MediPal Holdings (7459) Q3 2025 earnings summary

Executive summary

• Net sales rose 3.4% year-over-year to ¥2,807.1 billion, with growth across all business segments.

• Operating profit increased 21.9% year-over-year to ¥45.3 billion, driven by higher gross profit and lower SG&A expenses.

• Profit attributable to owners of parent surged 28.1% year-over-year to ¥36.2 billion, aided by extraordinary income from sale of investment securities.

• All business segments reported increased net sales and profits, with consolidated net sales up 3.4% and operating profit up 21.9% compared to the same quarter last year.

• Progress toward full-year targets is strong, with operating profit at 90.7% and net sales at 76.7% of the annual forecast.

Financial highlights

• Gross profit increased by ¥7.5 billion (+4.0% YoY) to ¥194.2 billion; gross margin improved to 6.92%.

• SG&A expenses decreased by ¥0.6 billion (-0.4% YoY) to ¥148.9 billion, reflecting lower business investment costs.

• Ordinary profit rose 12.9% year-over-year to ¥56.7 billion.

• EPS for the nine months was ¥173.66, up from ¥133.19 a year earlier.

• Extraordinary income included a ¥9.0 billion gain on sale of investment securities.

Outlook and guidance

• No revisions to the full-year forecast; net sales forecast at ¥3,660.0 billion and operating profit at ¥50.0 billion.

• Ordinary profit forecast at ¥66.0 billion (+2.2% YoY); profit attributable to owners of parent at ¥33.5 billion (down 19.2% YoY).

• Full-year EPS forecast is ¥160.68, reflecting share buyback and cancellation completed by September 2024.

• Annual dividend forecast maintained at ¥60 per share.

• Profit attributable to owners of parent already exceeds the full-year forecast due to gains from investment securities sales.