Rohto Pharmaceutical (4527): FY2025 Results Summary — Record Sales and Operating Income on Asia-Led Growth

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Note: ROHTO Pharmaceutical labels the fiscal year ended March 31, 2026 (April 2025 – March 2026) as “FY2026” in its materials; this site classifies it as FY2025, and all labels in the tables below follow the company’s presentation. For the year, Rohto posted sales of 343,725 million yen, up 11.4% year on year, and operating income of 41,118 million yen, up 7.5%, both record-high figures that outperformed the full-year forecast. Sales increased in all regions, with double-digit growth led by Asia and Europe. Ordinary income and profit attributable to owners of parent rose significantly on higher non-operating income, and the annual dividend of 46 yen marked 22 consecutive years of dividend growth.

Consolidated Results (Full-Year Actual)

Despite a higher COGS ratio (up 0.4 percentage points, impacted by Amato, Rohto Nitten, the UK and QTP) and increased SG&A expenses from the consolidation of Eu Yan Sang International (EYS) and Mono chem-pharm (Mono), operating income rose thanks to the significant sales increase. Ordinary income of 47,971 million yen (up 20.8%) was driven by higher non-operating income from dividend income. Amortization related to EYS included 1,580 million yen of goodwill and 910 million yen of trademark rights. Average exchange rates were 149.99 yen per USD (down 1.7% versus the prior year’s 152.61) and 20.82 yen per CNY (down 1.0%); the exchange-rate impact was -310 million yen on sales and +290 million yen on operating income.

Item (Mil. yen)	FY2026	FY2025	% of Net Sales	YoY (%)
Sales	343,725	308,625	100.0	11.4
Gross Profit	192,695	174,393	56.1	10.5
SG&A Expenses	151,576	136,158	44.1	11.3
Operating Income	41,118	38,234	12.0	7.5
Ordinary Income	47,971	39,725	14.0	20.8
Profit attributable to owners of parent	34,247	30,841	10.0	11.0
EBITDA	58,496	51,536	17.0	13.5

Segment Results

Japan sales rose 2.6% to 169,326 million yen, in line with forecast, on strong sales of “Rohto V5” supplements, lip balms, “Hadalabo”, hair care “Gyutto” and eye drops, with record-high inbound demand; Japan operating income slipped 1.5% to 22,126 million yen as double-digit profit declines at QTP and Rohto Nitten offset gains. Asia delivered a significant increase in both sales (125,327 million yen, up 24.9%) and operating income (15,048 million yen, up 29.8%), led by Vietnam and Indonesia, the start of production in Myanmar, and the consolidation of EYS. The Americas grew sales 3.8% to 21,553 million yen with operating income up 10.6% to 1,705 million yen, helped by Hydrox medical disinfectants and Brazilian subsidiaries. Europe posted sales of 23,889 million yen, up 24.7%, on strength at Poland-based DAX and the consolidation of Mono, but operating income fell 28.8% to 1,007 million yen because the bankruptcy of the UK container supplier for topical analgesic products cut production volume and raised costs.

Segment	Sales (Mil. yen)	Sales YoY (%)	Operating Income (Mil. yen)	O.I. YoY (%)
Japan	169,326	2.6	22,126	(1.5)
Asia	125,327	24.9	15,048	29.8
Americas	21,553	3.8	1,705	10.6
Europe	23,889	24.7	1,007	(28.8)
Others	3,628	7.8	383	8.3
Adjustment	–	–	846	(3.2)
Total	343,725	11.4	41,118	7.5

FY2027 Forecast

For FY2027 (the year ending March 2027), the company forecasts record-high figures for sales, operating income and profit attributable to owners of parent: sales of 369,500 million yen (up 7.5%), operating income of 43,800 million yen (up 6.5%) and EBITDA of 62,552 million yen (an EBITDA margin of 16.9%). Double-digit sales growth is expected in Asia (especially Southeast Asia) and Europe, with EYS expected to grow and secure a net profit after the amortization of goodwill. The forecast assumes exchange rates of 155 yen per USD and 22.00 yen per CNY, with a yen-depreciation impact versus the prior year of +8,300 million yen on sales and +900 million yen on operating income. Forecast net income per share is 152.68 yen, versus 151.56 yen in FY2026.

Item (Mil. yen)	FY2027 Forecast	FY2026 Actual	YoY (%)
Sales	369,500	343,725	7.5
Operating Income	43,800	41,118	6.5
Ordinary Income	46,100	47,971	(3.9)
Profit attributable to owners of parent	34,500	34,247	0.7
EBITDA	62,552	58,496	6.9
Net income per share (yen)	152.68	151.56	–

Shareholder Returns

The shareholder return policy is to ensure stable and continuous dividend increases unaffected by profit fluctuations, with a dividend payout ratio of over 30% and DOE of over 3.5%. For FY2026, the year-end dividend was increased by 2 yen from the earlier announcement, bringing annual dividends to 46 yen — a payout ratio of 30.4% and DOE of 3.7%, achieving 22 consecutive years of dividend growth. For FY2027, annual dividends are planned to increase by 4 yen to 50 yen (interim 25 yen, year-end 25 yen), for an estimated payout ratio of 32.7% and estimated DOE of 3.6%, which would mark 23 consecutive years of dividend growth. The company also plans to conduct a share buyback of up to 3 billion yen in 2026.

Item	FY2026 (Actual)	FY2027 (Plan)
Annual dividends per share	46 yen	50 yen (interim 25 yen, year-end 25 yen)
Payout ratio	30.4%	32.7% (estimate)
DOE	3.7%	3.6% (estimate)
Consecutive years of dividend growth	22 years	23 years (plan)

Mid- to Long-Term Growth Strategy

Under the Rohto Group Mid- to Long-Term Growth Strategy, the company expects to achieve its original FY2028 sales forecast one year ahead of schedule and is making steady progress toward the FY2031 forecast of 415.0 billion yen in sales and 54.0 billion yen in operating income, with a targeted operating income ratio of 13.0%, an EBITDA margin of 18.2% and an overseas sales ratio of 53% in FY2031. In the eye care business, the original FY2028 forecast has been achieved two years ahead of schedule, and Rohto holds the No. 1 volume share of OTC eye drops in the world (IQVIA Global OTC Insight, 2020 to 2024). In the medical business, an application for ROH101 (cytomegalovirus corneal endotheliitis) was submitted on April 30, 2026. The six-year capital policy from FY2026 to FY2031 allocates 330 billion yen of inflows to growth investments, capital expenditures, R&D expenses and shareholder returns, and is progressing in line with the original plan.

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.