Rohto Pharmaceutical (4527) Q3 2025 earnings summary

Executive summary

• Net sales rose 12.3% year-over-year to ¥225,895 million for the nine months ended December 31, 2024, driven by strong inbound and overseas demand, product launches, yen depreciation, and consolidation of Eu Yan Sang International and Mono chem-pharm.

• Profits declined year-over-year due to higher cost of sales, increased SG&A and R&D, but improved sequentially in Q3.

• All regions posted sales growth, with double-digit increases in overseas markets.

• Dividend to increase for the 21st consecutive year, with a payout ratio of 25.5%.

• Comprehensive income dropped 28.5% year-over-year to ¥26,099 million, reflecting lower other comprehensive income.

Financial highlights

• Q3 net sales: ¥86,812 million (+18.4% YoY); 1-3Q net sales: ¥225,895 million (+12.3% YoY).

• Q3 operating income: ¥14,476 million (+1.3% YoY); 1-3Q operating income: ¥32,267 million (-8.5% YoY).

• Q3 profit attributable to owners: ¥11,885 million (+24.3% YoY); 1-3Q: ¥24,806 million (-5.2% YoY).

• EBITDA for 1-3Q: ¥40,766 million (-1.9% YoY).

• Total assets grew to ¥403,859 million, up ¥57,684 million from March 31, 2024.

Outlook and guidance

• Full-year forecasts remain unchanged, targeting record-high sales and profit: net sales ¥320,000 million (+18.2% YoY), operating income ¥43,200 million (+7.9% YoY), profit attributable to owners ¥32,200 million (+4.1% YoY), EBITDA ¥54,900 million (+12.7% YoY).

• Segment sales growth forecast: Japan +10.2%, Asia +32.9%, Americas +12.0%, Europe +33.2%.

• Dividend per share to rise to ¥36.

• No change to previously announced full-year guidance; nine-month results are in line with plan.