MediPal Holdings (7459) Q2 2026 earnings summary

Executive summary

• Net sales for 2Q/FY2025 rose 4.0% year-over-year to ¥1,897.5 billion, with all business segments contributing to growth.

• Adjusted operating profit increased 3.6% to ¥29.6 billion, but reported operating profit declined 7.7% to ¥25,083 million due to higher SG&A and business investment expenses.

• Profit attributable to owners of parent grew 1.7% to ¥22.0 billion.

• Comprehensive income dropped 29.0% year-over-year to ¥25,040 million.

• Strategic investments, new drug commercialization rights, and share buybacks were prioritized.

Financial highlights

• Gross profit increased by ¥3.8 billion year-over-year to ¥130,279 million, with gross margin slightly down to 6.87%.

• SG&A expenses rose 6.0% year-over-year, mainly from business investment, logistics, and HR costs.

• Ordinary profit decreased 2.3% year-over-year to ¥34,269 million, cushioned by higher non-operating income.

• Extraordinary income of ¥5.4 billion was recorded, mainly from gains on sales of investment securities, offset by ¥4.5 billion in restructuring expenses.

• Cash and cash equivalents at period end were ¥274.1 billion, up from ¥249.0 billion a year earlier.

Outlook and guidance

• Full-year FY2025 net sales forecast is ¥3,785.0 billion (+3.1% YoY), with operating profit expected at ¥52.0 billion.

• Profit attributable to owners of parent expected to fall 14.3% year-over-year to ¥34,500 million.

• Earnings per share forecast at ¥167.28, reflecting share buyback impact.

• Progress rate for net sales and profit metrics is around 50% at the half-year mark.

• No gains from sales of investment securities are included in the full-year forecast.