,258 million from ¥417 million year-over-year.

• Earnings per share rose to ¥222.86 from ¥7.13 year-over-year.

• Total assets increased to ¥187,414 million as of June 30, 2026, up from ¥178,217 million at the previous fiscal year-end.

• Equity-to-asset ratio remained strong at 81.6%.

Outlook and guidance

• Full-year net sales are projected at ¥89,900 million, a 16.9% increase from the previous year.

• Operating profit is forecast at ¥23,900 million, up 16.1% year-over-year.

• Full-year ordinary profit is forecast at ¥8,600 million, and profit attributable to owners of the parent at ¥6,500 million.

• Basic earnings per share for the full year projected at ¥171.65.

• No dividend is forecast for the year ending March 31, 2027.