Daito Pharmaceutical Co., Ltd. (TSE:4577) revised its earnings forecast for the fiscal year ending May 2026, projecting a decline in revenue alongside increases in profits across multiple metrics.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 52.5bn | JPY 51.0bn | -2.9% |
| Operating Profit | JPY 3.00bn | JPY 3.30bn | +10.0% |
| Ordinary Income | JPY 3.00bn | JPY 3.50bn | +16.7% |
| Net Profit | JPY 2.30bn | JPY 2.50bn | +8.7% |
| EPS | JPY 76.70/share | JPY 84.38/share | +JPY 7.68/share |
The company attributed the revenue decline to customer inventory adjustments and changes in sales strategies in China. However, higher operating profit, ordinary income, and net profit than previously forecast were driven by improved margins from higher formulation ratios, lower-than-expected research and development expenses, and reduced depreciation and general and administrative costs.
This revision reflects shifts in business composition and enhanced cost control, which may signal underlying operational improvements. Investors should monitor how these changes impact future performance and cash flow.