PHC (6523) Q2 2025 earnings summary

Executive summary

• Second quarter revenue reached JPY 173.9 billion, up 4.2% year-over-year, driven by favorable FX, M&A, and electronic medical record business growth.

• Operating profit increased by 120.3% to JPY 9.2 billion, aided by cost reductions, lower restructuring expenses, and higher income from LSI Medience.

• Profit attributable to owners of the parent rose JPY 6.6 billion year-over-year to JPY 4.1 billion, reversing a prior-year loss, supported by lower interest expense and FX gains.

• Adjusted EBITDA increased 10.5% year-on-year to JPY 23.3 billion, reflecting improved operational efficiency and reduced one-time costs.

• Cash-based profit attributable to owners more than doubled year-on-year to JPY 8.2 billion.

Financial highlights

• All profit indicators improved year-over-year, with profit before tax up JPY 10.4 billion to JPY 7.4 billion.

• Basic earnings per share improved to JPY 32.52 from a loss of JPY 19.55 year-on-year.

• Revenue and operating profit increased sequentially from Q1, reflecting strong BGM and e-prescription demand.

• Cash and cash equivalents at period-end were JPY 32,969 million, down JPY 14,074 million from March 31, 2024, mainly due to loan repayments.

• EBITDA and adjusted EBITDA rose, reflecting improved core profitability.

Outlook and guidance

• Full-year forecast maintained: revenue JPY 360 billion, operating profit JPY 19.1 billion, profit attributable to owners JPY 10.3 billion, and basic EPS at JPY 81.55.

• Dividend forecast unchanged at JPY 42 per share; payout ratio to CBNI: 30.3%.

• Second-half performance expected to be stronger due to seasonality, market recovery in the U.S., and new product launches, but risks remain.

• No changes to previously announced forecasts; management maintains guidance.