Towa Pharmaceutical Co., Ltd. TSE:4553

Towa Pharmaceutical : FY2024(2nd quarter) Supplementary Material of Financial Results(523K／36P)

Published

Source: MarketScreener

Supplementary material for the financial results for the second quarter (interim period) of the year ending March 31, 2025

November 2024

(Stock code: 4553)

2024

Notes to and summary of the disclosure of financial results for 2025/03 2Q

Notes

  • In this document, for the breakdown of the domestic segment, Towa Pharmaceutical, J-Dolph Pharmaceutical, Daishi Kasei,
    Greencaps Pharmaceutical, and Kyushu Iyaku are referred to as "Towa Pharmaceutical, etc." and Sunsho Pharmaceutical, KAMATA, and Sun Freres Lab. are referred to as "Sunsho Pharmaceutical, etc."

Towa Pharmaceutical

Greencaps

Kyushu

J-Dolph

Daichi Kasei

Pharmaceutical

Pharmaceutical

Iyaku*

Sunsho

Pharmaceutical

KAMATA*

Sun Freres

Lab.*

  • Consolidated subsidiary from 2024

"Towa Pharmaceutical, etc."

"Sunsho Pharmaceutical, etc."

  • In this document, Towa Pharma International Holdings, S.L., our overseas segment, is referred to as "Towa INT."
  • KAMATA, which became a consolidated subsidiary in January 2024, has been included in the consolidated balance sheets since 2024/3 and the consolidated statements of income since 2025/3.
    Kyushu Iyaku became a consolidated subsidiary in April 2024 and has been included in both the consolidated balance sheets and statements of income since 2025/3.
    Sun Freres Lab. was established in April 2024 and has been included in both the consolidated balance sheets and statements of income since 2025/3.
  • On November 5, we announced a revision to our second-quarter and full-year earnings forecasts for the fiscal year ending March 31, 2025.

2024

1

Notes to and summary of the disclosure of financial results for 2025/03 2Q

Summary

  • Net sales and profit increased year on year at the overall consolidated level.

25/3 2Q

24/3 2Q

Item

(JPY billion)

YOY change (%)

(JPY billion)

Net sales

123.4

14.9%

107.3

Operating profit

10.5

50.1%

7.0

  • Progress rate for the full-year plan: Net sales: 47.2%, Operating profit: 53.6% at the overall consolidated level

25/3 2Q results

25/3 First-half plan

25/3 Full-year plan

(announced on August 8, 2024)

(announced on August 8, 2024)

Item

(JPY billion)

(JPY billion)

Progress rate

(JPY billion)

Progress rate

(%)

(%)

Net sales

123.4

122.8

100.5%

261.5

47.2%

Operating

10.5

6.8

154.6%

19.6

53.6%

profit

  • Production volume (Towa Pharma non-consolidated; tablets and capsules only)
  • Approx. 6.8 billion tablets, up 1.2% year on year Progress rate for the full-yearplan: 45.2%
  • Sales volume (Towa Pharma non-consolidated; tablets and capsules only)
  • Approx. 7.2 billion tablets, up 15.1% year on year

Progress rate for the full-year plan: 46.9%

  • Increases in raw material costs and utilities expenses (Towa Pharma non-consolidated)
  • Raw materials: Almost unchanged year on year
  • Utilities expenses: Increased by approx. 11.6% year on year. Utilities expenses accounted for approx. 2.6% of total manufacturing costs.

2024

2

Table of contents

  1. Outline of financial results for 2025/03 2Q
  2. Outline of financial results for 2025/03 2Q - Progress rate
  3. Balance sheets, capital expenditure and depreciation
  4. Revisions to full-year earnings plan for 2025/03

2024

3

Table of contents

1. Outline of financial results for 2025/03 2Q

Consolidated

Segment information

Domestic segment

Breakdown

Net sales by supplement year (Non-consolidated)

Net sales by distribution channel (Non-consolidated)

Number of customers by customer segment (Non-consolidated)

Selling, general and administrative expenses (Domestic segment)

Overseas segment

By region

  1. Outline of financial results for 2025/03 2Q - Progress rate
  2. Balance sheets, capital expenditure and depreciation
  3. Revisions to full-year earnings plan for 2025/03

2024

4

Outline of financial results for 2025/03 2Q (Consolidated)

  • Both sales and profit increased due to the strength of Towa Pharmaceutical in the domestic segment and mainly due to a weaker yen in the overseas segment.

(JPY million, %)

Consolidated earnings

25/3 2Q

24/3 2Q

Item

(JPY million)

Percentage of

YOY change (%)

(JPY million)

Percentage of

net sales (%)

net sales (%)

Net sales

123,404

100.0

+ 14.9

107,396

100.0

Cost of sales

78,490

63.6

+ 13.5

69,155

64.4

SGA

34,400

27.9

+ 10.1

31,237

29.1

Operating profit

10,513

8.5

+ 50.1

7,003

6.5

Ordinary profit

10,338

8.4

+ 1.0

10,233

9.5

Profit before income taxes

10,300

8.3

- 0.9

10,392

9.7

Profit attributable to owners of parent

6,555

5.3

- 5.7

6,953

6.5

Exchange rate at

end of period (TTM) USD 1

25/3 2Q

24/3 4Q

24/3 2Q

23/3 4Q

JPY 142.73

JPY 151.41

JPY 149.58

JPY 133.53

Exchange rate

25/3 2Q

24/3 2Q

during period (TTM)

JPY 165.95

JPY 153.39

EUR 1

Note: For 2025/03 2Q, the USD/JPY exchange rate at the end of the period is the rate as of September 30, 2024, and the EUR/JPY exchange rate during the period is the average rate for the period from April 1, 2024, to September 30, 2024.

2024

5

Outline of financial results for 2025/03 2Q (Segment information)

(JPY million)

Reportable segment

Domestic

Overseas

Item

Adjustment

Consolidated

Towa

Total

(Goodwill amortization,

etc.)

Pharmaceutical, etc.

Towa INT

Sunsho

Pharmaceutical, etc.

Net sales

97,338

26,180

123,518

- 114

123,404

Cost of sales

60,776

17,821

78,598

- 107

78,490

SGA

23,437

8,749

32,187

2,213

34,400

Segment profit

13,124

- 391

12,733

- 2,219

10,513

(loss)

Notes: 1. Since SGA adjustments include goodwill amortization and internal transactions between Towa Pharmaceutical and Towa INT, they do not equal the sum of the following goodwill amortization.

2. Goodwill amortization: Towa INT JPY 512 million; Sunsho Pharmaceutical/KAMATA JPY 1,705 million

2024

6

Outline of financial results for 2025/03 2Q (Domestic segment)

  • Both sales and profit increased due to growth in sales volume as demand for products at Towa Pharmaceutical continued to be high.

(JPY million, %)

Domestic segment

25/3 2Q

24/3 2Q

Item

(JPY million)

Percentage of

YOY change

(JPY million)

Percentage of

net sales (%)

(%)

net sales (%)

Net sales

97,338

100.0

+ 15.6

84,173

100.0

Cost of sales

60,776

62.4

+ 14.4

53,147

63.1

SGA

23,437

24.1

+ 5.8

22,145

26.3

Segment profit

13,124

13.5

+ 47.8

8,880

10.5

Note: Goodwill amortization is not included.

2024

7

Outline of financial results for 2025/03 2Q (Domestic segment,

breakdown)

(JPY million, %)

Towa Pharmaceutical, etc.

Sunsho Pharmaceutical, etc.

25/3 2Q

24/3 2Q

25/3 2Q

24/3 2Q

YOY

YOY

Item

(JPY

Percentage

(JPY

Percentage

(JPY

Percentage

(JPY

Percentage

of net sales

change

of net sales

of net sales

change

of net sales

million)

million)

million)

million)

(%)

(%)

(%)

(%)

(%)

(%)

Net sales

83,633

100.0

+ 16.9

71,539

100.0

13,704

100.0

+ 8.5

12,633

100.0

Cost of sales

50,078

59.9

+ 15.9

43,202

60.4

10,697

78.1

+ 7.6

9,944

78.7

SGA

21,343

25.5

+ 5.5

20,236

28.3

2,093

15.3

+ 9.7

1,909

15.1

Segment

12,211

14.6

+ 50.8

8,100

11.3

913

6.7

+ 17.1

779

6.2

profit

Note: Goodwill amortization is not included.

2024

8

Net sales by supplement year (Non-consolidated)

25/3 2Q

(JPY billion)

Year of product

2020/3

2025/3

0.55

supplement

0.24

2016/3

2017/3

2018/3

2019/3

2021/3

2022/3

2023/3

2024/3

4.57

3.20

6.32

3.33

5.08

7.20

7.90

2.20

0.49

24/3 2Q

3.99

2.77

5.13

3.10

4.75

6.62

6.28

1.64

0.46

23/3 2Q

3.37

2.15

4.69

3.00

4.27

6.14

1.14

0.56

22/3 2Q

3.60

2.75

5.91

3.63

5.48

1.45

0

5

10

15

20

25

30

35

40

2024

9