PHC (6523) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥179,970 million, up 3.8% YoY; operating profit rose 87.3% to ¥19,439 million, led by Diabetes Management and Diagnostics & Life Sciences.

• Profit attributable to owners of parent was ¥13,313 million versus a ¥559 million loss a year earlier; adjusted EBITDA increased 37.9% to ¥33,466 million.

• Full-year forecasts were raised to ¥366,000 million revenue, ¥33,000 million operating profit and ¥18,000 million profit attributable to owners; annual dividend remains ¥42 per share.

Financial highlights

• Revenue increased ¥6,600 million YoY; excluding FX impact, revenue was ¥170,700 million, down 1.5%.

• Profit before tax was ¥17,007 million versus ¥941 million a year earlier; FX gains were ¥984 million versus ¥6,842 million of FX losses.

• Gross profit was ¥87,342 million versus ¥79,594 million; SG&A decreased to ¥68,688 million from ¥70,018 million.

• EBITDA was ¥32,666 million, up 37.7%; adjusted EBITDA was ¥33,466 million, up 37.9%.

• Operating cash flow was ¥21,184 million, up ¥9,097 million YoY; period-end cash and cash equivalents were ¥37,777 million.

Outlook and guidance

• FY2027 revenue forecast rose ¥6,300 million to ¥366,000 million; operating profit forecast rose ¥6,000 million to ¥33,000 million, at a 9% margin.

• Profit before tax is forecast at ¥26,700 million and profit attributable to owners at ¥18,000 million; adjusted EBITDA forecast increased to ¥60,900 million.

• Revised forecast assumes ¥182/€ and ¥159/US$; H1 Diabetes Management strength and updated FX assumptions supported the upgrades.

• Segment revenue forecasts are ¥103,700 million for Diabetes Management, ¥125,200 million for Healthcare Solutions and ¥136,900 million for Diagnostics & Life Sciences.

• Annual dividend forecast remains ¥42 per share, split evenly between interim and year-end payments.