Koa Shoji Holdings (9273) Q4 2025 earnings summary

Executive summary

• Achieved record net sales and profits in both API and pharmaceuticals segments for FYE6/2025, with net sales up 5.1% to ¥23,269 million and operating profit up 22.2% to ¥5,355 million year-over-year.

• Profit attributable to owners of parent rose 23.5% to ¥3,637 million, and comprehensive income increased 21.7% to ¥3,616 million.

• Growth was driven by expanded sales of new API products and strong demand for pre-filled syringe formulations.

• Minimal impact from international trade policies due to primarily domestic operations.

Financial highlights

• Gross profit margin improved to 33.1% from 30.0% YoY, with gross profit at ¥7,697 million.

• Ordinary profit rose 23.1% YoY to ¥5,375 million.

• Facility investments more than doubled to ¥3,077 million, mainly for Zao Factory 2.

• Cash and cash equivalents at period end were ¥14,739 million, up from ¥13,195 million.

• Dividend per share increased to ¥16, with a payout ratio of 18.5%.

Outlook and guidance

• FYE6/2026 forecast: Net sales to rise 10.4% to ¥25,700 million; operating profit to increase 1.4% to ¥5,430 million; profit attributable to owners of parent to remain flat at ¥3,640 million.

• Both API and pharmaceuticals segments expected to grow, with further acceleration anticipated after Zao Factory 2 starts operations in FYE6/2028.

• Dividend forecast for FYE6/2026 is ¥17 per share, maintaining a payout ratio of 20% or higher.