Otsuka (4578) Q2 2025 earnings summary

Executive summary

• Revenue for H1/FY2025 rose 6.5% year-over-year to ¥1,180.8 billion, with business profit up 12% to ¥239.2 billion, driven by strong pharmaceutical and nutraceutical sales, especially Global 4+2 products.

• Operating profit surged 91.7% to ¥242.1 billion, and net profit increased 61.0% to ¥173.5 billion, reflecting operational improvements and strategic initiatives.

• Major growth drivers included REXULTI/RXULTI, ABILIFY ASIMTUFII, and JINARC/JYNARQUE.

• Additional shareholder returns announced, including a dividend increase to ¥140 per share and share buybacks.

Financial highlights

• Gross profit increased by ¥62.6 billion year-over-year, with gross margin improvement as cost of sales ratio declined to 27.6%.

• Business profit grew 12.0% to ¥239,221 million; R&D expenses increased 13.2% to ¥162,903 million, reflecting investment in new indications and products.

• Operating profit nearly doubled, up 91.7% year-over-year to ¥242.1 billion.

• Foreign exchange had a negative impact of ¥23.8 billion on revenue and ¥5.9 billion on business profit in H1.

• Revenue from pharmaceutical business up 8.7% to ¥833.8 billion; nutraceutical business revenue up 1.6% to ¥276.1 billion.

Outlook and guidance

• Full-year revenue forecast at ¥2,380.0 billion (+2.2% year-over-year); business profit forecast raised to ¥400.0 billion.

• Operating profit forecast increased to ¥450.0 billion (+39.1% year-over-year), reflecting gains from MicroPort share sales and exclusion from consolidation.

• Net profit forecast at ¥330.0–351.0 billion; EPS guidance raised to ¥622.52.

• ROE and ROIC targeted at over 12% for FY2025.

• Annual dividend increased to ¥140 per share for FY2025.