Takeda Delivers Strong Third-Quarter FY2024 Results; Raises Full Year Outlook, Forecasting Revenue and Core Operating Profit Margin Growth
-- Revenue Growth of +9.8% at Actual Exchange Rates $(AER)$; +4.5% at Constant Exchange Rate $(CER.UK)$ Driven by Strong Momentum of Growth & Launch Products (+14.6% at CER) -- Core Operating Profit Increase of +10.1% at CER; Core OP Margin Climbs to 28.5% -- Reported Operating Profit +86.3% at AER Reflects Lower Impairment of Intangible Assets Compared to FY2023 -- Raises Adjusted Free Cash Flow Forecast Range by JPY 150.0 billion to JPY550.0 - JPY650.0 billion -- Announces Share Buyback of up to JPY 100.0 billion OSAKA, Japan--(BUSINESS WIRE)--January 30, 2025--
Takeda (TOKYO:4502/NYSE:TAK) today announced earnings results for the third quarter of fiscal year 2024 (nine months ended December 31, 2024) showing continued advancement of its Growth & Launch Products, which delivered double-digit growth of 14.6% at CER. The company has upgraded its full year outlook for growth, reflecting strong year-to-date product performance and OPEX efficiencies, as well as revised foreign exchange assumptions.
Takeda continues to advance multiple late-stage programs and is on track for three Phase 3 data readouts within the calendar year 2025. The company expects three regulatory filings in FY2025-FY2026 and five additional regulatory filings in FY2027-FY2029. Six of these late-stage programs are estimated to have the potential to generate peak revenues ranging from USD 10 billion to 20 billion in total and contribute to long-term growth.
Takeda also announced today its decision to buy back shares up to JPY 100.0 billion, underscoring confidence in its strong business momentum and commitment to shareholder returns. For details, see release: Takeda Announces Acquisition of Own Shares
Takeda chief financial officer, Milano Furuta, commented:
"We are raising our Management Guidance and reported & Core forecasts for the full year, pivoting to a growth outlook for revenue and operating profit on the strength of product momentum and OPEX efficiencies from our efficiency program. We are confident that we will grow our Core Operating Profit margin this fiscal year.
"As highlighted at our R&D Day in December 2024, we are on track to three Phase 3 data readouts within calendar year 2025, strengthening confidence in our long-term growth outlook.
"The announcement of our new share buyback program, approved by Takeda's Board of Directors, demonstrates our commitment to shareholder returns."
FINANCIAL HIGHLIGHTS for FY2024 Q3 YTD Ended December 31, 2024
(Billion yen, except percentages and per share amounts)
------------------------------------------------------------------------------
vs. PRIOR YEAR
FY2024 Q3 YTD FY2023 Q3 YTD (Actual % change)
---------------------------- ------------- ------------- ------------------
Revenue 3,528.2 3,212.9 +9.8%
---------------------------- ------------- ------------- ------------------
Operating Profit 417.5 224.1 +86.3%
---------------------------- ------------- ------------- ------------------
Net Profit 211.1 147.1 +43.5%
---------------------------- ------------- ------------- ------------------
EPS (Yen) 134 94 +42.1%
---------------------------- ------------- ------------- ------------------
Operating Cash Flow 835.0 437.8 +90.8%
---------------------------- ------------- ------------- ------------------
Adjusted Free Cash Flow
(Non-IFRS) 568.3 36.3 +1,466%
---------------------------- ------------- ------------- ------------------
Core (Non-IFRS)
(Billion yen, except percentages and per share amounts)
------------------------------------------------------------------------------
vs. PRIOR YEAR vs. PRIOR YEAR
(Actual % (CER %
FY2024 Q3 YTD FY2023 Q3 YTD change) change)
------------- ------------- ------------- ----------------- --------------
Revenue 3,528.2 3,212.9 +9.8% +4.5%
------------- ------------- ------------- ----------------- --------------
Operating
Profit 1,006.3 865.6 +16.3% +10.1%
------------- ------------- ------------- ----------------- --------------
Margin 28.5% 26.9% +1.6pp _
------------- ------------- ------------- ----------------- --------------
Net Profit 698.9 643.6 +8.6% +1.9%
------------- ------------- ------------- ----------------- --------------
EPS (Yen) 443 412 +7.5% +0.9%
------------- ------------- ------------- ----------------- --------------
FY2024 Outlook
Updating Full Year Management Guidance and Reported and Core Forecasts
Takeda has upgraded its FY2024 Management Guidance, primarily driven by product momentum and OPEX savings. In addition, and also reflecting revised foreign exchange assumptions for the year, Takeda has raised its FY2024 reported and Core forecasts from the previous forecast. For more details, see release: Notice of the Revised Forecast of Consolidated Financials for FY2024 (IFRS)
FY2024 Management Guidance Core Change at CER (Non-IFRS)
------------------------------------------------------------------------------
FY2024 PREVIOUS FY2024 REVISED
MANAGEMENT GUIDANCE MANAGEMENT GUIDANCE
(October 2024) (January 2025)
--------------------- -------------------------- ---------------------------
Core Revenue Flat to slightly Low-single-digit % increase
increasing
--------------------- -------------------------- ---------------------------
Core Operating Profit Mid-single-digit % decline Low-single-digit % increase
--------------------- -------------------------- ---------------------------
Core EPS (Yen) Approx 10% decline Flat to slightly declining
--------------------- -------------------------- ---------------------------
FY2024 Reported and Core Forecasts
(Billion yen, except percentages and per share amounts)
---------------------------------------------------------------------------
FY2024 FY2024
PREVIOUS FORECAST REVISED FORECAST
(October 2024) (January 2025)
----------------------------------- ------------------ ------------------
Revenue 4,480.0 4,590.0
----------------------------------- ------------------ ------------------
Core Revenue (Non-IFRS) 4,480.0 4,590.0
----------------------------------- ------------------ ------------------
Operating Profit 265.0 344.0
----------------------------------- ------------------ ------------------
Core Operating Profit (Non-IFRS) 1,050.0 1,150.0
----------------------------------- ------------------ ------------------
Net Profit 68.0 118.0
----------------------------------- ------------------ ------------------
EPS (Yen) 43 75
----------------------------------- ------------------ ------------------
Core EPS (Yen) (Non-IFRS) 456 507
----------------------------------- ------------------ ------------------
Adjusted Free Cash Flow (Non-IFRS) 400.0-500.0 550.0-650.0
----------------------------------- ------------------ ------------------
Annual Dividend per Share (Yen) 196 196
----------------------------------- ------------------ ------------------
Positive Momentum in High-Value, Late-Stage Pipeline
The company is building strong momentum with its high-value, late-stage programs. The transformative value these programs can deliver to patients, as well as the significant revenue potential through 2030 and beyond, were presented at the R&D Day event held in December 2024.
Among the multiple late-stage programs presented, the company expects three Phase 3 data readouts in the calendar year 2025 with filings anticipated in FY2025-FY2026 for the following programs and indications:
--
oveporexton (TAK-861) for the treatment of narcolepsy type 1,
--
zasocitinib for the treatment of psoriasis, and
--
rusfertide for the treatment of polycythemia vera, a rare chronic blood
disorder
Moreover, five additional indication filings for late-stage programs are on pace for FY2027-FY2029.
-- zasocitinib for the treatment of psoriatic arthritis, -- mezagitamab for treatments of immune thrombocytopenia $(ITP)$, a rare immune-mediated bleeding disorder, and immunoglobulin A nephropathy (IgAN), a chronic progressive autoimmune mediated kidney disease, -- fazirsiran for the treatment of alpha-1 antitrypsin deficiency-associated liver disease, and -- elritercept for the treatment of anemia associated with myelodysplastic syndrome
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