- Revenue Growth of +5.9% at Actual Exchange Rates (AER);
+1.5% at Constant Exchange Rate (CER) Driven by Growth & Launch
Products
- Core Operating Profit Change of -13.3% at CER Reflecting
Generic Impact and Investment in R&D and Data, Digital &
Technology
- Three New Molecular Entity (NME) Approvals from U.S. FDA in
FY2023
- Up to Six NMEs with Significant Revenue Potential in Phase 3
Development in FY2024
- Committed to 100-250 Basis Points Core Operating Profit
Margin Improvement Each Year from FY2025 Towards Low-to-Mid
30s% Target
Takeda (TOKYO:4502/NYSE:TAK) today announced financial results
for fiscal year 2023 (period ended March 31, 2024), delivering its
Management Guidance for Core Operating Profit and exceeding its
Management Guidance for Revenue and Core EPS performance at CER, in
a year of significant loss-of-exclusivity impact.
Takeda is committed to growing its business through continued
advancement of its Growth & Launch Product portfolio and
progression of six promising programs through its late-stage
pipeline, while maintaining cost discipline and achieving its Core
Operating Profit margin improvement target. Beginning in FY2024,
the company will implement a significant, multi-year efficiency
program focused on organizational agility, procurement saving, and
capitalizing on its ongoing investment in data, digital and
technology, including AI.
Takeda president and chief executive officer, Christophe
Weber, commented: “With three new therapy approvals from the
U.S. FDA in FY2023, Takeda’s performance demonstrates the potential
of our pipeline and our ability to bring our innovative medicines
to patients. In an otherwise challenging year, our Core financial
results reinforce my confidence in our resilience and our ability
to navigate the short-term impact of generic competition to return
to sustainable revenue and profit growth beginning in FY2025.
“As we look ahead to FY2024, we anticipate having up to six
programs in Phase 3 development. Advancing these promising
potential therapies through late-stage development while moderately
increasing our biopharma R&D investment is requiring rigorous
prioritization, efficiencies and organizational agility.
“Furthermore, beginning in FY2024 we are implementing a
multi-year program to improve our efficiency through organizational
agility, capital savings and leveraging our capabilities in data,
digital and technology. In addition to revenue growth from our
Growth & Launch Products and significant decline in generic
exposure, we expect this program will help drive Core Operating
Margin improvement of 100 – 250 basis points per year from
FY2025.”
Takeda chief financial officer, Milano Furuta, commented:
“Takeda delivered or exceeded full year Management Guidance for
Revenue, Core Operating Profit and Core EPS performance at CER,
driven by continued strong performance in our Growth & Launch
Product portfolio—with Core Operating Profit performance impacted
by generic entrants for high-margin products and strategic
investments in R&D and our data, digital and technology
capabilities to ensure our long-term competitiveness.
“In alignment with our progressive dividend policy and
reflecting confidence in our long-term growth outlook and cash flow
generation, we are proposing a dividend increase for a second
consecutive year from 188 yen per share to 196 yen per share.
“While we anticipate revenue to remain flat or decline slightly
at CER in FY2024, we expect double-digit CER revenue growth from
our Growth & Launch Products, accounting for approximately 50%
of our total revenue and helping to offset remaining impact from
generic competition. With no further significant loss of
exclusivity impact expected from FY2025 until the early 2030s, we
remain focused on returning to sustainable revenue and profit
growth from FY2025 onwards and are confident in our long-term
growth trajectory.”
FINANCIAL HIGHLIGHTS
Results for FY2023 Ended March 31,
2024
(Billion yen, except percentages and per
share amounts)
REPORTED
CORE
(Non-IFRS)
FY2023
vs. PRIOR YEAR
(Actual % change)
FY2023
vs. PRIOR YEAR
(Actual % change)
vs. PRIOR YEAR
(CER % change)
Revenue
4,263.8
+5.9%
4,263.8
+5.9%
+1.5%
Operating Profit
214.1
-56.4%
1,054.9
-11.2%
-13.3%
Margin
5.0%
-7.2pp
24.7%
-4.8pp
Net Profit
144.1
-54.6%
756.8
-12.6%
-15.0%
EPS (yen)
92
-54.9%
484
-13.4%
-15.7%
Operating Cash Flow
716.3
-26.7%
Free Cash Flow (Non-IFRS)
283.4
-36.5%
FY2024 Outlook
(Billion yen)
FY2024 FORECAST
FY2024 MANAGEMENT
GUIDANCE Core Change at CER (Non-IFRS)
Revenue
4,350.0
Core Revenue
4,350.0
Flat to slightly declining
Reported Operating Profit
225.0
Core Operating Profit
1,000.0
Approximately 10% decline
Reported Net Profit
58.0
Reported EPS (Yen)
37
Core EPS (Yen)
431
Mid-10s% decline
Adjusted Free Cash Flow*
350.0 - 450.0
Annual Dividend per Share (Yen)
196
*From FY2024, we will re-name Free Cash Flow as currently
calculated as “Adjusted Free Cash Flow” (with “Free Cash Flow” to
be reported as Operating Cash Flow less Property, Plant and
Equipment).
For more details on Takeda’s FY2023 results and other financial
information including key assumptions in FY2024 forecast and
management guidance and definitions of non-IFRS financial measures,
please refer to Takeda’s FY2023 Q4 investor presentation (available
at: https://www.takeda.com/investors/financial-results/
quarterly-results/)
Other Notable Progress
- As of the end of FY2023, Takeda has increased to 46% female or
non-binary representation across its senior most leaders (up 15%
from FY22). This increase represents strong progress towards
achieving its aspiration to have 50% representation by female or
non-binary leaders among its senior-most leaders by the end of
fiscal year 2027. This data includes permanent and fixed-term
employees.
Additional Information About Takeda’s FY2023 Earnings
Results For more details on Takeda’s FY2023 results and other
financial information, including key assumptions in FY2024 forecast
and management guidance, please visit:
https://www.takeda.com/investors/financial-results/quarterly-results/
For more information on Takeda’s commercial progress across the
six key business areas and pipeline updates, please visit:
https://takeda.info/qr2023_q4_qfr_en
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.
Important Notice For the purposes of this notice, “press
release” means this document, any oral presentation, any question
and answer session and any written or oral material discussed or
distributed by Takeda Pharmaceutical Company Limited (“Takeda”)
regarding this press release. This press release (including any
oral briefing and any question-and-answer in connection with it) is
not intended to, and does not constitute, represent or form part of
any offer, invitation or solicitation of any offer to purchase,
otherwise acquire, subscribe for, exchange, sell or otherwise
dispose of, any securities or the solicitation of any vote or
approval in any jurisdiction. No shares or other securities are
being offered to the public by means of this press release. No
offering of securities shall be made in the United States except
pursuant to registration under the U.S. Securities Act of 1933, as
amended, or an exemption therefrom. This press release is being
given (together with any further information which may be provided
to the recipient) on the condition that it is for use by the
recipient for information purposes only (and not for the evaluation
of any investment, acquisition, disposal or any other transaction).
Any failure to comply with these restrictions may constitute a
violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns
investments are separate entities. In this press release, “Takeda”
is sometimes used for convenience where references are made to
Takeda and its subsidiaries in general. Likewise, the words “we”,
“us” and “our” are also used to refer to subsidiaries in general or
to those who work for them. These expressions are also used where
no useful purpose is served by identifying the particular company
or companies.
The product names appearing in this document are trademarks or
registered trademarks owned by Takeda, or their respective
owners.
Forward-Looking Statements This press release and any
materials distributed in connection with this press release may
contain forward-looking statements, beliefs or opinions regarding
Takeda’s future business, future position and results of
operations, including estimates, forecasts, targets and plans for
Takeda. Without limitation, forward-looking statements often
include words such as “targets”, “plans”, “believes”, “hopes”,
“continues”, “expects”, “aims”, “intends”, “ensures”, “will”,
“may”, “should”, “would”, “could”, “anticipates”, “estimates”,
“projects”, “forecasts”, “outlook” or similar expressions or the
negative thereof. These forward-looking statements are based on
assumptions about many important factors, including the following,
which could cause actual results to differ materially from those
expressed or implied by the forward-looking statements: the
economic circumstances surrounding Takeda’s global business,
including general economic conditions in Japan and the United
States; competitive pressures and developments; changes to
applicable laws and regulations; challenges inherent in new product
development, including uncertainty of clinical success and
decisions of regulatory authorities and the timing thereof;
uncertainty of commercial success for new and existing products;
manufacturing difficulties or delays; fluctuations in interest and
currency exchange rates; claims or concerns regarding the safety or
efficacy of marketed products or product candidates; the impact of
health crises, like the novel coronavirus pandemic; the success of
our environmental sustainability efforts, in enabling us to reduce
our greenhouse gas emissions or meet our other environmental goals;
the extent to which our efforts to increase efficiency,
productivity or cost-savings, such as the integration of digital
technologies, including artificial intelligence, in our business or
other initiatives to restructure our operations will lead to the
expected benefits; and other factors identified in Takeda’s most
recent Annual Report on Form 20-F and Takeda’s other reports filed
with the U.S. Securities and Exchange Commission, available on
Takeda’s website at:
https://www.takeda.com/investors/sec-filings-and-security-reports/
or at www.sec.gov. Takeda does not undertake to update any of the
forward-looking statements contained in this press release or any
other forward-looking statements it may make, except as required by
law or stock exchange rule. Past performance is not an indicator of
future results and the results or statements of Takeda in this
press release may not be indicative of, and are not an estimate,
forecast, guarantee or projection of Takeda’s future results.
Financial information and Certain Non-IFRS Financial
Measures 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, Core EPS, Constant Exchange Rate (“CER”)
change, Net Debt, EBITDA, Adjusted EBITDA and 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 financial measures to
their most directly comparable IFRS measures, which are in the
Financial Appendix appearing at the end of our Q4 FY23 investor
presentation (available at www.takeda.com/investors). Beginning in
the first quarter of FY24, Takeda will (i) change 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, and (ii)
re-name Free Cash Flow as currently calculated as “Adjusted Free
Cash Flow” (with “Free Cash Flow” to be reported as Operating Cash
Flow less Property, Plant and Equipment). For more information
about the changes, including how the new methodology would have
impacted Takeda’s FY23 results, refer to the Financial Appendix
included in our Q4 FY23 investor presentation (available at
www.takeda.com/investors).
Medical information This press release contains
information about products that may not be available in all
countries, or may be available under different trademarks, for
different indications, in different dosages, or in different
strengths. Nothing contained herein should be considered a
solicitation, promotion or advertisement for any prescription drugs
including the ones under development.
Please refer to slide 9 of Takeda’s FY2023 investor presentation
(available at
https://www.takeda.com/investors/financial-results/quarterly-results/)
for the definition of Growth & Launch Products.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508769614/en/
Investor Relations Christopher O’Reilly
Christopher.oreilly@takeda.com +81 (0) 3-3278-2543
Media Relations Brendan Jennings
Brendan.jennings@takeda.com +81 (0) 3-3278-2111
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