Towa Pharmaceutical (4553) Q2 2026 earnings summary

Executive summary

• Net sales rose 5.7% year-over-year to JPY 130.4 billion, driven by higher production and sales volume, especially at Towa Pharmaceutical and growth in Sunsho Pharmaceutical's health food business.

• Operating profit declined 0.7% year-over-year to JPY 10.4 billion due to increased cost of sales at Sunsho Pharmaceutical, higher SG&A at Towa INT, and weaker overseas subsidiary performance.

• Ordinary profit increased 15.9% year-over-year to JPY 11.9 billion, aided by a JPY 1.5 billion gain on derivative valuation.

• Profit attributable to owners of parent rose 25.3% year-over-year to JPY 8.2 billion.

Financial highlights

• Gross profit increased 5.1% year-over-year to JPY 47.2 billion, but fell short of the 1H plan due to higher cost of sales at Sunsho Pharmaceutical and Towa INT.

• Comprehensive income jumped 119.2% year-over-year to JPY 10.2 billion.

• Earnings per share rose to JPY 166.86 from JPY 133.17 year-over-year.

• Total assets grew to JPY 480.5 billion, up JPY 9.7 billion from March 31, 2025.

• Net assets increased to JPY 179.9 billion, with an equity ratio of 37.4%.

Outlook and guidance

• Full-year net sales plan is JPY 280.0 billion, with a progress rate of 46.6% at 2Q.

• Operating profit full-year plan is JPY 27.0 billion, with a progress rate of 38.7%.

• Ordinary profit full-year forecast is JPY 25.3 billion (up 3.3%), and profit attributable to owners of parent is JPY 17.7 billion (down 6.8%).

• New product launches expected to contribute approx. JPY 0.77 billion in sales for the fiscal year.

• No revisions to previously announced forecasts.