Kissei Pharmaceutical (4547) Q1 2027 earnings summary

Executive summary

• Net sales rose 5.4% year-over-year to ¥23,389 million for the quarter ended June 30, 2026, driven by growth in key pharmaceutical products, new product launches, and strong performance in the Information Services Business.

• Operating profit declined 48.0% year-over-year to ¥1,095 million due to higher cost of sales ratio and increased R&D and SG&A expenses, despite higher sales.

• Profit attributable to owners of parent increased 4.5% year-over-year to ¥4,723 million, supported by extraordinary income from the sale of investment securities.

• The pharmaceutical industry faced continued pricing pressure and regulatory changes, impacting profitability.

Financial highlights

• Pharmaceutical Business net sales grew 4.2% year-over-year to ¥19,464 million; Information Services Business surged 34.8% to ¥3,074 million.

• Construction and Facility Maintenance Business sales dropped 38.8% year-over-year to ¥607 million.

• Gross profit increased to ¥11,432 million from ¥11,079 million year-over-year; cost of sales ratio rose to 51.1%.

• R&D expenses jumped 61.7% year-over-year to ¥4,056 million, representing 17.3% of net sales.

• Comprehensive income fell 46.2% year-over-year to ¥3,056 million.

Outlook and guidance

• Full-year net sales forecast revised to ¥88,700 million (down 8.9% year-over-year), with operating profit projected at ¥2,000 million.

• Profit attributable to owners of parent forecast at ¥13,300 million (down 3.5% year-over-year).

• Pharmaceutical Business full-year sales expected at ¥75,000 million; Information Services at ¥10,500 million.

• R&D expenses for the full year forecast at ¥14,300 million.

• Dividend forecast for FY2027 is ¥170 per share, including a ¥40 commemorative dividend.