Sawai Group Holdings (4887): FY2025 Results Summary — Operating Profit Up 292.5% on Rebound from Litigation Provision

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Sawai Group Holdings Co., Ltd. (4887, TSE Prime) announced its consolidated results for FY2025 (the fiscal year ended March 31, 2026) on May 15, 2026. Revenue increased 6.7% year on year to 201,676 million yen, supported by higher sales of products listed in FY2024 and FY2025 and by increased sales of existing products driven by items eligible for the selective treatment system introduced in October 2024. Core operating profit decreased 3.6% to 24,778 million yen, while operating profit rose 292.5% to 15,894 million yen, reflecting a rebound from the provision for loss on litigation recorded in FY2024 Q4, despite litigation settlement expenses incurred in FY2025 Q2.

Consolidated Results (Full-Year Actual)

The results below are prepared under IFRS. Revenue through profit before tax show the Japan business as continuing operations, while profit attributable to owners of the Company shows the combined amount of continuing and discontinued operations. Gross profit rose 4.3% to 58,793 million yen, although the GP margin declined due to NHI drug price revisions and higher labor costs associated with increased headcount. The company recorded a provision for loss on litigation of 16,757 million yen in FY2024 Q4 and litigation settlement expenses of 4,000 million yen in FY2025 Q2. Profit attributable to owners of the Company fell 12.8% to 10,438 million yen. Against the revised full-year forecasts, achievement was 99.6% for revenue and 89.8% for core operating profit.

Item (million yen)	FY2024 Results	FY2025 Results	YoY	Revised Full-Year Forecasts	Achievement
Revenue	189,024	201,676	+6.7%	202,500	99.6%
Gross profit	56,352	58,793	+4.3%	61,500	95.6%
Core operating profit	25,703	24,778	(3.6)%	27,600	89.8%
Operating profit	4,050	15,894	+292.5%	20,900	76.1%
Profit before tax	3,161	14,273	+351.5%	19,800	72.1%
Profit attributable to owners of the Company	11,969	10,438	(12.8)%	14,000	74.6%
Basic earnings per share (EPS, yen)	96.54	90.39	(6.4)%	121.25	74.6%

Revenue Breakdown and Volumes

Sales of existing products increased in the first half due to the selective treatment system that started in October 2024. In the second half, despite the lapping of this regulatory tailwind, sales grew supported by products newly listed in December 2025, led by dapagliflozin. By product listed year, revenue from existing products and others was 198,379 million yen, and products listed in FY2025 contributed 3,297 million yen. Sales volume for FY2025 was 17.1 billion tablets, against the annual plan of 16.8 billion tablets (progress rate 101.8%). Production volume, including outsourced production, was 16.6 billion tablets, against the annual plan of 18.3 billion tablets (progress rate 90.5%).

Revenue by Product Group (million yen)	Full Year	H1 YoY %	H1 YoY Amount	H2 YoY %	H2 YoY Amount
Existing products, etc.	198,379	+12.5%	+10,972	(1.6)%	(1,617)
Listed in FY2025	3,297	—	+1	—	+3,296
Total	201,676	+12.5%	+10,973	+1.7%	+1,678

Volume (billion tablets)	FY2024 Results	FY2025 Results	YoY Change	FY2026 Forecasts	YoY Change
Sales volume	16.1	17.1	+6.2%	17.6	+2.9%
Production volume	16.6	16.6	+0.0%	18.0	+8.4%

FY2026 Forecast

For FY2026 (ending March 31, 2027), the company forecasts revenue of 208,400 million yen (+3.3% YoY), core operating profit of 29,600 million yen (+19.5%), and operating profit of 27,200 million yen (+71.1%). Sales of FY2026 new products are expected to exceed those of FY2025 new products, and the company forecasts an improvement in gross profit margin driven by an optimized product mix. The increase in operating profit reflects the absence of the 4,000 million yen litigation settlement fee recorded in Q2 FY2025. While sales are expected to grow, driven primarily by new products, they are projected to fall short of the Medium-Term Management Plan target of 220 billion yen due to production constraints. Six ingredients and nine items are scheduled for NHI listing in June, and new product sales are planned to be 6.3 billion yen in FY2026.

Item (million yen)	FY2025 Full-Year Results	FY2026 Full-Year Forecasts	YoY Change Rate
Revenue	201,676	208,400	+3.3%
Gross profit	58,793	65,500	+11.4%
Core operating profit	24,778	29,600	+19.5%
Operating profit	15,894	27,200	+71.1%
Profit before tax	14,273	26,000	+82.2%
Profit attributable to owners of the Company	10,438	18,600	+78.2%
Basic earnings per share (EPS, yen)	90.39	161.09	+78.2%

Shareholder Returns

The annual dividend for FY2025 is planned at 55 yen per share (based on the price after the stock split on October 1, 2024). The annual dividend for FY2026 is projected to be 56 yen per share, a 1 yen increase from the previous year. The company states it will repurchase treasury shares flexibly based on factors such as free cash flow and market trends, as part of its measures to improve capital efficiency and enhance shareholder returns.

Production Capacity and Topics

The company is targeting production of 18.0 billion tablets in FY2026, with Step 2 of the new wing at the Daini Kyushu Factory scheduled to launch in December 2026. It is proceeding with the transfer of product manufacturing to the new wing of the Daini Kyushu Factory and Trust Pharmatech, and will continue to consider additional investments, including construction of its own factories and alliances with other companies, to achieve in-house production capacity of 25.0 billion tablets in FY2030. On supply stability, the number of items with restricted or suspended shipment stood at 109 items, with regular shipment for 640 items, as of March 31. In new businesses, the digital therapeutic to reduce alcohol consumption, HAUDY, launched sales on September 1, 2025, and Phase 3 clinical trials of a DTx for NASH (developed jointly with CureApp, Inc.) completed final patient enrollment in June 2025.

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