| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥711.3B | ¥641.4B | +10.9% |
| Operating Income / Operating Profit | ¥58.3B | ¥53.3B | +9.4% |
| Ordinary Income | ¥56.6B | ¥51.1B | +10.9% |
| Net Income / Net Profit | ¥56.2B | ¥51.0B | +10.3% |
| ROE | 7.3% | 7.1% | - |
For the fiscal year ended March 2026, Asuka Pharmaceutical Holdings achieved revenue of ¥711.3B (YoY +¥69.9B, +10.9%), Operating Income of ¥58.3B (YoY +¥5.0B, +9.4%), Ordinary Income of ¥56.6B (YoY +¥5.6B, +10.9%), and Net Income attributable to owners of the parent of ¥56.2B (YoY +¥5.3B, +10.3%), delivering both top-line and bottom-line growth. Revenue recorded double-digit growth driven by solid expansion in the Pharmaceutical Business and contributions from overseas operations. Operating Income improved despite higher depreciation (¥22.5B in the prior year → ¥29.2B in the current year). Extraordinary gains of ¥15.7B (primarily ¥14.7B gain on sale of available-for-sale securities) lifted Profit Before Tax to ¥69.9B, resulting in a healthy final profit increase of +10.3% YoY. Gross profit margin declined to 48.0% from 48.9% a year earlier (down 0.9pt), while operating margin edged down slightly to 8.2% from 8.3% (down 0.1pt).
[Revenue] The Pharmaceutical Business expanded to ¥589.3B (+4.0%), remaining the primary growth engine and accounting for 82.8% of total sales. Sales to major customer Takeda Pharmaceutical Company Limited increased to ¥571.6B from ¥554.9B, driving overall revenue growth. The Animal Health Business rose slightly to ¥73.3B (+1.2%). The Overseas Business contributed ¥46.4B (not comparable to the prior year as it was the first year of consolidation) and became a new revenue source. Other segments declined modestly to ¥3.1B (-5.8%). By geography, domestic Japan sales continued to account for over 90% of consolidated revenue, leaving room for future growth through further overseas expansion.
[Profitability] Cost of goods sold increased to ¥369.8B (prior year ¥328.0B), and gross profit rose to ¥341.4B (prior year ¥313.4B), but gross margin fell to 48.0% from 48.9% a year ago due to changes in product mix and rising raw material and logistics costs. SG&A increased to ¥283.1B (prior year ¥260.0B), but the SG&A-to-sales ratio improved to 39.8% from 40.5% (down 0.7pt). Proper management of SG&A, which included goodwill amortization of ¥1.7B, helped sustain operating margin, resulting in Operating Income of ¥58.3B (prior year ¥53.3B). Non-operating income totaled ¥7.4B and non-operating expenses ¥9.1B; key items included dividend income ¥3.4B, interest expense ¥2.2B, and foreign exchange losses ¥1.6B. Equity in losses of affiliates of -¥2.9B weighed on profits. Ordinary Income rose to ¥56.6B (prior year ¥51.1B), up 10.9%. Extraordinary gains of ¥15.7B (mainly ¥14.7B gain on sale of available-for-sale securities) and extraordinary losses of ¥2.4B (mainly impairment losses ¥3.0B, valuation losses on available-for-sale securities ¥2.4B) were recorded, lifting Profit Before Tax to ¥69.9B (prior year ¥61.9B). After corporate taxes of ¥13.7B (effective tax rate 19.6%) and non-controlling interests of ¥2.0B, Net Income attributable to owners of the parent was ¥56.2B (prior year ¥51.0B), up 10.3%. In conclusion, the company achieved revenue and profit growth.
The Pharmaceutical Business—core segment—reported Revenue of ¥589.3B (+4.0%), Operating Income of ¥71.2B (+12.2%), and operating margin of 12.1%, accounting for 94.1% of total segment profit. The Animal Health Business recorded Revenue of ¥73.3B (+1.2%), Operating Income of ¥3.4B (+14.7%), and margin of 4.7%, achieving profit growth despite small scale. The Overseas Business posted Revenue of ¥46.4B, Operating Income of ¥1.1B, and margin of 2.3%; consolidation of Vietnamese subsidiary Ha Tay Pharmaceutical JSC contributed, but start-up costs and low-margin structure are suppressing profitability. The Other segment recorded Revenue of ¥3.1B (-5.8%) and an operating loss of ¥0.1B, with clinical testing and medical device businesses underperforming. After allocating corporate expenses of ¥17.3B (prior year ¥13.2B), consolidated Operating Income was ¥58.3B. Dependence on the Pharmaceutical Business remains extremely high, and improving profitability in overseas operations is a key future challenge.
[Profitability] Gross profit margin declined to 48.0% from 48.9% (down 0.9pt), and operating margin edged down to 8.2% from 8.3% (down 0.1pt). ROE was 7.3%, down from 8.0% a year earlier, while ROA was 5.2%, roughly unchanged year-over-year. [Cash Quality] Operating Cash Flow (OCF) of ¥63.0B was 1.12x Net Income of ¥56.2B, a favorable ratio. OCF/EBITDA was 0.72x (EBITDA calculated as Operating Income ¥58.3B + Depreciation ¥29.2B = ¥87.5B) and was constrained by expansion in working capital. Free Cash Flow was ¥5.5B (OCF ¥63.0B - Investing CF ¥57.5B), insufficient to cover total capex ¥25.5B and dividends ¥16.2B. [Investment Efficiency] Total asset turnover improved slightly to 0.63x from 0.61x. Days Sales Outstanding (DSO) improved to 82.3 days from 86.5 days, and Days Inventory Outstanding (DIO) materially improved to 145.3 days from 167.4 days. Conversely, Days Payable Outstanding (DPO) shortened to 52.2 days from 71.3 days, and the Cash Conversion Cycle (CCC) improved to 175.4 days from 182.6 days (improvement of 7.2 days). [Financial Soundness] Equity Ratio was 68.4%, virtually flat from 68.8% and maintained at a high level. Current Ratio was 275.6% and Quick Ratio 209.4%, both very strong. Interest-bearing debt totaled ¥99.3B (short-term borrowings ¥17.1B, long-term borrowings ¥82.2B), with Debt/EBITDA of 1.13x and Interest Coverage of 26.3x (Operating Income ¥58.3B / Interest Expense ¥2.2B), indicating very high financial safety.
OCF rose sharply to ¥63.0B (prior year ¥24.8B), a +153.6% increase. Profit before tax ¥69.9B before adjustments plus non-cash expenses—depreciation ¥29.2B and goodwill amortization ¥1.7B—produced an OCF subtotal of ¥53.8B. Working capital changes—inventory increase ¥26.8B, trade receivables increase ¥8.7B, and trade payables decrease ¥15.4B—used cash, but after other adjustments to working capital and corporate tax payments of ¥7.6B, OCF totaled ¥63.0B. Investing CF was -¥57.5B, reflecting capex ¥25.5B, additional acquisition of subsidiary shares ¥21.9B, and net effects from purchases and sales of available-for-sale securities. Proceeds from sale of available-for-sale securities of ¥20.7B partially offset investing cash outflows. Financing CF was -¥8.2B, reflecting long-term borrowings raised ¥35.0B, net decrease in short-term borrowings ¥7.4B, long-term borrowings repayments ¥19.4B, and dividend payments ¥16.2B. Free Cash Flow remained a small positive ¥5.5B, covering only a fraction of the combined dividend and capex total of ¥41.7B (coverage 0.13x). Cash and cash equivalents decreased to ¥101.3B from ¥106.0B at the beginning of the period, but liquidity remains ample.
Ordinary Income of ¥56.6B is primarily composed of Operating Income ¥58.3B and financial income (dividend income ¥3.4B, interest income ¥0.5B), indicating a solid core earnings base. However, Extraordinary gains of ¥15.7B (mainly ¥14.7B gain on sale of available-for-sale securities) boosted Profit Before Tax to ¥69.9B, meaning Net Income of ¥56.2B includes one-off factors. Non-operating income of ¥7.4B represents 1.0% of Revenue, well below 5%, indicating low dependency on non-operating income. The accrual ratio ((Net Income ¥56.2B - OCF ¥63.0B) / Total Assets ¥1,123.8B) = -0.6% is in a healthy range, and OCF exceeding Net Income demonstrates cash backing for earnings. Nevertheless, OCF/EBITDA (¥63.0B/¥87.5B = 0.72x) falls below the benchmark 0.9x due to expanding working capital, leaving short-term cash conversion challenges. The narrow gap between Ordinary Income ¥56.6B and Net Income ¥56.2B suggests high quality of recurring earnings, but absent the extraordinary gains, final profit would be materially lower.
The company’s plan for the fiscal year ending March 2027 forecasts Revenue of ¥730.0B (YoY +2.6%), Operating Income of ¥62.0B (YoY +6.3%), and Ordinary Income of ¥61.0B (YoY +7.7%), implying continued top- and bottom-line growth. However, Net Income attributable to owners of the parent is projected at ¥48.0B (prior year ¥56.2B), a -14.6% decrease, with EPS forecast at ¥169.11. This reduction is likely due to the absence of one-off gains such as the ¥14.7B gain on sale of available-for-sale securities recorded in the current period, suggesting conservative assumptions. The planned operating income growth rate (+6.3%) exceeding revenue growth (+2.6%) implies assumed SG&A restraint and gross margin improvement, though detailed assumptions have not been disclosed. Dividend guidance is ¥32.0 (payout ratio 19.0%), a significant cut from the current period’s ¥60.0 and consistent with the projected lower Net Income. No disclosures were made regarding backlog or contract liabilities, limiting quantitative visibility into future revenue.
This period’s dividend comprised an interim ¥27 and year-end ¥33, totaling ¥60 (prior year ¥25), a substantial increase. The payout ratio was 30.6% (dividends total ¥16.2B against Net Income ¥56.2B), a sustainable level. However, Free Cash Flow of ¥5.5B fell short of the dividend total ¥16.2B, meaning dividends were funded from OCF and cash on hand. Next period’s dividend guidance is ¥32, implying a payout ratio of approximately 19% against the guidance EPS of ¥169.11, a more conservative stance. No share buybacks were announced; Total Return Ratio equals the payout ratio. Financial capacity (cash ¥101.3B, Debt/EBITDA 1.13x) is ample, so short-term dividend sustainability appears high, but sustainable dividend increases will require improvement in Free Cash Flow. A change in dividend policy was separately announced today (2026-05-11); refer to the relevant release for details.
Customer / Product Concentration Risk: The Pharmaceutical Business accounts for 82.8% of revenue, and sales to major customer Takeda Pharmaceutical Company Limited were ¥571.6B, representing 80.4% of consolidated revenue. Changes in trading terms or reduced orders from this customer could directly impact performance. On a segment asset basis, the Pharmaceutical Business held ¥490.9B, or 43.7% of total assets, underscoring high dependency on this segment.
Working Capital Efficiency Risk: Increases in working capital this period (Trade receivables +¥8.7B, Inventory +¥26.8B, Trade payables -¥15.4B) pressured OCF and left Free Cash Flow at ¥5.5B. Although CCC improved to 175.4 days, inventory days of 145.3 remain long, and demand forecasting accuracy and supply chain efficiency are issues. Continued expansion of working capital could impair cash generation, constraining dividend and investment capacity.
Overseas Business Profitability Risk: The Overseas Business margin is 2.3%, well below the Pharmaceutical Business margin of 12.1%. Start-up costs and low operational efficiency are weighing on profitability. Goodwill related to the Vietnamese subsidiary stands at ¥23.5B and segment assets at ¥169.8B; if business plans underperform or local market conditions deteriorate, there is risk of goodwill impairment or additional investment burdens.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 8.2% | -94.2% (-358.4%–8.6%) | +102.4pt |
| Net Margin | 7.9% | -101.5% (-373.7%–5.9%) | +109.4pt |
The company’s profitability substantially exceeds the pharmaceutical industry median and sits within the top quartile.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 10.9% | -0.6% (-22.4%–13.3%) | +11.5pt |
The company’s revenue growth rate is 11.5pt above the industry median and is within the top quartile.
※ Source: Company compilation
The core earnings base is stable; the Pharmaceutical Business operating margin of 12.1% and consolidated operating margin of 8.2% substantially exceed the industry median. Revenue has increased for three consecutive periods (this period +10.9%, prior period +4.0% estimated), and relationships with major customers are solid. However, the 0.9pt decline in gross profit margin and the faster pace of SG&A growth relative to revenue are key points to monitor for margin sustainability.
There is significant room to improve working capital efficiency. Although CCC improved to 175.4 days, inventory days of 145.3 remain long and OCF/EBITDA of 0.72x is below the 0.9x benchmark. Improvements in inventory management and receivables collection would enhance Free Cash Flow generation and expand dividend and investment capacity.
Dependence on extraordinary gains is high, and the guidance for the next fiscal year is conservative, projecting lower Net Income. A ¥14.7B gain on sale of available-for-sale securities boosted current-period Net Income, but next year’s forecast assumes a reversal and increased expenses, projecting Net Income of ¥48.0B (-14.6%). Operating Income is planned to increase (+6.3%), so balancing core business growth against the drop in one-off gains will be important in assessments. The planned dividend of ¥32 represents a cut, with a conservative payout ratio of 19%, but there remains scope for a reinstatement of increases depending on business progress.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings filing data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the Company from publicly disclosed financial statements. Investment decisions are your own responsibility; consult professional advisors as necessary before making investment decisions.