Kyowa Kirin (4151) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was ¥230.7 billion, down 1% year-over-year, with overseas sales ratio rising to 73% due to strong growth in North America and EMEA, while Japan and APAC declined from restructuring and price cuts.

• Core operating profit fell 21% to ¥35.0 billion, and net profit dropped 57% to ¥16.3 billion, mainly due to restructuring, special retirement expenses, and one-time severance costs.

• Key products Crysvita (+10% YoY) and Poteligeo (+14% YoY) drove overseas growth, offsetting domestic declines from partnership terminations and NHI price cuts.

• R&D expenses increased 7% YoY, reflecting pipeline progress and new consolidation of Orchard.

• Profit attributable to owners of parent fell 56.8% to ¥16.3 billion, mainly due to lower core operating profit and one-time severance costs.

Financial highlights

• Revenue decreased by ¥2.3 billion (1%) year-over-year; gross profit margin fell to 73%.

• Core operating profit declined by ¥9.1 billion (21%) due to lower gross profit and higher R&D expenses.

• Net profit fell by ¥21.5 billion (57%) year-over-year, mainly due to restructuring costs and FX losses.

• R&D ratio increased to 23% of revenue, up from 21% YoY.

• Basic earnings per share dropped to ¥31.18 from ¥70.76 year-over-year.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥478.0 billion, with 48% progress achieved by mid-year.

• Core operating profit guidance is ¥80.0 billion (44% progress), and net profit guidance is ¥57.0 billion (29% progress).

• No changes to previously announced earnings forecasts; fundamentals remain strong.