Osaka, Japan:
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- Revenue Growth of 14.1% at Actual Exchange Rates (AER); +2.1% at Constant Exchange Rate (CER) Driven by Acceleration of Growth & Launch Products (+17.8% at CER)
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- Core Operating Profit Increase of 4.5% at CER Reflecting Phasing of R&D Investment and Other OPEX Reduction; Core Operating Profit Margin of 31.6% for the Quarter
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- No Change to Full Year Forecast or Management Guidance
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- Geographic Expansion with Approvals of LIVTENCITY® in Japan and FRUZAQLA® in EU
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- Late-Stage Pipeline Advances with Positive Phase 2b Data Presented for TAK-861 in Narcolepsy Type 1 and Mezagitamab for Immune Thrombocytopenia (ITP)
Takeda (TOKYO:4502/NYSE:TAK) today announced earnings results for the first quarter of fiscal year 2024 (period ended June 30, 2024), with continued momentum in its Growth & Launch Products driving Core growth at CER and more than offsetting revenue impact resulting from significant losses of exclusivity that occurred in the previous fiscal year.
The strong performance of Takeda’s Growth and Launch Product portfolio, which grew 17.8% at CER and represented 46% of total revenue, supports the company’s outlook for a return to sustainable revenue and profit growth in the near term and its ability to deliver life-transforming treatments and vaccines.
In addition, positive Phase 2b data presented in June for TAK-861 in narcolepsy type 1 and for mezagitamab (TAK-079) in immune thrombocytopenia (ITP), a rare immune-mediated bleeding disorder, underscore the promise of Takeda’s late-stage pipeline and the potential for strong revenue growth into the next decade and beyond.
Takeda chief financial officer, Milano Furuta, commented:
“Takeda has delivered a positive first quarter performance, with Growth and Launch Products driving overall revenue growth. Our results reflect strong commercial execution, with new launches, geographic expansion and lifecycle management enabling us to reach more patients and communities around the world.
“First quarter Core Operating Profit benefitted from this strong Growth and Launch Product performance, as well as from phasing of R&D investment, reduction in other OPEX and milder than anticipated VYVANSE® generic erosion in the U.S.
“There is no change to our full-year FY2024 outlook announced in May. We expect the impact of generic erosion to accelerate in coming quarters and the phasing of our R&D investment will focus on the second half of the year due to the planned initiation of multiple Phase 3 programs. Foreign exchange has been a tailwind for revenue performance in the first quarter and we see potential upside to our revenue forecast if current foreign exchange rates continue.”
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FINANCIAL HIGHLIGHTS for FY2024 Q1 Ended June 30, 2024 |
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(Billion yen, except percentages and per share amounts) |
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FY2024 Q1 |
FY2023 Q1 |
vs. PRIOR YEAR (Actual % change) |
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Revenue |
1,208.0 |
1,058.6 |
+14.1% |
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Operating Profit |
166.3 |
168.6 |
-1.3% |
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Net Profit |
95.2 |
89.4 |
+6.5% |
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EPS (Yen) |
61 |
58 |
+5.6% |
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Operating Cash Flow |
170.3 |
92.4 |
+84.3% |
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Adjusted Free Cash Flow (Non-IFRS) |
23.7 |
-207.5 |
N/A |
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Core (Non-IFRS) |
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(Billion yen, except percentages and per share amounts) |
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FY2024 Q1 |
FY2023 Q1 |
vs. PRIOR YEAR (Actual % change) |
vs. PRIOR YEAR (CER % change) |
|
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Revenue |
1,208.0 |
1,058.6 |
+14.1% |
+2.1% |
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Operating Profit |
382.3 |
326.3 |
+17.1% |
+4.5% |
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Margin |
31.6% |
30.8% |
+0.8pp |
― |
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Net Profit |
276.8 |
233.4 |
+18.6% |
+3.9% |
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EPS (Yen) |
176 |
150 |
+17.5% |
+2.9% |
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FY2024 Outlook (unchanged from May 2024) |
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(Billion yen, except percentages and per share amounts) |
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FY2024 FORECAST |
FY2024 MANAGEMENT GUIDANCE Core Change at CER (Non-IFRS) |
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Revenue |
4,350.0 |
― |
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Core Revenue (Non-IFRS) |
4,350.0 |
Flat to slightly declining |
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Operating Profit |
225.0 |
― |
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Core Operating Profit (Non-IFRS) |
1,000.0 |
Approximately 10% decline |
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Net Profit |
58.0 |
― |
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EPS (Yen) |
37 |
― |
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Core EPS (Yen) (Non-IFRS) |
431 |
Mid-10s% decline |
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Adjusted Free Cash Flow (Non-IFRS) |
350.0 – 450.0 |
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Annual Dividend per Share (Yen) |
196 |
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Additional Information About Takeda’s FY2024 Q1 Results
For more details about Takeda’s FY2024 Q1 results, commercial progress, pipeline updates and other financial information, including key assumptions in the FY2024 forecast and management guidance as well as definitions of non-IFRS measures, please refer to Takeda’s FY2024 Q1 investor presentation (available at https://www.takeda.com/investors/financial-results/quarterly-results/)
