# TOWA PHARMACEUTICAL CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第70期(2025/04/01－2026/03/31) (S100YFVM)
> Page: https://vizora.meequs.com/en/company/towa-pharmaceutical
> Retrieved: 2026-09-30T21:07:04.739Z

## Company

Towa Pharmaceutical, founded in 1957, is a company in Pharmaceuticals listed on TSE Prime. It has 4,923 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | TOWA PHARMACEUTICAL CO., LTD. |
| Ticker | 4553 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4553.T) |
| Listing | TSE Prime |
| Head office | 大阪府門真市新橋町2番11号 |
| Representative (per filing) | 代表取締役社長 吉田 逸郎 |
| Founded | Apr 1957 |
| Share capital | ¥4.72B |
| Employees (consolidated) | 4,923 |
| Average salary (parent only) | ¥6.9M |
| Fiscal year end | March |
| Website | www.towayakuhin.co.jp (https://www.towayakuhin.co.jp/) |
| Corporate number | 4120001157872 |
| EDINET | E00974 |
| Industries (Vizora) | Pharmaceuticals |

> Profile source: annual securities report (S100YFVM, filed 2026-06-22). As of filing

## Five-axis industry profile

Primary industry: Pharmaceuticals (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 91.7 | 18 |
| Profitability | 70.5 | 22 |
| Cash conversion | 75 | 18 |
| Efficiency | 57.8 | 32 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 79% of Towa Pharmaceutical's sales come from Domestic, with Overseas segment making up much of the rest.
- Out of every ¥100 of sales, about ¥8 is left as operating profit.
- Revenue changed +5.4% from the prior year, operating profit -0.6%.

## Company structure

- Segment revenue mix: Domestic 79.3%、Overseas segment 20.7%
- Revenue → net income: ¥273710000000 → ¥5250000000
- Net income → operating cash flow: ¥5250000000 → ¥30429000000（difference ¥25179000000）
- Main uses of operating cash flow: CapEx ¥24128000000 / dividends ¥3937000000 / buybacks ¥0
- Change in cash: ¥-648000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥273.7B |  |
| Operating income | ¥23.1B | Margin 8.4% |
| Net income | ¥5.25B | Margin 1.9% |
| Free cash flow | ¥6.3B |  |
| Largest business | Domestic | of segment revenue 79.3% |
| Employees (consolidated) | 4,923 |  |
| EPS | ¥-30.14 |  |
| Book value per share | ¥3319.54 |  |
| Equity ratio | 37.5% |  |
| Shares outstanding | 51,516,000 |  |
| Treasury shares | 2,288,100 |  |
| Shareholders | 5,069 |  |
| Average salary (parent only) | ¥6.9M | Filing company only |
| Cash ratio | 9.4% | Cash ÷ revenue 16.4% |
| Vs. industry median margin | +1.3 pp | Pharmaceuticals |
| ROE | 3.3% | Derived from disclosed figures |
| ROA | 1.1% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 5.8× net income
- FY2026, one segment accounts for 98% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥154900000000 | ¥273710000000 | +76.7% |
| Operating income | ¥19923000000 | ¥23102000000 | +16.0% |
| Operating margin | 12.9% | 8.4% | -4.4 pp |
| Employees | 3,456 people | 4,923 people | +42.4% |
| Cash and equivalents | ¥22915000000 | ¥44811000000 | +95.6% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 国内 → 国内 | 76.6% |
| 海外 → 海外 | 20.7% |
| 海外 → 事業再編・廃止 | 2.7% |
| 新設・再編 → 国内 | 2.7% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 273,710 | 100.0% | S100YFVM |
| Cost of revenue | 174,606 | 63.8% | S100YFVM |
| Gross profit | 99,104 | 36.2% | S100YFVM |
| SG&A | 76,001 | 27.8% | S100YFVM |
| Operating income | 23,102 | 8.4% | S100YFVM |
| Ordinary income | 28,079 | 10.3% | S100YFVM |
| Pretax income | 13,165 | 4.8% | S100YFVM |
| Income tax | 7,914 | 2.9% | S100YFVM |
| Net income | 5,250 | 1.9% | S100YFVM |
| Net income attributable to owners | 5,250 | 1.9% | S100YFVM |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 64 |
| SG&A | 28 |
| Operating income | 8 |
| (Ref.) Net income | 2 |

### Margin funnel

Gross margin 36.2% → Operating margin 8.4% → Net margin 1.9%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +5.4%; Core profit growth: -0.6%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -0.11×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 259,594 | 273,710 | 14,116 | +5.4% |
| Gross profit | 94,729 | 99,104 | 4,375 | +4.6% |
| Operating income | 23,242 | 23,102 | -140 | -0.6% |
| Net income attributable to owners | 18,986 | 5,250 | -13,736 | -72.3% |
| Operating cash flow | 23,401 | 30,429 | 7,028 | +30.0% |
| Free cash flow | -7,822 | 6,301 | 14,123 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 110,384 | 16,143 | 14.6% | 14,503 | 19,164 | 14,494 | S100LQXR |
| FY ending Mar 2021 | 154,900 | 19,923 | 12.9% | 13,958 | 12,008 | 2,129 | S100OFJU |
| FY ending Mar 2022 | 165,615 | 19,205 | 11.6% | 15,914 | 22,129 | 8,553 | S100R6JN |
| FY ending Mar 2023 | 208,859 | 5,514 | 2.6% | 2,201 | 2,544 | -27,925 | S100U0TC |
| FY ending Mar 2024 | 227,934 | 17,647 | 7.7% | 16,173 | 8,212 | -31,113 | S100W349 |
| FY ending Mar 2025 | 259,594 | 23,242 | 9.0% | 18,986 | 23,401 | -7,822 | S100YFVM |
| FY ending Mar 2026 | 273,710 | 23,102 | 8.4% | 5,250 | 30,429 | 6,301 | S100YFVM |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥55.6M |
| Operating income per employee (consolidated) | ¥4.7M |
| Net income per employee (consolidated) | ¥1.1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 4,078 | 4,298 | 4,588 | 4,788 | 4,923 |
| Average salary (parent company) | ¥6.5M | ¥6.5M | ¥6.7M | ¥6.7M | ¥6.9M |
| Average age (parent company) | 37.0 years | 36.9 years | 36.9 years | 37.2 years | 35.5 years |
| Average tenure (parent company) | 10.3 years | 10.4 years | 10.6 years | 10.8 years | 9.7 years |

Year over year: Employees (consolidated) +2.8% · Revenue (consolidated) +5.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Domestic | 216,976 | 79.3% | 27,097 | 12.5% |
| Overseas segment | 56,734 | 20.7% | 458 | 0.8% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Domestic | 79.3% | 98.3% | 19.1 | 12.5% |
| Overseas segment | 20.7% | 1.7% | -19.1 | 0.8% |

Segment → industry: Overseas segment → Pharmaceuticals / Domestic → Pharmaceuticals

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 30,429 | 11.1% | S100YFVM |
| Capital expenditure | 24,128 | 8.8% | S100YFVM |
| Free cash flow | 6,301 | 2.3% | 算出 |
| Investing cash flow | -25,660 | -9.4% | S100YFVM |
| Financing cash flow | -6,828 | -2.5% | S100YFVM |
| Dividends paid | 3,937 | 1.4% | S100YFVM |
| Share buyback | 0 | 0.0% | S100YFVM |
| Change in cash | -648 | -0.2% | S100YFVM |
| Cash and equivalents | 44,811 | 16.4% | S100YFVM |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 32,830 | 24,257 | 29,650 | 45,460 | 44,811 | S100U0TC, S100W349, S100YFVM |
| Total assets | 332,097 | 371,347 | 430,653 | 470,823 | 475,290 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Net assets | 132,169 | 136,894 | 155,893 | 171,625 | 178,103 | S100U0TC, S100W349, S100YFVM |
| Share capital | 4,717 | 4,717 | 4,717 | 4,717 | 4,717 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Trade receivables | 42,896 | 46,795 | 62,916 | 61,449 | 63,283 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Property, plant and equipment | 99,873 | 127,004 | 153,642 | 168,423 | 170,643 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Intangible assets excluding goodwill | 58,063 | 52,945 | 50,586 | 45,842 | 26,680 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Goodwill | 39,064 | 34,613 | 32,568 | 28,115 | 9,468 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Investment securities | 464 | 676 | 641 | 871 | 957 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Current assets | 166,864 | 182,990 | 217,718 | 247,306 | 267,343 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Current liabilities | 115,073 | 78,529 | 80,118 | 87,939 | 96,867 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Trade payables | 14,834 | 17,272 | 15,652 | 17,918 | 21,309 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Short-term borrowings | 49,335 | 3,677 | 3,112 | 4,699 | 7,100 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Long-term borrowings | 79,194 | 150,314 | 189,124 | 195,077 | 183,335 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Total liabilities | 199,927 | 234,453 | 274,759 | 299,198 | 297,186 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Equity attributable to owners of parent | 129,078 | 128,179 | 141,401 | 157,474 | 158,790 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Retained earnings | 122,131 | 121,232 | 134,452 | 150,502 | 151,815 | S100R6JN, S100U0TC, S100W349, S100YFVM |
| Treasury stock | -5,608 | -5,608 | -5,606 | -5,586 | -5,584 | S100R6JN, S100U0TC, S100W349, S100YFVM |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 9% | S100YFVM |
| Receivables | 13% | S100YFVM |
| Property, plant and equipment | 36% | S100YFVM |
| Intangibles and goodwill | 8% | S100YFVM |
| Investment securities | 0% | S100YFVM |
| Other assets | 34% | S100YFVM |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 5% | S100YFVM |
| Other liabilities | 58% | S100YFVM |
| Equity | 37% | S100YFVM |
| Other liabilities | 0% | S100YFVM |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 332,097 | 371,347 | 430,653 | 470,823 | 475,290 |
| Equity | 132,169 | 136,894 | 155,893 | 171,625 | 178,103 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 32,830 | 24,257 | 29,650 | 45,460 | 44,811 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 62.3% | S100YFVM |
| Fixed assets ÷ total assets | 35.9% | S100YFVM |
| Goodwill ÷ parent equity | 6.0% | S100YFVM |

Goodwill over 4 years: 39,064 → 9,468 JPY; total investing cash flow: -187,354 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.4% |
| Cash ÷ revenue | 16.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 131.7% |
| Cash vs. profit gap | 25,179 JPY mn (of net income 479.6%) |
| Shareholder returns / net income | 75.0% |
| Shareholder returns / FCF | 62.5% |
| Shareholder payments — dividends / net income | 75.0% |
| Shareholder payments — dividends / FCF | 62.5% |
| CapEx intensity (capex ÷ revenue) | 8.8% |
| Investing CF relative to operating CF | 84.3% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 9.6% | 0.50× | 4.8% | 2.57× | 12.3% | S100R6JN |
| 2023 | 1.1% | 0.59× | 0.6% | 2.73× | 1.7% | S100U0TC |
| 2024 | 7.1% | 0.57× | 4.0% | 2.97× | 12.0% | S100W349 |
| 2025 | 7.3% | 0.58× | 4.2% | 3.02× | 12.7% | S100YFVM |
| 2026 | 1.9% | 0.58× | 1.1% | 2.99× | 3.3% | S100YFVM |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 株式会社吉田事務所 | Major shareholder | 40.8% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 7.8% | 2026-03-31 |
| US BANK NATIONAL ASSOCIATION JP ACCTS TS （常任代理人 株式会社三菱UFJ銀行） | Major shareholder | 4.0% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 3.3% | 2026-03-31 |
| 東和薬品共栄会 | Major shareholder | 3.1% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口4） | Major shareholder | 3.0% | 2026-03-31 |
| 吉田 逸郎 | Major shareholder | 3.0% | 2026-03-31 |
| 東和薬品社員持株会 | Major shareholder | 2.0% | 2026-03-31 |
| BNP PARIBAS LUXEMBOURG 2S JASDEC FIM LUXEMBOURG FUNDS UCITS ASSETS （常任代理人 香港上海銀行） | Major shareholder | 1.6% | 2026-03-31 |
| 有限会社吉田エステート | Major shareholder | 1.3% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第70期(2025/04/01－2026/03/31) | S100YFVM | 2026-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YFVM,, |
| 有価証券報告書－第69期(2024/04/01－2025/03/31) | S100W349 | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W349,, |
| 訂正有価証券報告書－第68期(2023/04/01－2024/03/31) | S100U0TC | 2024-07-10 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100U0TC,, |
| 有価証券報告書－第67期(2022/04/01－2023/03/31) | S100R6JN | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R6JN,, |
| 有価証券報告書－第66期(令和3年4月1日－令和4年3月31日) | S100OFJU | 2022-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OFJU,, |
| 有価証券報告書－第65期(令和2年4月1日－令和3年3月31日) | S100LQXR | 2021-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LQXR,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).