Interim report
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DISCLAIMER : This document has been translated from a part of the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : Kobayashi Pharmaceutical Co. , Ltd. Listing : Tokyo Stock Exchange Securities code : 4967 URL : Representative : Inquiries : Telephone : https://www.kobayashi.co.jp/ Norikazu Toyoda , President & CEO Yumi Nakagawa , Executive Officer , General Manager , Financial Department Scheduled date to file semi - annual securities report : + 81-6-6222-0142 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 7 , 2026 August 6 , 2026 September 3 , 2026 Yes Yes ( for institutional investors and analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 70,749 2.5 2,162 ( 67.5 ) 3,006 ( 58.5 ) 1,136 ( 64.1 ) June 30 , 2025 69,018 ( 5.6 ) 6,648 ( 29.8 ) 7,245 ( 30.6 ) 3,167 120.5 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Basic earnings per share ¥ 3,103 million ¥ ( 896 ) million [ - % ] [ - % ] Diluted earnings per share Six months ended June 30 , 2026 June 30 , 2025 Yen Yen 15.29 42.61 ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Reference : Equity Total assets Net assets Equity - to - asset ratio Millions of yen Millions of yen % 82.9 251,891 209,699 275,329 211,008 76.3 As of June 30 , 2026 : As of December 31 , 2025 : ¥ 208,846 million ¥ 210,206 million 2 . Cash dividends Fiscal year ended December 31 , 2025 Fiscal year ending December 31 , 2026 Fiscal year ending December 31 , 2026 ( Forecast ) First quarter - end Second quarter - end Yen Yen 44.00 Note : Revisions to the forecast of cash dividends most recently announced : None 45.00 Annual dividends per share Third quarter - end Fiscal year - end Total Yen Yen Yen 60.00 104.00 61.00 3. Forecast of consolidated financial results for the fiscal year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) 106.00 Fiscal year ending December 31 , 2026 Net sales Operating profit Ordinary profit ( Percentages indicate year - on - year changes . ) Profit attributable to Basic earnings per share owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 173,000 4.4 12,500 ( 16.2 ) 13,000 ( 23.5 ) 10,000 173.5 134.52 Note : Revisions to the earnings forecasts most recently announced : None
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 78,050,000 shares As of December 31, 2025 78,050,000 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 3,711,379 shares As of December 31, 2025 3,711,236 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 74,338,717 shares Six months ended June 30, 2025 74,338,819 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The forward-looking statements, including forecasts of financial results, contained in these materials are based on information available to the Company and on certain assumptions deemed to be reasonable. Actual financial results may differ from the results anticipated in the statements due to various factors. (Method of accessing supplementary material on financial results) The Company plans to hold a financial results briefing for institutional investors and analysts on Thursday, August 6, 2026. The financial results briefing materials to be distributed at this briefing will be posted on the Company's website on the day of the event.
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Semi-annual consolidated balance sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 62,314 47,029 Notes and accounts receivable - trade 52,180 34,125 Securities 8,300 10,300 Merchandise and finished goods 14,710 20,831 Work in process 2,022 2,317 Raw materials and supplies 6,020 6,789 Other 3,316 3,453 Allowance for doubtful accounts (45) (18) Total current assets 148,820 124,828 Non-current assets Property, plant and equipment Buildings and structures, net 33,248 49,076 Machinery, equipment and vehicles, net 7,004 7,910 Tools, furniture and fixtures, net 2,591 2,796 Land 6,211 6,611 Leased assets, net 655 695 Construction in progress 17,656 2,510 Total property, plant and equipment 67,367 69,601 Intangible assets Goodwill 7,711 7,244 Trademark right 6,566 5,997 Software 2,620 2,813 Other 516 541 Total intangible assets 17,414 16,596 Investments and other assets Investment securities 31,840 30,684 Long-term loans receivable 1,334 1,343 Retirement benefit asset 891 944 Deferred tax assets 5,264 5,530 Investment property, net 2,442 2,428 Other 1,335 1,299 Allowance for doubtful accounts (1,382) (1,366) Total investments and other assets 41,726 40,864 Total non-current assets 126,508 127,062 Total assets 275,329 251,891
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(Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 8,458 7,891 Electronically recorded obligations - operating 6,440 2,745 Accounts payable - other 30,916 16,477 Lease liabilities 319 271 Income taxes payable 1,852 862 Accrued consumption taxes 1,138 333 Provision for bonuses 3,052 3,025 Provision for loss on product recall 2,176 1,351 Other 5,783 5,112 Total current liabilities 60,137 38,071 Non-current liabilities Lease liabilities 359 452 Retirement benefit liability 989 1,006 Other 2,833 2,660 Total non-current liabilities 4,182 4,120 Total liabilities 64,320 42,192 Net assets Shareholders' equity Share capital 3,450 3,450 Capital surplus 522 522 Retained earnings 204,240 200,916 Treasury shares (24,767) (24,768) Total shareholders' equity 183,444 180,120 Accumulated other comprehensive income Valuation difference on available-for-sale securities 13,085 12,528 Foreign currency translation adjustment 13,012 15,505 Remeasurements of defined benefit plans 663 692 Total accumulated other comprehensive income 26,761 28,726 Share acquisition rights 793 841 Non-controlling interests 9 10 Total net assets 211,008 209,699 Total liabilities and net assets 275,329 251,891
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Semi-annual consolidated statement of income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 69,018 70,749 Cost of sales 32,873 34,418 Gross profit 36,145 36,330 Selling, general and administrative expenses 29,496 34,168 Operating profit 6,648 2,162 Non-operating income Interest income 125 288 Dividend income 332 303 Rental income from real estate 153 142 Foreign exchange gains - 13 Other 504 248 Total non-operating income 1,117 996 Non-operating expenses Interest expenses 12 10 Rental costs on real estate 51 39 Foreign exchange losses 306 - Other 149 101 Total non-operating expenses 519 151 Ordinary profit 7,245 3,006 Extraordinary income Gain on sale of non-current assets 55 5 Gain on sale of investment securities 110 461 Insurance claim income - 372 Other 12 12 Total extraordinary income 179 851 Extraordinary losses Loss on disposal of non-current assets 27 84 Loss on product recall 2,912 661 Facility consolidation expenses - 683 Other 235 206 Total extraordinary losses 3,175 1,636 Profit before income taxes 4,248 2,221 Income taxes - current 1,520 1,030 Income taxes - deferred (434) 52 Total income taxes 1,085 1,082 Profit 3,163 1,138 Profit (loss) attributable to non-controlling interests (3) 1 Profit attributable to owners of parent 3,167 1,136
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Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 3,163 1,138 Other comprehensive income Valuation difference on available-for-sale securities 312 (556) Foreign currency translation adjustment (4,402) 2,492 Remeasurements of defined benefit plans, net of tax 29 29 Total other comprehensive income (4,059) 1,965 Comprehensive income (896) 3,103 Comprehensive income attributable to Comprehensive income attributable to owners of parent (892) 3,101 Comprehensive income attributable to non-controlling interests (4) 1
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Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 4,248 2,221 Depreciation 3,622 4,034 Amortization of goodwill 690 734 Increase (decrease) in provision for loss on product recall 216 (824) Interest and dividend income (458) (591) Insurance claim income - (372) Interest expenses 12 10 Loss (gain) on sale of investment securities (110) (461) Loss (gain) on sale and retirement of non-current assets (27) 79 Decrease (increase) in trade receivables 15,714 18,399 Decrease (increase) in inventories (7,253) (6,790) Increase (decrease) in trade payables 917 (4,430) Increase (decrease) in accounts payable - other (5,630) (7,846) Increase (decrease) in accrued consumption taxes 627 (1,422) Other, net 2,895 (1,714) Subtotal 15,462 1,025 Interest and dividends received 388 509 Interest paid (16) (12) Proceeds from insurance income - 970 Income taxes paid (1,627) (2,032) Net cash provided by (used in) operating activities 14,206 460 Cash flows from investing activities Payments into time deposits (14,384) (2,291) Proceeds from withdrawal of time deposits 11,279 1,887 Purchase of property, plant and equipment (5,590) (10,137) Proceeds from sale of property, plant and equipment 237 75 Purchase of intangible assets (340) (538) Purchase of investment securities (9) (5) Proceeds from sale of investment securities 151 814 Other, net 295 (24) Net cash provided by (used in) investing activities (8,361) (10,220) Cash flows from financing activities Dividends paid (4,382) (4,458) Other, net (125) (128) Net cash provided by (used in) financing activities (4,508) (4,587) Effect of exchange rate change on cash and cash equivalents (277) 451 Net increase (decrease) in cash and cash equivalents 1,058 (13,896) Cash and cash equivalents at beginning of period 45,973 64,693 Cash and cash equivalents at end of period 47,032 50,797
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(Notes on segment information, etc.) I. Previous interim consolidated accounting period (January 1, 2025 to June 30, 2025) Information on sales and the amount of profit or loss for each reported segment, as well as revenue breakdown information (Millions of yen) Reportable segments Other (Note) 1 Total Adjustment amount (Note) 2 Interim Consolidated Statements of Income (Note)3 Domestic Business International Business Total Net sales Japan 51,756 - 51,756 245 52,002 - 52,002 United States - 7,888 7,888 - 7,888 - 7,888 China - 3,697 3,697 - 3,697 - 3,697 Southeast Asia - 3,558 3,558 - 3,558 - 3,558 Other - 1,871 1,871 - 1,871 - 1,871 Revenue generated from customer contracts 51,756 17,015 68,772 245 69,018 - 69,018 Revenues from external customers 51,756 17,015 68,772 245 69,018 - 69,018 Transactions with other segments 1,903 739 2,642 2,861 5,503 (5,503) - Total 53,660 17,755 71,415 3,106 74,521 (5,503) 69,018 Segment profit (loss) 8,194 (1,496) 6,697 69 6,767 (118) 6,648 Note: 1. The "Other" category is a business segment that is not included in the reporting segments, and includes transportati on, manufacturing and sales of synthetic resin containers, real estate management, advertising planning and production, etc. 2. Segment profit or loss adjustment amount of (118) million yen is the elimination of inter -segment transactions. 3. Segment profit or loss is adjusted for operating income in the interim consolidated statements of income. II. Interim Consolidated Accounting Period (January 1, 2026 to June 30, 2026) Information on sales and the amount of profit or loss for each reported segment, as well as revenue breakdown information (Millions of yen) Reportable segments Other (Note) 1 Total Adjustment amount (Note) 2 Interim Consolidated Statements of Income (Note)3 Domestic Business International Business Total Net sales Japan 51,999 - 51,999 347 52,346 - 52,346 United States - 7,217 7,217 - 7,217 - 7,217 China - 4,954 4,954 - 4,954 - 4,954 Southeast Asia - 3,999 3,999 - 3,999 - 3,999 Other - 2,231 2,231 - 2,231 - 2,231 Revenue generated from customer contracts 51,999 18,403 70,402 347 70,749 - 70,749 Revenues from external customers 51,999 18,403 70,402 347 70,749 - 70,749 Transactions with other segments 2,618 792 3,410 3,055 6,465 (6,465) - Total 54,617 19,195 73,812 3,402 77,214 (6,465) 70,749 Segment profit (loss) 4,291 (2,175) 2,116 133 2,249 (87) 2,162 Note: 1. The "Other" category is a business segment that is not included in the reporting segments, and includes transportati on, manufacturing and sales of synthetic resin containers, real estate management, advertising planning and production, etc. 2. Segment profit or loss adjustment amount of (87) million yen is the elimination of inter -segment transactions. 3. Segment profit or loss is adjusted for operating income in the interim consolidated statements of income.