Shin Nippon Biomedical Laboratories (2395) Q2 2027 earnings summary

Executive summary

• H1 revenue reached a record ¥17,568 million, up 19.0% YoY; operating profit rose to ¥1,555 million from ¥49 million, and parent-owner net profit increased 107.1% to ¥2,197 million.

• Results exceeded revised H1 forecasts; CRO revenue recognition on carried-over projects supported earnings, while some TR expenses shifted to H2. The full-year forecast was unchanged.

Financial highlights

• H1 revenue rose ¥2,801 million YoY to ¥17,568 million; gross profit increased ¥2,086 million to ¥8,764 million.

• Operating profit exceeded the revised forecast by ¥310 million; revenue by ¥410 million, ordinary profit by ¥100 million and parent-owner net profit by ¥280 million.

• Ordinary profit increased 89.3% YoY to ¥3,081 million; FX losses were ¥19 million versus gains of ¥179 million a year earlier.

• Operating cash flow was ¥5,607 million, investing cash outflow ¥5,485 million and financing cash inflow ¥5,922 million; comprehensive loss was ¥2,422 million.

Outlook and guidance

• FY2027 guidance was unchanged: revenue ¥38,000 million, operating profit ¥3,000 million, ordinary profit ¥6,000 million, parent-owner net profit ¥3,500 million and basic EPS ¥84.07.

• Forecast YoY changes are +16.8% for revenue, +13.0% for operating profit, +2.9% for ordinary profit and -23.4% for parent-owner net profit.

• Assumed USD/JPY rate is ¥150; each ¥1 USD depreciation is estimated to lift H2 revenue by ¥60 million and operating profit by ¥45 million.

• Full-year nonclinical orders are planned at ¥37,800 million, including ¥18,600 million overseas; September-end backlog reached a record ¥43,784 million.

• Atzumi U.S. launch preparations are on track for H2 2027; annual dividend guidance remains ¥50 per share, including ¥20 per share at Q2.