Daiichi Sankyo Company (4568) investor relations material

Executive summary

• Revenue grew 12.1% year-on-year to JPY 1,533.5 billion, driven by strong sales of ENHERTU and DATROWAY, with significant contributions from oncology and international markets.

• Core operating profit rose 8.8% year-on-year to JPY 249.2 billion, while operating profit declined 5.9% due to absence of prior year’s one-time gains and temporary expenses.

• Profit attributable to owners increased 4.2% year-on-year to JPY 217.4 billion.

• No changes to the full-year consolidated earnings forecast; product-level sales forecasts updated but total revenue guidance unchanged.

• No major temporary income this year, with prior year’s asset sales and stock transfers not repeated.

Financial highlights

• Revenue up JPY 165.9 billion year-on-year, with oncology business contributing JPY 113.3 billion, and ASCA region up JPY 35 billion.

• SG&A expenses increased by JPY 93.7 billion, mainly due to profit sharing with AstraZeneca; R&D expenses rose by JPY 38.1 billion, reflecting increased ADC investment.

• Operating profit impacted by JPY 34.7 billion in CMO compensation and inventory write-downs.

• Gross profit margin improved to 78.1% from 76.5% year-over-year.

• Free cash flow for the period was negative at -JPY 108.0 billion, down from JPY 348.8 billion a year earlier.

Outlook and guidance

• No revision to FY2025 consolidated earnings forecast; full-year DATROWAY sales forecast raised by JPY 9.2 billion to JPY 47 billion.

• Full-year revenue forecast raised to JPY 2,100.0 billion, up from JPY 2,000.0 billion.

• Continued focus on expanding ENHERTU and DATROWAY indications and market penetration.

• Five-year business plan update scheduled for April, with further details on growth drivers and profit outlook.

• Overseas sales ratio expected to reach 70.2%.