Sawai Group Holdings Co (4887) Q1 2027 earnings summary

Executive summary

• Revenue rose 4.3% year-over-year for Q1 FY2026 to JPY 51,622 million, but core operating profit fell 15.4% and operating profit dropped 29.0% due to higher costs and inventory losses.

• Profit attributable to owners of parent dropped 50.3% to JPY 2,429 million.

• The U.S. business was classified as a discontinued operation following the transfer of all related shares and interests in April 2024.

• The group is executing a medium-term plan focused on generics market growth, sustainability, and capital efficiency, with ongoing investments in production and digital healthcare.

• Sales and production volumes increased, with Q1 sales volume up 2.7% and production volume up 13.0% year-over-year.

Financial highlights

• Q1 FY2026 revenue: ¥51,622 million (+4.3% YoY); core operating profit: ¥6,425 million (−15.4% YoY); operating profit: ¥4,953 million (−29.0% YoY); profit attributable to owners: ¥2,429 million (−50.3% YoY).

• Gross profit margin decreased to 29.2% from 31.2% YoY.

• Basic earnings per share for the quarter were JPY 21.04, down from JPY 42.36 a year earlier.

• Cash and cash equivalents at end of Q1: ¥26.1 billion, down ¥2.93 billion from previous year.

• Cash flows from operating activities were negative JPY 427 million, mainly due to increased inventories and capital expenditures.

Outlook and guidance

• Full-year FY2026 revenue forecast: ¥208,400 million (+3.3% YoY); core operating profit forecast: ¥29,600 million (+19.5% YoY); profit attributable to owners forecast: ¥18,600 million (+78.2% YoY).

• Dividend forecast for FY2027 is JPY 56.00 per share.

• Production capacity expansion underway, targeting 25.0 billion tablets in FY2030.