Santen Pharmaceutical (4536) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 revenue was ¥222.8 billion, unchanged year-over-year, with overseas growth offsetting domestic declines from NHI price revisions and product recalls.

• Core operating profit declined 11.4% YoY to ¥43.7 billion, and core net profit attributable to owners dropped 14.7% to ¥33.8 billion.

• IFRS net profit attributable to owners rose 3.2% YoY to ¥27.5 billion, with basic EPS up to ¥78.21.

• Year-end dividend increased, reflecting confidence in mid- to long-term earnings.

Financial highlights

• Revenue was flat YoY at ¥222.8 billion, achieving 74% of the FY forecast.

• Gross profit decreased 4.8% YoY to ¥125.1 billion due to higher COGS ratio and region/product mix.

• Core operating profit declined 11.4% YoY to ¥43.7 billion (79% of FY forecast).

• Net profit attributable to owners rose 3.2% YoY to ¥27.5 billion (85% of FY forecast).

• Cash flows from operating activities were ¥42.0 billion (down from ¥59.4 billion), with cash and equivalents at ¥77.9 billion at period end.

Outlook and guidance

• FY2024 forecast maintained, with revenue expected at ¥302.0 billion and net profit at ¥32.5 billion (+22.0% YoY).

• Full-year FY2025 revenue forecast is ¥302.0 billion (flat YoY), with core operating profit at ¥55.0 billion (+12.4%) and net profit at ¥33.5 billion (+25.5%).

• Year-end dividend raised to ¥19 per share, annual total ¥36; FY2025 forecasted at ¥38 per share.

• Guidance reflects progressive dividend policy and solid business progress.