Koa Shoji Holdings (9273) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended September 30, 2025, rose 18.4% year-over-year to ¥5,951 million, with operating profit up 20.1% to ¥1,352 million and profit attributable to owners of parent up 12.2% to ¥891 million, driven by a strong recovery in the API segment and robust sales at the Zao Factory.

• Comprehensive income increased 17.3% year-over-year to ¥901 million for the quarter.

• The SG&A ratio improved due to higher sales, but foreign exchange losses and increased competition in some pharmaceutical products impacted results.

Financial highlights

• Gross profit for the quarter was ¥1,923 million, up from ¥1,658 million year-over-year.

• Operating profit increased to ¥1,352 million (+20.1%), ordinary profit to ¥1,340 million (+11.6%), and profit attributable to owners of parent to ¥891 million (+12.2%).

• Basic earnings per share for the quarter were ¥21.18, up from ¥18.87 in the prior year.

• Dividend per share increased to ¥17 (+6.3%).

• Depreciation decreased by 12.5%, while R&D expenses remained flat.

Outlook and guidance

• Full-year forecast for fiscal year ending June 30, 2026: net sales of ¥25,700 million (+10.4% year-over-year), operating profit of ¥5,430 million (+1.4%), and profit attributable to owners of parent of ¥3,640 million (+0.1%).

• Long-term plan targets operating profit of ¥8.0 billion and net sales of ¥40 billion by FYE6/2030.

• Dividend policy aims for annual growth, with a payout ratio of 20% or higher.

• Annual dividend forecast is ¥17.00 per share.