Kyowa Kirin (4151) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 revenue of ¥496.8 billion (+0.3% YoY) and core operating profit of ¥103.1 billion (+8% YoY), driven by global product growth, increased technology income, and cost reduction.

• Growth was led by strategic products in North America and EMEA, offsetting declines in Japan from drug price reductions and restructuring.

• Advanced key R&D programs, including FDA approval and launch of KOMZIFTI, progress in rocatinlimab, and expansion of gene therapy pipeline.

• Strengthened global R&D, digital transformation, and supply chain resilience; reduced GHG emissions by 70% from 2019.

• Major licensing agreement with Boehringer Ingelheim for autoimmune disease therapeutics.

Financial highlights

• FY2025 revenue: ¥496.8B (+0.3% YoY); core operating profit: ¥103.1B (+8% YoY); net profit: ¥67.0B (+12% YoY); profit before tax: ¥87.2B (+4.5% YoY).

• Gross profit margin improved to 74%; core operating profit margin: 21–22.1%; SG&A and R&D expenses reduced YoY.

• Basic EPS increased to ¥128.07 from ¥113.06.

• Overseas sales ratio reached 74%.

• Key products Crysvita and Poteligeo posted double-digit growth; tech-licensing income up 20%.

Outlook and guidance

• FY2026 revenue guidance: ¥520.0B (+4.7–5% YoY); profit: ¥75.0B (+11.9–12% YoY); ROE: 8.2%.

• Core operating profit expected to decline to ¥100.0B (down 9%) due to higher R&D and SG&A for new launches and regaining rocatinlimab rights.

• Dividend to increase to ¥70/share in FY2026, with a shift to a DOE-based progressive dividend policy (≥4%).