Kissei Pharmaceutical (4547) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥45.503 billion, down 0.7% YoY; operating profit was ¥1.694 billion and ordinary profit ¥2.923 billion, returning to profit from prior-year losses.

• Profit attributable to owners of the parent fell 33.3% to ¥5.191 billion, including ¥4.313 billion of TAVNEOS-related extraordinary losses.

• Growth priorities include expanding key products, advancing pipeline assets and in-licensing, while maintaining investment and shareholder returns.

Financial highlights

• Gross profit was ¥21.710 billion, down 4.3% YoY; gross margin was 47.7% versus 49.5%.

• SG&A was ¥20.015 billion, down 32.2% YoY, and R&D expenses were ¥7.311 billion, down 55.2%.

• Extraordinary losses included ¥2.162 billion impairment and ¥2.125 billion inventory valuation losses; extraordinary income included an ¥8.040 billion gain on sale of investment securities.

Outlook and guidance

• FY2027 forecast: net sales ¥89.0 billion, operating profit ¥2.5 billion, ordinary profit ¥4.4 billion and parent-attributable profit ¥10.0 billion.

• Pharmaceutical sales forecast was reduced ¥1.5 billion to ¥73.5 billion versus July, while other-business sales rose ¥1.8 billion to ¥15.5 billion, mainly on expected Information Services orders.

• TAVNEOS FY sales forecast is ¥3.7 billion, including ¥0.6 billion in H2, versus the initial full-year forecast of ¥12.7 billion.

• FY forecast includes ¥14.0 billion of gains on investment-security sales, including ¥6.0 billion expected in H2; R&D expenses remain as planned.

• Beyond 80 sales and operating-profit targets will be rebuilt to account for R&D investment; existing products and the current pipeline alone cannot offset the TAVNEOS decline within the period.