Fuji Pharma Co Ltd (4554) Q2 2024 earnings summary

Executive summary

• 1H FY9/24 sales rose 11.2% YoY to ¥21,388m, while operating profit fell 20.9% to ¥1,443m as personnel and R&D costs increased.

• Net income rose 140.2% to ¥4,257m, including ¥3,953m of extraordinary income, mainly from investment-security sales.

Financial highlights

• 1H gross profit increased 8.0% to ¥8,233m; SG&A rose 17.1% to ¥6,789m.

• Ordinary profit declined 11.8% to ¥2,165m, while profit before income taxes rose to ¥6,027m from ¥2,456m.

• 1H EBITDAR was ¥4,716m (+5.1% YoY) and EBITDA was ¥2,990m (-4.1%).

• Capital expenditure was ¥1,855m (+70.5%); depreciation including leased equipment was ¥1,546m (+19.5%), and R&D expense was ¥1,726m (+26.2%).

• Comprehensive income fell to ¥3,349m from ¥5,120m, reflecting a ¥1,090m valuation loss on available-for-sale securities versus a ¥3,167m gain a year earlier.

Outlook and guidance

• Revised FY9/24 forecasts are sales of ¥46,060m (+12.6% YoY), operating profit of ¥3,990m (+3.4%), ordinary profit of ¥4,602m (+1.8%) and net income of ¥6,185m (+80.1%).

• Revised sales and operating profit are ¥2,866m and ¥917m below the original plan, respectively; forecast basic EPS is ¥254.51.

• 2H revised sales are ¥24,672m, ¥581m below plan; operating profit is ¥2,547m, ¥310m below plan. Women's Healthcare penetration and NHI price revisions partly offset delayed releases and production streamlining.

• FY9/24 R&D expense is forecast at ¥4,168m, above the original plan partly due to U.S. Women's Healthcare product development.