Towa Pharmaceutical Co., Ltd. TSE:4553

Towa Pharmaceutical : FY2024(3rd quarter) Supplementary Material of Financial Results(994K／28P)

Published

Source: MarketScreener

Supplementary material for the financial results for

the third quarter of the year ending March 31, 2025

February 2025

(Stock code: 4553)

2025

Notes to and summary of the disclosure of financial results for 2025/03 3Q

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

J-Dolph

Daichi Kasei

Greencaps

Kyushu Iyaku*

Sunsho

Pharmaceutical

Pharmaceutical

Pharmaceutical

KAMATA*

Sun Freres Lab.*

"Towa Pharmaceutical, etc."

"Sunsho Pharmaceutical, etc."

  • Consolidated subsidiary from 2024
  • 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 February 13, we announced a revision to dividend forecasts for the fiscal year ending March 31, 2025.

2025

1

Notes to and summary of the disclosure of financial results for 2025/03 3Q

Summary

  • Net sales and profit increased year on year at the consolidated level.
    Progress rate for the full-year plan: Net sales: 73.9%, Operating profit: 79.9% at the consolidated level

25/3 3Q

24/3 3Q

25/3 Full-year plan

(announced on November 5, 2024)

Item

(JPY billion)

YOY change

(JPY billion)

(JPY billion)

Progress rate

(%)

(%)

Net sales

193.7

+ 15.1%

168.3

262.1

73.9%

Operating

18.6

+ 40.9%

13.2

23.3

79.9%

profit

  • Production volume (Towa Pharmaceutical non-consolidated; tablets and capsules only)
    • Approx. 10.4 billion tablets, up 1.9% year on year Progress rate for the full-year plan: 68.5%

Full-year production volume is expected to be approx. 14.2 billion tablets.

This is mainly due to a delay in hiring compared to plan and change in production items in response to market demand. There has been no change in our full-year plans for sales volume and net sales.

  • Sales volume (Towa Pharmaceutical non-consolidated; tablets and capsules only)
    • Approx. 11.5 billion tablets, up 15.1% year on year Progress rate for the full-year plan: 74.7%
  • Increases in raw material costs and utilities expenses (Towa Pharmaceutical non-consolidated)
    • Raw materials: Almost unchanged year on year
    • Utilities expenses: Increased by approx. 13.8% year on year. Utilities expenses accounted for approx. 2.5% of total manufacturing costs.

2025

2

Table of contents

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

2025

3

Table of contents

1. Outline of financial results for 2025/03 3Q

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 3Q - Progress rate
  2. Balance sheets, capital expenditure and depreciation
  3. Revisions to dividend forecasts for 2025/03

2025

4

Outline of financial results for 2025/03 3Q (Consolidated)

  • Both sales and profit increased due to the continued 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 3Q

24/3 3Q

Item

(JPY million)

Percentage of

YOY change

(JPY million)

Percentage of

net sales (%)

(%)

net sales (%)

Net sales

193,737

100.0

+ 15.1

168,325

100.0

Cost of sales

122,993

63.5

+ 14.0

107,916

64.1

SGA

52,132

26.9

+ 10.4

47,203

28.0

Operating profit

18,611

9.6

+ 40.9

13,204

7.8

Ordinary profit

21,756

11.2

+ 26.7

17,169

10.2

Profit before income

21,831

11.3

+ 26.3

17,290

10.3

taxes

Profit attributable to owners of

14,624

7.5

+ 27.0

11,518

6.8

parent

Exchange rate at

end of period

(TTM)

USD 1

25/3 3Q

24/3 4Q

24/3 3Q

23/3 4Q

JPY 158.18

JPY 151.41

JPY 141.83

JPY 133.53

Exchange rate

25/3 3Q

24/3 3Q

during period

(TTM)

JPY 164.83

JPY 155.29

EUR 1

Note: For 2025/03 3Q, the USD/JPY exchange rate at the end of the period is the rate as of December 31, 2024, and the EUR/JPY exchange rate during the period is the average rate for the period from April 1, 2024, to December 31, 2024.

2025

5

Outline of financial results for 2025/03 3Q (Segment information)

(JPY million)

Reportable segment

Domestic

Overseas

Adjustment

Item

Consolidated

Towa

Total

(Goodwill

amortization, etc.)

Pharmaceutical, etc.

Towa INT

Sunsho

Pharmaceutical, etc.

Net sales

154,713

39,164

193,877

- 140

193,737

Cost of sales

96,720

26,399

123,120

- 127

122,993

SGA

35,690

13,133

48,824

3,308

52,132

Segment profit

22,301

- 368

21,932

- 3,321

18,611

(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 762 million; Sunsho Pharmaceutical/KAMATA JPY 2,558 million

2025

6

Outline of financial results for 2025/03 3Q (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 3Q

24/3 3Q

Item

(JPY million)

Percentage of

YOY change

(JPY million)

Percentage of

net sales (%)

(%)

net sales (%)

Net sales

154,713

100.0

+ 16.5

132,840

100.0

Cost of sales

96,720

62.5

+ 16.0

83,403

62.8

SGA

35,690

23.1

+ 7.8

33,117

24.9

Segment profit

22,301

14.4

+ 36.6

16,320

12.3

Note: Goodwill amortization is not included.

2025

7

Outline of financial results for 2025/03 3Q (Domestic segment,

breakdown)

(JPY million, %)

Towa Pharmaceutical, etc.

Sunsho Pharmaceutical, etc.

25/3 3Q

24/3 3Q

25/3 3Q

24/3 3Q

Item

Percentage

YOY

Percentage

Percentage

YOY

Percentage

(JPY million)

of net sales

(JPY million)

of net sales

(JPY million)

of net sales

(JPY million)

of net sales

change (%)

change (%)

(%)

(%)

(%)

(%)

Net sales

133,779

100.0

+ 17.2

114,098

100.0

20,933

100.0

+ 11.7

18,742

100.0

Cost of sales

80,319

60.0

+ 16.8

68,744

60.3

16,400

78.3

+ 11.9

14,658

78.2

SGA

32,551

24.3

+ 7.6

30,263

26.5

3,139

15.0

+ 10.0

2,853

15.2

Segment

20,908

15.6

+ 38.6

15,090

13.2

1,393

6.7

+ 13.2

1,230

6.6

profit

Note: Goodwill amortization is not included.

2025

8

Net sales by supplement year (Non-consolidated)

25/3 3Q

(JPY billion)

Year of product launch

20/3

0.88

16/3

17/3

18/3

19/3

21/3

22/3

23/3

24/3

25/3

7.11

5.19

9.90

5.45

7.81

11.47

12.41

4.03

1.68

0.76

24/3 3Q

6.25

4.62

8.15

4.90

7.48

10.28

10.15

3.02

0.74

23/3 3Q

5.31

3.45

7.14

4.59

6.54

9.72

3.15

0.85

22/3 3Q

5.39

4.11

8.68

5.34

8.24

3.92

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2025

9