Rohto Pharmaceutical (4527) Q1 2027 earnings summary

Executive summary

• Q1 2026 saw double-digit sales and profit growth, with net sales rising 11.8% year-over-year to JPY 91,624 million, led by strong performance in Asia and Japan, and robust growth from Eu Yan Sang International Ltd.

• Operating income increased 16.8% year-over-year to JPY 13,663 million, driven by sales growth and lower COGS, despite higher SG&A expenses.

• Profit attributable to owners of parent was JPY 10,650 million, down 9.5% YoY due to a one-time dividend income reversal in the prior year.

• Comprehensive income surged 79.3% year-over-year to JPY 13,929 million, reflecting improved foreign currency translation adjustments.

• All regions reported increased sales and profit, with notable contributions from subsidiaries and favorable FX impacts.

Financial highlights

• Q1 2026 sales reached JPY 91,624m, up 11.8% year-over-year; operating income was JPY 13,663m, up 16.8% YoY.

• EBITDA for Q1 2026 was JPY 18,159m, with an EBITDA margin of 19.8%.

• Gross profit increased to JPY 51,593m from JPY 45,852m YoY; gross profit margin improved to 56.3% from 55.9% YoY.

• Profit attributable to owners of parent was JPY 10,650m, down 9.5% YoY due to a one-time dividend income reversal in the prior year.

• Total assets at June 30, 2026, were JPY 487,151m, with an equity-to-asset ratio of 63.5%.

Outlook and guidance

• FY3/2027 sales forecast revised upward to JPY 372,300m (+8.3% YoY), with operating income forecast at JPY 45,000m (+9.4% YoY).

• Profit attributable to owners of parent expected to reach JPY 35,200m (up 2.8%), with EPS forecast at JPY 155.78.

• Strongest growth expected in Asia (+14.0% YoY) and Europe (+18.0% YoY).

• Annual dividends planned to increase by 4 yen, marking 23 consecutive years of dividend growth; payout ratio estimated at 32.1%.

• Upward revision reflects favorable exchange rates and stronger-than-expected performance in Asia, Japan, and Europe.