Kyowa Kirin (4151) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥104.7B, down 1% YoY, with overseas sales ratio rising to 73% from 68%.

• Core operating profit dropped 50% to ¥8.6B, and net profit fell 58% to ¥6.2B, mainly due to higher R&D and SG&A expenses and lower equity method income.

• Revenue decline was driven by APAC restructuring and drug price reductions in Japan, partially offset by growth in global strategic products in North America and EMEA.

Financial highlights

• Gross profit was stable at ¥80.1B, with gross margin improving to 77%.

• SG&A expenses increased 5% YoY to ¥42.0B, and R&D expenses rose 22% YoY to ¥28.6B, reflecting new consolidations and cost estimation changes.

• Total assets as of March 31, 2025 were ¥1,019.3B, down ¥48.1B from December 2024, mainly due to lower cash and receivables.

• Net cash from operating activities was ¥7.4B, down 61.4% YoY; investing and financing outflows were ¥21.5B and ¥16.5B, respectively.

• Cash and cash equivalents at quarter-end were ¥214.4B, down ¥30.3B from year-end 2024.

Outlook and guidance

• FY2025 revenue target is ¥478.0B, with Q1 progress at 22%.

• Core operating profit guidance is ¥80.0B (Q1 progress 11%), and net profit guidance is ¥57.0B (Q1 progress 11%).

• Dividend forecast for FY2025 is ¥60 per share, unchanged from previous guidance.

• Overseas sales ratio for FY2025 revised to 73%.