Meiji Reports H1 Net Profit of NT$1.209 Billion, Down Over 40% YoY Amid Acquisition Costs and FX Losses

Meiji (1795-TW) has released its latest financial report, showing a net profit of NT$1.209 billion for the first half of the year, a decline of over 40% compared to the same period last year. Earnings per share stood at NT$4.65. The company attributed the drop in profitability to higher financial costs following the acquisition of Alvogen, foreign exchange losses due to the strengthening US dollar, and one-time and non-recurring tax items.

In Q2, Meiji reported revenue of NT$8.809 billion, up 1.91% quarter-on-quarter and 85.57% year-on-year, marking a record high for any single quarter. Gross margin reached 53.67%, an increase of 2.93 percentage points from the previous quarter but down 5.16 points year-on-year. Operating margin was 26.48%, up 3.82 points QoQ and down 5.2 points YoY. Net profit came in at NT$642 million, up 13.23% QoQ but down 11.81% YoY, with EPS at NT$2.47.

For the first half of the year, total revenue reached NT$17.453 billion, up 84.16% YoY. Gross margin hit a record high of 52.22%, though down 8.01 percentage points YoY. Operating margin was 24.59%, down 9.36 points YoY. Net profit was NT$1.209 billion, down 44.1% YoY, with EPS at NT$4.65.

By regional revenue contribution, the US market benefited from the integration of Alvogen’s broad product portfolio, generating NT$10.732 billion in revenue, up 1.8 times YoY and accounting for 62% of total sales. B2B operations saw strong growth due to the global launch of Nintedanib in 30 markets including the US and Europe, as well as Enzalutamide’s approval in Canada and South Korea, driving revenue to NT$1.466 billion, up 2.45 times YoY and representing 8% of total revenue.

The Asia market was driven by growth in Southeast Asia, particularly strong momentum in Thailand and Vietnam, pushing revenue to NT$5.255 billion, up 1% YoY and accounting for 30% of total revenue.

General Manager Petar Vazharov noted that both Q2 and H1 revenues set new records, reflecting the successful integration of Alvogen and steady global business development. This year, the company achieved several milestones: the 505(b)(2) New Drug Application for cabozantinib (LP757) was accepted by the US FDA, the first generic Baloxavir Marboxil tablet received FDA approval in the US, and the acquisition of Sandoz’s Philippines business was completed, further expanding Meiji’s commercial footprint in Southeast Asia.