Shionogi & Co (4507) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue was ¥97.6B, down 10.7% year-over-year due to a prior-year lump-sum ADHD drug license transfer; excluding this, sales rose 15.8%.

• Operating profit was ¥28.1B, down 39.7% year-over-year, mainly from higher R&D expenses and lower non-recurring income; adjusted for one-time items, profit increased.

• Profit attributable to owners was ¥30.6B, down 28.0% year-over-year; EPS was ¥108.07.

• Overseas sales and exports grew 24.9%, with U.S. revenue up 48.6% and Europe up 34.2% year-over-year.

• Royalty income rose by ¥16.2B (36.1%) to ¥61B, mainly from the HIV franchise and new drug formulations.

Financial highlights

• Q1 FY2024 revenue: ¥97.6B, down from ¥109.3B in Q1 FY2023 due to prior year’s one-time income; underlying revenue increased.

• Operating profit: ¥28.1B, down from ¥46.6B; adjusted for one-time items, profit increased year-over-year.

• EBITDA: ¥33.1B, a 35.5% decrease year-over-year.

• Profit attributable to owners: ¥30.6B, down from ¥42.6B year-over-year.

• Gross profit was ¥83.1B, down from ¥96.2B year-over-year.

Outlook and guidance

• No revisions to the full-year forecast: FY2024 revenue expected at ¥455B (+4.6%), operating profit ¥160B (+4.4%), and EPS ¥574.97.

• Interim dividend forecast raised to ¥85 per share, annual dividend forecast at ¥170 per share.

• First half forecast is expected to be achieved, with Q1 results in line with plan.

• Revenue drivers remain the HIV and overseas businesses, both showing continued growth.

• Cost management remains a focus, with R&D expenses prioritized.