FY2027-Q1 was led by profit growth; FY2027-H1 will test whether full-year revenue and earnings growth is sustainable

In FY2027-Q1, revenue was ¥68,957 million, up 0.3% year on year; operating profit was ¥8,116 million, up 7.2%; and quarterly profit attributable to owners of the parent was ¥7,194 million, up 22.4%. While revenue growth remained modest, operating profit and net profit grew faster, indicating some improvement in profitability.

The full-year forecasts are revenue of ¥311.0 billion, operating profit of ¥49.5 billion and profit attributable to owners of the parent of ¥40.0 billion. On a simple quarterly run-rate basis, progress was 22.2%, 16.4% and 18.0%, respectively. Although quarterly seasonality must be taken into account, the key factors in assessing the validity of the full-year forecasts in FY2027-H1 will be how much revenue accumulates in the first-half total and whether operating profit growth is maintained or accelerates from the 7.2% recorded in Q1.

In the previous fiscal year, FY2026, revenue was ¥291,624 million, down 2.8% year on year, while operating profit was ¥47,797 million, up 2.0%. Against a backdrop of securing profit despite the impact of domestic drug prices and generic products, the company plans revenue growth of 6.6% and operating profit growth of 3.6% this fiscal year. In FY2027-H1, it will be necessary to determine whether revenue growth is driven merely by foreign-exchange movements or temporary factors, or by higher volumes and an improved product mix for new and core products.

Santen Pharmaceutical reports a single segment, so progress cannot be assessed using segment profit. Accordingly, the next results release should be assessed using year-on-year changes in revenue, operating profit, core-basis profit, revenue by region, revenue by major product, selling, general and administrative expenses, and research and development expenses. Particular attention will be paid to whether the full-year forecast is revised and to the company’s explanation of progress in revenue and operating profit at the half-year stage.