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Takeda Reports First Half FY2017 Results

Takeda Pharmaceutical Company Limited (9:42AM) 

Business Wire India

Takeda Pharmaceutical Company Limited (TOKYO:4502):

Underlying Revenue growth of 6.7% led by Takeda's Growth Drivers

Underlying Revenue grew +6.7% with solid performances across all regions (U.S. +16.7%, Japan +0.3%, Europe & Canada +4.2%, Emerging Markets +3.4%). Takeda's Growth Drivers (GI, Oncology, CNS and Emerging Markets) maintained strong momentum to deliver growth of +14.9%.

GI (Gastroenterology) +24.8% fueled by market share growth of ENTYVIO® and TAKECAB®.

Oncology +13.2% driven by the expansion of NINLARO® and ADCETRIS®, and the addition of revenue from ICLUSIG® and ALUNBRIGTM.

CNS +26.7% with TRINTELLIX® growing +58.7% in the U.S.

Emerging Markets +3.4% with strong double-digit growth in the key markets of Russia and Brazil offsetting a temporary decline in China.

Reported revenue grew +3.6%, with the positive contribution from Takeda's Growth Drivers and favorable currency impact (+2.4pp) more than offsetting the negative impact of divestitures (-5.5pp).

Double-digit EPS growth reflecting strong revenue growth and progress of Global Opex Initiative

Underlying Core Earnings grew +44.4%, reflecting strong revenue growth and margin step up of 5.0pp (+2.7pp gross margin; +2.3pp from OPEX margin). First half earnings growth included some timing benefits.

Reported operating profit was up +44.6%, driven mainly by strong Core Earnings growth. The first half result includes one-time gains of 136.8 billion yen, including the sale of shares held in Wako Pure Chemical Ltd., the sale of real estate, and the transfer of additional long-listed products to Teva Takeda Yakuhin Ltd.

Underlying Core EPS was up +29.9%, and reported EPS increased +39.2% to 221 yen per share.

Net leverage improved due to steady progress on cash flow

Year-to-date Operating Free Cash Flow increased +12.4% to 84.6 billion yen, and the disposal of non-core assets generated an additional 131 billion yen of cash.

Net Debt / EBITDA dropped to 2.0x from 2.7x in March 2017.

Christophe Weber, Chief Executive Officer of Takeda, commented:

"Our Growth Drivers continued to deliver robust double-digit revenue growth, which together with our cost management initiatives led to a significant margin expansion. Furthermore, the ARIAD acquisition is delivering ahead of expectations, and the R&D transformation is well advanced. Although we expect headwinds in the second half of the year, we are still confident to raise our outlook for the full year as we execute against our key mid-term priorities of growing the portfolio, rebuilding the pipeline, and boosting profitability."

Reported Results for H1 (April - September) FY2017

(billion yen)

FY2016 H1

FY2017 H1









Core Earnings1





Operating Profit





Net Profit3






159 yen

221 yen



Core EPS

139 yen

181 yen




Core Earnings is calculated by deducting SG&A expenses and R&D expenses from reported Gross Profit. In addition, certain other items that are non-core in nature and significant in value may also be adjusted.


Underlying growth compares two periods of financial results on a common basis, showing the ongoing performance of the business excluding the impact of foreign exchange and divestitures.


Attributable to the owners of the company.

Takeda raises its full-year outlook despite second half headwinds

Increasing Management Guidance and Reported Forecast to reflect favorable year-to-date results. The Reported Forecast also benefits from lower impairment and restructuring expenses compared to the previous forecast.

The majority of one-time gains were booked in the first half, and the majority of one-time expenses will be booked in the second half. The outlook also assumes loss of exclusivity of Velcade.

Velcade estimates are based on the possible entry of 2 or 3 bortezomib-containing products in the U.S. from November 2017. Depending on various factors there may be an additional opportunity up to 30 billion yen, which will be partly reinvested in the business.

FY2017 Management Guidance: Raising underlying profit guidance and Core Earnings margin expansion now expected at 200bps

Previous Guidance (growth %)

(May 10, 2017)

Revised Guidance (growth %)

(Nov 1, 2017)

Underlying Revenue

Low single digit

Low single digit

Underlying Core Earnings

Mid-to-high teen

High teen

Underlying Core EPS

Low-to-mid teen

Mid teen

Annual Dividend per Share

180 yen

180 yen

FY2017 Reported Forecast: Increasing Reported Revenue and Earnings forecasts, with EPS increased by 10% to 195 yen per share

(billion yen)

Previous Forecast

(May 10, 2017)

Revised Forecast

(Nov 1, 2017)

vs. FY2016





Core Earnings




Operating Profit




Net Profit





177 yen

195 yen


Exchange Rate (annual average)

1 US$=110 yen

1 euro=120 yen

1 US$=112 yen

1 euro=129 yen

For more details on Takeda's FY2017 first half results and other financial information, please visit https://www.takeda.com/investors/reports/

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited is a global, research and development-driven pharmaceutical company committed to bringing better health and a brighter future to patients by translating science into life-changing medicines. Takeda focuses its R&D efforts on oncology, gastroenterology and central nervous system therapeutic areas plus vaccines. Takeda conducts R&D both internally and with partners to stay at the leading edge of innovation. New innovative products, especially in oncology and gastroenterology, as well as Takeda's presence in Emerging Markets, are currently fueling the growth of Takeda. Around 30,000 Takeda employees are committed to improving quality of life for patients, working with Takeda's partners in health care in more than 70 countries.

For more information, visit https://www.takeda.com/newsroom/.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171031006703/en/

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