Suzuken (9987) Q4 2025 earnings summary

Executive summary

• Revenue and profit for FY2024 exceeded forecasts, driven by growth in specialty and ethical drug distribution, and a smaller-than-expected decline in COVID-19-related product sales.

• Strategic focus included digital transformation, smart logistics, business expansion in China and South Korea, and reforming existing businesses.

• Shareholder returns prioritized with a three-year average total payout ratio of at least 100%, including a major share repurchase.

Financial highlights

• Consolidated net sales: ¥2,399.9 billion, up 0.6% year-over-year; operating profit: ¥37.1 billion, up 6.4%; profit attributable to owners: ¥34.5 billion, up 18.9%.

• Ordinary profit: ¥38.8 billion, up 1.2% year-over-year.

• Gross profit margin improved to 8.01%.

• Extraordinary gain of ¥12.0 billion from sale of cross-shareholdings/investment securities.

• Cash and cash equivalents at year-end: ¥118.6 billion, down ¥80.2 billion from prior year.

Outlook and guidance

• FY2025/2026 net sales forecast: ¥2,468.0 billion (+2.8%), operating profit forecast: ¥33.6 billion (down 9.5%), profit attributable to owners: ¥32.8 billion (down 4.9%).

• Declining demand for COVID-19-related products expected to impact results.

• Continued focus on cost control, digital transformation, and cross-shareholding reduction.

• Specialty drug contract distribution and digital healthcare expected to drive growth.