Sawai Group Holdings Co (4887) Q4 2025 earnings summary

Executive summary

• Revenue increased 6.9% year-over-year to ¥189.0 billion, driven by higher sales of new and existing products, especially after lifting shipment restrictions and introducing selective treatment systems.

• Core operating profit rose 7.4% to ¥25.7 billion, but operating profit dropped 78.3% to ¥4.1 billion due to significant litigation and impairment losses.

• Net income attributable to owners decreased 12.6% to ¥12.0 billion, impacted by litigation provisions and the divestiture of the U.S. business.

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

• Investments in human resources, production capacity, and digital healthcare continued, with increased fixed costs and write-downs.

Financial highlights

• Revenue: ¥189.0 billion (+6.9% YoY); Core operating profit: ¥25.7 billion (+7.4% YoY); Operating profit: ¥4.1 billion (–78.3% YoY); Profit before tax: ¥3.2 billion (–82.7% YoY).

• Profit attributable to owners: ¥12.0 billion (–12.6% YoY); EPS: ¥96.54 (–7.4% YoY, adjusted for stock split).

• EBITDA (adjusted): ¥39.1 billion (+8.8% YoY).

• Significant one-time expenses: ¥16.8 billion provision for litigation, ¥3.6 billion impairment losses, and ¥3.9 billion appraisal/abandonment losses.

• Gain on sale of discontinued U.S. business: ¥13.0 billion.

Outlook and guidance

• FY2025 revenue forecast: ¥200.2 billion (+5.9% YoY); Core operating profit: ¥28.0 billion (+8.9% YoY); Operating profit: ¥25.6 billion (+532.2% YoY).

• Profit attributable to owners expected to rise 45.4% to ¥17.4 billion; EPS forecast: ¥150.71.

• Dividend per share to increase to ¥55.

• SG&A expenses expected to rise 21.2% YoY due to new business initiatives and inherited product costs.

• Gross profit anticipated to rise by ¥7.6 billion on higher sales volume.