Suzuken (9987) Q4 2026 earnings summary

Executive summary

• Net sales rose 3.6% year-over-year to ¥2,486.6B, driven by growth in prescription and specialty drugs, despite a sharp decline in COVID-19-related product sales.

• Operating profit declined 2.0% year-over-year to ¥36.3B, mainly due to inflationary pressures and higher procurement and outsourcing costs.

• Profit attributable to owners of parent grew 10.6% to ¥38.1B, supported by gains on sale of investment securities.

• Strategic initiatives included expanding specialty drug distribution, digital health platforms, and acquisition of medimo, Inc.

• The previous medium-term plan met most targets except for cross-shareholdings reduction; the new plan targets ¥2.7T net sales and ROE above 6% by FY2028, with a five-year vision of ¥3T sales and 8% ROE by FY2030.

Financial highlights

• Gross profit for FY2025 was ¥192.5B (7.7% of sales), up slightly year-over-year.

• Profit attributable to owners of parent rose to ¥38.1B, up ¥3.6B year-over-year.

• Basic earnings per share increased to ¥545.54 from ¥454.58.

• Annual dividend per share was ¥100, with a total payout ratio of 86.2%.

• Net assets increased to ¥416.0B, with an equity ratio of 36.0%.

Outlook and guidance

• FY2026 forecast: net sales ¥2,563B (+3.1%), operating profit ¥31.2B (–14.2%), ROE 6%, reflecting higher costs from wage and inflation pressures.

• FY2027 forecast: net sales ¥2,563B (+3.1%), operating profit ¥31.2B (–14.2%), ordinary profit ¥34.3B (–13.7%), profit attributable to owners of parent ¥25.0B (–34.4%).

• Dividend forecast for FY2026/FY2027: ¥120 per share (pre-split basis), up ¥20 year-over-year, with a 100% payout ratio.

• Planned two-for-one stock split effective October 2026.