Santen Pharmaceutical (4536) Q1 2027 earnings summary

Executive summary

• Achieved year-over-year revenue and profit growth in Q1 FY2026, with performance tracking in line with plans weighted toward the second half.

• Revenue for the three months ended June 30, 2026 rose 0.3% year-over-year to ¥69.0 billion, driven by new product launches and international growth despite domestic headwinds.

• Core operating profit increased 9.3% year-over-year to ¥10.6 billion, and net profit attributable to owners rose 22.4% to ¥7.2 billion.

• Growth was led by strong performance in China, Asia (excluding China), and EMEA, offsetting a 19.3% revenue decline in Japan due to generic competition and price revisions.

• Enhanced market penetration through co-promotion and stepped-up promotional activities.

Financial highlights

• Q1 FY2026 revenue: JPY 69.0 billion (+0.3% YoY); core operating profit: JPY 10.6 billion (+9.3% YoY); net profit attributable to owners: JPY 7.2 billion (+22.4% YoY).

• Gross profit increased 7.7% year-over-year to ¥40.0 billion; gross profit margin improved to 58.0% from 54.0% YoY.

• SG&A expenses up 9.9% YoY to ¥23.3 billion; R&D expenses down 2.0% YoY to ¥6.1 billion.

• EBITDA increased by 6.2% YoY to ¥12.8 billion; EPS rose to JPY 12.8 (+6.2% YoY); basic EPS increased from ¥17.32 to ¥22.38 YoY.

• Cash and cash equivalents at June 30, 2026 were ¥78.3 billion, down ¥2.6 billion from March 31, 2026.

Outlook and guidance

• FY2026 revenue forecast maintained at JPY 311.0 billion (+6.6% YoY); core OP forecast at JPY 59.0 billion (+7.0% YoY); net profit forecast at JPY 40.0 billion (+7.0% YoY).

• Dividend forecast unchanged at JPY 42 per share, up JPY 4 YoY.

• No changes to previously announced guidance.

• Continued focus on product penetration, recovery in China, and cost optimization.