Takeda Reports 1st Quarter FY2017 Results

OSAKA, JAPAN--(Business Wire / Korea Newswire)--Takeda Pharmaceutical Company Limited (TOKYO:4502):

Underlying Revenue growth of 6.6% led by Takeda's Growth Drivers

· Underlying Revenue grew +6.6% with growth across all regions (U.S. +13.5%, Japan +1.6%, Europe & Canada +4.6%, Emerging Markets +6.0%). Takeda's Growth Drivers (GI, Oncology, CNS and Emerging Markets) maintained their strong momentum to deliver growth of +14.7%.

GI (Gastroenterology) +23.2%, led by continued success of ENTYVIO® and TAKECAB®

Oncology +12.2%, driven by NINLARO®, ADCETRIS®, ICLUSIG® and ALUNBRIGTM

CNS +29.8%, spearheaded by TRINTELLIX® in the U.S.

Emerging Markets +6.0%, with double-digit growth in the key markets of Russia and Brazil

· Reported revenue grew +3.3%, with the positive contribution from Takeda's Growth Drivers offsetting the impact of unfavorable currencies (-0.4pp) and divestitures (-2.9pp).

Double-digit EPS growth driven by Revenue growth and significant margin gains

· Underlying Core Earnings grew +29.4%, with a margin increase of 350bps driven by an improvement in Gross Margin and continued OPEX discipline.

· Reported operating profit was up +27.5%, driven by strong underlying growth. Takeda realized a one-time gain in Q1 FY2017 of 106.3 billion yen from the sale of shares of Wako Pure Chemical Industries, Ltd. This was similar in size to the Teva JV transaction gain of 102.9 billion yen in Q1 FY2016, and therefore the impact on our year-on-year growth rate was minimal.

· Underlying Core EPS was up +35.7%, reflecting strong Core Earnings growth and a phasing benefit from tax rate. Reported EPS increased +45.8% to 186 yen per share.

Significant progress on Cash Flow and reduced net leverage

· Operating Free Cash Flow increased +50.3% to 55.5 billion yen.

· Sale of non-core assets generated an additional 128 billion yen of cash.

· Net Debt / EBITDA drops from 2.7x at end of FY2016 to 2.1x
James Kehoe, Chief Financial Officer of Takeda, commented:

“Takeda delivered a strong start to the year on both revenue and profitability, driven by the continued strength of our Growth Drivers and good progress on our cost management initiatives. We are executing well against our key priorities of growing the portfolio, rebuilding the pipeline, and boosting profitability, and the first quarter results confirm our confidence in the full-year outlook for double-digit EPS growth.”
 
Reported Results for Q1 (April - June) FY2017 (To view the table, please visit https://goo.gl/oTuu9L)

Takeda maintains its Management Guidance and Reported Forecast for FY2017, projecting double-digit EPS growth.
 
FY2017 Management Guidance (To view the table, please visit https://goo.gl/oTuu9L)
 
FY2017 Reported Forecast (To view the table, please visit https://goo.gl/oTuu9L)
 
For more details on Takeda’s FY2017 first quarter 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/20170727006748/en/

Website: https://www.takeda.com/

This is a news release distributed by Korea Newswire on behalf of this company.