Latest Results
FY2024 1Q Consolidated Financial Overview
IFRS results
Revenue for the three months under review was ¥236.9 billion (a decrease of 24.1% year on year), operating profit for the three months under review was ¥99.9 billion (an increase of 1.6% year on year), and net income for the three months under review was ¥74.4 billion (an increase of 1.2% year on year). These results include non-Core items, which are excluded from the Core results that Chugai adopts to manage recurring business activities, such as amortization of intangible assets of ¥0.4 billion, impairment loss of intangible assets of ¥0.1 billion, business rebuilding expenses of ¥1.4 billion, and restructuring expenses of ¥0.4 billion.
Core results
Revenue for the three months under review was ¥236.9 billion (a decrease of 24.1% year on year), due to a decrease in sales, despite an increase in other revenue.
Of revenue, sales were ¥204.5 billion (a decrease of 29.8% year on year). In domestic sales, sales of new products Phesgo® and Vabysmo® grew, and the mainstay product Enspryng® performed favorably. However, primarily due to the effects of the supply of Ronapreve® to the government, which was recognized in the same period of the previous fiscal year, the NHI drug price revisions, and the market penetration of generic drugs, domestic sales declined from the same period of the previous fiscal year. Overseas sales increased compared to the same period of the previous fiscal year, due to the significant increase in the export of Hemlibra®, despite the decline in the export of Actemra® to Roche. Other revenue was ¥32.5 billion (an increase of 57.0% year on year) primarily due to the increase in lump-sum income. Furthermore, cost to sales ratio was 35.5%, a 16.3 percentage point improvement year on year, reflecting a change in product mix and other factors. As a result, gross profit amounted to ¥164.3 billion (an increase of 1.9% year on year).
Research and development expenses amounted to ¥41.2 billion (an increase of 14.1% year on year) due to investments into drug discovery/early development and increases associated with the progress of development projects, etc. Selling, general and administration expenses were comparable to the results for the same period of the previous fiscal year at ¥21.2 billion (an increase of 1.0% year on year). Other operating income (expense) was income of ¥0.2 billion (¥1.3 billion of income for the same period of the previous fiscal year due to gain on sale of property, plant and equipment, and others). As a result, core operating profit was ¥102.1 billion (a decrease of 3.1% year on year) and core net income was ¥76.0 billion (a decrease of 3.1% year on year).
Outlook for the fiscal year
(Billions of yen)
| Outlook for FY 2024 | % change | |
|---|---|---|
| Revenues | 1,070.0 | -3.7 |
| Sales | 922.0 | -5.4 |
| Core operating profit | 460.0 | +2.1 |
| Core net income | 335.5 | +0.6 |
Revenues
Revenues are expected to decrease to ¥1,070.0 billion (a decrease of 3.7% year on year).
Of revenues, domestic sales are expected to decrease to ¥454.9 billion (a decrease of 18.5% year on year), due to a decline in sales for the supply of Ronapreve® to the government (¥81.2 billion in the previous fiscal year, a decrease of 100.0% year on year), in addition to the NHI drug price revisions and the market penetration of generic drugs, despite the growth in sales volume of new products such as Phesgo® and Vabysmo® and mainstay products.
Overseas sales are expected to increase to ¥467.1 billion (an increase of 12.1% year on year), due to the significant growth in sales of Hemlibra® including the positive effects of depreciation of yen and other factors, despite a decrease in sales of Actemra®.
Other revenues are expected to reach ¥148.0 billion (an increase of 8.1% year on year). Royalty and profit-sharing income are forecasted to increase to ¥134.4 billion (an increase of 5.4% year on year), due to an increase in income related to Hemlibra® in addition to an increase in one-time income, despite a decrease in income related to Actemra®.
Core Operating Profit / Core EPS
Gross profit is expected to be ¥732.5 billion (an increase of 4.7 % year on year), with the assumption that the cost to sales ratio is 36.6%, which is a 5.7 percentage point improvement year on year, due to a change in the product mix, etc., in addition to the above outlook on revenues.
Research and development expenses are expected to increase to ¥171.0 billion (an increase of 5.0% year on year) due to an increase in research and development activities including the investments in drug discovery and early development as well as the progress of development projects, etc., and selling, general and administration expenses are expected to be comparable to the previous fiscal year at ¥102.0 billion. Other operating income (expense) is expected to be ¥0.5 billion of income in total (FY2023: ¥16.1 billion of income, mainly due to the impact of income from disposal of product rights).
As a result, Core operating profit is expected to reach a record high of ¥460.0 billion (an increase of 2.1% year on year) and Core net income is expected to increase for eighth consecutive fiscal years to ¥335.5 billion (an increase of 0.6% year on year). Core EPS of ¥204.00 (an increase of 0.6% year on year) is also expected.
