Kissei Pharmaceutical (4547) Q2 2025 earnings summary

Executive summary

• Net sales for the interim period rose 14.8% year-over-year to ¥42,466 million, driven by strong pharmaceutical business performance.

• Operating profit declined 11.6% year-over-year to ¥1,781 million due to increased SG&A, mainly R&D expenses.

• Profit attributable to owners of parent decreased 7.6% year-over-year to ¥5,249 million.

• Comprehensive income dropped sharply to ¥1,447 million, down 84.9% year-over-year, mainly due to valuation losses on available-for-sale securities.

• Pharmaceutical business net sales grew 19.1% year-over-year, led by expansion of key and new products.

Financial highlights

• Net sales: ¥42,466 million (+14.8% YoY); pharmaceutical business: ¥36,633 million (+19.1% YoY).

• Operating profit: ¥1,781 million (-11.6% YoY); ordinary profit: ¥2,237 million (-35.4% YoY).

• Profit attributable to owners: ¥5,249 million (-7.6% YoY).

• Gross profit increased to ¥21,068 million from ¥18,677 million YoY; margin improved to 50.4% from 49.5%.

• R&D expenses surged 57.6% YoY to ¥7,091 million.

Outlook and guidance

• Revised full-year net sales forecast to ¥86,500 million (+14.4% YoY), with pharmaceutical business at ¥74,000 million.

• Operating profit guidance raised to ¥5,000 million (+24.5% YoY); profit attributable to owners forecast at ¥11,700 million (+4.8% YoY).

• R&D expenses for the year expected to reach ¥13,000 million (+37.2% YoY).

• Gain on sale of investment securities of ¥5,300 million expected as extraordinary income in the second half.

• Annual dividend forecast increased to ¥90.00 per share.