Daiichi Sankyo Company (4568) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for Q2 FY2024 rose 21.5% year-on-year to JPY 882.7 billion, driven by strong global oncology and specialty product sales, especially Enhertu, and favorable foreign exchange rates.

• Core operating profit increased 74.8% year-on-year to JPY 166.6 billion, and operating profit (including one-time items) surged 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, FX tailwinds, and strategic alliances.

• Major growth drivers included Enhertu, Lixiana, Tarlige, and vaccine businesses, with significant contributions from overseas oncology sales.

Financial highlights

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

• 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 rose by JPY 34.6 billion, mainly due to higher profit share with AstraZeneca and strategic investments.

• R&D expenses increased by JPY 16.6 billion, reflecting expanded development activities, especially in 5DXd ADCs.

• One-time gain of JPY 20.6 billion from the transfer of Espha shares contributed to profit growth.

Outlook and guidance

• FY2024 revenue forecast revised upward by JPY 80 billion to JPY 1.83 trillion, factoring in higher sales of Lixiana, Enhertu, and FX impact.

• Core operating income and operating income forecasts raised by JPY 50 billion to JPY 260 billion and JPY 208 billion, respectively.

• Net income forecast increased by JPY 35 billion to JPY 225 billion; EPS forecast at JPY 118.66.

• 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.