Kobayashi Pharmaceutical: Profit plunges amidst recall crisis

Kobayashi Pharmaceutical (TSE:4967) reported a significant decrease in profit for the first quarter of its fiscal year ending December 2025, primarily due to the ongoing impact of its red yeast rice (beni koji) recall. Sales decreased by 10.6% to JPY 32,607 million, while operating profit fell by 49.6% to JPY 2,535 million. Recurring profit decreased by 56.0% to JPY 2,401 million. Net profit attributable to the parent company shareholders decreased by 66.5% to JPY 1,624 million. The company has recorded product recall related losses of JPY 688 million as special losses. The recall has particularly impacted the company's healthcare segment, leading to reduced sales. Kobayashi Pharmaceutical's full-year forecasts remain unchanged. The company has also announced plans to shut down its Kiinokawa plant on June 30, 2025.