Sawai Group Holdings Co (4887) Q3 2026 earnings summary

Executive summary

• Revenue for the first nine months of FY2025 rose 8.1% year-over-year to ¥154.9 billion, but operating profit fell 25.7% to ¥15.9 billion due to a 4 billion yen lawsuit settlement and the absence of a prior year's gain on sale of subsidiaries.

• Profit attributable to owners dropped 57.8% to ¥10.7 billion, with basic EPS at ¥93.09, reflecting a 3-for-1 stock split.

• The U.S. business was classified as a discontinued operation after the transfer of all related shares in April 2024.

• Sales growth was driven by new and existing products, especially those under the selective treatment system and items with lifted shipment restrictions.

• The company is executing a medium-term plan focused on generics market growth, sustainability, and capital efficiency.

Financial highlights

• Revenue: ¥154.9 billion (+8.1% YoY); Gross profit: ¥46.8 billion (+3.6% YoY); Core operating profit: ¥23.1 billion (+1.1% YoY); Operating profit: ¥15.9 billion (−25.7% YoY).

• Profit attributable to owners: ¥10.7 billion (−57.8% YoY); Basic EPS: ¥93.09 (−53.8% YoY).

• EBITDA (adjusted): ¥33.1 billion (+0.8% YoY).

• Cash and cash equivalents at period end: ¥46.1 billion (+18.9% from March 2025).

• Total comprehensive income for the period was ¥11.1 billion, down from ¥13.9 billion a year earlier.

Outlook and guidance

• Full-year revenue forecast: ¥202.5 billion; core operating profit forecast: ¥27.6 billion; operating profit forecast: ¥20.9 billion.

• Full-year EPS forecast: ¥121.25; dividend per share forecast: ¥55.00.

• No revisions to previously announced forecasts.

• Production and sales volumes are expected to fall short of annual targets.