Shionogi & Co (4507) Q4 2025 earnings summary

Executive summary

• Revenue reached ¥438.3B, a record high for the third consecutive year, with operating profit at ¥156.6B, both up year-over-year despite the absence of a prior one-time payment.

• Profit attributable to owners of parent was ¥170.4B, up year-over-year.

• HIV and overseas businesses showed strong growth, offsetting lower-than-expected COVID-19-related sales.

• Financial results did not meet full-year forecasts due to a milder winter COVID-19 wave, but proactive investments in growth drivers continued.

• EBITDA declined year-over-year due to higher R&D and SG&A expenses and the absence of a one-time payment.

Financial highlights

• FY2024 revenue rose 3.2% year-over-year to ¥438.3B; operating profit increased 3.3% to ¥156.6B.

• Gross profit was ¥374.4B, with a gross margin of 85.4%.

• R&D expenses increased to ¥108.6B, and SG&A expenses rose to ¥101.9B.

• Cash and cash equivalents at year-end were ¥374.8B, up ¥16.7B from the previous year.

• Total assets increased to ¥1,535.3B, and equity attributable to owners of parent rose to ¥1,361.9B.

Outlook and guidance

• FY2025/2026 revenue is forecast at ¥530.0B (+20.9%), with operating profit at ¥175.0B (+11.7%) and EBITDA at ¥196.0B (+9.3%).

• All profit items are expected to increase, with topline and operating profit projected to reach record highs for a fourth consecutive year.

• Growth expected from acute respiratory virus drugs, Xocova market share, new products, and M&A of Japan Tobacco's pharma business.

• R&D spending planned at record levels to accelerate global growth drivers.

• Revised STS2030 Phase 2 KPIs set FY2025 revenue target at ¥530.0B and EBITDA at ¥196.0B, reflecting a reset growth plan.