Latest Results

IFRS results

Revenues for the fiscal year under review were ¥1,170.6 billion (an increase of 5.3% year on year), operating profit for the fiscal year under review was ¥542.0 billion (an increase of 23.4% year on year), and net income for the fiscal year under review was ¥387.3 billion (an increase of 19.0% 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 ¥1.6 billion, impairment loss of intangible assets of ¥4.1 billion, business rebuilding expenses of ¥7.9 billion, and restructuring expenses of ¥0.5 billion.

Core results

Revenues for the fiscal year under review were ¥1,170.6 billion (an increase of 5.3% year on year), due to increases in sales and other revenue.

Of revenues, sales were ¥997.9 billion (an increase of 2.4% year on year). Domestic sales declined from the same period of the previous fiscal year primarily due to the supply of Ronapreve^® to the government, which was recognized in the same period of the previous fiscal year, as well as the effects of the NHI drug price revisions and the market penetration of generic drugs, despite the growth in sales of new products such as Phesgo^® and Vabysmo^® and the favorable sales of the mainstay products including Hemlibra^® and Actemra^®. Overseas sales increased significantly compared to the same period of the previous fiscal year due to factors including the major increase in the exports of Hemlibra^® to Roche. Other revenue amounted to ¥172.7 billion (an increase of 26.2% year on year), due to an increase in one-time income, etc., in addition to the increase in income related to Hemlibra^®. Furthermore, cost to sales ratio was 33.9%, an improvement of 8.4 percentage points year on year, reflecting a change in the product mix and other factors. As a result, gross profit amounted to ¥832.5 billion (an increase of 19.0% year on year).

Research and development expenses amounted to ¥176.9 billion (an increase of 8.7% 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 same period of the previous fiscal year at ¥102.2 billion (an increase of 0.2% year on year). Other operating income (expense) was income of ¥2.7 billion, including income from disposal of product rights (¥16.1 billion of income for the same period of the previous fiscal year due to the recognition of income from disposal of product rights and gain on sales of property, plant and equipment, etc.). As a result, Core operating profit was ¥556.1 billion (an increase of 23.4% year on year), and Core net income has increased for eight consecutive fiscal years to ¥397.1 billion (an increase of 19.0% year on year).

Meanwhile, compared to the revised full year forecast announced on October 25, 2024, revenues increased 1.8% over the revised full year forecast to ¥1,170.6 billion, due to increases in royalty and profit-sharing income related to Hemlibra^®, etc., in addition to the favorable performance of both domestic and overseas sales. The cost to sales ratio was on the same level as the revised full year forecast at 33.9% (an improvement of 0.1 percentage points over the revised full year forecast). Furthermore, compared to the revised full year forecast, research and development expenses increased by 1.1% to ¥176.9 billion, selling, general and administration expenses decreased by 0.8% to ¥102.2 billion, and other operating income (expense) decreased by 10.0% to an income of ¥2.7 billion. As a result, Core operating profit surpassed the revised full year forecast by 3.0% to reach ¥556.1 billion and Core net income increased by 2.3% to reach ¥397.1 billion.

(Billions of yen)

Revenue

Revenues are expected to increase to ¥1,190.0 billion (an increase of 1.7% year on year).

Of revenues, domestic sales are expected to increase to ¥462.5 billion (an increase of 0.3% year on year), due to an increase in sales volume of new products Phesgo^® and PiaSky^® as well as mainstay products, despite the decrease in sales caused by the effects of the NHI drug price revisions and the market penetration of generic drugs.

Overseas sales are expected to increase to ¥555.5 billion (an increase of 3.5% year on year), due to factors such as the growth in sales of Hemlibra^®, Alecensa^® and NEMLUVIO^®, despite a decrease in Actemra^®.

Other revenues are expected to decrease to ¥172.0 billion (a decrease of 0.4% year on year). Royalty and profit-sharing income are forecasted to increase to ¥165.7 billion (an increase of 12.4% year on year), due to an increase in income related to Hemlibra^®, despite a decrease in income related to Actemra^®. Other operating income is expected to decrease to ¥6.3 billion (a decrease of 75.1% year on year) due to the decrease in one-time income.

Core Operating Profit / Core EPS

Gross profit is expected to be ¥849.0 billion (an increase of 2.0% year on year), with the assumption that the cost to sales ratio is 33.5%, which is a 0.4 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 be ¥178.0 billion (an increase of 0.6% year on year), and selling, general and administration expenses are expected to be ¥101.0 billion (a decrease of 1.2% year on year), both of which are basically at the same level as the previous year.

As a result, Core operating profit is expected to reach ¥570.0 billion (an increase of 2.5% year on year) and Core net income is expected to increase to ¥410.0 billion (an increase of 3.2% year on year). Core EPS of ¥250.00 (an increase of 3.6% year on year) is also expected.