PHC (6523) Q3 2025 earnings summary

Executive summary

• FY24 Q3 revenue reached JPY 266.9 billion, up 4.0% year-over-year, driven by higher CGM sales, e-prescription demand, Pathology growth, positive Forex, and M&A effects, offsetting BGM declines and sluggish capital investment in Europe and the U.S.

• Operating profit rose by JPY 22.2 billion to JPY 17 billion, reflecting cost reductions, higher-margin product sales, improved healthcare solutions margins, and the absence of prior period impairment and restructuring costs.

• Profit attributable to owners increased by JPY 18.8 billion to JPY 7.6 billion, reversing a prior year loss and exceeding internal plans.

• Full-year operating profit forecast revised up by JPY 2 billion to JPY 21.1 billion, with revenue guidance held at JPY 360 billion due to cautious outlook on market recovery.

• Dividend forecast remains at JPY 42 per share for the full year, with final decisions pending year-end results and financial position.

Financial highlights

• Adjusted EBITDA for FY24 Q3 YTD rose 13.7% year-over-year to JPY 38.3 billion, with segment-level improvements and one-off adjustments.

• Operating profit for Q3 grew 8.8% sequentially, with both revenue and profit increasing year-over-year in each quarter.

• Cash and cash equivalents decreased by JPY 10.5 billion from the previous year-end; interest-bearing debt reduced by JPY 20.7 billion.

• Gross profit increased to JPY 125.1 billion from JPY 115.9 billion year-on-year.

• Basic earnings per share was JPY 60.58, compared to a loss per share of JPY 88.70 in the prior year.

Outlook and guidance

• Full-year operating profit forecast raised to JPY 21.1 billion, factoring in strong Q3 results and prudent risk for Q4.

• Revenue guidance maintained at JPY 360 billion, reflecting slower market recovery in Europe and the USA.

• Adjusted EBITDA forecast raised to JPY 50 billion, reflecting strong segment performance and favorable FX trends.

• Dividend policy unchanged, with final payout to be determined after year-end.

• Segment guidance: Diabetes Management revenue raised to JPY 98 billion, Healthcare Solutions to JPY 127 billion, Diagnostics & Life Sciences lowered to JPY 132 billion.