PHC (6523) Q1 2025 earnings summary

Executive summary

• Q1 FY24 revenue rose 4.7% year-on-year to JPY 85.2 billion, driven by M&A and FX tailwinds; operating profit increased 18.4% to JPY 2.0 billion, aided by lower one-off costs.

• Net loss attributable to owners was JPY 3.2 billion, mainly due to FX losses in financial expenses.

• Full-year forecasts and annual dividend plan remain unchanged: revenue JPY 360 billion, operating profit JPY 11.1–19.1 billion, cash-based profit JPY 17.5 billion, and dividend at JPY 42 per share.

• Segment reorganization implemented, with IVD business moved to Diagnostics & Life Sciences and Drug Development Support now classified as CRO in Healthcare Solutions.

Financial highlights

• Q1 consolidated revenue reached a record JPY 85.2 billion (+4.7% YoY); operating profit was JPY 2.0 billion (+18.4% YoY).

• EBITDA increased to JPY 9.3 billion (+11.6% YoY); adjusted EBITDA was JPY 9.5 billion (down 5% YoY).

• Cash and cash equivalents decreased by JPY 8.6 billion from previous year-end, mainly due to loan repayment and dividend distribution.

• Basic and diluted EPS were both negative at (25.17) yen, a slight improvement year-on-year.

• Net interest-bearing debt at JPY 241.2 billion; net debt/adjusted EBITDA ratio at 4.9x.

Outlook and guidance

• Full-year guidance unchanged: revenue JPY 360 billion (+1.7% YoY), operating profit JPY 11.1–19.1 billion, profit attributable to owners JPY 10.3 billion, cash-based profit JPY 17.5 billion, and annual dividend at JPY 42 per share.

• Operating profit expected to be second-half weighted due to seasonality, market recovery, and new product launches.

• No revisions to full-year guidance; FX assumptions and dividend plan unchanged.