On July 27, 2017 Takeda reported 1st Quarter FY2017 results (Press release, Takeda, JUL 27, 2017, View Source [SID1234519935]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
Underlying Revenue grew +6.6% with growth across all regions (U.S. +13.5%, Japan +1.6%, Europe & Canada +4.6%, Emerging Markets +6.0%). Takeda’s Growth Drivers (GI, Oncology, CNS and Emerging Markets) maintained their strong momentum to deliver growth of +14.7%.
– GI (Gastroenterology) +23.2%, led by continued success of ENTYVIO and TAKECAB
– Oncology +12.2%, driven by NINLARO, ADCETRIS, and ICLUSIG and ALUNBRIGTM
– CNS +29.8%, spearheaded by TRINTELLIX in the U.S.
– Emerging Markets +6.0%, with double-digit growth in the key markets of Russia and Brazil
Reported revenue grew +3.3%, with the positive contribution from Takeda’s Growth Drivers offsetting the impact of unfavorable currencies (-0.4pp) and divestitures (-2.9pp).
Double-digit EPS growth driven by Revenue growth and significant margin gains
Underlying Core Earnings grew +29.4%, with a margin increase of 350bps driven by an improvement in Gross Margin and continued OPEX discipline.
Reported operating profit was up +27.5%, driven by strong underlying growth. Takeda realized a one-time gain in Q1 FY2017 of 106.3 billion yen from the sale of shares of Wako Pure Chemical Industries, Ltd. This was similar in size to the Teva JV transaction gain of 102.9 billion yen in Q1 FY2016, and therefore the impact on our year-on-year growth rate was minimal.
Underlying Core EPS was up +35.7%, reflecting strong Core Earnings growth and a phasing benefit from tax rate. Reported EPS increased +45.8% to 186 yen per share.
Significant progress on Cash Flow and reduced net leverage
Operating Free Cash Flow increased +50.3% to 55.5 billion yen.
Sale of non-core assets generated an additional 128 billion yen of cash.
Net Debt / EBITDA drops from 2.7x at end of FY2016 to 2.1x
James Kehoe, Chief Financial Officer of Takeda, commented:
"Takeda delivered a strong start to the year on both revenue and profitability, driven by the continued strength of our Growth Drivers and good progress on our cost management initiatives. We are executing well against our key priorities of growing the portfolio, rebuilding the pipeline, and boosting profitability, and the first quarter results confirm our confidence in the full-year outlook for double-digit EPS growth."
Reported Results for Q1 (April – June) FY2017
(billion yen)
FY2016 Q1
FY2017 Q1
Growth
Reported
Underlying2
Revenue
434.0
448.2
+3.3%
+6.6%
Core Earnings1
77.1
106.3
+37.9%
+29.4%
Operating Profit
152.9
195.0
+27.5%
–
Net Profit3
99.5
144.8
+45.5%
+35.7%
EPS
127 yen
186 yen
+45.8%
–
Core EPS
71 yen
103 yen
+44.5%
+35.7%
1 Core Earnings is calculated by taking reported Gross Profit and deducting SG&A expenses and R&D expenses. In addition, certain other items that are non-core in nature and significant in value may also be adjusted.
2 Underlying growth compares two periods of financial results on a common basis, showing the ongoing performance of the business excluding the impact of foreign exchange and divestitures from both periods.
3 Attributable to the owners of the company.
Takeda maintains its Management Guidance and Reported Forecast for FY2017, projecting double-digit EPS growth.
FY2017 Management Guidance
Guidance (growth %)
Underlying Revenue
Low single digit
Underlying Core Earnings
Mid-to-high teen
Underlying Core EPS
Low-to-mid teen
Annual dividend per share
180 yen
FY2017 Reported Forecast
(billion yen)
FY2016 Results
FY2017 Forecast
% change
Revenue
1,732.1
1,680.0
-3.0%
Core Earnings
245.1
257.5
+5.0%
Operating Profit
155.9
180.0
+15.5%
Net Profit
114.9
138.0
+20.1%
EPS
147 yen
177 yen
+20.1%
Exchange Rate
(annual average)
1 US$= 109 yen
1 euro= 120 yen
1 US$= 110 yen
1 euro= 120 yen
For more details on Takeda’s FY2017 first quarter results and other financial information please visit View Source