Ono Pharmaceutical (4528) Q2 2027 earnings summary

Executive summary

• H1 FY2026 revenue fell 9.6% YoY to ¥232.5bn, while core operating profit rose 5.1% to ¥73.6bn and IFRS operating profit increased 11.2% to ¥57.9bn.

• Higher royalty income and overseas sales, plus lower co-promotion and other expenses, supported profit growth despite lower revenue.

Financial highlights

• Revenue was ¥232.5bn versus ¥257.1bn; goods and products sales fell 22.2% to ¥136.1bn, while royalty and other revenue rose 17.3% to ¥96.4bn.

• Core profit attributable to owners rose 5.5% to ¥56.8bn; IFRS profit attributable to owners increased 12.1% to ¥44.9bn.

• IFRS operating profit increased 11.2% to ¥57.9bn; the core-basis figure was ¥73.6bn, with margins of 24.9% and 31.7%, respectively.

• R&D expense was ¥69.1bn, down 2.7% YoY; lower cost of sales and SG&A reflected the FORXIGA agreement termination and prior-year costs that did not recur.

• Basic EPS was ¥95.60 versus ¥85.33; basic core EPS rose to ¥120.78 from ¥114.56.

Outlook and guidance

• FY2026 guidance was unchanged: revenue ¥455.0bn (-11.8% YoY), core operating profit ¥124.0bn (-9.6%) and core profit ¥93.0bn (-10.1%).

• Full-basis guidance: revenue ¥455.0bn, operating profit ¥94.0bn (+1.9%), profit before tax ¥94.0bn (+1.5%) and attributable profit ¥71.0bn (+1.8%).

• Forecast assumes ¥155 per US dollar; in H2, each ¥1 yen depreciation is expected to add ¥0.8bn to revenue and ¥0.2bn to operating profit.

• Forecast R&D expense is ¥143.0bn, or 31.4% of revenue; global clinical trial costs and reclassification of certain expenses affect the outlook.