Astellas Pharma (4503) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2024 increased by 26.2% year-on-year to ¥473.1 billion, driven by strong performance of XTANDI and strategic brands, especially in the U.S.

• Core operating profit rose 20.5% year-on-year to ¥88.3 billion, with significant contributions from XTANDI and new brands.

• Strategic brands sales tripled year-on-year to ¥75.0 billion, with robust growth from Padcev, Izervay, Veozah, Vyloy, and Xospata.

• Growth offset MYRBETRIQ declines due to US generics; US, Established Markets, China, and International Markets saw revenue increases, while Japan declined.

• SG&A and R&D expenses increased as planned to support future growth, with timely cost management focused on ROI.

Financial highlights

• Q1 revenue: ¥473.1 billion, up 26.2% year-on-year; FX impact contributed ¥45.4 billion.

• Core operating profit: ¥88.3 billion, up 20.5% year-on-year; operating profit: ¥50.7 billion, up 10.6% year-on-year.

• Net profit: ¥37.6 billion, up 13.5% year-on-year.

• SG&A expenses: ¥206.9 billion, up 23.0%; R&D expenses: ¥86.8 billion, up 34.4%.

• Free cash flow was negative at -¥26.7 billion, mainly due to increased investing activities.

Outlook and guidance

• On track to achieve FY2024 initial forecast; strong Q1 performance sets a solid foundation.

• FY2024 revenue forecast: ¥1,650.0 billion; core operating profit forecast: ¥250.0 billion.

• Anticipates continued growth for strategic brands and further sales expansion in Q2 and beyond, with further launches and label expansions anticipated.

• Medicare Part D changes may impact XTANDI sales from Q3, but this is factored into guidance.

• FX sensitivity: 1 yen depreciation in USD adds approx. ¥6.1 billion to revenue and ¥0.3 billion to core OP.