Takeda Delivers Strong FY2022 H1 Results and Raises Full-Year Forecast

 Strong Start to Fiscal Year with H1 Core Revenue Growth of +5.5% at Constant Exchange Rate (CER); Reported Revenue Growth +10.1%

Core Operating Profit Growth of +14.5% at CER; Core Operating Profit Margin of 31.7%

Reported Operating Profit Growth Affected by One-time Gain Booked in FY2021 Q1 from Sale of Diabetes Portfolio in Japan and FX Impact

Updating Peak Sales Outlook for ENTYVIO® to $7.5-9.0B

Net Debt / Adjusted EBITDA Improved to 2.6x; Well-balanced Maturity Profile with 98% of Debt at Fixed Rates at Average 2% Interest

Upgrading Full-Year Reported and Core Forecasts and Free Cash Flow Outlook, and Reconfirming Management Guidance

(BUSINESS WIRE) -- Takeda (TOKYO:4502/NYSE:TAK) today announced financial results for the first half of fiscal year 2022 (period ended September 30, 2022), upgrading reported and core forecasts and free cash flow outlook for the fiscal year and reconfirming Management Guidance for core growth at constant exchange rate (CER).

Takeda chief executive officer, Christophe Weber, commented:

“We succeeded in several major milestones in the first half of our fiscal year, including the first approval for Takeda’s dengue vaccine, QDENGA®, in Indonesia and more recently the CHMP positive opinion for Europe and dengue-endemic countries. These milestones, together with our financial results, continue to demonstrate our ability to advance our robust pipeline and deliver new solutions for people and patients around the world.”

Takeda chief financial officer, Costa Saroukos, commented:

“Our first half results are driven by strong momentum from our Growth and Launch Products, which grew at 19% year-on-year at constant exchange rate, and continued success in commercial execution, including new launches, contributing to core profit growth. Our core revenue and core operating profit grew 5.5% and 14.5% at constant exchange rate, respectively, enabling us to reconfirm our Management Guidance for FY2022.

“We have remained resilient amid rising inflation globally as a result of careful, long-term planning and strong execution and we continue to deleverage rapidly, finishing the first half with net debt to adjusted EBITDA at 2.6x, with 98% of our debt at fixed interest rates with a weighted average of 2%.

“We are upgrading our peak sales estimate for our biggest selling product, ENTYVIO®, based on potential for further biologic market growth and share expansion, and our updated assumption for biosimilar entry timing. We are also raising our reported and core forecasts and free cash flow outlook for the full year, primarily reflecting favorable foreign exchange rates.

“We look forward to building on our first half business momentum throughout FY2022.”

Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

This press release and materials distributed in connection with this press release include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit, Core EPS, Constant Exchange Rate (“CER”) change, Net Debt, EBITDA, Adjusted EBITDA and Free Cash Flow. Takeda’s management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. By including these non-IFRS measures, management intends to provide investors with additional information to further analyze Takeda’s performance and core results, including when controlling for the effect of fluctuations in exchange rates. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS (which we sometimes refer to as “reported” measures). Investors are encouraged to review the definitions and reconciliations of non-IFRS financial measures to their most directly comparable IFRS measures, which are in the financial appendix at the end of Takeda's Q2 FY2022 investor presentation (available at takeda.com/investors/financial-results).

Medical information

This press release contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development.

1Please refer to slide 19 of Takeda’s FY2022 Q2 investor presentation (available at takeda.com/investors/financial-results) for the definition of Growth & Launch Products.