Chugai Pharmaceutical (4519) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 rose 4.6% year-over-year to JPY 578.5 billion, with operating profit up as much as 5.8% and net income up as much as 4.3%.

• Growth was driven by strong domestic and overseas sales, especially new products and mainstays like Actemra and Hemlibra, with significant Actemra exports to Roche.

• Five early-stage in-house R&D projects were discontinued to focus on higher-priority developments and maximize R&D output.

• Major JPY 80 billion investment in the new UKX R&D facility at Ukima was announced to enhance process development and support sustainable manufacturing.

• Special 100th Anniversary dividends were declared, with a total annual dividend per share forecast at JPY 250.00.

Financial highlights

• Revenue: JPY 578.5 billion (+4.6% YoY); operating profit: up to JPY 273.3 billion (+5.8% YoY); net income: up to JPY 194.4 billion (+4.3% YoY).

• Domestic sales: JPY 223.3 billion (+2.8% YoY); overseas sales: JPY 288.1 billion (+7.3% YoY), led by Actemra exports.

• Cost of sales ratio increased to 34.3% due to product mix changes, especially higher Actemra composition.

• SG&A expenses decreased by JPY 1.2 billion due to operational efficiency.

• R&D expenses increased by up to 2.7% year-over-year, reflecting progress in early-stage projects.

Outlook and guidance

• Full-year revenue and profit are on track to exceed or meet initial forecasts, with Hemlibra and Actemra both expected to surpass guidance by over JPY 10 billion each.

• Annual dividend per share forecast: JPY 250.00, including a JPY 150.00 special dividend for the 100th Anniversary.

• No changes to previously announced full-year forecasts.