OSAKA, Japan & CAMBRIDGE, Mass.–(BUSINESS WIRE)–Takeda (TOKYO:4502/NYSE:TAK) today announced strong financial results for fiscal year 2022 (period ended March 31, 2023), delivering or exceeding management guidance, driven by the performance of its Growth & Launch Products.
Takeda president and chief executive officer, Christophe Weber, commented:
“FY2022 was another strong year for Takeda, reflecting successful execution against our business strategy and advancements in our innovative pipeline—enabling us to deliver truly transformative treatments to patients. Important pipeline milestones included the first approvals for our dengue vaccine QDENGA®, positive late-stage readouts for TAK-755 and fazirsiran, and the acquisition of TAK-279 for immune-mediated diseases.
“We have updated our capital allocation policy as a reflection of our deleveraging progress and our new phase of investment for growth and shareholder returns. We have adopted a progressive dividend policy of increasing or maintaining the dividend each year, and in FY2023 we intend to raise the dividend to underscore confidence in our future growth profile.
“While we expect to face temporary headwinds in FY2023 from generic entrants and lower demand for coronavirus vaccines, we are confident that strong momentum in our Growth & Launch Products will drive a return to growth in the near-term. We will continue to strengthen our long-term competitiveness through investments in R&D and data and technology, as we deliver on our purpose to bring better health for people and a brighter future for the world.”
Takeda chief financial officer, Costa Saroukos, commented:
“I’m pleased to report that Takeda delivered or exceeded management guidance in FY2022 and booked a record core operating profit of almost 1.2 trillion yen. Our topline and profit performance was driven by our Growth & Launch Products, which grew 19% at constant exchange rate.
“Strong financial discipline and free cash flow have enabled us to deleverage rapidly while investing in growth. As a result, we are forecasting a dividend increase for the first time in 15 years, from 180 yen to 188 yen per share.
“Our outlook for FY2023 reflects the challenges of anticipated generic impact and lower coronavirus vaccine contributions, but we still anticipate delivering core operating profit above 1 trillion yen. Our forecasted reported EPS growth rates are also impacted by one-time items which are not reflective of our core business momentum. We remain confident in our future growth outlook and our planned dividend increase underscores that confidence.”
FINANCIAL HIGHLIGHTS | |||||
Results for FY2022 Ended March 31, 2023 | |||||
(Billion yen, | REPORTED | CORE(c) (Non-IFRS)(a) | |||
FY2022 | vs. PRIOR YEAR (Actual % change) | FY2022 | vs. PRIOR YEAR (Actual % change) | vs. PRIOR YEAR (CER % change(d)) | |
Revenue | 4,027.5 | +12.8% | 4,027.5 | +17.7% | +3.5% |
Operating Profit | 490.5 | +6.4% | 1,188.4 | +24.4% | +9.1% |
Margin | 12.2% | -0.7pp | 29.5% | +1.6pp |
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Net Profit | 317.0 | +37.8% | 866.4 | +30.5% | +13.1% |
EPS (yen) | 204 | +38.8% | 558 | +31.5% | +13.9% |
Operating Cash Flow | 977.2 | -13.0% |
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Free Cash Flow (Non-IFRS)(a)(b) | 446.2 | -52.7% |
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(a) Further information regarding certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website at https://www.takeda.com/investors/financial-results/. | |||||
(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) CER (constant exchange rate) 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. |
COMMERCIAL UPDATES ACROSS FIVE KEY BUSINESS AREAS
Growth in Takeda’s key business areas in FY2022 was driven largely by Growth & Launch Products1, which delivered reported revenue of 1,594.8 billion yen, marking a 19% increase on a constant exchange rate (CER) basis.
PIPELINE UPDATE
Takeda has continued to deliver on its ability to bring new therapies to patients and capitalize on existing momentum within its dynamic and diverse pipeline. Updates since the FY2022 Q3 announcement include:
OTHER NOTABLE PROGRESS
Takeda is committed to creating long-term value consistent with our corporate values. Significant social and environmental sustainability milestones in FY2022 include:
FY2023 Outlook | ||
(Billion yen) |
FY2023 |
FY2023 |
Revenue | 3,840.0 |
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Core Revenue | 3,840.0 | Low-single-digit % decline |
Reported Operating Profit | 349.0 |
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Core Operating Profit | 1,015.0 | Low-10s % decline |
Reported Net Profit | 142.0 |
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Reported EPS (Yen) | 91 |
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Core EPS (Yen) | 434 | Low-20s% decline |
Free Cash Flow | 400.0 – 500.0 |
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Annual Dividend per Share (Yen) | 188 |
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Free Cash Flow guidance reflects approximately JPY 180 billion of CAPEX related to the acquisition of TAK-279 from Nimbus (USD 1.0 billion) and in-licensing of fruquintinib from HUTCHMED (USD 400 million). The USD 1.0 billion related to the acquisition represents the portion of the USD 4.0 billion upfront payment to Nimbus paid in April 2023 (USD 900 million), and scheduled to be paid in August 2023 (USD 100 million).
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For more details on Takeda’s FY2022 results and other financial information including key assumptions in FY2023 forecast and management guidance, please visit: https://www.takeda.com/investors/financial-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 disease, plasma-derived therapies, neuroscience, oncology 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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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 presentation. 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. By including these non-IFRS measures, management intends to provide investors with additional information to further analyze Takeda’s performance and core results, including when controlling for the effect of fluctuations in exchange rates. 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 at the end of Takeda’s FY2022 investor presentation (available at takeda.com/investors/financial-results).
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.
1Please refer to slide 20 of Takeda’s FY2022 investor presentation (available at takeda.com/investors/financial-results) for the definition of Growth & Launch Products.
Contacts
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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