Sawai Group Holdings Co (4887) Q4 2025 earnings summary

Executive summary

• Revenue increased 6.9% year-over-year to JPY 189.0 billion, driven by higher sales of new and existing products, improved product value, and the lifting of shipment restrictions.

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

• Net income attributable to owners decreased 12.6% to JPY 12.0 billion, impacted by one-time litigation and impairment losses, but was supported by a gain on the sale 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, increasing fixed costs.

Financial highlights

• Revenue: JPY 189,024 million (+6.9% YoY); Core operating profit: JPY 25,700 million (+7.4% YoY); Operating profit: JPY 4,050 million (–78.3% YoY); Profit before tax: JPY 3,161 million (–82.7% YoY).

• Profit attributable to owners: JPY 12,000 million (–12.6% YoY); Basic EPS: JPY 96.54 (–7.4% YoY, adjusted for stock split).

• EBITDA (adjusted): JPY 39,100 million (+8.8% YoY).

• Significant one-time expenses: JPY 16,757 million provision for litigation, JPY 3,600 million impairment losses, and JPY 3,900 million appraisal/abandonment losses.

• Gain on sale of discontinued U.S. business: JPY 13,000 million.

Outlook and guidance

• FY2025 revenue forecast: JPY 200,200 million (+5.9% YoY); Core operating profit: JPY 28,000 million (+8.9% YoY); Operating profit: JPY 25,600 million (+532.2% YoY).

• Net income expected to rise 45.4% to JPY 17,400 million; EPS forecast: JPY 150.71.

• Dividend per share to increase to JPY 55.

• SG&A expenses expected to rise 21.2% YoY due to upfront investments and inherited product costs.

• Gross profit anticipated to rise by JPY 7,600 million on higher sales volume.