Ono Pharmaceutical (4528) Q1 2024 earnings summary

Executive summary

• Q1 FY2023 revenue reached ¥120.0 billion, up 12.5% year-over-year, driven by strong product and royalty sales, especially Opdivo and Forxiga.

• Operating profit increased 8.3% to ¥41.3 billion, and profit for the period rose 7.9% to ¥31.8 billion.

• Comprehensive income for the period surged 30.3% year-over-year to ¥38.7 billion.

• Major products like Opdivo, Forxiga, and Velexbru showed significant sales growth.

Financial highlights

• Revenue from goods and products grew 11.6% year-over-year, while royalty and other revenue increased 14.2%.

• Gross profit improved to ¥89.8 billion from ¥79.8 billion year-over-year.

• R&D expenses increased 26.6% to ¥24.6 billion, and SG&A expenses were up 8.1%.

• Net financial income was ¥1.0 billion, with finance income at ¥1.3 billion and finance costs at ¥0.2 billion.

• Cash and cash equivalents decreased by ¥36.4 billion during the quarter, ending at ¥60.4 billion.

Outlook and guidance

• FY2023 financial forecast remains unchanged: revenue expected at ¥475.0 billion, operating profit at up to ¥154.0 billion, and profit for the year at ¥115.0 billion.

• Exchange rate assumption for FY2023 is 1 USD = 130 yen.

• The financial impact of a major patent settlement with AstraZeneca will be disclosed in Q2 results.