| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥8253.8B | ¥7894.0B | +4.6% |
| Operating Income | ¥441.4B | ¥543.8B | -18.8% |
| Profit Before Tax | ¥510.0B | ¥610.6B | -16.5% |
| Net Income | ¥405.2B | ¥480.6B | -15.7% |
| ROE | 4.4% | 5.5% | - |
The fiscal year ended March 2026 closed with Revenue of ¥8,253.8B (YoY +¥359.8B +4.6%), Operating Income of ¥441.4B (YoY -¥102.4B -18.8%), Ordinary Income of ¥129.4B (YoY -¥221.0B -63.1%), and Net income attributable to owners of parent of ¥385.6B (YoY -¥78.7B -17.0%), marking revenue growth with profit decline. Revenue expanded broadly led by the Americas and China by region, and Neurology products grew roughly 30% leading product mix, sustaining a third consecutive year of revenue increases. Conversely, Operating Income was pressured by higher SG&A (¥4,352.9B, 52.7% of sales), elevated R&D spending (¥1,586.6B, 19.2% of sales), and head office administrative costs (including partner split payment ¥1,582B), causing Operating Margin to fall to 5.3% (down 1.6pt from 6.9% a year earlier). Financial income of ¥122.0B exceeded financial expenses of ¥53.4B, producing net financial income of ¥68.6B, but this was insufficient to offset the operating decline, resulting in Ordinary Income falling sharply by 63.1% YoY. From Profit Before Tax of ¥510.0B, after deducting corporate taxes and others of ¥104.8B, Net Income amounted to ¥405.2B.
[Revenue] Revenue ¥8,253.8B (+4.6%) with region breakdown showing Americas ¥3,004.4B (+8.0%) as the largest contributor, China ¥1,307.5B (+13.2%), Japan ¥2,292.4B (+6.0%), East Asia & Global South ¥688.2B (+15.6%) — all major regions recorded revenue increases. EMEA ¥815.3B (+2.7%) had modest growth, while Other Businesses ¥146.0B (-63.8%) declined significantly due to reduced license income. By product mix, Neurology ¥2,605.7B (from ¥1,998.9B last year +30.4%) surged as the growth engine, Oncology ¥3,626.7B (from ¥3,658.0B last year -0.9%) remained flat, and Other ¥2,021.4B (from ¥2,237.1B last year -9.6%) declined, indicating a clear strategic shift toward Neurology. Gross profit was ¥6,341.6B (gross margin 76.8%, down 1.8pt from 78.6% a year earlier) remaining high but with a slight rise in cost ratios.
[Profitability] Operating Income fell to ¥441.4B (-18.8%). SG&A ¥4,352.9B (52.7% of sales, YoY +6.7%), R&D ¥1,586.6B (19.2% of sales, YoY -7.5%), and head office administrative costs ¥1,893.4B (including split payment ¥1,582B, YoY +7.9%) pressured profits. By segment, Americas Operating Income ¥1,743.8B (+10.2%), Japan ¥729.8B (+1.7%), China ¥593.1B (+3.7%) maintained profit growth, while EMEA ¥304.1B (-15.4%) experienced double-digit decline and Other ¥45.1B (-84.8%) posted large profit declines. A reduction in Other income to ¥52.9B (from ¥171.6B last year -69.2%) also depressed Operating Income. Financial income ¥122.0B exceeded financial expense ¥53.4B producing net financial income ¥68.6B, but insufficient to offset operating decline. Ordinary Income was ¥129.4B (-63.1%). From Profit Before Tax ¥510.0B, after deducting corporate taxes and others ¥104.8B (effective tax rate 20.6%), Net Income was ¥405.2B (-15.7%). Net income attributable to owners of parent was ¥385.6B (-17.0%), non-controlling interests ¥19.6B (+20.7%), resulting in overall revenue up/profit down.
The Americas recorded Revenue ¥3,004.4B (+8.0%) and Operating Income ¥1,743.8B (+10.2%, margin 58.0%), achieving revenue and profit growth and serving as the largest profit-contributing segment. Japan posted Revenue ¥2,292.4B (+6.0%) and Operating Income ¥729.8B (+1.7%, margin 31.8%) with revenue and profit growth but limited profit upside. China delivered Revenue ¥1,307.5B (+13.2%) and Operating Income ¥593.1B (+3.7%, margin 45.4%) maintaining high growth. EMEA had Revenue ¥815.3B (+2.7%) and Operating Income ¥304.1B (-15.4%, margin 37.3%), showing revenue growth but profit deterioration. East Asia & Global South achieved Revenue ¥688.2B (+15.6%) and Operating Income ¥302.4B (+10.5%, margin 43.9%) maintaining high growth and high profitability. Other Businesses recorded Revenue ¥146.0B (-63.8%) and Operating Income ¥45.1B (-84.8%, margin 30.9%) with significant declines. The Americas has the highest segment Operating Margin and EMEA weakness contributed to company-wide margin pressure.
[Profitability] Operating Margin contracted to 5.3% (from 6.9% last year, -1.6pt), and Net Margin declined to 4.7% (from 5.9% last year, -1.2pt). ROE was 4.4% (from 5.4% last year, -1.0pt), remaining low compared with the past three years. The decline in Operating Margin was mainly driven by an increase in SG&A ratio to 52.7% (from 51.7% last year) and higher head office administrative costs. [Cash Quality] Operating Cash Flow / Net Income ratio was 1.51x, indicating good cash backing for earnings. However, an increase in working capital (-¥303.2B) pressured OCF; inventories rose to ¥2,575.5B (YoY +¥416.4B +19.3%), trade receivables to ¥2,270.0B (YoY +¥50.0B +2.3%), inventory days were 492 days (prior 468 days), receivables days 100 days (prior 102 days), CCC 447 days (prior 422 days), indicating worsening efficiency metrics. [Investment Efficiency] Total asset turnover was 0.57x, roughly flat YoY, and fixed asset turnover was 2.13x with no major change. Estimated ROIC (EBIT ¥97.3B ÷ invested capital approx. ¥30.0T) is about 3.2%, low and indicating room to improve capital efficiency. [Financial Soundness] Equity Ratio was 62.0% (from 60.7% last year, +1.3pt), and against interest-bearing debt ¥1,860.8B (prior ¥1,875.2B) cash and equivalents were ¥2,454.2B (prior ¥2,655.6B), maintaining net cash of ¥593.4B. Debt/Equity ratio was 20.1% (prior 21.7%), a conservative level. Interest coverage (EBIT ¥97.3B ÷ financial expense ¥53.4B) is about 1.8x, and considering financial income ¥122.0B net financial position is positive ¥68.6B, making net interest burden effectively minor.
Operating Cash Flow was ¥613.2B (YoY +103.6%), a large increase and 1.51x of Net Income ¥405.2B, indicating strong cash backing of earnings. Starting from Profit Before Tax ¥510.0B, adding depreciation & amortization ¥395.5B and impairment losses ¥14.0B, adjusting for working capital increase -¥303.2B (driven mainly by inventories and receivables), changes in retirement benefit liabilities ¥169.6B, other adjustments -¥79.8B, then reflecting corporate tax payments -¥166.7B and refunds ¥31.4B, interest & dividends received ¥82.4B, and interest paid -¥39.9B produced the result. Investing Cash Flow was -¥417.9B,主要内訳 being acquisition of tangible fixed assets -¥153.6B, acquisition of intangible assets -¥258.1B, acquisition of subsidiaries -¥125.8B, indicating active investment in subsidiary acquisitions and pipeline rights. Proceeds from sales of tangible and intangible assets ¥15.0B and sales/redemptions of financial assets ¥136.2B partially offset. Free Cash Flow (Operating CF + Investing CF) was ¥195.3B. Financing Cash Flow was -¥611.0B, including dividend payments -¥451.4B, lease liability repayments -¥104.3B, net decrease in short-term borrowings -¥44.1B, and long-term borrowings borrowings ¥350.0B / repayments -¥350.1B roughly offsetting, and share buybacks -¥0.1B. After adding foreign exchange translation effects +¥214.3B, cash and cash equivalents decreased by -¥201.4B to ¥2,454.2B at year-end. Free Cash Flow ¥195.3B substantially lagged dividend payments ¥451.4B, leaving FCF coverage at about 0.43x; dividend sustainability depends on improvements in Operating CF and normalization of working capital efficiency.
Earnings quality is high, with Operating CF ¥613.2B exceeding Net Income ¥405.2B and an accrual ratio of -1.6% indicating good quality. Recurring earnings are centered on prescription pharmaceuticals sales, and the structure reflects partner split payments recorded as head office administrative costs (split payment for Lenvima ¥1,582.0B), which introduces some rigidity to the revenue structure. Non-operating financial income ¥122.0B (including interest & dividend income ¥82.4B) exceeded financial expenses ¥53.4B producing net financial income ¥68.6B, which is approximately 0.8% of Revenue and well below the 5% threshold, indicating limited dependence on non-core income. Other income ¥52.9B (from ¥171.6B last year decreased significantly) shows reduced contribution from one-off items, and special one-time gains were limited this period. The gap between Ordinary Income ¥129.4B and Net Income ¥385.6B mainly reflects Profit Before Tax ¥510.0B less corporate taxes and others ¥104.8B (effective tax rate 20.6%), and there is no structural distortion. Comprehensive income ¥1,052.7B greatly exceeded Net Income ¥405.2B, primarily driven by foreign currency translation differences on overseas operations ¥592.4B, so realized earnings quality does not present major concerns.
Guidance for the fiscal year ending March 2027 forecasts Revenue ¥8,835.0B (YoY +7.1%), Operating Income ¥700.0B (YoY +58.6%), Net Income ¥540.0B (YoY +33.3%), and EPS ¥185.00. Dividend is planned at annual ¥80, implying a payout ratio of approximately 43% (based on EPS ¥185), a substantial normalization from the prior year payout ratio of 97.7%. Progress against Operating Income guidance is: H1 result ¥441.4B ÷ full-year forecast ¥700.0B ≈ 63.1%, assuming substantial profit improvement in H2. The profit improvement assumptions include continued growth of Neurology products, normalization of SG&A and head office administrative costs, working capital improvement via inventory normalization, and recovery of EMEA profitability. Operating Margin is expected to recover to about 7.9% for the full year (from 5.3% this year, +2.6pt), combining with Revenue growth +7.1% to produce the profit-up scenario. Achievement depends on cost control and inventory efficiency improvements.
Dividends were interim ¥80 and year-end ¥80 for an annual ¥160, with a payout ratio of 97.7% (dividend payments ¥451.4B vs. Net income attributable to owners of parent ¥385.6B), exceeding earnings. Share buybacks were negligible at -¥0.1B in financing CF, and Total Return Ratio was approximately 98%, roughly aligned with the payout ratio. With FCF ¥195.3B vs. dividend payments ¥451.4B, FCF coverage was about 0.43x, so dividend sustainability depends on Operating CF improvement and working capital normalization. Next fiscal year guidance plans dividend ¥80 against EPS ¥185 (payout ratio approx. 43%), aiming to transition to a sustainable return level along with FCF expansion. Cash equivalents ¥2,454.2B and net cash ¥593.4B provide ample liquidity, but near-term balance between internal investment and dividends warrants monitoring.
Working capital expansion and inventory risk: Inventories ¥2,575.5B (YoY +19.3%), inventory days 492 days, CCC 447 days indicate deterioration in working capital efficiency. Inventory build-up increases future discounting/write-off risk and can impede cash generation. While Operating CF / Net Income is 1.51x and healthy, unless working capital normalizes FCF improvement potential remains limited.
EMEA profitability deterioration: EMEA Operating Income ¥304.1B (-15.4%) and a double-digit profit decline with margin 37.3% (from 45.3% last year -8.0pt). EMEA accounts for Revenue ¥815.3B (~10% of total), but the margin decline is squeezing company-wide margins; failure to restore EMEA profitability could impact full-year guidance attainment.
Dividend burden and sustainability of returns: Payout ratio 97.7% and FCF coverage 0.43x place heavy burden on dividends and raise concerns about short-term sustainability. Guidance assumes normalization to payout ratio 43% next year, but absent improvements in Operating CF and inventory normalization market concerns about dividend sustainability could intensify.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 4.4% | -19.7% (-58.1%–4.6%) | +24.1pt |
| Operating Margin | 5.3% | -94.2% (-358.4%–8.6%) | +99.6pt |
| Net Margin | 4.9% | -101.5% (-373.7%–5.9%) | +106.4pt |
The company's profitability metrics substantially exceed industry medians, indicating relatively healthy standing within the pharmaceutical sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.6% | -0.6% (-22.4%–13.3%) | +5.2pt |
Revenue growth outperforms the industry median, reflecting relatively resilient growth within the pharmaceutical industry.
※Source: Company compilation
Improvement trend in Operating Margin is the inflection for next-year assessment: This year Operating Margin contracted to 5.3% (from 6.9% last year -1.6pt), but full-year guidance expects recovery to about 7.9%. This assumes normalization of SG&A, restraint in head office administrative costs, and higher margin mix from Neurology products; quarterly progress will be key to ROE improvement. Delays in Operating Margin recovery risk prolonging low capital efficiency.
Normalization of working capital efficiency is the litmus test for cash generation: Inventory days 492 and CCC 447 indicate deteriorated working capital efficiency, and FCF coverage of 0.43x highlights heavy dividend burden. Next year, inventory normalization and strengthened receivables collection are expected to expand Operating CF and improve FCF, but delays may prompt dividend policy review or re-prioritization of capital allocation. Monitoring quarterly inventory and CCC trends is critical.
Sustainability of Neurology growth and mixed regional profitability: Neurology Revenue ¥2,605.7B (+30.4%) drives growth whereas Oncology is flat and EMEA profitability weakened (Operating Income -15.4%), creating divergence. Strong performance in the Americas (margin 58.0%) and China (+13.2%) supports the company, but prolonged EMEA recovery delays could hamper overall margin improvement. Regional margin trends and product mix evolution will be focal points in mid-to-long-term growth assessment.
This report was auto-generated by AI analyzing XBRL financial statement data and is a financial analysis document. It does not constitute an investment recommendation for specific securities. Industry benchmarks are reference information compiled by the Company based on public financial statements. Investment decisions should be made at your own responsibility and, where appropriate, after consulting a professional.