Kyowa Kirin (4151): FY2025 Results Summary — Record Revenue and Core Operating Profit

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Kyowa Kirin Co., Ltd. (TSE: 4151) reported results for fiscal 2025 (the fiscal year ended December 31, 2025; the company is a December fiscal year-end filer) in its Results Presentation Fiscal 2025, dated February 2026. Revenue reached a record 496.8 billion yen (up 1.3 billion yen year on year) and core operating profit reached a record 103.1 billion yen (up 7.7 billion yen, +8%), which the company attributes to global product growth, increased technology income, and cost reduction. Profit rose 12% to 67.0 billion yen. For FY2026, the company plans revenue of 520.0 billion yen and an annual dividend of 70 yen per share under a newly adopted DOE-based progressive dividend policy.

Consolidated Results (Full-Year Actual)

Revenue was 496.8 billion yen, up 1.3 billion yen from FY2024 (+0%), with the overseas revenue ratio rising from 72% to 74%. Gross profit increased 5.9 billion yen to 368.9 billion yen, with the gross profit margin improving from 73% to 74%. SG&A expenses declined 2.1 billion yen to 165.4 billion yen and R&D expenses declined 2.4 billion yen to 101.2 billion yen. Core operating profit rose 8% to 103.1 billion yen (core OP margin 21%), and profit rose 12% to 67.0 billion yen, helped by a decline in the effective tax rate from 28% to 23% and lower business restructuring costs, despite the absence of prior-year one-off gains such as the China subsidiary transfer gain. All key lines exceeded the FY2025 plan: revenue achieved 104% of plan, core operating profit 129%, and profit 118%. The FY2025 actual exchange rate was 150 yen per U.S. dollar (plan: 145 yen).

Item (Billion Yen / Rounded)	FY2024 Results	FY2025 Results	Change	Achieved vs FY2025 Plan
Revenue [Overseas Ratio]	495.6 [72%]	496.8 [74%]	+1.3 [+0%]	104%
Gross Profit [Margin]	362.9 [73%]	368.9 [74%]	+5.9 [+2%]	105%
SG&A [SG&A Ratio]	167.5 [34%]	165.4 [33%]	-2.1 [-1%]	100%
R&D Exp. [R&D Ratio]	103.5 [21%]	101.2 [20%]	-2.4 [-2%]	95%
Equity Method	3.5	0.8	-2.8 [-78%]	79%
Core Operating Profit [Margin]	95.4 [19%]	103.1 [21%]	+7.7 [+8%]	129%
Profit	59.9	67.0	+7.2 [+12%]	118%
ROE	7.1%	7.7%	–	–

Revenue by Region and Key Products

By region, Japan revenue decreased 12.1 billion yen, affected by drug price revisions (a 9% decrease for the Japan region) and the termination of the Dobovet sales alliance agreement (7.9 billion yen). North America increased 19.9 billion yen (+11% revenue growth), driven by Crysvita (+10%) and Poteligeo (+15%). EMEA decreased 3.0 billion yen (-4%), as strong growth of Crysvita (+9%) and Poteligeo (+19%) was offset by the absence of prior-year out-licensing income related to the Grunenthal transaction (-13.1 billion yen). Other regions decreased 3.1 billion yen (-3%) due to the impact of business restructuring in the APAC region (-14.5 billion yen). Among key products, Crysvita grew 10% to 216.4 billion yen, Poteligeo grew 14% to 45.7 billion yen, and Libmeldy / Lenmeldy grew 95% to 6.4 billion yen. Technology licensing revenue rose 20% to 58.4 billion yen on Fasenra growth and upfront and milestone income from Boehringer Ingelheim.

Product (Billion Yen / Rounded)	FY2024 Results	FY2025 Results	YoY Change	Achieved vs Plan
Crysvita	196.6	216.4	+19.8 (+10%)	103%
Poteligeo	39.9	45.7	+5.8 (+14%)	101%
Libmeldy / Lenmeldy	3.3	6.4	+3.1 (+95%)	93%
Phozevel (Japan)	4.7	8.2	+3.6 (+77%)	92%
Duvroq (Japan)	12.7	15.5	+2.8 (+22%)	100%
Nesp+Nesp-AG (Japan)	14.2	11.8	-2.4 (-17%)	102%
G-Lasta (Japan)	20.5	18.2	-2.4 (-11%)	107%
Romiplate (Japan)	13.9	15.9	+2.0 (+14%)	109%
Tech-licensing	48.8	58.4	+9.7 (+20%)	112%

FY2026 Plans

For FY2026, the company plans revenue of 520.0 billion yen (up 23.2 billion yen, +5%), with the overseas sales ratio rising to 77%, and profit of 75.0 billion yen (up 8.0 billion yen). From FY2026 the company adopts newly defined core performance metrics ahead of IFRS 18 (effective FY2027): the new core operating profit is calculated as gross profit less SG&A (excluding amortization of intangible assets) and R&D expenses, excluding non-recurring items. On this new basis, core operating profit is planned at 100.0 billion yen (down 9.8 billion yen, -9% from 109.8 billion yen in FY2025); on the current basis it is planned at 87.0 billion yen versus 103.1 billion yen in FY2025. R&D expenses are planned to increase 21% to 122.0 billion yen, mainly due to development costs for rocatinlimab following the regain of rights (-17.0 billion yen impact), and SG&A includes U.S. launch preparation costs for rocatinlimab (-7.0 billion yen). Profit is nevertheless expected to rise on fewer restructuring costs and one-time gains from the divestment of the established products joint venture in EMEA. The FY2026 plan assumes 150 yen per U.S. dollar.

Item (Billion Yen / Rounded)	FY2025 Actual	FY2026 Plan	Change
Revenue [Overseas sales ratio]	496.8 [74%]	520.0 [77%]	+23.2 (+5%)
Gross Profit [Margin]	368.9 [74%]	391.0 [74%]	+22.1 (+6%)
SG&A (excl. intangible asset amortization) [Ratio]	157.9 [32%]	169.0 [33%]	+11.1 (+7%)
R&D Exp. [R&D Ratio]	101.2 [20%]	122.0 [23%]	+20.8 (+21%)
Core Operating Profit (newly defined) [Margin]	109.8 [22%]	100.0 [19%]	-9.8 (-9%)
(Ref.) Current Core Operating Profit	103.1	87.0	-16.1
Profit	67.0	75.0	+8.0
ROE (3-year average)	7.7% (8.3%)	8.2% (7.7%)	–
DOE	3.8%	4.1%	–

Shareholder Returns

The FY2025 annual dividend is 62 yen per share (interim 30 yen, year-end 32 yen), up 4 yen from 58 yen in FY2024; the 32 yen year-end dividend is to be proposed at the 103rd Annual Shareholders Meeting in March 2026. The FY2026 annual dividend is planned at 70 yen per share (interim 35 yen, year-end 35 yen), which would mark 10 consecutive years of dividend increases planned since FY2017. The FY2025 dividend payout ratio based on core EPS was 40.5%, and the FY2021-25 weighted average payout ratio was 40.8%, in line with the mid-term plan guidance of approximately 40% of core EPS. From 2026 onward, the company will adopt a dividend policy based on a DOE (dividend on equity) of at least 4% and a progressive dividend approach. Under the capital allocation policy for 2026-2028, the company plans total sources of 920 billion yen over three years, allocating 380 billion yen to R&D investment, 130 billion yen to capital expenditures, and 110 billion yen to dividends, with share buybacks to be considered flexibly with a focus on ROE, while maintaining a net D/E ratio at or below 0.5x in principle.

Fiscal Year	Interim (JPY)	Year-end (JPY)	Annual Dividend (JPY)	Payout Ratio	DOE
2024	29.00	29.00	58.00	47.8%	3.6%
2025	30.00	32.00	62.00	40.5%	3.8%
2026 (Planned)	35.00	35.00	70.00	–	4.1%

Review of the 2021-2025 Mid-Term Business Plan / Topics

FY2025 was the final year of the 2021-2025 Mid-Term Business Plan. Against the plan’s financial targets, FY2025 results were: ROE 7.7% (target: 10% or higher), revenue growth CAGR 9.3% for 2020-2025 (target: CAGR 10% or higher), R&D expense ratio 20.4% (target range: 18-20%), core operating profit margin 20.7% (target: 25% or higher in FY2025), and a five-year average dividend payout ratio of 40.8% (target: approximately 40% of core EPS). The company achieved record-high profits and a 10% ROE in 2023, but factors including the short-term financial impact of the Orchard acquisition, increased investment in rocatinlimab, and drug price environments in Japan, Europe, and China prevented full achievement of the KPIs; sustained achievement is now expected in the early 2030s. Key topics include the U.S. FDA approval of KOMZIFTI (ziftomenib) in November 2025 as the first and only once-daily targeted therapy for adults with relapsed or refractory NPM1-mutated acute myeloid leukemia, developed in collaboration with Kura Oncology, and the January 2026 announcement that Kyowa Kirin will regain control of the rocatinlimab development and commercialization program from Amgen, with rocatinlimab peak sales potential of over 200 billion yen and profit contribution timing of 2028. The company also announced a transition to a company with an Audit and Supervisory Committee, expected after approval at the Annual General Meeting of Shareholders scheduled for March 2026.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.