Takeda Pharmaceutical (TAK) Q1 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 27, 2023 6:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Christopher O'Reilly

Thank you very much for joining us today despite a very busy schedule for this FY 2023 Q1 earnings announcement. My name is O'Reilly. I am the head of IR. I'll be the master of ceremony for today's meeting.

[Operator Instructions].

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 20-F and in our other SEC filings.

Please also refer to the important notice on the page 2 of the presentation regarding forward-looking statements and our non-IFRS financial measures, which will also be discussed during this call. Definitions of our non-IFRS measures and reconciliations with comparable IFRS financial measures are included in the appendix in the presentation.

I should also note the important notices are attached to the presentation material.

Now we're going to start the presentation. Today, we have President CEO, Christophe Weber; R&D President, Andy Plump; Chief Financial Officer, Costa Saroukos, presenting to you. This will be followed by Q&A session.

Now we'd like to begin.

Christophe Weber

Thank you, Chris. Thank you, everyone, for joining us today. It's a pleasure to be with you all. Our performance in the first quarter of this fiscal year again underscores the strength of our business and our ability to continue to deliver life transforming treatments to patient and communities over the long term.

Looking at our financial result. In the first three months of fiscal year 2023, revenue was ¥1.06 trillion. Year-over-year growth at a constant exchange rate was plus 3.7%, driven by momentum in our Growth & Launch Products, which represent 40% of total revenue and grew in this first quarter at 16.2%. At actual exchange rate, our top line growth was 8.9%.

Our top line performance contributed to core operating profit of ¥ 326.3 billion. The year-over-year decline at constant exchange rates reflect the impact of loss of exclusivity and lower coronavirus vaccines demand as well as our strategic investment in R&D and data and technology to ensure Takeda long-term competitiveness.

Core EPS for the period was ¥150, flat versus prior year at a constant exchange rate. On a reported basis, EPS declined due to the impact of one-time financial income gains in the first quarter of last year.