Fuji Pharma Co Ltd (4554) Q3 2024 earnings summary

Executive summary

• 9M FY9/24 net sales rose 12.5% YoY to ¥33,155 million; operating profit fell 7.8% to ¥2,215 million, while profit attributable to owners of parent rose 147.7% to ¥4,910 million.

• Sales growth reflected higher Women's Healthcare and new-product sales, positive NHI price revisions for unprofitable products, and other factors; higher R&D and sales-structure expenses weighed on operating profit.

• Net income growth included extraordinary income from investment-security sales and contributed income recorded in 1H.

Financial highlights

• Gross profit increased 8.6% to ¥12,512 million from ¥11,526 million; SG&A rose 12.9% to ¥10,296 million from ¥9,123 million.

• Ordinary profit rose to ¥2,967 million despite lower operating profit.

• Capital expenditure was ¥2,306 million, down 2.5% YoY; depreciation including leased equipment rose 22.3% to ¥2,442 million.

• Comprehensive income was ¥4,729 million versus ¥5,525 million; other comprehensive income shifted to a ¥180 million loss, mainly reflecting a ¥776 million decline in available-for-sale securities valuation.

Outlook and guidance

• FY9/24 forecast remained unchanged: net sales ¥46,060 million, operating profit ¥3,990 million, ordinary profit ¥4,602 million, net income attributable to owners ¥6,185 million and EPS ¥254.51.

• 9M progress against full-year net sales and operating profit forecasts was 72.0% and 55.5%, respectively.

• 4Q growth expected from major Women's Healthcare products and four new products, with SG&A including R&D expenses to be controlled.

• Ustekinumab BS sales were progressing ahead of plan.