Kobayashi Pharmaceutical (4967) Q1 2026 earnings summary

Executive summary

• Q1 consolidated net sales rose 3.2% year-over-year to ¥33.6 billion, with both domestic and international sales increasing as planned.

• Operating income dropped 46.7% year-over-year to ¥1.3 billion, mainly due to a significant increase in advertising expenses following the resumption of advertising in July 2025.

• Net income declined 36.2% year-over-year to ¥1.0 billion.

• Comprehensive income improved to ¥2,357 million from a loss of ¥2,052 million in the prior year.

• Extraordinary loss of ¥0.3 billion related to red yeast rice products was offset by gains from the sale of investment securities.

Financial highlights

• Gross profit increased 4.5% year-over-year to ¥17.4 billion, with a margin of 51.8%.

• Ordinary income fell 30.4% year-over-year to ¥1.6 billion.

• EBITDA decreased 23.6% year-over-year to ¥3.6 billion.

• Advertising expenses surged 186.2% year-over-year to ¥3.0 billion.

• Basic earnings per share dropped to ¥13.95 from ¥21.86 year-over-year.

Outlook and guidance

• Full-year forecast remains unchanged: net sales projected at ¥173.0 billion (+4.4%), operating income at ¥12.5 billion (-16.2%), and net income at ¥10.0 billion (+173.5%).

• Dividend forecast raised to ¥106 per share.