Daiichi Sankyo Company (4568) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 revenue rose 16.6% year-on-year to JPY 1,367.6 billion, driven by strong global sales of ENHERTU and other oncology products, as well as favorable FX.

• Core operating profit increased 33% year-on-year to JPY 229 billion, reflecting improved product mix, higher profit share from alliances, and cost-to-sales ratio improvements.

• Profit attributable to owners rose 27.5% year-on-year to JPY 208.6 billion, aided by higher financial income and lower temporary expenses.

• Major R&D progress includes approvals for DATROWAY in Japan and the US, expanded ENHERTU indications, and significant clinical milestones for ADCs and other pipeline assets.

• Strategic focus remains on expanding mainstay products, advancing the R&D pipeline, and maintaining robust guidance despite DATROWAY delays.

Financial highlights

• Revenue increased by JPY 194.3 billion year-on-year, with a JPY 45.7 billion positive impact from foreign exchange.

• Core operating profit rose by JPY 56.8 billion; operating profit up 27.6% to JPY 248.3 billion.

• Profit before tax increased 75.2 billion to JPY 275.0 billion; net profit up JPY 45.0 billion to JPY 208.6 billion.

• Oncology business revenue surged 104.2 billion year-on-year, with ENHERTU sales up 101.6 billion.

• Cost of sales increased 3.6% year-on-year; SG&A and R&D expenses rose due to profit sharing, increased headcount, and higher R&D investment.

Outlook and guidance

• FY2024 revenue forecast maintained at JPY 1,830.0 billion; core operating profit forecast at JPY 260.0 billion.

• Profit before tax and profit attributable to owners revised upward by JPY 15 billion each, reflecting improved FX gains.

• FY2025 DATROWAY sales expected to be lower than initial plan, but mainstay product growth aims to maintain profit targets.

• Annual dividend for fiscal 2024 planned at JPY 60 per share, up JPY 10 from prior year.

• FY2025 guidance to be updated in April, with focus on controlling R&D expenses to achieve or exceed business plan targets.