At its FY2026 earnings briefing, Sawai Group Holdings apologized for insufficient supply to meet increased demand following changes to the AG system. Revenue for the fiscal year ended March 2026 was ¥201.7 billion. The company said it aims to restore confidence by expanding production capacity.
At a briefing for individual investors on 16 September, Sawai GHD apologized to shareholders after supply failed to keep pace with market expectations for changes to the AG system. President Nakate (中手) explained why the company had been unable to produce enough to meet demand and indicated a policy of making every effort to restore confidence going forward.
Revenue for the fiscal year ended March 2026 was ¥201.7 billion, ¥6.7 billion below the ¥208.4 billion plan. Sales volume was 17.1 billion tablets, while the annual dividend was ¥55. Although the plan for the next fiscal year has not been disclosed, the company intends to maintain the dividend at ¥56. The president said supply constraints had been one factor behind the sluggish share price.
Against the backdrop of its 8 domestic plants, the company disclosed plans to expand annual production capacity to 22 billion tablets in fiscal 2026 by adding 1.5 billion tablets through the operation of a new building at the Second Kyushu Plant. It will also continue capital investment in Fukui and aims to reach 25 billion tablets in fiscal 2030.
Under the medium-term plan Beyond 2027, the company has set targets including consolidated revenue of ¥220 billion, operating profit of ¥31 billion and core operating profit of ¥33 billion. It also targets expanding in-house production capacity to 22 billion tablets, ROE of at least 10% and ROIC of at least 8%. For the new four-year plan, it is considering a broad range of options, including M&A and the construction of new plants.
Questions in the Q&A covered overseas expansion, the impact of drug price revisions and the treatment of biosimilars. The company outlined a policy of using market-share expansion in Japan as the foundation for growth, incorporating AI into new product development and considering initiatives for its centenary in 2029.