Santen Pharmaceutical (4536) Q2 2027 earnings summary

Executive summary

• H1 revenue rose 3.9% YoY to ¥143.3B; core operating profit increased 7.3% to ¥23.9B, while IFRS net profit rose 11.7% to ¥15.5B.

• Overseas growth and favorable FX offset Japan weakness; H1 progress was described as in line with the full-year forecast.

Financial highlights

• Gross profit rose 7.1% to ¥82.7B and gross margin increased to 57.7% from 56.0%, reflecting a lower COGS ratio from product mix.

• IFRS operating profit was ¥19.4B, up 8.4%; net profit attributable to owners was ¥15.4B, up 10.8%.

• EBITDA increased 5.0% to ¥28.4B; basic EPS was ¥48.05 versus ¥41.76 a year earlier.

• SG&A rose 9.7% to ¥46.6B; R&D expenses declined 1.9% to ¥12.1B.

Outlook and guidance

• Full-year forecasts were maintained: revenue ¥311.0B (+6.6%), core operating profit ¥59.0B (+7.0%) and operating profit ¥49.5B (+3.6%).

• Net profit forecast is ¥39.5B (+5.2%); net profit attributable to owners is ¥40.0B (+7.0%); basic EPS is ¥127.56 (+11.9%), including the share-buyback impact.

• Assumptions include key-product penetration, Q4 pollen dispersion, China recovery and stable supply; core profit also assumes SG&A optimization and absorption of cost inflation.