Shionogi & Co., Ltd. (TSE: 4507), the Osaka-based major pharmaceutical company best known for its infectious-disease franchise — including the COVID-19 antiviral Xocova (ensitrelvir), the antibiotic cefiderocol and HIV royalties via the ViiV Healthcare joint venture — posted solid FY2026 results (year ended March 31, 2026) under IFRS. Consolidated revenue rose 14.0% year-on-year to ¥499.7 billion, operating profit gained 6.5% to ¥166.7 billion, profit before tax climbed 19.0% to ¥238.9 billion — boosted by financial income including equity-method and royalty gains — and profit attributable to owners of the parent climbed 20.4% to ¥205.2 billion.
Total comprehensive income more than doubled (+121.7%) to ¥379.7 billion. The operating margin came in at 33.4% and ROE attributable to owners reached 13.5%. Basic EPS was ¥241.11 (diluted ¥241.04) versus ¥200.36 a year earlier, with the prior-year figure retroactively adjusted for the 1-for-3 stock split effective October 1, 2024.
The Torii acquisition reshapes the balance sheet
The dominant story of the year is Shionogi's acquisition of Torii Pharmaceutical Co. (鳥居薬品), an allergy/dermatology and renal-care specialist known for its allergen-immunotherapy products, which will be newly consolidated from FY2027. The transaction left a heavy footprint on the cash-flow statement: operating cash flow was ¥213.6 billion, but investing activities used ¥506.1 billion and financing activities brought in ¥599.3 billion, reflecting the debt-funded purchase. Cash and equivalents ended the year at ¥711.4 billion.
The balance sheet expanded sharply as a result: total assets jumped to ¥2,576.9 billion from ¥1,535.3 billion, total equity rose to ¥1,686.2 billion (equity attributable to owners ¥1,685.2 billion), and book value per share was ¥1,980.14. With the balance sheet larger and carrying new debt, the ratio of owners' equity to total assets fell to 65.4% from 88.7% a year earlier — still robust, but a marked shift in capital structure. Shionogi operates a single reporting segment (pharmaceutical business), so segment disclosure is omitted.
Dividend
Shionogi set the FY2026 annual dividend at ¥71.00 per share (¥33.00 interim + ¥38.00 year-end), corresponding to a payout ratio of 29.4%.
FY27 outlook lifted by Torii consolidation
For FY2027 (ending March 2027), the company forecasts revenue of ¥700.0 billion (+40.1%), lifted by the Torii consolidation, operating profit of ¥220.0 billion (+32.0%), profit before tax of ¥220.0 billion (-7.9%, as the prior year carried large one-off financial gains), and profit attributable to owners of ¥210.0 billion (+2.4%), for forecast EPS of ¥246.79.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 499.7 | 438.3 | +14.0% |
| Operating profit (¥ billion) | 166.7 | 156.6 | +6.5% |
| Profit before tax (¥ billion) | 238.9 | 200.8 | +19.0% |
| Profit attrib. to owners (¥ billion) | 205.2 | 170.4 | +20.4% |
| EPS (¥, basic) | 241.11 | 200.36 | +20.3% |
| Operating margin | 33.4% | 35.7% | -2.3pp |
| ROE | 13.5% | — | — |
| Owners' equity ratio | 65.4% | 88.7% | -23.3pp |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.