Santen Pharmaceutical (4536) Q4 2025 earnings summary

Executive summary

• EPS surpassed JPY 100, driven by a high-profit, productivity-focused structure, with strong progress toward a growth trajectory beyond FY2026.

• FY2024 revenue was JPY 300.0 billion (-0.6% YoY), core OP JPY 59.4 billion (-5.4% YoY), OP JPY 46.9 billion (+21.6% YoY), and EPS JPY 103.98 (+43.2% YoY).

• Net profit attributable to owners rose 36.1% YoY to JPY 36.3 billion, with basic EPS up to JPY 103.98.

• FY2025 forecast: revenue JPY 294.0 billion (-2.0% YoY), core OP JPY 54.0 billion (-9.1% YoY), OP JPY 44.0 billion (-6.1% YoY), EPS JPY 102.66 (-1.3% YoY).

• Shareholder returns include a JPY 36/share dividend and JPY 37.1 billion share buyback in FY2024; FY2025 forecast is JPY 38/share dividend and up to JPY 35.0 billion buyback.

Financial highlights

• FY2024 revenue declined slightly (-0.6% YoY), with overseas growth (+8% YoY, +4% ex-FX) offsetting domestic declines.

• Gross profit margin decreased to 57% (from 59% YoY); core OP margin at 20%.

• Net profit attributable to owners rose 36.1% YoY to JPY 36.3 billion; EPS up 43.2% YoY.

• Cash and cash equivalents at year-end were JPY 93.0 billion.

• Cash flows from operating activities were JPY 60.9 billion, down from JPY 72.6 billion the previous year.

Outlook and guidance

• Stable EPS expected in FY2025, supported by overseas business growth despite generic erosion in Japan.

• FY2026 revenue is forecast at JPY 294.0 billion (down 2.0%), with core operating profit at JPY 54.0 billion (down 9.1%).

• Net profit attributable to owners is projected at JPY 34.0 billion, with basic EPS of JPY 102.66.

• Overseas revenue growth forecast: China +17% YoY, Asia +13% YoY, EMEA +2% YoY (ex-FX).

• Japan faces largest impact from generics in FY2025, but new product launches expected to support medium-term growth.