Latest Results

FY2022 1Q Consolidated Financial Overview

IFRS results

Revenues for the three months under review were ¥360.6 billion (an increase of 113.6% year on year), operating profit for the three months under review was ¥187.0 billion (an increase of 192.2% year on year), and net income for the three months under review was ¥131.8 billion (an increase of 178.1% year on year). These results include non-Core items, such as amortization of intangible assets of ¥0.3 billion, impairment loss of intangible assets of ¥0.2 billion, and restructuring expenses etc. of ¥3.4 billion, as well as the income from the lump-sum payment of ¥91.9 billion recognized as a result of a settlement agreement between Chugai and Alexion Pharmaceuticals, Inc., which are excluded from the Core results that Chugai adopts to manage recurring business activities.

Core results

Revenues for the three months under review were ¥268.6 billion (an increase of 59.1% year on year), due to a significant increase in sales, despite a decrease in royalties and other operating income.

Of revenues, sales were ¥242.7 billion (an increase of 86.3% year on year). Within domestic sales the sales grew significantly over the previous fiscal year primarily due to the favorable sales of the mainstay product Hemlibra®, the steady market penetration of new products such as Polivy®, Evrysdi® and Enspryng®, and the supply of Ronapreve® to the government, while sales were affected by the NHI drug price revisions of April 2021 and market penetration of generic drugs. Overseas sales increased significantly compared to the previous fiscal year due to the major increase in the exports of Hemlibra® and Actemra® to Roche. Royalties and other operating income amounted to ¥25.9 billion (a decrease of 32.9% year on year), due to a significant decrease in royalty income from initial shipments of Hemlibra®. Furthermore, cost to sales ratio was 47.0%, a 4.8 percentage point deterioration year on year, reflecting a change in the product mix and other factors. As a result, gross profit amounted to ¥154.5 billion (an increase of 35.8% year on year).

Operating expenses were ¥55.6 billion (an increase of 14.6% year on year). Marketing and distribution expenses were ¥16.7 billion (an increase of 5.7% year on year) due to increased activities by the overseas subsidiaries and the effects of foreign exchange. Research and development expenses amounted to ¥32.9 billion (an increase of 14.6% year on year) due to an increase in expenses associated with the progress of projects, etc. General and administration expenses amounted to ¥6.0 billion (an increase of 53.8% year on year) primarily due to increases in the enterprise tax (pro forma standard taxation) and various expenses. As a result, operating profit was ¥98.9 billion (an increase of 51.2% year on year) and net income was ¥70.6 billion (an increase of 45.9% year on year).

With regard to the effects of the changing situation in Russia and Ukraine on operating performance for the three months under review, given that Chugai is not directly engaged in any business activities in such countries, there was no major negative impact on revenues and profits. While the progress of certain trials led by Roche being conducted in Russia, Ukraine, and the surrounding countries has been affected, the impact on research and development activities as a whole has been limited. Furthermore, despite the absence of any contract manufacturers or suppliers of raw materials in the countries concerned, Chugai will continue to closely monitor the situation, including the effects which may materialize, should the situation become long-term.

Outlook for the fiscal year

(Billions of yen)

Outlook for FY 2022 % change
Revenues 1,150.0 +15.0
Sales 1,031.5 +28.5
Core operating profit 440.0 +1.4
Core net income 312.5 +0.3

Revenues

Domestic sales are expected to increase to ¥646.3 billion (an increase of 24.6% year on year) due to the sales growth in new products such as Ronapreve®, Polivy®, Enspryng®, Evrysdi®, etc., and the mainstay products including Hemlibra® despite the negative impact from intensifying competition associated primarily with launches of biosimilars and generics as well as NHI drug price revisions.

Overseas sales are expected to increase to the amount of ¥385.2 billion (an increase of 35.7% year on year), mainly due to a steady sales growth in Hemlibra®, for which export to Roche at a regular shipment price was started in full scale in the previous fiscal year, amid an increase in sales of Actemra®.

Royalties and other operating income are expected to reach ¥118.5 billion (a decrease of 39.8% year on year). Royalty and profit-sharing income are forecasted to decrease to ¥114.0 billion (a decrease of 39.1% year on year) because of a decrease in royalties from Roche mainly for the stock of initial shipment of Hemlibra®. Other operating income is expected to decrease to ¥4.5 billion (a decrease of 54.1% year on year) due to a decrease of one-time income.

Core Operating Profit / Core EPS

Gross profit is expected to rise to ¥690.0 billion (an increase of 3.9% year on year), assuming a 2.8 percentage point increase year on year of the cost to sales ratio to 44.6%, due to a change in the product mix, etc., in addition to an increase in revenues. On the other hand, total expenses are expected to be the amount of ¥250.0 billion (an increase of 8.6% year on year). Particularly, expenses for research and development are expected to increase to ¥149.5 billion (an increase of 15.2% year on year) due to the increase of research and development activities such as progress in development themes.

Core operating profit is expected to be ¥440.0 billion (an increase of 1.4% year on year) and Core net income is expected to be ¥312.5 billion (an increase of 0.3% year on year). Core EPS is forecasted to be ¥190.00 (an increase of 0.3% year on year).

  • Like
  • Tweet
  • LINE it!
  • E-mail

Financial Results

Back to top