Daiichi Sankyo Company (4568) Q4 2025 earnings summary

Executive summary

• FY2024 revenue rose 17.8% year-on-year to JPY 1,886.3 billion, driven by strong global sales of Enhertu and milestone payments from strategic collaborations, with favorable FX effects.

• Core operating profit increased 60.2% to JPY 312.8 billion, and profit attributable to owners rose 47.3% to JPY 295.8 billion.

• Enhertu sales surged globally, reaching JPY 552.8 billion (+40% YoY), maintaining leadership in multiple cancer types; Datopotamab deruxtecan (DATROWAY®) received regulatory approvals and launched in major markets.

• Strategic alliances with AstraZeneca and Merck expanded, including new co-development for MK-6070 and JPY 74.2 billion in milestone payments.

• Dividend per share increased for the third consecutive year to JPY 60, with a forecast of JPY 78 for FY2025; significant share buybacks executed and further buybacks authorized up to JPY 200 billion.

Financial highlights

• Revenue increased by JPY 284.6 billion year-on-year, with a JPY 51.3 billion positive impact from foreign exchange.

• Core operating profit rose by JPY 117.6 billion, including a JPY 51.2 billion FX effect; operating profit up 56.9% to JPY 331.9 billion.

• SG&A expenses grew by JPY 71.9 billion, mainly due to profit sharing with AstraZeneca; R&D expenses increased by JPY 54.5 billion, reflecting expanded ADC investment.

• Profit attributable to owners reached JPY 295.1 billion, up JPY 95 billion year-on-year; EPS up to JPY 155.96.

• Cash and cash equivalents at year-end: JPY 639.8 billion; net cash from operating activities dropped to JPY 53.8 billion due to working capital changes.

Outlook and guidance

• FY2025 revenue is targeted at JPY 2 trillion (+6.0% YoY), with core operating profit forecast at JPY 350 billion and profit attributable to owners at JPY 300 billion.

• Oncology segment revenue expected to reach JPY 900 billion, driven by continued Enhertu growth.

• R&D expenses for FY2025 projected at JPY 455 billion, about JPY 75 billion lower than previous estimates due to refined development plans.

• Annual dividend forecast for FY2025 is JPY 78 per share, a JPY 18 increase from FY2024; new share buyback limit set at JPY 200 billion.

• Profit attributable to owners expected to rise 1.4% to JPY 300 billion; EPS forecast at JPY 160.72.