Sawai Group Holdings Co (4887) Q4 2026 earnings summary

Executive summary

• Revenue increased 6.7% year-on-year to JPY 201,676 million, driven by higher sales of new and existing products, especially those under the selective treatment system introduced in October 2024.

• Core operating profit declined 3.6% year-on-year, while operating profit surged 292.5% to JPY 15,894 million due to the absence of prior year litigation provisions.

• Profit attributable to owners fell 12.8% year-on-year to JPY 10,438 million, impacted by impairment losses and discontinued U.S. operations.

• The U.S. business was fully divested in April 2024, with related gains recognized in FY2025 and losses in FY2026.

• The group is executing a medium-term plan focused on generics market growth, sustainability, and digital healthcare expansion.

Financial highlights

• FY2025 revenue reached JPY 201.676 billion (+6.7% YoY), gross profit was JPY 58.793 billion (+4.3% YoY), and core operating profit was JPY 24.778 billion (-3.6% YoY).

• Operating profit was JPY 15.894 billion (+292.5% YoY); profit attributable to owners was JPY 10.438 billion (-12.8% YoY); EPS was JPY 90.39 (-6.4% YoY).

• Cash and cash equivalents at year-end decreased to JPY 28,989 million.

• Equity attributable to owners rose to JPY 178,556 million, with a ratio to total assets of 49.6%.

• EBITDA (adjusted) for FY2025 was JPY 38,315 million (-2.0% YoY); forecasted at JPY 44,700 million for FY2026 (+16.7% YoY).

Outlook and guidance

• FY2026 revenue forecast at JPY 208.4 billion (+3.3% YoY), core operating profit at JPY 29.6 billion (+19.5% YoY), operating profit at JPY 27.2 billion (+71.1% YoY), and net profit at JPY 18.6 billion (+78.2% YoY).

• FY2026 expects improved gross margin from a better product mix and higher sales of new products, with production volume targeted at 18.0 billion tablets.

• Annual dividend for FY2026 is projected at JPY 56 per share, up from JPY 55 in FY2025.

• Profitability is expected to improve due to new product launches, but cost pressures from energy, inflation, and yen depreciation remain.