Shin Nippon Biomedical Laboratories (2395) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 5.3% YoY to ¥12,508m, while operating profit fell to ¥80m; ¥1,272m of STS101 FDA resubmission expenses and strategic investment costs weighed on profit.

• CRO demand strengthened, with nonclinical orders reaching a first-half record ¥15,311m; full-year revenue and profit forecasts remain unchanged.

Financial highlights

• Revenue ¥12,508m, up 5.3% YoY; operating profit ¥80m, down 96.6%; ordinary profit ¥1,829m, down 51.3%; profit attributable to owners ¥1,331m, down 55.1%.

• Gross profit increased to ¥6,523m from ¥6,353m, while SG&A rose to ¥6,443m from ¥4,004m.

• Comprehensive income was ¥3,542m versus ¥6,630m YoY; basic EPS was ¥31.97 versus ¥71.24.

Outlook and guidance

• FY2025 forecast unchanged: revenue ¥29,835m (+12.8% YoY), operating profit ¥2,350m (-43.5%), ordinary profit ¥5,345m (-23.8%), and net profit ¥3,920m (-29.1%).

• Full-year basic EPS forecast is ¥94.15; assumed exchange rate is US$1 = ¥145.

• H1 revenue and profit exceeded forecasts announced May 8, 2024; full-year forecasts remain unchanged.

• FY2025 annual dividend forecast remains ¥50 per share, comprising ¥20 interim and ¥30 year-end.