OSAKA, Japan, May 15, 2015 /PRNewswire/ --
Operational guidance met
- Underlying revenue +2.8% year-over-year, in line with
guidance
(reported revenue growing +5.1% to 1,777.8
billion yen)
- Underlying core earnings of -2.1%, in line with guidance
Growth supported by innovative new products
- Entyvio sales in US and EU support $2bn peak sales target
- Brintellix outperforming two recent branded antidepressant
launches in the US, 1 year after launch
- Contrave off to a promising start in the US
- Azilva growing strongly (80% year-over-year) in Japan
- Takecab launched in Japan in
February 2015
Regional top line performance on
track
- Price pressure and generic erosion in Japan, partially mitigated by successful
product launches
- Very strong performance in US and Europe and Canada driven by new products
- Emerging Markets up 10% year-on-year (excluding inventory
adjustment), double-digit growth in China and Russia
Efficiency gains above target
- Project Summit achieving more than half of 5-year savings
target in 2 years
Exceptional items impacting bottom line
- $2.7 billion related to Actos
settlement and associated costs.
- Other one-time items related to product / pipeline impairment
and Japanese tax reform
Guidance: Back to profitable growth from FY2015
- Low single-digit underlying revenue growth in FY2015, with
underlying core earnings growth higher than underlying revenue
growth, and underlying core EPS growth higher than underlying core
earnings growth
- Excluding the Actos settlement impact in FY2014, reported net
profit is expected to more than double in FY2015
180 yen dividend per share for
FY2015 and strives to at least maintain the 180 yen annual dividend per share after fiscal
year 2015
Christophe Weber, President
and Chief Executive Officer of Takeda, commented:
"FY2014 was a year of
transformation for Takeda, and at the same
time, a year during which we delivered
our business targets.Weobtained
approval for four important new
treatments with Entyvio, Contrave, Takecab and
Zafatek, and achieved significant pipeline
milestones, including the phase 3 interim results for
ixazomib. EPS was mainly
impactedby the Actos
settlement agreement expected to resolve
the vast majority of Actos product liability lawsuits pending in
the U.S., which will reduce financial
uncertainties for the company and
allow us to focus on developing innovative
medicines for patients around the world.
Last year, I outlined my plan
for the
new Takeda organization, and
we are steadily progressing to execute
our strategic roadmap on all fronts
to continue building a patient and customer centric
organization with a focused world class R&D engine. Takeda's
growth drivers are gastroenterology, value brands in emerging
markets, and oncology along with the launch of ixazomib. Financial
discipline will sustain our business momentum, and I
anticipate FY2015 will be a turnaround year for Takeda as we have
positioned the company forlong-term sales
and profit growth."
Key figures for FY2014
FY 2013 FY 2014 Growth
billion yen Underlying[2]
Revenue 1,691.7 1,777.8 +5.1% +2.8%
Operating Profit 139.3 -129.3 - -
Core Earnings[1] 314.2 288.3 -8.2% -2.1%
Net Profit[3] 106.7 -145.8 - -
EPS 135 yen -185 yen - -
Core EPS 266 yen 225 yen -15.6% -3.7%
Dividend per
Share 180 yen 180 yen - -
[1] Core Earnings is calculated
from operating profit by excluding the impact of exceptional items,
such as purchase accounting, amortization and impairment loss of
intangible assets, restructuring costs and litigation costs.
[2] Underlying performance aims
at understanding the real performance of the business. Underlying
Revenue and Underlying Core Earnings excludes the same as
above[1] plus product divestments
and foreign exchange.
[3] Attributable to the
owners of the company
With underlying revenue growth of 2.8% and underlying core
earnings -2.1%, Takeda met its operational guidance for FY2014.
Reported revenue grew by 5.1% to 1,777.8
billion yen. The booking of a $2.7
billion provision to cover the Actos settlement and
estimated costs associated with remaining cases and other related
litigations, along with other one-time exceptional items, impacted
operating profit (-129.3 billion
yen), net profit (-145.8 billion
yen) and earnings per share (-185
yen).
Revenue growth was driven by new products - mainly Entyvio and
Brintellix in the US, Entyvio and Adcetris in Europe, and Azilva in Japan - adding 97.2
billion yen. Performances in the US (+14.5% underlying
revenue growth) and Europe and
Canada (+5.4%) were very strong.
Emerging Markets grew at 8.1%, with key countries China and Russia both achieving double-digit growth,
while several other markets were impacted by a volatile economic
environment. Excluding inventory adjustment, sales in Emerging
Markets grew 10% year-on-year, in line with our mid-term ambition.
In Japan, new products contributed
35.6 billion yen, a growth of 6.2%,
which could not yet overcome the impact from generics and price
pressure (Japan total -4.1%).
Project Summit - a company-wide strategic initiative to increase
efficiency - delivered savings of 28 billion
yen in FY2014, bringing the accumulated total achieved in
the first two years to 62 billion
yen. Thus, the company has achieved over 50% of its 5-year
target of 120 billion yen in just 2
years.
Takeda is positioned for organic growth, with innovative
products in the United States and
Value Brands in Emerging Markets being the main growth drivers.
Entyvio is expected to be a key global contributor to sales growth
over the next few years, and Azilva and Takecab are among the new
products in Japan that will enable
Takeda to overcome increased generic penetration and price pressure
and maintain a leading position. The ongoing efforts of the R&D
organization will contribute in the mid- and long-term, with assets
such as ixazomib for multiple myeloma that is currently in late
phase 3 development with approval expected in FY2016. From FY2018
onward, Takeda expects to globally launch a range of innovative
products in all its therapeutic areas and vaccines.
The new company structure, effective from April 1, 2015, reflects the new strategic growth
focus, prioritizing patients' needs, clarifying accountabilities,
and increasing operational efficiency. The company continues to be
R&D driven, focusing on four therapeutic areas and
vaccines.
The transformations in FY2014 have positioned Takeda for
long-term sales and profit growth. In FY2015, Takeda sets the
following guidance.
Guidance for FY2015
billion yen FY 2015[1] Underlying Growth
Revenue 1,820.0 Low single digit
Operating Profit 105.0 -
Core Earnings - Higher than revenue growth
Net Profit[2] 68.0 -
EPS 87 yen -
Core EPS - Higher than core earnings growth
Dividend per Share 180 yen -
[1] The exchange rate
assumptions for FY2015 are 1US$=120 yen and
1 euro=130
yen.
[2] Attributable to the owners
of the company
For more details on Takeda's FY2014 results and other financial
information please visit
http://www.takeda.com/investor-information/results/