Suzuken (9987) Q1 2026 earnings summary

Executive summary

• Revenue and operating profit increased year-over-year, driven by growth in specialty and ethical drug distribution contracts and overall market expansion, despite a significant decline in demand for COVID-19-related products.

• Operating profit rose due to higher sales and cost optimization, even as procurement and logistics costs increased.

• Profit attributable to owners of parent declined 23.8% year-over-year to ¥3,782 million, mainly due to the absence of gains from cross-shareholding reductions recorded in the prior year.

• Comprehensive income dropped 39.1% year-over-year to ¥2,488 million.

Financial highlights

• Consolidated net sales rose to ¥592.8 billion, up ¥10.6 billion (1.8%) year-over-year.

• Operating profit increased by ¥281 million (5.3%) to ¥5.59 billion.

• Ordinary profit grew 16.5% to ¥5.78 billion.

• Gross profit was ¥43,266 million, nearly flat year-over-year, and gross profit margin slightly decreased to 7.30% from 7.44%.

• Special gain of ¥0.5 billion from sale of cross-held security, compared to ¥2.6 billion in the prior year.

Outlook and guidance

• Management expects continued growth in specialty drug contracts but notes ongoing risks from declining COVID-19-related product demand and rising distribution costs.

• Full-year FY2026 net sales forecast at ¥2,468,000 million, up 2.8% year-over-year, with operating profit projected at ¥33,600 million (up 9.5%), ordinary profit at ¥35,100 million (up 9.6%), and profit attributable to owners of parent at ¥32,800 million (up 4.9%).

• Basic earnings per share forecast at ¥455.13 for the full year.

• No change to previously announced earnings guidance.