Towa Pharmaceutical revises upward its FY25 earnings forecast

Towa Pharmaceutical (TSE:4553) announced an upward revision to its consolidated earnings forecast for the fiscal year ending March 31, 2025. While the projected net sales are slightly lowered to JPY259.5 billion from the previous forecast of JPY262.1 billion, and operating profit is essentially unchanged at JPY23.2 billion, the company now expects a significantly higher ordinary profit of JPY26.1 billion, compared to the earlier estimate of JPY22.7 billion. This boost in profit is primarily attributed to JPY1.9 billion in foreign exchange gains and JPY1.2 billion derivative valuation gains. Effective tax incentives also helped the company lower its tax rate by approximately 6%. Consequently, the profit attributable to owners of parent is projected to reach JPY18.9 billion, up from JPY15.0 billion, resulting in earnings per share of JPY383.95. The previous forecast assumed JPY1.4 billion in foreign exchange gains and a JPY1.2 billion loss on valuation of derivatives recorded in the first half would be recorded as is for the full year.