Shionogi & Co (4507) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2025 was ¥212.97 billion, down 0.5% year-over-year, mainly due to lower domestic prescription drug sales as COVID-19 demand subsided.

• Operating profit declined 1.4% year-over-year to ¥74.77 billion, while profit before tax rose 4.9% to ¥98.38 billion, and profit attributable to owners of parent increased 0.5% to ¥83.54 billion.

• Overseas sales and royalty income grew, driven by ViiV's HIV products and Roche royalties.

• Torii Pharmaceutical was consolidated as a subsidiary in September 2025, contributing to increased non-current assets and equity.

• Key initiatives included expansion of long-acting injectable HIV formulations, regulatory progress for Ensitrelvir, and ongoing M&A activity.

Financial highlights

• 1H FY2025 revenue: ¥213.0B, down 0.5% YoY; operating profit: ¥74.8B, down 1.4%.

• Profit before tax: ¥98.4B, up 4.9%; profit attributable to owners: ¥83.5B, up 0.5%.

• EBITDA: ¥85.84B, down 1.0% YoY; gross profit stable at ¥183.71B with an 86.3% margin.

• Basic EPS for the period: ¥98.19, up from ¥97.74; comprehensive income rose to ¥98.56B.

• Main revenue increases from royalty income and overseas subsidiaries; prescription drug sales declined.

Outlook and guidance

• FY2025 full-year revenue forecast revised down to ¥500.0B, but all profit metrics revised upward: operating profit ¥185.0B (+18.1% YoY), profit before tax ¥232.0B (+15.6%), profit attributable to owners ¥188.0B (+10.3%).

• Basic EPS for the year ending March 31, 2026, is forecast at ¥220.94.

• Upward revision driven by strong HIV royalties, overseas sales, cost management, and increased other income; prescription drug outlook lowered due to delays in acute respiratory infection treatments.