PHC (6523) investor relations material

Executive summary

• FY 2025 revenue reached JPY 364.4 billion, up 0.8% year-on-year, with record highs in both revenue and operating profit, driven by strong BGM performance in Europe and the U.S. despite market contraction.

• Operating profit exceeded forecasts, rising 0.5% to JPY 22.7 billion, supported by high-margin BGM, cost reductions, and the CGM business transfer.

• Profit attributable to owners of parent fell 95.3% to JPY 500 million, mainly due to unrealized FX loss of JPY 10.5 billion and higher tax expenses.

• Dividend maintained at JPY 42 per share for the full year.

• Strategic restructuring, portfolio management, and sustainability initiatives, including CGM divestment, are expected to drive significant profit growth in FY 2026.

Financial highlights

• FY 2025 revenue was JPY 364.4 billion (+0.8% YoY); operating profit JPY 22.7 billion (+0.5% YoY); profit attributable to owners JPY 0.5 billion (-95.3% YoY).

• Adjusted EBITDA increased 3.8% to JPY 52.0 billion; ROIC stood at 3.9%.

• Dividend per share was JPY 42 (unchanged YoY), with a payout ratio of 1,077.3%.

• Net debt leverage ratio improved to 3.7x; gross debt reduced by JPY 20.7 billion; refinancing enhanced financial flexibility.

• Operating cash flow was JPY 42.5 billion, maintaining stability for three consecutive years.

Outlook and guidance

• FY 2026 revenue forecast is JPY 359.7 billion, down 1.3% YoY due to FX and CGM transfer, but up 1.2% excluding FX.

• Operating profit target is JPY 27 billion (+19.0% YoY), with a margin improvement to 7.5%.

• Profit attributable to owners of parent projected at JPY 15.4 billion, EPS at JPY 122.

• Dividend expected to remain at JPY 42 per share.

• Segment reorganization and business unit renaming will take effect in FY2027.