Rohto Pharmaceutical (4527) Q2 2026 earnings summary

Executive summary

• Sales increased 18.1% year-over-year to 164,257 million yen, with double-digit growth in Asia and Europe, and all regions showing sales increases, driven by strong domestic and overseas demand and recent acquisitions.

• Operating income rose 8.6% year-over-year to 19,317 million yen, ahead of plan, with ordinary income up 32.4% and profit attributable to owners of parent up 36.6%.

• Full-year forecasts for sales, operating income, ordinary income, and net profit were revised upward, with record highs expected.

• Annual dividend increased to 43 yen per share, marking 22 consecutive years of dividend growth.

• The company finalized provisional accounting for business combinations, impacting comparative figures.

Financial highlights

• 1H FY2026 sales: 164,257 million yen (+18.1% YoY); operating income: 19,317 million yen (+8.6% YoY); EBITDA: +23.2% YoY.

• Gross profit reached 91,183 million yen, up from 78,507 million yen year-over-year; gross profit margin: 55.5%.

• Profit attributable to owners of parent: 17,652 million yen (+36.6% YoY); net income per share: 78.12 yen.

• Exchange rates negatively impacted sales by 2,090 million yen and operating income by 140 million yen.

• Cash and cash equivalents at period-end were 74,066 million yen, up 845 million yen from the previous fiscal year-end.

Outlook and guidance

• Full-year FY2026 sales forecast revised up to 338,500 million yen (+9.7% YoY); operating income to 39,500 million yen (+3.3% YoY); ordinary income: 44,000 million yen (+10.8% YoY); net profit: 32,000 million yen (+3.8% YoY).

• Dividend forecast raised to 43 yen per share for the fiscal year ending March 31, 2026; dividend payout ratio estimated at 30.4%.

• Upward revisions driven by strong 1H performance in Japan, Asia, and Americas; continued growth expected in Southeast Asia.

• Exchange rate assumptions revised to 148 yen/USD and 20 yen/CNY for the forecast period.