Santen Pharmaceutical (4536) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue increased 3.3% year-over-year to JPY 74.8 billion, driven by new product launches and strong overseas growth, despite the Diquas LX recall and NHI price revisions in Japan.

• Core operating profit rose 2.2% year-over-year to JPY 15.9 billion, with overseas business and cost optimization contributing to gains.

• IFRS net profit for the period was JPY 10.6 billion, up 1.9% year-over-year.

• Full-year revenue forecast was revised upward to JPY 302.0 billion, while profit forecasts remain unchanged.

Financial highlights

• Q1 FY2024 revenue: JPY 74.8 billion (+3.3% YoY); core OP: JPY 15.9 billion (+2.2% YoY); net profit: JPY 10.6 billion (+1.9% YoY).

• Gross profit increased 0.8% YoY to JPY 42.8 billion; SG&A expenses rose 3.5% YoY to JPY 21.4 billion; R&D expenses decreased 11.5% YoY to JPY 5.5 billion.

• Overseas revenue grew 11% YoY (including FX), with China up 18.4% YoY and Asia up 20.0% YoY.

• Basic earnings per share (IFRS) was JPY 29.59, up from JPY 27.93 a year ago.

• Cash flows from operating activities were JPY 12.1 billion, up from JPY 2.5 billion in the prior year.

Outlook and guidance

• FY2024 revenue forecast raised to JPY 302.0 billion (+1.7% vs. initial forecast); core OP forecast maintained at JPY 55.0 billion; EPS forecast at JPY 92.22.

• Basic core earnings per share forecast is JPY 117.05; IFRS net profit forecast is JPY 33.5 billion.

• Dividend forecast for FY2025 is JPY 34.00 per share, up from JPY 33.00 in FY2024.

• Diquas LX shipments assumed halted for FY2024; Noto plant unit dose line targeted to restart within 1H FY2024.

• No change in profit outlook despite FX-driven revenue increase; cost optimization and supply risk adjustments factored into guidance.