Takeda Announces Strong First Half FY2024 Results and Raises Full Year Outlook
Takeda Pharmaceutical Company Limited
- Revenue Growth of +13.4% at Actual Exchange Rates (AER); +5.0% at Constant Exchange Rate (CER) Driven by Continued Advancement of Growth & Launch Products (+18.7% at CER)
- Core Operating Profit Increase of +12.9% at CER; Core Operating Profit Margin of 30.2%
- Double-Digit Revenue Growth of ENTYVIO® at CER Driven by Launch of ENTYVIO® Pen in the U.S.
- Geographical Expansion with Approvals of ADZYNMA® in EU and FRUZAQLA® in Japan
- Late-Stage Pipeline Advances with the Start of Phase 3 Trial of TAK-861 in Narcolepsy Type 1
- Company will Hold R&D Day for Investors and Media on December 12 (Eastern) / 13 (Japan)
OSAKA, Japan--BUSINESS WIRE--
Takeda (TOKYO:4502/NYSE:TAK) today announced earnings results for the first half of fiscal year 2024 (six months ended September 30, 2024), with continued momentum in its Growth & Launch Products driving growth. The company has upgraded its full year forecasts and Management Guidance to reflect stronger than anticipated first-half performance (including milder than anticipated generic erosion of VYVANSE® in the U.S.) and revised foreign exchange assumptions.
The strong performance of Takeda’s Growth and Launch Product portfolio, which grew 18.7% at CER and represented 47% of total revenue, reinforces the company’s confidence in returning to sustainable revenue and profit growth.
The initiation of TAK-861’s Phase 3 trial in August for narcolepsy type 1 demonstrates Takeda’s strength in advancing its promising late-stage pipeline to develop life-transforming treatments. More details on the company’s R&D strategy and pipeline updates, including commercial prospects, will be presented at Takeda’s R&D Day taking place on December 12 (EST) / 13 (JST), 2024.
Takeda chief executive officer, Christophe Weber, commented:
“In the first half of fiscal year 2024, we made further progress in advancing our pipeline, including the initiation of our TAK-861 Phase 3 trial for narcolepsy type 1. Our late-stage programs continue to advance, with several in Phase 3 development this fiscal year, and have the potential to transform the lives of patients around the world.
“Our commercial execution has positioned us for sustainable growth despite a dynamic and competitive environment. Bolstered by the continued strong performance of our Growth & Launch Products, including a return to double-digit growth of ENTYVIO®, lifecycle management approvals and successful launches of new products such as FRUZAQLA® in our oncology portfolio, our business and long-term outlook remains strong.”
Takeda chief financial officer, Milano Furuta, commented:
“We are upgrading our FY2024 full year outlook, reflecting stronger than anticipated first half performance as well as updated foreign exchange assumptions for the year. Full-year guidance reflects our intention to increase R&D investment in the second half to support our late-stage pipeline.
“We remain confident in delivering sustainable growth with our Growth & Launch Products and promising late-stage pipeline. Implementation of our multi-year program to improve our efficiency through organizational agility, procurement savings and data, digital and technology is progressing as planned. We continue to drive these initiatives to improve our Core Operating Profit Margin from FY2025 towards our low-to-mid 30s% target.”
FINANCIAL HIGHLIGHTS for FY2024 H1 Ended September 30, 2024 | |||
(Billion yen, except percentages and per share amounts) | |||
| FY2024 H1 | FY2023 H1 | vs. PRIOR YEAR (Actual % change) |
Revenue | 2,384.0 | 2,101.7 | +13.4% |
Operating Profit | 350.6 | 119.2 | +194.0% |
Net Profit | 187.3 | 41.4 | +352.8% |
EPS (Yen) | 119 | 27 | +348.4% |
Operating Cash Flow | 451.3 | 291.3 | +54.9% |
Adjusted Free Cash Flow (Non-IFRS) | 247.5 | -71.1 | N/A |
Core (Non-IFRS) | ||||
(Billion yen, except percentages and per share amounts) | ||||
| FY2024 H1 | FY2023 H1 | vs. PRIOR YEAR (Actual % change) | vs. PRIOR YEAR (CER % change) |
Revenue | 2,384.0 | 2,101.7 | +13.4% | +5.0% |
Operating Profit | 719.9 | 588.8 | +22.3% | +12.9% |
Margin | 30.2% | 28.0% | +2.2pp | ― |
Net Profit | 489.1 | 407.7 | +20.0% | +8.9% |
EPS (Yen) | 310 | 261 | +18.8% | +7.9% |
FY2024 Outlook
Updating Full Year Management Guidance, and Reported and Core Forecasts
Takeda’s FY2024 Management Guidance has been upgraded, primarily due to milder than anticipated generic erosion of VYVANSE and strong business momentum. Furthermore, also reflecting expected foreign exchange rates during the remaining second half of FY2024, Takeda’s FY2024 reported and Core forecasts have been revised from the original forecast.
FY2024 Management Guidance Core Change at CER (Non-IFRS) | ||
FY2024 ORIGINAL MANAGEMENT GUIDANCE
| FY2024 REVISED MANAGEMENT GUIDANCE
| |
Core Revenue | Flat to slightly declining | Flat to slightly increasing |
Core Operating Profit | Approximately 10% decline | Mid-single-digit % decline |
Core EPS (Yen) | Mid-10s% decline | Approx 10% decline |
FY2024 Reported and Core Forecasts
| ||
FY2024
(May 2024) | FY2024 REVISED FORECAST (October 2024) | |
Revenue | 4,350.0 | 4,480.0 |
Core Revenue (Non-IFRS) | 4,350.0 | 4,480.0 |
Operating Profit | 225.0 | 265.0 |
Core Operating Profit (Non-IFRS) | 1,000.0 | 1,050.0 |
Net Profit | 58.0 | 68.0 |
EPS (Yen) | 37 | 43 |
Core EPS (Yen) (Non-IFRS) | 431 | 456 |
Adjusted Free Cash Flow (Non-IFRS) | 350.0 - 450.0 | 400.0-500.0 |
Annual Dividend per Share (Yen) | 196 | 196 |
Additional Information About Takeda’s FY2024 H1 Results
For more details about Takeda’s FY2024 H1 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 Q2 investor presentation (available at https://www.takeda.com/investors/financial-results/quarterly-results/)
About Takeda
Takeda is focused on creating better health for people and a brighter future for the world. We aim to discover and deliver life-transforming treatments in our core therapeutic and business areas, including gastrointestinal and inflammation, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines. Together with our partners, we aim to improve the patient experience and advance a new frontier of treatment options through our dynamic and diverse pipeline. As a leading values-based, R&D-driven biopharmaceutical company headquartered in Japan, we are guided by our commitment to patients, our people and the planet. Our employees in approximately 80 countries and regions are driven by our purpose and are grounded in the values that have defined us for more than two centuries. For more information, visit www.takeda.com.
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Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
This press release and materials distributed in connection with this press release include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit for the year attributable to owners of the Company, Core EPS, Constant Exchange Rate (“CER”) change, Net Debt, Adjusted Net Debt, EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow. Takeda’s management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this press release. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS (which we sometimes refer to as “reported” measures). Investors are encouraged to review the definitions and reconciliations of non-IFRS measures to their most directly comparable IFRS measures, which are in the Financial Appendix appearing at the end of our FY2024 Q2 investor presentation (available at www.takeda.com/investors). Beginning in the quarter ended June 30, 2024, Takeda (i) changed its methodology for CER adjustments to results of subsidiaries in hyperinflation countries to present those results in a manner consistent with IAS 29, Financial Reporting in Hyperinflation Economies, (ii) re-named Free Cash Flow as previously calculated as “Adjusted Free Cash Flow” (with “Free Cash Flow” to be reported as Operating Cash Flow less Property, Plant and Equipment), and (iii) re-named Net Debt as previously calculated as “Adjusted Net Debt” (with “Net Debt” to be reported as the book value of bonds and loans less cash and cash equivalents).
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Please refer to slide 5 of Takeda’s FY2024 Q2 investor presentation (available at https://www.takeda.com/investors/financial-results/quarterly-results/) for the definition of Growth & Launch Products.
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Contact details:
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Christopher O’Reilly
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+81 (0) 90-6481-3412
Media Relations
Brendan Jennings
Brendan.jennings@takeda.com
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Media_relations@takeda.com
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