Towa Pharmaceutical (4553) Q1 2026 earnings summary

Executive summary

• Net sales increased 4.1% year-over-year to ¥65.1 billion, driven by higher production and supply volumes, but profit declined due to weak performance in Sunsho Pharmaceutical and Towa INT.

• Operating profit fell 8.2% year-over-year to ¥5.2 billion, and ordinary profit dropped 54% to ¥3.9 billion, impacted by a ¥1.4 billion loss on derivative valuation.

• Profit attributable to owners of parent decreased 54.3% year-over-year to ¥2.5 billion.

Financial highlights

• Gross profit increased 1.4% year-over-year to ¥23.6 billion, while cost of sales rose 5.7%.

• SGA expenses increased 4.5% year-over-year to ¥18.5 billion.

• R&D expenses for the quarter were ¥3.6 billion, up 37.5% year-over-year, with a consolidated R&D expense-to-sales ratio of 6.7%.

• Earnings per share fell to ¥51.06 from ¥111.64 year-over-year.

• Comprehensive income decreased 64.2% year-over-year to ¥3,065 million.

Outlook and guidance

• Net sales progress rate for the full-year plan is 23.3%, with operating profit at 19.3%.

• Full-year net sales forecast at ¥280,000 million, up 7.9% year-over-year; operating profit forecast at ¥27,000 million, up 16.2%.

• Profit attributable to owners of parent projected at ¥17,700 million, down 6.8% year-over-year.

• No revision to the full-year plan or dividend forecast due to exchange rate uncertainties; derivative gains/losses are excluded from the plan.