Eisai (4523) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue was ¥189.0 billion, down 4% year-over-year due to the absence of prior-year one-time income, but pharmaceutical business revenue rose 3% to ¥186.6 billion, driven by LENVIMA, DAYVIGO, and LEQEMBI.

• Operating profit was ¥13.4 billion, about 52% of the prior year, reflecting higher SG&A and R&D expenses and the absence of one-time payments.

• LEQEMBI revenue surged to ¥6.3 billion (up 87x year-over-year), with rapid expansion in the US, Japan, and China.

• Profit for the period was ¥10.6 billion, down 48% year-over-year, mainly due to increased expenses and currency effects.

• Proactive investment in LEQEMBI continued, with R&D and SG&A expenses rising.

Financial highlights

• Gross profit was ¥149.3 billion (down 2.4% year-over-year), with gross margin improving to 79.0%.

• R&D expenses were ¥41.7 billion (up 1.4%), SG&A expenses ¥99.5 billion (up 15.6%), and other income ¥5.5 billion, mainly from a ¥4.8 billion reversal after ending the BMS collaboration.

• Profit attributable to owners of the parent was ¥10.6 billion, down 48% year-over-year.

• Basic EPS was ¥36.95, down from ¥70.92 in the prior year.

• Net cash position at end of June 2024 was ¥143.9 billion; equity ratio at 63.1%.

Outlook and guidance

• FY2024 revenue forecast is ¥754.0 billion (+1.7% year-over-year), with operating profit of ¥53.5 billion and EPS of ¥152.50.

• Dividend forecast maintained at ¥160 per share; ROE and DOE expected at 5.2% and 5.5%, respectively.

• Focus remains on growth of LENVIMA, DAYVIGO, and LEQEMBI, cost control, and maintaining financial discipline.