Suzuken (9987) Q2 2025 earnings summary

Executive summary

• Achieved a PBR above 1 in July 2024 through capital-conscious management and shareholder-focused initiatives, including dividend increases and share repurchases.

• Net sales for the six months ended September 30, 2024, were ¥1,197,323 million, up 0.2% year-over-year, with operating income at ¥17,101 million, up 3.2% year-over-year.

• Interim net income attributable to owners of the parent rose 27.7% year-over-year to ¥20,278 million, driven by extraordinary gains from investment securities sales.

• Growth in the ethical drug market and specialty drugs offset declines in COVID-19 related product sales.

• Continued progress on medium-term management plan targets, with ROE forecasted at 8.1% for FY2024.

Financial highlights

• Consolidated net sales for 2Q FY2024: ¥1,197.3 billion, up ¥2.8 billion year-over-year.

• Operating income: ¥17.1 billion, up ¥0.5 billion year-over-year.

• Net income attributable to owners: ¥20.3 billion, up 27.7% year-over-year.

• Gross profit: ¥94.6 billion, up ¥3.8 billion year-over-year.

• Extraordinary gains of ¥12,235 million, mainly from sale of investment securities, boosted net income.

Outlook and guidance

• Full-year net sales forecast at ¥2,391,000 million, up 0.2% year-over-year; net income forecast at ¥33,300 million, up 14.8%.

• Dividend forecast raised to ¥100 per share for the year ending March 31, 2025.

• Share repurchase program of up to 5.6 million shares (7.21% of outstanding) and ¥28 billion announced, with cancellation by March 31, 2025.

• Revenue growth expected from specialty drugs, despite anticipated declines in COVID-19-related products.

• Continued focus on profit-oriented management and cost control amid inflation and pricing negotiations.