Rohto Pharmaceutical (4527) Q4 2025 earnings summary

Executive summary

• Net sales rose 14.0% year-over-year to ¥308,625 million, driven by strong domestic and overseas demand, product innovation, yen depreciation, and major acquisitions including Eu Yan Sang and Mono chem-pharm.

• Operating income declined 2.8% year-over-year to ¥38,939 million due to higher cost of sales and increased SG&A, especially from R&D, personnel, and depreciation linked to new consolidations.

• Profit attributable to owners of parent was ¥31,006 million, up 0.2% year-over-year.

• Overseas segments (Asia, Americas, Europe) posted double-digit sales growth and profit increases, while domestic profits fell despite higher sales.

• Major acquisitions expanded presence in Asia and Europe.

Financial highlights

• Consolidated net sales rose 14.0% year-over-year to ¥308,625 million; operating income fell 2.8% to ¥38,939 million.

• Gross profit increased to ¥174,939 million from ¥157,285 million year-over-year.

• SG&A expenses rose to ¥135,999 million, with R&D expenses up to ¥14,912 million.

• Total assets increased to ¥421,875 million, up ¥75,700 million from prior year, mainly due to goodwill and right-of-use assets.

• Cash and cash equivalents at year-end decreased to ¥73,221 million from ¥86,562 million.

Outlook and guidance

• FY3/2026 forecasts record-high sales of ¥334,500 million (+8.4% YoY) and operating income of ¥39,000 million (+0.2% YoY).

• Profit increase expected despite anticipated yen appreciation; EBITDA margin forecast at 16.7%.

• Full-year dividend forecast raised to ¥42.00 per share, with a payout ratio of 30.5%.

• Full-year consolidation of EYS and Mono expected; overseas growth led by Vietnam and Indonesia.

• Assumptions include exchange rates of 142 yen/USD and 19 yen/CNY.