Suzuken (9987) Q1 2025 earnings summary

Executive summary

• Revenues and earnings increased, driven by growth in specialty drug distribution contracts, higher sales of new drugs, and digital health initiatives, despite declines in COVID-19-related product sales and impacts from NHI price revisions.

• Consolidated net sales rose by 1.5% year-over-year to 582,196 million yen for 1Q FY2024.

• Operating income increased by 30.8% year-over-year to 5,305 million yen, supported by price negotiations, cost management, and business reforms.

• Net income attributable to owners rose 48.5% year-over-year to 4,962 million yen.

• The company continues to implement its medium-term management plan, focusing on business reforms and digital health platform enhancements.

Financial highlights

• Net sales: 582,196 million yen, up 1.5% year-over-year.

• Gross profit: 43,317 million yen, up 6.6% year-over-year.

• Operating income: 5,305 million yen, up 30.8% year-over-year.

• Net income attributable to owners: 4,962 million yen, up 48.5% year-over-year.

• Extraordinary gains of approximately 2.6 billion yen recognized from sales of investment securities.

Segment performance

• Pharmaceutical Distribution: Net sales up 1.6% year-over-year to 562,277 million yen; operating income up 23.5% to 4,135 million yen, despite higher SG&A and lower COVID-19-related sales.

• Healthcare Product Development: Net sales up 4.3% to 13,347 million yen; operating income up 66.8% to 869 million yen, driven by increased prescriptions and new product contributions.

• Community Healthcare and Nursing Care Support: Net sales down 3.4% to 23,064 million yen; operating loss widened to 93 million yen due to NHI price revisions and fewer operating pharmacies.

• Healthcare-related Services: Net sales up 25.4% to 79,984 million yen; operating income up 71.8% to 367 million yen, with growth in specialty drug distribution contracts.