Santen Pharmaceutical (4536) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 revenue was JPY 210.8 billion, down 5.4% year-over-year, with core operating profit at JPY 34.8 billion, a 20.3% decrease, and net profit attributable to owners at JPY 21.8 billion, down 20.6% year-over-year.

• Profit declines narrowed compared to H1, and progress toward full-year forecasts remains steady and in line with projections.

• Regional performance varied: Japan saw a 12.4% revenue drop, China was flat excluding FX, Asia (ex-China) grew 9.3%, and EMEA rose 2.8%.

• Key product launches and regulatory approvals included Upneeq Mini for ptosis in Japan and Verkazia for VKC in China.

• Shipment of Diquas LX resumed, and myopia progression drug was added to the Selective Treatment category in Japan.

Financial highlights

• Gross profit margin remained stable at 44%, with cost of sales at JPY 92.8 billion, down 4.9% year-over-year.

• SG&A expenses were JPY 64.8 billion, nearly flat year-over-year, while R&D expenses increased 9.5% to JPY 18.4 billion.

• EBITDA for Q3 FY2025 was JPY 42.0 billion, a 17.0% decrease year-over-year.

• Cash and cash equivalents at period end were JPY 61.5 billion, a decrease of JPY 31.5 billion from March 2025.

• Basic earnings per share declined from JPY 78.21 to JPY 66.16 year-over-year.

Outlook and guidance

• FY2025 earnings and dividend forecasts remain unchanged, with revenue projected at JPY 294.0 billion (-2.0% YoY) and core operating profit at JPY 54.0 billion (-9.1% YoY).

• Full-year revenue forecast for March 2026 is JPY 294.0 billion (+2.0% YoY), with core operating profit of JPY 54.0 billion (+9.1%) and net profit of JPY 33.5 billion (+6.6%).

• Year-end dividend forecast is JPY 19/share, annual JPY 38/share, up JPY 2/share year-over-year.

• Revenue and profit expected to increase from FY2026 onwards, targeting a CAGR of 6% through FY2029.

• No changes have been made to previously announced forecasts.