KYORIN Pharmaceutical (4569) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 rose 0.4% year-over-year to ¥55.1 billion, driven by growth in new drugs, especially Beova, Lasvic, and Desalex, despite declines in generics and long-listed products.

• Operating profit increased 16.0% year-over-year to ¥1.5 billion, with lower SG&A expenses offsetting lower-than-expected sales.

• Ordinary profit was ¥2.1 billion, a 29.9% increase compared to the same period last year.

• Profit attributable to owners of parent declined 33.6% year-over-year to ¥1.3 billion, mainly due to non-operating factors.

• Comprehensive income dropped 52.8% year-over-year to ¥1,152 million.

Financial highlights

• Net sales: ¥55.1 billion (+0.4% YoY); new drugs in Japan up 3.0%, generics down 7.2%.

• Operating profit: ¥1.5 billion (+16.0% YoY); ordinary profit: ¥2.1 billion (+29.9% YoY).

• Gross profit slightly decreased to ¥23.6 billion (-1.1% YoY); cost of sales ratio increased by 0.7 percentage points.

• Basic earnings per share for the six months was ¥21.86, down from ¥32.97 in the prior year.

• Total assets as of September 30, 2024, were ¥178,865 million, with net assets at ¥130,027 million; equity ratio stood at 72.7%.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥123.4 billion (+3.2% YoY); operating profit forecast at ¥6.5 billion (+4.3% YoY).

• Ordinary profit expected to reach ¥6.9 billion (+1.1% YoY); profit attributable to owners of parent forecasted at ¥5.0 billion (-8.7% YoY).

• Earnings per share for the full year projected at ¥87.03.

• No revision to initial forecast despite first-half profit exceeding expectations due to temporary SG&A variances.

• Dividend forecast maintained at ¥52 per share for FY2024.