Sumitomo Pharma (4506) investor relations material

Executive summary

• Q2 FY2025 revenue rose 25.7% year-over-year to JPY 227.1 billion, driven by strong North America sales of Orgovyx and Gemtesa, and a JPY 49 billion gain from the China-Asia business transfer.

• Net profit attributable to owners was JPY 98.9 billion, a turnaround from a loss of JPY 32.2 billion last year, reflecting improved business structure and divestiture gains.

• Core operating profit reached JPY 96.1 billion, up from breakeven last year, supported by higher revenue and reduced SG&A and R&D expenses.

• SG&A and R&D expenses declined due to business structure improvements and realignment of regenerative medicine and cell therapy operations.

Financial highlights

• Operating profit improved to JPY 96.2 billion from a loss of JPY 8.2 billion year-over-year.

• Gross profit rose to JPY 137.4 billion, up JPY 28.9 billion (26.7%) year-over-year.

• Profit before taxes was JPY 92.8 billion, up from a loss of JPY 32.4 billion, aided by foreign exchange gains.

• Cash and cash equivalents at period end were JPY 38.5 billion, mainly due to repayment of borrowings.

• Basic earnings per share was JPY 248.84, compared to a loss of JPY 81.12 per share last year.

Outlook and guidance

• FY2025 revenue forecast revised up to JPY 429 billion, a JPY 74 billion increase, with net profit guidance raised to JPY 92 billion, both record highs.

• Upward revisions reflect strong North America sales, especially Orgovyx (forecast to exceed $1 billion in annual sales), and higher export and divestiture gains.

• Core operating profit forecast raised to JPY 97 billion, and basic EPS to JPY 231.57.

• SG&A and R&D expense forecasts remain unchanged; profit expected to rise due to revenue growth and cost control.

• Conservative cost-side outlook for H2, with R&D spending expected to accelerate.