Olympus (7733) investor relations material

Executive summary

• Q1 FY2027 revenue rose 16.4% year-over-year to ¥240.4B, driven by strong growth in Gastrointestinal Solutions (GIS) and robust performance in North America, Europe, and APAC.

• Adjusted operating margin improved to 12.8%, up 6.4pp YoY, supported by revenue growth, lower R&D and personnel expenses, and improved commercial execution.

• Profit attributable to owners of parent more than doubled to ¥19.1B, with adjusted EPS up 130% YoY to ¥20 and comprehensive income at ¥28.0B.

• The acquisition of BioProtect Ltd. was completed, expanding the portfolio in endoscopy-related therapeutic areas.

• Full-year guidance reaffirmed, with structural tailwinds expected in H2 and key risks from FDA-related ship-holds being actively managed.

Financial highlights

• Consolidated revenue: ¥240.4B (+16% YoY, +5% constant currency); gross profit: ¥156.8B; gross margin: 65.2%.

• Adjusted operating profit: ¥30.7B (+133% YoY); operating profit: ¥28.95B (+74.4% YoY); adjusted operating margin: 12.8% (+6.4pp YoY).

• Adjusted EPS: ¥20 (+130% YoY); basic EPS: ¥17.76; adjusted FCF: ¥9.2B (+¥26.7B YoY).

• SG&A as % of revenue: 52.0% (-7.2pp YoY); SG&A expenses declined by 5.5% YoY on a constant currency basis.

• Cash and cash equivalents decreased by ¥69.5B to ¥118.5B, mainly due to share repurchases and the BioProtect acquisition.

Outlook and guidance

• Full-year revenue guidance: ¥1,055.0B to ¥1,076.0B (+4.4% to +6.5% YoY); operating profit expected at ¥155.5B (up 60.1%).

• Adjusted operating margin expected at 15.2% to 16.7% (+1.0pp to +2.5pp YoY); adjusted EPS guidance: ¥106 to ¥119 (+15% to +29% YoY).

• Profit attributable to owners of parent forecast at ¥109.0B (up 59.9%), with basic EPS of ¥102.26.

• Year-end dividend guidance: ¥30 per share; no changes to previously announced guidance.

• Shipment holds expected to be alleviated in H2, with most affected products returning to market.