Chugai Pharmaceutical (4519) Q4 2024 earnings summary

Executive summary

• Achieved record-high revenue of JPY 1,170.6 billion (+5.3% YoY), operating profit of JPY 556.1 billion (+23.4% YoY), and net income of JPY 397.1 billion (+19.0% YoY), surpassing revised forecasts for FY2024.

• Overseas sales, especially Hemlibra exports to Roche, drove growth and offset domestic declines from Ronapreve supply completion, NHI price revisions, and generic competition.

• R&D pipeline remains robust with 21 projects in phase I, 6 in phase II, and 29 in phase III; 13 global approvals and launches in 2024, and three new venture investments.

• Strategic focus for 2025 includes accelerating value creation, maximizing lifecycle management, strengthening the business foundation, and celebrating the 100th anniversary with innovation and global health initiatives.

Financial highlights

• FY2024 revenue: JPY 1,170.6 billion (+5.3% YoY); operating profit: JPY 556.1 billion (+23.4% YoY); net income: JPY 397.1 billion (+19.0% YoY); EPS: JPY 241.31 (+19.0% YoY).

• Overseas sales surged to JPY 536.8 billion (+28.9% YoY); domestic sales fell to JPY 461.1 billion (-17.4% YoY); other revenue: JPY 172.7 billion (+26.2% YoY).

• Cost of sales ratio improved by 8.4 points to 33.9%; operating margin reached a record 47.5%.

• ROIC increased to 42.9% (from 34.6% in 2023); net cash at year-end was JPY 996.3 billion.

• EPS increased by JPY 38.6 to JPY 241.

Outlook and guidance

• FY2025 revenue forecast: JPY 1,190 billion (+1.7% YoY); core operating profit: JPY 570 billion (+2.5% YoY); net income: JPY 410 billion (+3.2% YoY); EPS: JPY 250 (+3.6% YoY).

• Overseas sales growth expected to offset lower Hemlibra export unit price and domestic generic competition; Hemlibra, Alecensa, and NEMLUVIO are key contributors.

• Operating margin projected to remain high at 47.9%.

• Annual dividend forecast for 2025 is JPY 250 per share, including a JPY 150 commemorative dividend for the 100th anniversary.