Fuji Pharma Co Ltd (4554) Q2 2023 earnings summary

Executive summary

• H1 FY9/23 net sales rose 8.5% YoY to ¥19,225 million, led by Women's Healthcare and OLIC; operating profit fell 32.7% to ¥1,824 million on higher API costs, amortization and R&D.

• FY9/23 guidance was maintained at net sales of ¥43,311 million and profit attributable to owners of ¥2,974 million.

Financial highlights

• Gross profit declined ¥52 million YoY to ¥7,623 million as gross margin fell to 39.7% from 43.3%; SG&A rose to ¥5,799 million from ¥4,963 million.

• Ordinary profit fell 14.3% to ¥2,456 million; profit attributable to owners declined 3.3% to ¥1,772 million, and EPS was ¥72.95 versus ¥75.50.

• EBITDA was ¥3,050 million, down 20.2% YoY; EBITDAR was ¥4,418 million, down 11.2%.

• Comprehensive income rose to ¥5,120 million from ¥3,471 million, including a ¥3,167 million gain in valuation difference on available-for-sale securities.

Outlook and guidance

• FY9/23 forecasts remain unchanged: net sales ¥43,311 million, operating profit ¥4,048 million, ordinary profit ¥4,088 million and profit attributable to owners ¥2,974 million.

• H1 reached 44.4% of full-year sales guidance and 45.1% of operating profit guidance; H2 forecast is sales of ¥24,086 million and operating profit of ¥2,224 million.

• Annual dividend planned at ¥37 per share, comprising ¥17 interim and ¥20 year-end; forecast EPS is ¥122.42.