Otsuka (4578) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 6.0% year-over-year to ¥2,468.9 billion, with business profit up 3.6% to ¥446.1 billion, both reaching record highs, driven by strong pharmaceutical and nutraceutical performance, global products, and royalty income.

• Pharmaceutical revenue increased 7.1% to ¥1,744.2 billion, led by REXULTI, ABILIFY MAINTENA, and higher royalty income, despite generic JYNARQUE impact.

• Nutraceutical revenue grew 3.7% to ¥577.7 billion, with all categories contributing, especially "For Women's Health" and "For Healthier Life."

• Major acquisitions included Araris Biotech AG, Otsuka ICU Medical LLC, and Jnana Therapeutics, expanding R&D and IV solution capabilities.

• Strategic focus on sustainable growth through R&D, asset acquisitions, alliances, and innovation toward 2035.

Financial highlights

• FY2025 revenue was ¥2,468.9 billion (+6.0% YoY); business profit ¥446.1 billion (+3.6%); operating profit ¥479.4 billion (+48.2%); net profit ¥363.2 billion (+5.8%).

• ROE reached 12.6%, exceeding the 10% target.

• Business profit margin was 18.1% of revenue.

• Cash and cash equivalents at year-end were ¥534,645 million, up ¥108,471 million.

• All profit items and revenue reached record highs for the fiscal year.

Outlook and guidance

• FY2026 revenue forecasted to grow 2.1% to ¥2,520 billion, led by Global 10 Plus 2 products and NC business.

• Business profit expected to decline 20.4% to ¥355 billion due to generic competition and higher SG&A/R&D costs.

• Net profit projected to fall 27.0% to ¥265 billion; ROE above 8.5%.

• R&D expenses expected to rise 7.1% to ¥378 billion, focusing on next-generation products.

• Dividend per share forecast for FY2026: ¥140.00.