Otsuka (4578) Q2 2025 earnings summary

Executive summary

• Revenue increased 6.5% year-over-year to ¥1,180.8 billion in H1 FY2025, with all segments posting growth, driven by strong pharmaceutical and nutraceutical sales.

• Operating profit nearly doubled, up 91.7% to ¥242.1 billion, reflecting higher revenue and the absence of prior-year impairment losses.

• Net profit surged 61.0% year-over-year to ¥173.5 billion, with EPS rising to ¥326.12.

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

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

Financial highlights

• Business profit rose 12.0% to ¥239.2 billion; R&D expenses increased 13.2% to ¥162.9 billion.

• Gross margin improved as cost of sales ratio declined by 0.9 ppt to 27.6% of revenue.

• Cash and cash equivalents decreased to ¥411.1 billion due to higher investing and financing outflows.

• Net cash from operating activities was ¥212.7 billion, up ¥79.7 billion year-over-year.

• Interim dividend per share increased to ¥70.00, with full-year forecast at ¥140.00.

Outlook and guidance

• Full-year revenue guidance revised to ¥2,380.0 billion, with business profit forecast at ¥400.0 billion.

• Operating profit guidance raised to ¥450.0 billion (+39.1% vs. prior year), reflecting MicroPort exclusion and new acquisitions.

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

• ROE and ROIC targeted at over 12% for FY2025, supported by capital efficiency initiatives.

• Other income of ¥40–50 billion expected from sale of MicroPort shares in H2 2025.