Otsuka (4578) Q1 2025 earnings summary

Executive summary

• Revenue rose 12.2% year-over-year to ¥582.8 billion, driven by strong growth in pharmaceuticals and nutraceuticals.

• Business profit increased 38.2% to ¥122.9 billion, with operating profit up 35.2% to ¥124.4 billion.

• Profit attributable to owners grew 9.8% to ¥85.0 billion, with basic EPS at ¥158.57.

• Pharmaceutical segment revenue grew 16.2% to ¥417.8 billion, led by REXULTI/RXULTI, ABILIFY MAINTENA/ASIMTUFII, and JYNARC/JYNARQUE.

• Q1 results are on track to achieve the FY2025 business profit forecast of ¥375 billion, with a progress rate of 32.8%.

Financial highlights

• Cost of sales ratio improved by 2.3ppt year-over-year; SG&A ratio decreased by 1.3ppt.

• Gross profit for Q1 2025 was ¥426.2 billion, up from ¥367.7 billion in Q1 2024.

• R&D expenses increased 8.3% to ¥78.4 billion, reflecting investment in new product pipelines.

• Foreign exchange contributed ¥6.9 billion to revenue and ¥1.9 billion to business profit.

• Cash and cash equivalents decreased to ¥407.5 billion, mainly due to the Araris acquisition and treasury share purchases.

Outlook and guidance

• No change to FY2025 guidance; business profit forecast remains at ¥375 billion.

• FY2025 revenue forecast is ¥2,380 billion (up 2.2% year-over-year), with profit attributable to owners projected at ¥275 billion.

• Basic EPS for FY2025 is expected at ¥518.76.

• Strong core product growth expected to offset US tariff impacts and yen appreciation.