Daiichi Sankyo Company (4568) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY2024 rose 21.5% year-on-year to JPY 882.7 billion, driven by strong global sales of oncology and specialty products, especially Enhertu, and supported by favorable foreign exchange.

• Core operating profit increased 74.8% year-on-year to JPY 166.6 billion, with operating profit up 96.6% to JPY 186.9 billion.

• Net income attributable to owners rose 51.2% year-on-year to JPY 146.7 billion, aided by temporary income from stock transfer gains.

• Upward revision to FY2024 full-year guidance reflects continued sales momentum and foreign exchange tailwinds.

• Oncology, especially Enhertu, was a key growth driver, with global sales up over 50% year-on-year.

Financial highlights

• Revenue increased by JPY 156.4 billion year-on-year, with a JPY 39.6 billion positive foreign exchange impact.

• Cost of sales decreased by JPY 7.1 billion despite higher revenue, due to improved product mix and expanded in-house product sales.

• SG&A expenses increased by JPY 34.6 billion, mainly from higher profit share with AstraZeneca for Enhertu and strategic investments.

• R&D expenses rose by JPY 16.6 billion, reflecting increased personnel and development of five DXd ADCs.

• Temporary income included a gain from the transfer of Espha shares, contributing over JPY 20 billion.

Outlook and guidance

• FY2024 revenue forecast raised to JPY 1,830.0 billion (+JPY 80 billion), core operating profit to JPY 260.0 billion (+JPY 50 billion), and net income to JPY 225.0 billion (+JPY 35 billion), reflecting strong sales and yen depreciation.

• Assumed exchange rates for H2: 145 JPY/USD and 155 JPY/EUR.

• Guidance incorporates sales expansion of Lixiana and Enhertu, and milestone payments from alliances.