Supplementary Materials for Q3 FY March 2026 Financial Results

Overview of Performance

In the third quarter of the fiscal year ending March 2026, Shionogi & Co., Ltd. reported revenue of 360.7 billion yen (8.1% YoY increase), operating income of 148.7 billion yen (15.1% YoY increase), and quarterly profit of 158.2 billion yen (18.7% YoY increase). The revenue growth was primarily driven by increased domestic prescription pharmaceutical sales (+7.8 billion yen), growth in overseas subsidiaries/exports (+5.6 billion yen), and increased royalty income (+14.5 billion yen). The rise in operating income resulted from improved profitability that offset increases in selling, general and administrative expenses (including sales-related expenses in the U.S. business and consolidation of Torii Pharmaceutical). Quarterly profit also saw significant year-over-year growth.

Segment Performance and Financial Position

Domestic prescription pharmaceuticals performed well at 86.7 billion yen (9.8% YoY increase), overseas subsidiaries/exports at 48.9 billion yen (12.8% YoY increase), and royalty income at 201.3 billion yen (7.8% YoY increase). The consolidation of Torii Pharmaceutical as a subsidiary and the absorption-type split of JT Pharmaceutical business led to increases in goodwill and intangible assets, resulting in total assets of 1.728 trillion yen, up 192.6 billion yen from the end of the previous fiscal year. Liabilities also increased, but equity attributable to owners of the parent rose to 1.5142 trillion yen. Capital expenditures increased 17.3% YoY to 11.2 billion yen, with research and development expenses also trending upward to 82.3 billion yen.