Fuji Pharma Co Ltd (4554) Q4 2024 earnings summary

Executive summary

• FY9/24 net sales reached a record ¥46,138m, up 12.8%; operating profit rose 0.6% to ¥3,880m as lower gross margin and higher SG&A offset sales growth.

• Attributable net income increased 78.9% to ¥6,146m, including extraordinary income from investment-security sales and contributed income.

Financial highlights

• Gross profit rose 8.1% to ¥17,844m; SG&A increased 10.3% to ¥13,963m, while gross margin declined to 38.7% from 40.4% and operating margin to 8.4% from 9.4%.

• Ordinary profit fell 1.6% to ¥4,445m; basic EPS was ¥252.85 versus ¥141.37 in FY9/23.

• Extraordinary income totaled ¥3,953m, including a ¥3,118m gain on investment-security sales and ¥835m of contributed income.

• Comprehensive income declined 15.5% to ¥5,289m, including ¥858m of other comprehensive losses.

• EBITDAR rose 9.0% to ¥10,626m and EBITDA 10.0% to ¥7,224m; capital expenditure was ¥2,686m, down 26.5%.

Outlook and guidance

• FY9/25 guidance: net sales ¥53,360m (+15.7%), operating profit ¥4,850m (+25.0%), ordinary profit ¥4,680m (+5.3%) and attributable profit ¥3,380m (-45.0%).

• FY9/25 basic EPS is forecast at ¥139.07; NOPAT-based EPS is ¥138.45, with NOPAT-based ROE forecast at 7.4%.

• EBITDAR is forecast to rise 18.6% to ¥12,600m; operating-profit guidance includes a ¥330m benefit from the end of OLIC goodwill amortization.

• Growth drivers include launches, acquired products and new contract production, with forecast sales contributions of ¥1,915m from acquired products and ¥824m from a new contract project.