On July 27, 2023 Takeda (TOKYO:4502/NYSE:TAK) reported strong financial results for the first quarter of fiscal year 2023 (period ended June 30, 2023) (Press release, Takeda, JUL 27, 2023, View Source [SID1234633475]).
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Takeda chief financial officer, Costa Saroukos, commented:
"Our Growth & Launch Products continued to drive revenue growth in the first quarter of FY2023, contributing to a core operating profit margin of 30.8%. While we still anticipate headwinds affecting our business this fiscal year, largely due to generic competition, we remain confident of a return to growth in the near-term.
"Our growing product portfolio and innovative pipeline demonstrate the value of our strategic investments to strengthen our long-term competitiveness and enable our vision of discovering and delivering life-transforming treatments."
FINANCIAL HIGHLIGHTS
Results for FY2023 Q1 Ended June 30, 2023
(Billion yen,
except
percentages and
per share amounts)
REPORTED
CORE(c)
(Non-IFRS)(a)
FY2023 Q1
vs. PRIOR YEAR
(AER % change(d))
FY2023 Q1
vs. PRIOR YEAR
(AER % change(d))
vs. PRIOR YEAR
(CER % change(d))
Revenue
1,058.6
+8.9%
1,058.6
+8.9%
+3.7%
Operating Profit
168.6
+12.0%
326.3
+2.3%
-2.0%
Margin
15.9%
+0.4pp
30.8%
-2.0pp
Net Profit
89.4
-14.9%
233.4
+4.1%
+0.9%
EPS (yen)
58
-15.4%
150
+3.5%
+0.3%
Operating Cash Flow
92.4
+9.7%
Free Cash Flow
(Non-IFRS)(a)(b)
-207.5
N/A
(a) Further information regarding certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website at 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) Actual Exchange Rate is presented in "AER" (which is presented in accordance with IFRS). Constant Exchange Rate (CER) 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 (unchanged from May 2023)
(Billion yen)
FY2023
FORECAST
FY2023
MANAGEMENT GUIDANCE
Core Change at CER
(Non-IFRS)
Revenue
3,840.0
Core Revenue
3,840.0
Low-single-digit % decline
Reported Operating Profit
349.0
Core Operating Profit
1,015.0
Low-10s % decline
Reported Net Profit
142.0
Reported EPS (Yen)
91
Core EPS (Yen)
434
Low-20s % decline
Free Cash Flow*
400.0 – 500.0
Annual Dividend per Share (Yen)
188
*Free Cash Flow guidance reflects expenditures related to the acquisition of TAK-279 from Nimbus (USD 1.0 billion) and in-licensing of fruquintinib from HUTCHMED (USD 400 million). In FY2022, Takeda paid USD 3.0 billion out of USD 4.0 billion upfront payment related to the acquisition of TAK-279. For the remaining USD 1.0 billion payment, Takeda paid USD 0.9 billion in April 2023, with USD 0.1 billion to be paid in August 2023.
Additional Information About Takeda’s Q1 Earnings Results
For more details on Takeda’s FY2023 Q1 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