Daiichi Sankyo Company (4568) Q1 2025 earnings summary

Executive summary

• Revenue rose 24.3% year-on-year to JPY 436.2 billion, driven by strong growth in oncology, especially ENHERTU, and favorable foreign exchange rates.

• Core operating profit increased 63.9% year-on-year to JPY 72.9 billion; operating profit more than doubled to JPY 93.0 billion, reflecting gains from the sale of Daiichi Sankyo Espha.

• Profit attributable to owners rose 49.8% year-on-year to JPY 85.4 billion, aided by stock transfer gains and improved forex.

• ENHERTU sales achieved double-digit growth in all regions, maintaining leading market share in key indications.

• R&D investment increased, focusing on ADCs and vaccines, with significant clinical and regulatory milestones.

Financial highlights

• Revenue increased by JPY 85.3 billion year-on-year, with JPY 30.4 billion attributed to forex impact.

• SG&A expenses rose by JPY 32 billion, and R&D expenditure increased by JPY 23.5 billion year-on-year.

• Cost of sales decreased by JPY 8 billion due to improved product mix and higher sales of in-house products.

• Temporary income and expenses increased by JPY 20.5 billion, mainly from the gain on transfer of Daiichi Sankyo Espha shares.

• Profit before tax rose to JPY 110.2 billion, with tax rate increasing to 22.5%.

Outlook and guidance

• Full-year revenue forecast: JPY 1,750.0 billion (+9.3% YoY); core operating profit: JPY 210.0 billion (+7.5% YoY); profit attributable to owners: JPY 190.0 billion (-5.3% YoY).

• No changes to previously announced forecasts; annual dividend planned at JPY 60 per share, up JPY 10 from prior year.

• Multiple regulatory filings and data readouts planned for ENHERTU, Dato-DXd, and pipeline assets in FY2024.

• Upside potential from DB06 (DESTINY-Breast06) and downside risk from seasonal products and possible HER3-DXd approval delays.

• No revision to sales forecast yet; timing of HER3-DXd approval in the U.S. remains uncertain.