Kissei Pharmaceutical (4547) Q2 2026 earnings summary

Executive summary

• Net sales for the interim period reached ¥45,831 million, up 7.9% year-over-year, driven by growth in key pharmaceutical products, overseas licensing, and other businesses.

• Operating loss was -¥6,837 million, mainly due to increased SG&A and R&D expenses, while ordinary loss was ¥5,622 million.

• Profit attributable to owners of parent rose 48.3% YoY to ¥7,784 million, aided by extraordinary gains from investment securities sales.

• Comprehensive income surged to ¥10,001 million, up 590.9% YoY.

• R&D expenses surged 130.3% YoY to ¥16,328 million, reflecting significant investments in in-licensing and clinical development.

Financial highlights

• Gross profit increased to ¥22,688 million, while cost of sales rose 9.8% YoY.

• SG&A expenses nearly doubled, with R&D accounting for 35.6% of net sales.

• Extraordinary income of ¥15,199 million, mainly from investment securities sales, contributed significantly to net profit.

• Cash and cash equivalents rose 27.2% from the previous fiscal year-end to ¥61,273 million.

• Equity ratio stood at 80.9% as of September 30, 2025, down from 85.6% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥95,500 million (+8.1% YoY), with profit attributable to owners of parent expected at ¥12,700 million (+6.2% YoY).

• Operating and ordinary losses are expected to narrow compared to initial forecasts due to higher sales.

• Pharmaceutical business net sales projected at ¥78,000 million (+3.6% YoY), with domestic pharmaceuticals up 5.0% YoY.

• Extraordinary income in the second half expected from further asset sales.