Shionogi & Co (4507) Q2 2025 earnings summary

Executive summary

• Revenue and all profit items exceeded first-half plans, driven by strong HIV and overseas businesses, with costs controlled as expected.

• Excluding a one-time ADHD license transfer from FY2023, both revenue and profit increased year-over-year, led by overseas growth and higher royalty income.

• Strategic investments were made in growth drivers, notably in HIV, acute respiratory infection, and QOL disease segments.

• Operating profit fell 22.7% to ¥75.87 billion, impacted by higher R&D expenses and product mix changes.

• Profit attributable to owners of parent decreased 8.2% to ¥83.13 billion; EPS was ¥97.74 (post-stock split basis).

Financial highlights

• 1H FY2024 revenue: ¥214.0B (101.9% of plan), up 4.1% YoY excluding prior year one-time payment.

• Operating profit: ¥75.9B (110.0% of plan), profit before tax: ¥93.8B (113.7% of plan), net profit: ¥83.1B (125.0% of plan).

• Overseas subsidiary sales and exports rose 23.5% YoY to ¥28.3B, with strong cefiderocol growth in the US (+37.9%) and Europe (+35.7%).

• Royalty income, especially from the HIV franchise, increased 27.1% to ¥121.5B, supported by FX effects.

• EBITDA: ¥86.7B, down year-over-year due to the absence of the prior year’s one-time payment.

Outlook and guidance

• Full-year FY2024 forecasts revised upward: revenue ¥460.0B (+5.7% YoY), operating profit ¥165.0B (+7.6%), net profit ¥171.0B (+5.5%).

• Record highs expected for revenue and profit for the third consecutive year.

• Upward revision driven by robust HIV and overseas business, with conservative planning for domestic COVID-19 and influenza products.

• Basic EPS forecast for FY2024 is ¥201.03 (post-stock split basis).

• Expected contribution from new insomnia drug Quviviq and steady market share gains for Xofluza and Xocova.