Rohto Pharmaceutical (4527) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a record ¥179,006 million, up 9.0% YoY; operating income rose 8.5% to ¥20,953 million.

• Growth in Asia and Europe and improved Japan profitability offset U.S. weakness; ordinary income fell 11.2% and attributable profit fell 6.5%.

Financial highlights

• H1 gross profit was ¥99,562 million and SG&A was ¥78,608 million; gross margin was 55.6% and operating margin 11.7%.

• Ordinary income declined 11.2% to ¥21,845 million, reflecting the prior-year one-time dividend income comparison; attributable profit fell 6.5% to ¥16,498 million.

• EBITDA rose 9.8% to ¥30,071 million; FX contributed ¥8.33bn to sales and ¥880m to operating income, while lower U.S. eye-drop shipments reduced sales by ¥670m YoY.

• Comprehensive income rose to ¥23,678 million from ¥16,169 million, including ¥7,043 million of other comprehensive income; a ¥1,456 million gain on sale of investment securities was recorded.

Outlook and guidance

• FY2027 forecast unchanged: sales ¥372.3bn (+8.3%), operating income ¥45.0bn (+9.4%), ordinary income ¥47.4bn (-1.2%), attributable profit ¥35.2bn (+2.8%) and EBITDA ¥63.7bn (+8.9%).

• H1 progress against forecasts: sales 48.1%, operating income 46.6%, attributable profit 46.9% and EBITDA 47.2%; EPS forecast is ¥156.50.

• Sales forecasts raised ¥500m for Japan and ¥400m for Asia, cut ¥1.2bn for the Americas and unchanged for Europe; operating-income forecasts raised ¥500m for Japan and ¥300m for Asia, cut ¥900m for the Americas and unchanged for Europe.

• Forecast assumptions include USD/JPY 158 and CNY/JPY 23; risks include trade policy, geopolitical tensions, raw-material prices and FX trends.