Wakamoto Pharmaceutical's year to March 2026 looked much healthier on the income statement than in cash. Net sales rose to ¥9.91bn from ¥7.79bn, ordinary income swung to ¥256.4mn from a ¥409.2mn loss, and net income reached ¥227.2mn, up from ¥64.4mn a year earlier.
That recovery reached shareholders too. The company said the annual dividend would increase to ¥3.50 per share, while basic earnings per share came in at ¥6.54. On the face of it, that is a cleaner story than a year earlier, when ordinary income was still in the red and net income was lower.
The awkward number sits in the cash-flow statement. Net cash used in operating activities was ¥486.9mn, leaving operating cash flow negative even after the rebound in reported earnings.
In plain English, Wakamoto has improved the top of its income statement, while the cash line underneath it is still negative. That is the distinction business readers need to keep in mind. Nothing in the selected disclosure cited here breaks out why operating cash flow stayed below zero.
Separately, in an internal control report filed the same day, management said financial-reporting controls were effective as of March 31, 2026. The review covered all significant business locations and focused on sales, accounts receivable, inventory, impairment losses and deferred tax assets.