Sawai Group Holdings Co (4887) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, rose 5.3% year-over-year to JPY 143,208 million, with operating profit up 24.4% and profit attributable to owners of parent up 88.5%, driven by a gain on sale of subsidiaries and associates.

• The U.S. Business was divested in April 2024, resulting in a significant gain from discontinued operations and a shift to a single-segment focus on Japan.

• Growth was supported by increased sales of new and existing products, proactive lifting of shipment limitations, and effective pricing strategies.

• The company is executing its medium-term plan, emphasizing growth in generics, sustainability, and capital efficiency, while responding to regulatory and market changes in Japan.

Financial highlights

• Gross profit increased to JPY 45,222 million from JPY 41,873 million year-over-year, with gross profit margin improving to 31.6% from 30.8%.

• Basic earnings per share for 9M FY2024 doubled to JPY 201.29 from JPY 102.75 year-over-year, reflecting both continued and discontinued operations.

• Cash and cash equivalents increased by JPY 9,503 million to JPY 35,871 million as of December 31, 2024.

• Free cash flow turned positive at JPY 22,682 million for 9M FY2024.

• EBITDA (adjusted) for 9M FY2024 was JPY 32,816 million, up 14.0% year-over-year.

Outlook and guidance

• Full-year FY2025 revenue forecast is JPY 183,900 million, with operating profit projected at JPY 23,600 million and basic EPS at JPY 212.07.

• 9M revenue and core operating profit are ahead of full-year forecasts, at 77.9% and 90.0% of targets, respectively.

• No changes have been made to previously announced forecasts.