Takeda Reports 13% Fall In Nine Month Operating Profit, Keeps Annual Guidance Unchanged

Takeda Pharmaceutical Co Ltd TAK reported a 13% drop in operating earnings to ¥401.9 billion for the nine months ending December. However, it reaffirmed its profit outlook for FY22.
Operating profit for Q3 increased 21% (1% on constant currency) to ¥329.5 billion.
Related: HUTCHMED Out Licenses Fruquintinib To Takeda Outside China.
In December, Takeda agreed to shell out $4 billion to Nimbus Therapeutics for an allosteric tyrosine kinase 2 inhibitor for multiple autoimmune diseases.
Revenue increased by 21.7% (+2.6%) to ¥1,096.6 billion.
Growth in key business areas in FY2022 Q3 YTD was primarily driven by Growth & Launch Products, which delivered reported revenue of ¥1,199.6 billion, marking a +20% increase on a CER basis.
"Our third-quarter performance demonstrates sustained momentum as our Growth and Launch Products, and solid commercial execution again drove strong revenue and core profit growth," commented Takeda CFO Costa Saroukos.
"Our robust cash flow and strong financial position enabled us to make substantive progress in deleveraging even as we continued to invest for growth," Takeda said, adding its net debt to core earnings ratio has improved to 2.5 times as of the end of the third quarter.
Guidance: For FY22, Takeda reaffirms its sales outlook to ¥3,930 billion, with core revenue growth in low-single-digits. Core operating profit and EPS are expected to grow in high-single-digits.
Price Action: TAK shares closed at $15.85 on Wednesday.

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