Chugai targets 7.5% annual profit growth after first-half improvement

24. Jul 2026

(AWP Alliance News) - Chugai Pharmaceutical Co Ltd on Friday posted higher sales and profit in its first half, buoyed by better trading overseas and a strong domestic performance.

The Tokyo-based pharmaceutical company booked revenue of JPY663.33 billion, or USD4.05 billion, in the first half, up from JPY578.46 billion a year earlier. Overseas sales alone jumped 14% on-year to JPY120.5 billion, while sales in Japan increased by a more modest 6.5% to JPY237.9 billion.

Net income rose to JPY231.75 billion from JPY194.39 billion on-year. Diluted earnings per share rose to JPY140.82 from JPY118.12 on-year.

Free cash flow totalled JPY227.0 billion, up about 85% from JPY122.8 billion in the first half of 2025. Research & development costs ticked up 4.5% to JPY90.2 billion, for a ratio of R&D expenses to revenue of 13.6%.

The company has set its interim dividend at JPY66.00, which is down from JPY125.00 on-year, though Chugai noted that the previous year had included a special dividend payment for the company's 100th anniversary. The final dividend for 2026 is expected to be JPY66.00 down from the prior year's JPY147.00 level, with the total dividend forecast at JPY132.00 per share, versus JPY272.00 on-year.

Chugai sees full-year revenue rising about 6.9% ahead of 2025, to JPY1.345 trillion, and has forecast core net income at JPY485.0 billion, up 7.5% on-year.

On Thursday, Chugai noted results from Roche Holding AG, which reported a 7% profit decline in the first half, as attributable net income slipped to CHF6.87 billion, or USD8.43 billion, from CHF7,41 billion and sales fell 2% on-year to CHF30.94 billion.

Roche attributed the downturn partly to currency translation effects, alongside the impairment of goodwill and intangible assets.

Roche Holding Ltd, the parent of Roche and Chugai, controls 61.12% of Chugai's voting rights as of June 30.

Chugai shares closed 2.8% higher at JPY7,416.00 on Friday in Tokyo, giving it a market capitalisation of JPY12.45 trillion. Roche Holding AG shares were up 0.6% to CHF351.60 for a market cap of CHF285.0 billion on Friday morning in Zurich.

By Holly Munks, Alliance News reporter

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