Towa Pharmaceutical (4553) Q1 2027 earnings summary

Executive summary

• Net sales rose 9.6% year-over-year to ¥71,380 million for the quarter ended June 30, 2026, driven by higher sales volume and unit prices domestically and strong European B2C/B2B growth, offsetting weaker performance at Sunsho Pharmaceutical.

• Operating profit increased 25.2% year-over-year to ¥6,519 million, and profit attributable to owners of parent surged 120.1% to ¥5,531 million.

• Ordinary profit doubled year-over-year, aided by a ¥1,424 million gain on derivative valuation, reversing a loss from the prior year.

Financial highlights

• Consolidated net sales for 1Q were JPY 71,380 million, up 9.6% year-over-year.

• Operating profit reached JPY 6,519 million, a 25.2% increase year-over-year.

• Ordinary profit doubled to JPY 7,941 million, up 100.9% year-over-year.

• Profit attributable to owners of parent was JPY 5,531 million, up 120.1% year-over-year.

• Comprehensive income reached ¥6,350 million, up 107.1% year-over-year.

Outlook and guidance

• Full-year forecast for FY2027: net sales ¥304,000 million (+11.1% YoY), operating profit ¥32,000 million (+38.5%), profit attributable to owners of parent ¥21,500 million (+309.5%), EPS ¥430.77.

• Net sales and operating profit are progressing as planned, with overseas growth compensating for domestic delays.

• The impact of the Tanabe Pharma Factory acquisition on FY2027/3 results is under evaluation.

• No revisions to previously announced forecasts.