PHC (6523) investor relations material

Executive summary

• Q3 revenue reached JPY 269.3 billion, up 0.9% year-over-year, driven by strong BGM and Diabetes Management performance in Europe and the US, despite market contraction and offset by declines in Diagnostics & Life Sciences.

• Operating profit was JPY 17.1 billion, up 0.5% year-over-year, exceeding internal plans, but profit attributable to owners of parent dropped 90.9% to JPY 700 million due to significant FX losses of JPY 10.5 billion.

• Adjusted EBITDA was JPY 38.1 billion, down 0.4% year-over-year, reflecting one-time restructuring and other expenses.

• Full-year revenue and operating profit forecasts remain unchanged, with a conservative Q4 outlook due to market risks and inventory adjustments.

Financial highlights

• BGM business achieved significant profit growth from high-margin developed markets and cost improvements.

• Diabetes Management revenue increased 3.9% year-over-year, offsetting declines in Diagnostics & Life Sciences.

• FX losses recognized due to yen depreciation against the euro, with cumulative losses of JPY 10.5 billion in the first three quarters.

• EBITDA decreased by JPY 900 million year-over-year, mainly due to lower depreciation.

• ROE for the last 12 months was 2.3%, impacted by FX losses.

Outlook and guidance

• Full-year revenue forecast remains at JPY 363,100 million (+0.4% YoY), with operating profit expected at JPY 20,000 million (−11.4% YoY); profit attributable to owners of parent revised to JPY 2,000 million (−80.9% YoY) due to FX losses.

• Dividend forecast remains at JPY 21 per share (JPY 42 annually).

• Segment forecasts unchanged; conservative stance maintained due to market and FX risks.

• BGM sales decline targeted to a CAGR of -2.4% as per Value Creation Plan.