On January 31, 2024 Takeda (TOKYO:4502/NYSE:TAK) reported financial results for the third quarter of fiscal year 2023 (period ended December 31, 2023) (Press release, Takeda, JAN 31, 2024, View Source [SID1234639760]). With year-to-date strong momentum in its Growth & Launch Products (+12.7% at CER) offsetting the significant revenue impact of generic entrants, Takeda remains on track towards its full-year Management Guidance.
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Takeda chief financial officer, Costa Saroukos, commented:
"In FY2023 Q3 we made further progress in our vision to discover and deliver life-transforming treatments, receiving two new U.S. FDA approvals and broadening the reach of our existing portfolio with multiple life-cycle management approvals for our Growth & Launch Products.
"We remain on track towards our full-year Management Guidance at CER, reflecting significant generic impact, lower coronavirus vaccines revenue and investment in R&D and data, digital and technology to secure our long-term competitiveness, as well as continued strong momentum in our Growth & Launch Products.
"We continue to improve our debt profile with 100% of our debt now at fixed interest rates averaging 1.6%, and our financial foundation remains strong as we enter the fourth quarter of FY2023."
FINANCIAL HIGHLIGHTS
Results for FY2023 Q3 YTD Ended December 31, 2023
(Billion yen,
except
percentages and
per share
amounts)
REPORTED
CORE(c)
(Non-IFRS)(a)
FY2023 Q3 YTD
vs. PRIOR YEAR
(Actual % change)
FY2023 Q3 YTD
vs. PRIOR YEAR
(Actual % change)
vs. PRIOR YEAR
(CER % change(d))
Revenue
3,212.9
+4.6%
3,212.9
+4.6%
+0.0%
Operating Profit
224.1
-44.2%
865.6
-9.3%
-12.7%
Margin
7.0%
-6.1pp
26.9%
-4.1pp
Net Profit
147.1
-48.6%
643.6
-9.0%
-12.2%
EPS (yen)
94
-48.9%
412
-9.7%
-12.9%
Operating Cash Flow
437.8
-36.0%
Free Cash Flow
(Non-IFRS)(a)(b)
36.3
-93.8%
(a) Further information regarding certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website at View Source." target="_blank" title="View Source." rel="nofollow">View Source
(b) We define Free Cash Flow as cash flows from operating activities, subtracting acquisition of property, plant and equipment ("PP&E"), intangible assets and investments as well as removing any other cash that is not available to Takeda’s immediate or general business use, and adding proceeds from sales of PP&E, as well as from sales of investments and businesses, net of cash and cash equivalents divested.
(c) Core results adjust our reported results calculated and presented pursuant to IFRS to exclude the effect of items unrelated to Takeda’s core operations, such as, to the extent applicable for each line item, non-recurring items, purchase accounting effects and transaction related costs, as well as amortization and impairment of intangible assets and other operating income and expenses.
(d) CER (Constant Exchange Rate) change eliminates the effect of foreign exchange rates from year-over-year comparisons by translating Reported or Core results for the current period using corresponding exchange rates in the same period of the previous fiscal year.
FY2023 OUTLOOK
On track towards full-year FY2023 Management Guidance
(Billion yen except per share amounts)
FY2023
FORECAST
(Unchanged from
October 2023)
FY2023
MANAGEMENT GUIDANCE
Core Change at CER (Non-IFRS)
(Unchanged from May 2023)
Revenue
3,980.0
Core Revenue
3,980.0
Low-single-digit % decline
Reported Operating Profit
225.0
Core Operating Profit
1,015.0
Low-10s % decline
Reported Net Profit
93.0
Reported EPS (yen)
59
Core EPS (yen)
447
Low-20s % decline
Free Cash Flow*
400.0-500.0
Annual Dividend per Share (yen)
188
*Free Cash Flow forecast reflects expenditures related to the acquisition of TAK-279 from Nimbus and in-licensing of FRUZAQLA (fruquintinib) from HUTCHMED.
Additional Information About Takeda’s FY2023 Q3 Earnings Results
For more details on Takeda’s FY2023 Q3 results and other financial information, including key assumptions in FY2023 forecast and management guidance, please visit: View Source
For more information on Takeda’s commercial progress across the five key business areas and pipeline updates, please visit: View Source