Towa Pharmaceutical (4553) Q2 2027 earnings summary

Executive summary

• 1H FY27 net sales rose 9.0% YoY to ¥142,254m and operating profit rose 22.0% to ¥12,745m; ordinary and parent-attributable profit declined amid derivative valuation losses.

• Domestic generics and European growth offset weaker Sunsho Pharmaceutical results; sales reached 97.6% of plan and operating profit 100.4%.

Financial highlights

• Gross profit rose 9.0% to ¥51,445m; SG&A increased 5.3% to ¥38,699m.

• Ordinary profit fell 15.7% to ¥10,093m, including a ¥2,355m derivative valuation loss; parent-attributable profit fell 16.4% to ¥6,866m.

• Gross margin was 36.2%, operating margin rose to 9.0% from 8.0%, and net profit margin declined to 4.8% from 6.3%.

Outlook and guidance

• FY27 guidance remains unchanged: net sales ¥304.0bn, operating profit ¥32.0bn, ordinary profit ¥30.0bn and parent-attributable profit ¥21.5bn.

• 1H progress against guidance was 46.8% for sales, 39.8% for operating profit, 33.6% for ordinary profit and 31.9% for parent-attributable profit.

• FY27 EPS guidance is ¥430.76; common-share dividends are forecast at ¥85 per share, versus ¥80 in FY26.

• Twenty new products across eight ingredients are scheduled for December 2026 NHI listing, with first-year sales planned at ¥2.1bn.