Takeda Pharmaceutical (TAK) Q2 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 27, 2022 5:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ayako Iwamuro

Thank you very much for taking time out of your busy schedule to join us today for Takeda's Financial Results Webinar for the Second Quarter of Fiscal Year 2022. My name is Ayako Iwamuro, I am in charge of IR. I will be your moderator today. Very nice to meet you.

First, let me explain the language settings. At the bottom of the Zoom window, there is a language button. If you prefer to listen in Japanese, please select Japanese. If you prefer to listen in English, please select English. Or if you prefer to listen to the live audio, please select off.

Before starting, I'd like to remind everyone that we will be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. The factors that could cause our actual results to differ materially are discussed in our most recent Form 20F and in our other SEC filings. Please also refer to the important notice on page two of the presentation material.

I would now like to turn to today's presentation. Let me introduce to you today's presenters. First, Christophe Weber, President and CEO; Andy Plump, President, R&D; Costa Saroukos, Chief Financial Officer. They will be giving the presentation. The presentation will be followed by a Q&A session.

I'd now like to begin. Christophe, over to you.

Christophe Weber

Thank you very much, Ayako, and thank you everyone for joining us today. It's really great pleasure to be with you.

On the first slide, I would just summarize that Takeda, our vision is to discover and deliver life-transforming treatments, guided by our commitment to patients, our people and the planet. This is a purpose-led approach, which is at the core of our strategy for global growth on long-term value creation for our stakeholders. Our performance in the first half of the fiscal year further demonstrates our progress in executing on that strategy as we look to accelerate growth, advance our pipeline, and deliver on our commitment.

I will move to slide five. If someone can move the slide. Yes. Thank you. On slide five, I would like to take you through some of the recent highlights. In the first six months, our core revenue was JPY1,974.8 billion, which represents a 5.5% growth at constant exchange rate. Core operating profit for the period was JPY625.2 billion, growing at an impressive 14.5% also on a constant exchange rate basis. This enables us to deliver a strong core operating profit margin of 31.7%, an improvement of 2.4 percentage points versus prior year. And core earnings per share was JPY288 with growth of 15.8% at -- again at constant exchange rate. Based on these strong results, we are reconfirming the full year management guidance for low single digit core revenue growth and high single digit core operating profit and core EPS growth. These are all at constant exchange rates.