Shionogi & Co (4507) Q1 2026 earnings summary

Executive summary

• Achieved year-on-year growth in revenue and all profit metrics for Q1 FY2025, driven by expansion of the HIV franchise and increased royalty income, despite declines in domestic and overseas drug sales.

• Operating profit rose 24.9% to ¥35.1B, profit attributable to owners increased 28.5% to ¥39.4B, and EBITDA grew 22.8% to ¥40.6B.

• Comprehensive income decreased to ¥44.4B from ¥62.8B year-over-year, mainly due to lower other comprehensive income.

• Integration of JT Group's pharmaceutical business and acquisition of Torii Pharmaceutical are progressing, with full absorption expected by December 2025.

• Submitted regulatory applications for ensitrelvir in the US and Europe, supporting medium- to long-term growth.

Financial highlights

• Revenue for Q1 FY2025 was ¥99.8B, up 2.2% year-over-year; gross profit increased to ¥87.5B; gross margin improved.

• Basic EPS was ¥46.26, up from ¥36.02 year-over-year, reflecting a 3-for-1 stock split.

• Cash and cash equivalents at quarter-end were ¥254.8B, down ¥120.0B from the previous quarter.

• Cost of sales decreased due to changes in product mix; SG&A increased from US business expansion, while R&D expenses fell.

• Finance income rose on higher dividends from ViiV, reflecting strong HIV franchise sales.

Outlook and guidance

• H1 forecast is expected to be achieved, driven by continued HIV franchise and cefiderocol growth, increased Xocova sales from COVID-19, and ongoing cost management.

• Full-year revenue forecast is ¥530.0B, up 20.9% year-over-year; operating profit forecast is ¥175.0B, up 11.7%.

• No revisions to the previously announced consolidated financial forecast.

• Strategic R&D investments and M&A activities are prioritized to accelerate growth.

• Basic EPS for the year ending March 31, 2026 is projected at ¥211.59.