Otsuka (4578) Q1 2026 earnings summary

Executive summary

• Revenue increased 8.2% year-over-year to ¥630.3 billion, with business profit up 0.1% to ¥123 billion, driven by global products, royalty income, and nutraceuticals.

• Net profit rose 15.7% year-over-year to ¥98.3 billion, with steady progress toward the first-half plan.

• Growth was led by strong pharmaceutical and nutraceutical performance, offsetting generic competition for JYNARQUE and higher SG&A expenses.

• Major growth drivers included REXULTI, ABILIFY MAINTENA, VOYXACT, and LONSURF.

• Share buybacks and dividend payments continued as part of capital allocation strategy.

Financial highlights

• Cost of sales increased 11.1% year-over-year, and SG&A rose 11.6%, reflecting higher co-promotion and new product expenses.

• R&D expenses grew 4.7% year-over-year, supporting late-stage pipeline projects.

• Operating profit increased 1.5% year-over-year to ¥126.3 billion.

• Cash and cash equivalents at period end: ¥538.3 billion.

• EPS was ¥186.31 (basic).

Outlook and guidance

• FY2026 guidance maintained, with reassessment planned at the 1H results briefing.

• Full-year revenue forecast at ¥2,520 billion and net profit at ¥265 billion.

• Dividend forecast maintained at ¥140 per share for FY2026.

• Risk mitigation measures in place for potential transportation delays and cost increases due to Middle East instability.