Shin Nippon Biomedical Laboratories (2395) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 5.4% YoY to ¥26,450 million, a second consecutive record, led by CRO growth; operating profit fell 20.6% to ¥4,162 million.

• Profit attributable to owners of parent declined 8.7% to ¥5,531 million; elevated Satsuma costs and strategic investments weighed on operating results.

Financial highlights

• Gross profit increased to ¥14,282 million from ¥13,046 million; SG&A rose to ¥10,120 million from ¥7,801 million, including R&D expense growth to ¥1,741 million from ¥683 million.

• Ordinary profit decreased 23.7% to ¥7,015 million; lower foreign-exchange gains contributed, while equity-method profit increased ¥664 million to ¥2,631 million.

• Comprehensive income was ¥9,917 million, up from ¥9,129 million, supported by ¥4,400 million of other comprehensive income.

Outlook and guidance

• FY2025 forecast: revenue ¥29,835 million (+12.8%); operating profit ¥2,350 million (-43.5%); ordinary profit ¥5,345 million (-23.8%); parent profit ¥3,920 million (-29.1%).

• Excluding Satsuma, FY2025 operating profit is forecast at ¥5,647 million, up 2.6%; ordinary profit excluding Satsuma and FX is forecast at ¥8,642 million, up 4.1%.

• Satsuma expenses are forecast to rise ¥1,953 million YoY to ¥3,297 million; STS101 NDA resubmission is planned by October 2024, with manufacturing-line maintenance costs expected to increase.

• FY2025 nonclinical contracts received are planned at ¥34,284 million; annual dividend is forecast to remain ¥50 per share.