Shin Nippon Biomedical Laboratories (2395) Q3 2024 earnings summary

Executive summary

• 9M FY2024 revenue reached a record ¥17,984 million, up 9.9% YoY; operating profit fell 33.0% to ¥2,535 million and profit attributable to owners fell 12.8% to ¥3,794 million.

• CRO growth was supported by higher sales and record 9M nonclinical orders, while increased staffing and study-material costs weighed on operating profit.

Financial highlights

• 9M revenue was ¥17,984 million, up 9.9% YoY; gross profit was ¥9,537 million versus ¥8,647 million, while SG&A rose to ¥7,001 million from ¥4,863 million.

• Operating profit declined 33.0% to ¥2,535 million; ordinary profit fell 29.0% to ¥4,884 million, and profit attributable to owners fell 12.8% to ¥3,794 million.

• EPS was ¥91.14 versus ¥104.52 YoY; comprehensive income was ¥6,010 million versus ¥11,175 million.

• Foreign-exchange gains declined to ¥280 million from ¥1,186 million YoY, contributing to lower ordinary profit.

Outlook and guidance

• FY2024 forecast revised to revenue ¥26,190 million, operating profit ¥3,470 million, ordinary profit ¥6,390 million, net income attributable to owners ¥3,975 million and EPS ¥95.47.

• Versus the prior forecast, revenue was cut ¥4,178 million (13.8%), operating profit ¥1,550 million (30.9%), ordinary profit ¥790 million (11.0%) and net income ¥805 million (16.8%).

• Forecast assumes ¥144.99 per US dollar; actual results may differ materially from forecasts, and rising energy and other costs remain a concern.