On July 30, 2024 Takeda (TOKYO:4502/NYSE:TAK) reported 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 (Press release, Takeda, JUL 30, 2024, View Source;Strong-Performance-by-Growth-Launch-Products-Advancements-in-Promising-Late-Stage-Pipeline [SID1234645184]).
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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."
FINANCIAL HIGHLIGHTS for FY2024 Q1 Ended June 30, 2024
(Billion yen, except percentages and per share amounts)
FY2024 Q1
FY2023 Q1
vs. PRIOR YEAR
(Actual % change)
Revenue
1,208.0
1,058.6
+14.1%
Operating Profit
166.3
168.6
-1.3%
Net Profit
95.2
89.4
+6.5%
EPS (Yen)
61
58
+5.6%
Operating Cash Flow
170.3
92.4
+84.3%
Adjusted Free Cash
Flow (Non-IFRS)
23.7
-207.5
N/A
Core (Non-IFRS)
(Billion yen, except percentages and per share amounts)
FY2024 Q1
FY2023 Q1
vs. PRIOR YEAR
(Actual % change)
vs. PRIOR YEAR
(CER % change)
Revenue
1,208.0
1,058.6
+14.1%
+2.1%
Operating Profit
382.3
326.3
+17.1%
+4.5%
Margin
31.6%
30.8%
+0.8pp
―
Net Profit
276.8
233.4
+18.6%
+3.9%
EPS (Yen)
176
150
+17.5%
+2.9%
FY2024 Outlook (unchanged from May 2024)
(Billion yen, except percentages and per share amounts)
FY2024
FORECAST
FY2024
MANAGEMENT GUIDANCE
Core Change at CER
(Non-IFRS)
Revenue
4,350.0
―
Core Revenue (Non-IFRS)
4,350.0
Flat to slightly declining
Operating Profit
225.0
―
Core Operating Profit (Non-IFRS)
1,000.0
Approximately 10% decline
Net Profit
58.0
―
EPS (Yen)
37
―
Core EPS (Yen) (Non-IFRS)
431
Mid-10s% decline
Adjusted Free Cash Flow (Non-IFRS)
350.0 – 450.0
Annual Dividend per Share (Yen)
196
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 View Source)