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, despite some settlement costs in FY2025.

• 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: JPY 201,676 million (+6.7% YoY); gross profit: JPY 58,793 million (+4.3% YoY); core operating profit: JPY 24,778 million (-3.6% YoY); operating profit: JPY 15,894 million (+292.5% YoY); EPS: JPY 90.39 (-6.4% YoY).

• FY2026 forecast: revenue JPY 208,400 million (+3.3% YoY), gross profit JPY 65,500 million (+11.4% YoY), core operating profit JPY 29,600 million (+19.5% YoY), operating profit JPY 27,200 million (+71.1% YoY), net profit JPY 18,600 million (+78.2% YoY), EPS JPY 161.09 (+78.2% YoY).

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

• Cash and cash equivalents at year-end decreased to JPY 28,989 million; cash flows from operating activities dropped to JPY 7,433 million.

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

Outlook and guidance

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

• Sales of new products expected to remain strong; production target set 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 and the absence of litigation settlement costs, but cost pressures from energy, inflation, and yen depreciation remain.

• Expansion of production capacity underway, targeting 25.0 billion tablets in FY2030.