PHC (6523) Q4 2025 earnings summary

Executive summary

• FY2024 revenue rose 2.2% year-over-year to JPY 361.6 billion, driven by e-prescription demand, M&A, Pathology growth, and FX gains, despite BGM market decline and weak capital investment in Diagnostics & Life Sciences.

• Operating profit surged by JPY 21 billion year-on-year to JPY 22.6 billion, reflecting cost reductions, absence of prior-year impairments, and higher revenues.

• Profit attributable to owners was JPY 10.5 billion, reversing a prior-year loss, supported by FX gains and lower interest expenses.

• The company exceeded its revised forecast and maintained a dividend of JPY 42 per share.

• A new medium-term management plan to 2027 was announced, focusing on strengthening foundations for future growth.

Financial highlights

• FY2024 revenue: JPY 361.6 billion (+2.2% YoY); operating profit: JPY 22.6 billion (+1,341.9% YoY); profit attributable to owners: JPY 10.5 billion (+JPY 23.4 billion YoY).

• Adjusted EBITDA rose 0.8% to JPY 50.1 billion; ROIC improved to 3.8% from 0.3% last year.

• Net debt/EBITDA multiple decreased to 4.3x due to debt repayment.

• Operating cash flow was JPY 41.9 billion; capital expenditure JPY 11.6 billion.

• Basic EPS was JPY 83.13, compared to a loss per share of JPY 102.48 last year.

Outlook and guidance

• FY2025 revenue forecasted at JPY 363.1 billion (+0.4% YoY), with operating profit expected to decrease to JPY 17.4 billion (-22.9% YoY) due to restructuring costs, inflation, and potential U.S. tariff impacts.

• Profit attributable to owners projected at JPY 7.4 billion; EPS at JPY 59.

• Adjusted EBITDA is forecast at JPY 45.2 billion, a 9.8% decrease.

• Dividend forecast maintained at JPY 42 per share, with final decision pending business performance review.

• Tariff impact on operating profit estimated at JPY 6 billion, with mitigation measures planned.