By Takeda Pharmaceutical recently released its first-quarter results for the fiscal year ending March 2024. Although the company experienced a decline in net profit, its revenue surpassed expectations.
Net Profit
Takeda’s net profit for the quarter ended June 30 fell by 15% compared to the previous year, amounting to 89.395 billion yen ($637.4 million). This figure fell short of the estimated net profit of Y113.53 billion predicted by analysts surveyed by S&P Global Market Intelligence.
Revenue
In contrast to the decline in net profit, Takeda’s first-quarter revenue experienced growth. It increased by 8.9% from the previous year, totaling Y1.059 trillion. This result was higher than the estimated revenue of Y981.24 billion as projected by the S&P Global poll.
Sales Drivers
The revenue growth was driven by the success of several key drugs within Takeda’s portfolio. Sales of Entyvio, a drug used to treat ulcerative colitis, saw a significant increase of 14% from the previous year, reaching Y192.0 billion. Vyvanse, a medication prescribed for attention deficit hyperactivity disorder (ADHD), also performed well with a sales increase of 23%, amounting to Y123.2 billion. Additionally, sales of plasma-derived products rose by 31%, reaching Y186.5 billion.
Debt Burden
Takeda Pharmaceutical’s net-debt-to-adjusted-Ebitda ratio rose to 2.9 at the end of June, compared to 2.6 at the end of March. This increase in debt burden is an important factor to consider when evaluating the company’s financial performance.
Guidance
Takeda has maintained its revenue and net profit forecasts for the fiscal year ending March 2024. It anticipates a 4.7% decline in revenue, amounting to Y3.840 trillion. This projected decrease is partially attributed to the loss of exclusivity of Vyvanse in the U.S. in August. Additionally, the company expects its net profit to decrease by 55%, reaching Y142.00 billion.
In conclusion, Takeda Pharmaceutical’s first-quarter results have showcased both challenges and successes. While the net profit experienced a decline, the company’s revenue exceeded expectations, primarily due to the strong performance of key drugs. It will be crucial to monitor Takeda’s debt burden and how it may impact future financial outcomes.
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