| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1926.2B | ¥1810.9B | +6.4% |
| Operating Income / Operating Profit | ¥352.2B | ¥401.2B | -12.2% |
| Ordinary Income | ¥400.4B | ¥424.5B | -5.7% |
| Net Income / Net Profit | ¥302.4B | ¥345.2B | -12.4% |
| ROE | 8.1% | 10.5% | - |
For the fiscal year ended March 2026, Revenue was ¥1,926.2B (YoY +¥115.3B +6.4%), Operating Income was ¥352.2B (YoY -¥49.0B -12.2%), Ordinary Income was ¥400.4B (YoY -¥24.1B -5.7%), and Net Income attributable to owners of the parent was ¥281.2B (YoY -¥45.7B -14.1%). Despite top-line growth, the company recorded declines in Operating Income, Ordinary Income, and Net Income — top-line expansion did not translate into profit. Revenue remained resilient driven by the single pharmaceuticals business, but Cost of Sales ratio rose to 52.5% (prior year 50.0%), lowering gross margin to 47.5% (-250bp). SG&A ratio rose to 29.2% (+130bp), resulting in an Operating Margin of 18.3%, down 390bp from 22.2% a year earlier. Non-operating income of ¥73.1B, including foreign exchange gains of ¥57.5B, partially supported Ordinary Income, but Net Margin fell to 15.7% from 19.1% (-330bp).
[Revenue] Achieved Revenue of ¥1,926.2B (YoY +6.4%) from the single pharmaceuticals business. Segment disclosure is not provided, but inventory build-up for supply stabilization and continued investments to strengthen production capacity, supported by steady underlying demand, secured top-line growth. Inventories increased to ¥242.6B (YoY +¥93.2B, +62%) and inventory days extended to 592 days. Accounts receivable also rose to ¥722.5B (YoY +¥64.3B +9.8%), and days sales outstanding reached 137 days.
[Profitability] Cost of Sales increased to ¥1,011.0B (YoY +¥104.9B +11.6%), outpacing revenue growth and raising the Cost of Sales ratio to 52.5%. Rising raw material, energy, and logistics costs and changes in inventory composition pressured gross margin. Gross Profit was ¥915.2B (YoY +¥10.4B +1.1%) and SG&A increased to ¥563.0B (YoY +¥52.6B +10.3%). As a result, Operating Income declined to ¥352.2B (YoY -¥49.0B -12.2%). Non-operating income of ¥73.1B, primarily driven by foreign exchange gains of ¥57.5B (prior year ¥11.8B), supported Ordinary Income of ¥400.4B (YoY -¥24.1B -5.7%), but deterioration at the operating level weighed on results. Extraordinary gains totaled ¥21.9B (gain on sale of marketable securities ¥21.9B) and extraordinary losses were ¥11.9B (impairment of marketable securities ¥5.0B, loss on disposal of fixed assets ¥1.7B, etc.), netting to +¥10.0B and were limited in impact. Pre-tax income of ¥410.4B less income taxes of ¥107.9B (effective tax rate 26.3%) resulted in Net Income of ¥302.4B (YoY -¥42.8B -12.4%). After deducting non-controlling interests of ¥21.2B, Net Income attributable to owners of the parent was ¥281.2B (YoY -¥45.7B -14.1%). Overall, the company reported revenue growth with profit decline.
[Profitability] Operating Margin 18.3% (prior year 22.2%, -390bp), Net Margin 15.7% (prior year 19.1%, -330bp) — substantial deterioration. Decline in Gross Margin to 47.5% (prior year 50.0%, -250bp) and rise in SG&A ratio to 29.2% (prior year 27.9%, +130bp) were the primary drivers of margin compression. ROE 8.1% (prior year 11.4%, -330bp) fell due to lower Net Margin and a dilution in Total Asset Turnover to 0.33x (prior year 0.39x). [Cash Quality] Operating Cash Flow / Net Income ratio was 0.82x (prior year 0.98x), below 1.0x, indicating weakened cash conversion due to increases in inventory and receivables. Operating CF / EBITDA (EBITDA = Operating Income ¥352.2B + Depreciation ¥122.9B = ¥475.1B) was 0.52x, a significant decline from the prior year, suggesting expansion of working capital. Days sales outstanding 137 days (prior year 137 days), inventory days 592 days (prior year 295 days) — large extension in inventory days — and cash conversion cycle (CCC) worsened to 615 days (prior year 386 days). [Investment Efficiency] Total asset turnover 0.33x (prior year 0.39x) declined due to large investments and inventory build-up. Goodwill ¥176.7B (prior year ¥85.1B) with goodwill/EBITDA ratio 0.37x, and intangible assets ¥503.8B (prior year ¥182.4B) indicate asset growth. [Financial Soundness] Equity Ratio 62.7% (prior year 64.7%), Current Ratio 419% (prior year 478%), Quick Ratio 390% (prior year 454%) — liquidity remains very strong. Long-term borrowings increased to ¥774.5B (prior year ¥200.5B, +¥574.0B), bonds outstanding were ¥450.0B (flat), and Net Interest-Bearing Debt / EBITDA ((short-term borrowings ¥33.3B + long-term borrowings ¥774.5B + bonds ¥450.0B - cash ¥840.8B) / ¥475.1B) = 0.88x — a healthy level. Interest coverage (EBITDA / interest expense) = ¥475.1B / ¥10.5B = 45.2x, indicating sufficient ability to service interest.
Operating CF was ¥247.2B (prior year ¥338.2B, -¥91.0B -26.9%). Operating CF subtotal (before working capital changes) was solid at ¥375.3B, but an increase in inventories (-¥205.1B; prior year -¥96.5B) and inventory build-up was the largest drag. Decrease in accounts receivable +¥61.0B (prior year +¥4.3B) contributed positively due to improved collections; increase in trade payables +¥22.5B (prior year +¥29.2B) also supported cash flow, but was offset by inventory accumulation. Income taxes paid -¥126.2B (prior year -¥59.4B) also increased, resulting in Operating CF / Net Income ratio falling to 0.82x below 1.0x. Investing CF was -¥503.1B (prior year -¥249.7B), a large outflow: capital expenditures -¥327.8B (prior year -¥275.9B), acquisition of subsidiary shares -¥147.6B, purchase of marketable securities -¥33.3B, proceeds from sale of marketable securities +¥83.2B, increase in time deposits -¥51.9B, etc. Construction in progress rose to ¥602.9B (prior year ¥413.4B, +¥189.5B), reflecting progress on large-scale capital investments. Free Cash Flow was -¥255.9B (prior year +¥88.5B), turning negative. Financing CF was +¥326.0B (prior year -¥198.7B), a large inflow: long-term borrowings +¥534.1B (prior year +¥106.7B), short-term borrowings +¥483.7B (prior year +¥266.1B) to strengthen funding; bond repayments -¥150.0B (prior year -¥150.0B), dividends paid -¥103.0B (prior year -¥90.2B), and share buybacks -¥61.3B (prior year -¥9.1B) were financed. As a result, Cash and Cash Equivalents increased to ¥782.6B (prior year ¥731.4B, +¥51.2B).
Recurring earnings are centered on sales and Operating Income from the single pharmaceuticals business. Among non-recurring items, foreign exchange gains of ¥57.5B (3.0% of sales) accounted for a large portion of non-operating income of ¥73.1B and increased substantially from ¥11.8B the prior year, boosting Ordinary Income, but this is a non-repeatable element subject to exchange rate movements. Extraordinary gains ¥21.9B (gain on sale of marketable securities ¥21.9B) and extraordinary losses ¥11.9B (impairment of marketable securities ¥5.0B, loss on disposal of fixed assets ¥1.7B, etc.) netted +¥10.0B and were limited. The gap between Operating Income and Ordinary Income was ¥48.2B (non-operating income ¥73.1B - non-operating expense ¥25.0B), largely explained by foreign exchange gains. Comprehensive Income of ¥405.5B exceeded Net Income of ¥302.4B by ¥103.1B, comprised of foreign currency translation adjustments +¥43.0B, deferred hedge gains/losses +¥54.4B, actuarial gains/losses on retirement benefits +¥7.3B, and valuation difference on marketable securities -¥1.6B; valuation gains on FX and hedges pushed up Comprehensive Income. Operating CF of ¥247.2B was below Net Income of ¥302.4B, with an Operating CF / Net Income ratio of 0.82x that confirms weak cash conversion. Operating CF / EBITDA ratio 0.52x against EBITDA of ¥475.1B reflects expansion of working capital and a declining trend in cash realization quality.
Full-year forecast: Revenue ¥2,136.0B (YoY +10.9%), Operating Income ¥375.0B (YoY +6.5%), Ordinary Income ¥355.0B (YoY -11.3%), Net Income attributable to owners of the parent ¥262.0B. Operating Margin is projected at 17.6%, a slight decline from this year’s 18.3%, while Ordinary Income is conservatively projected to decline assuming a reversion of foreign exchange gains. EPS forecast ¥351.46, year-end dividend ¥79.00. Against the full-year Operating Income forecast of ¥375.0B, the first half results of ¥352.2B represent a 93.9% progress rate, indicating high front-loading; the second half assumes Operating Income of ¥22.8B (prior year same period equivalent ¥65.5B), a material decline. For full-year Ordinary Income forecast of ¥355.0B, first half results already exceeded at ¥400.4B, and the second half is assumed to see a large decline due to reversal of FX gains and related factors.
Annual dividend comprised of interim ¥68 and year-end ¥79, total ¥147 (prior year ¥68, +¥79 +116%). Dividend payout ratio is 147 / ¥376.28 EPS = 39.1%, a sustainable level. Total dividends amounted to ¥10.40B (actual cash paid excluding treasury stock ¥10.30B, including director compensation BIP trust, etc.), and the dividend pay-out ratio relative to Operating CF was 41.7%, within Operating CF coverage. However, Free Cash Flow was negative at -¥255.9B, and dividends were funded from financing and cash on hand. Share buybacks totaled ¥6.13B (prior year ¥0.91B), and combined with dividends of ¥10.30B, total shareholder returns were ¥16.43B; Total Return Ratio is ¥16.43B / ¥281.2B Net Income = 58.4%. Retained earnings stood at ¥2,470.1B (prior year ¥2,292.0B, +¥178.1B), Equity Ratio 62.7%, and cash on hand ¥840.8B, indicating strong capacity to continue dividends. However, medium-term sustainability should be assessed in conjunction with investment payback and improvements in working capital efficiency.
Profitability deterioration risk: Gross Margin declined to 47.5% (-250bp), with rising raw material, energy, and logistics costs and changes in product mix pressuring Cost of Sales ratio. SG&A ratio rose to 29.2% (+130bp), and Operating Margin deteriorated to 18.3% from 22.2% (-390bp). Continued cost inflation or drug price revisions could delay margin recovery. If SG&A growth (+10.3%) continues to outpace Revenue growth (+6.4%), negative operating leverage may persist, risking further declines in Operating Margin.
Cash conversion efficiency deterioration risk: Operating CF / EBITDA ratio 0.52x and Operating CF / Net Income ratio 0.82x are low. Inventory days extended to 592 days, and inventory build-up (-¥205.1B) pressured Operating CF. CCC of 615 days is prolonged; if working capital inefficiency persists, financial flexibility may be constrained by a trade-off between growth investments and shareholder returns. Free Cash Flow was negative at -¥255.9B; delays in investment payback or inventory valuation losses could exacerbate cash outflow risk.
Investment recovery and production ramp-up risk: Construction in progress is high at ¥602.9B (36.1% of tangible fixed assets). If new asset commissioning is delayed or yield/quality stabilization requires more time, depreciation expense may front-load and anticipated productivity gains and Cost of Sales improvements may be postponed. Goodwill increased to ¥176.7B (YoY +¥91.5B +107%); if M&A integration does not proceed as planned, impairment risk may materialize. Long-term borrowings increased to ¥774.5B; in a rising interest rate environment, interest burden could increase and pressure profitability.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 18.3% | -94.2% (-358.4%–8.6%) | +112.5pt |
| Net Margin | 15.7% | -101.5% (-373.7%–5.9%) | +117.2pt |
| Profitability substantially exceeds the industry median, and the company maintains relatively high returns within the pharmaceutical sector. |
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 6.4% | -0.6% (-22.4%–13.3%) | +7.0pt |
| Revenue growth outpaces the industry median, and top-line expansion pace is relatively favorable. |
※Source: Company compilation
Structural inflection to revenue-growth with profit decline: Revenue grew +6.4%, but Gross Margin -250bp, SG&A ratio +130bp, and Operating Margin -390bp indicate substantial deterioration in profitability. Rising raw material and energy costs and upfront expenses for growth investments pressured profits. FX gains of ¥57.5B supported results at the Ordinary Income stage, but recovery of operating profitability will be a key focus. The company plans Revenue +10.9% and Operating Income +6.5% next year, but Operating Margin is expected to be 17.6% (slightly down from 18.3%), indicating that profitability recovery may take time.
Working capital expansion and weakening cash generation: Inventory days extended to 592 days, Operating CF / EBITDA ratio 0.52x, and Free Cash Flow -¥255.9B indicate a sharp decline in cash conversion. Inventory build-up for supply stabilization is strategic, but unless turnover normalizes, a trade-off between growth investment, shareholder returns, and financial health will intensify. If construction in progress of ¥602.9B is successfully transitioned to operations and productivity improves, Operating CF / EBITDA and Cost of Sales could improve from FY2027 onward; progress of investment recovery is a key monitoring item.
Strong financial base and M&A-driven growth strategy: Equity Ratio 62.7%, Current Ratio 419%, cash on hand ¥840.8B, and Net Interest-Bearing Debt / EBITDA 0.88x indicate very high financial soundness and sufficient capacity for growth investment and M&A execution. The company is in an aggressive investment mode as shown by long-term borrowings +¥574.0B and goodwill +¥91.5B, but short-term debt ratio 4.1% and cash/short-term debt 25.3x suggest low maturity mismatch risk. Dividend payout ratio 39.1% and Total Return Ratio 58.4% indicate continued shareholder returns. Medium-term sustainability requires recovery in Operating CF through operationalization of investments and working capital efficiency improvements to balance growth and shareholder returns.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial data. Investment decisions are your responsibility; please consult a professional advisor as needed.