Sawai Group Holdings Co (4887) Q1 2026 earnings summary

Executive summary

• Revenue increased 11.7% year-over-year in Q1 FY2025 to JPY 49,511 million, with core operating profit up 10.4% and operating profit up 14.6%.

• Profit attributable to owners declined 68.4% year-over-year to JPY 4,891 million due to the absence of a prior-year gain from discontinued U.S. operations.

• Growth was driven by higher sales of new and existing products, especially under the selective treatment system, and reduced losses on raw materials.

• The company completed the transfer of its U.S. business in April 2024, now focusing on the Japanese generics market and digital healthcare.

• Strategic initiatives include production capacity expansion, quality control reforms, and new product launches in generics and digital therapeutics.

Financial highlights

• Q1 FY2025 revenue: JPY 49,511 million (+11.7% YoY); core operating profit: JPY 7,597 million (+10.4% YoY); operating profit: JPY 6,979 million (+14.6% YoY).

• EBITDA (adjusted) for Q1 FY2025: JPY 10,883 million (+10.1% YoY).

• Basic EPS for Q1 FY2025: JPY 42.36 (-64.1% YoY).

• Gross margin for Q1 FY2025: 31.2% (down from 31.6% YoY); gross profit increased to JPY 15,438 million from JPY 14,007 million YoY.

• Cash and cash equivalents at period end: JPY 27,280 million (down from JPY 55,470 million YoY).

Outlook and guidance

• Full-year FY2025 revenue forecast: JPY 200,200 million (+5.9% YoY); core operating profit forecast: JPY 28,000 million (+8.9% YoY).

• Fiscal year ending March 31, 2026 guidance: revenue JPY 200,200 million (+5.9%), operating profit JPY 25,600 million (+532.2%), profit before tax JPY 24,800 million (+684.5%), profit attributable to owners JPY 17,400 million (+45.4%).

• Basic earnings per share forecast at JPY 150.71 for FY2026.

• Production expected to normalize in Q2 and beyond after Q1 shortfall.

• Ongoing investments in production capacity to reach 25.0 billion tablets by FY2030.