Otsuka (4578) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of FY2024 rose 17.0% year-over-year to ¥1,730.1 billion, driven by strong growth in both pharmaceutical and nutraceutical businesses.

• Business profit increased by 40.0% to ¥362.0 billion, with margin up 3.4ppt, reflecting higher sales of high-margin products.

• Net profit attributable to owners was ¥191.7 billion, up 18.5% year-over-year.

• Key growth drivers included REXULTI, LONSURF, ABILIFY MAINTENA, JYNARQUE, POCARI SWEAT, and Nature Made.

• Acquisition of Jnana Therapeutics Inc. completed in September 2024, expanding the R&D pipeline.

Financial highlights

• Revenue reached ¥1,730.1 billion for Q1-3 FY2024, up 17.0% year-over-year.

• Business profit rose to ¥362.0 billion (+40.0% YoY), operating profit to ¥261.0 billion (+28.8%), and net profit to ¥191.7 billion (+18.5%).

• Basic earnings per share: ¥353.33 (up from ¥297.99 year-over-year).

• Total assets at end-Q3 FY2024: ¥3,597.8 billion (+¥236.6 billion from FY2023 year-end).

• Cash and cash equivalents: ¥515.1 billion at period end.

Outlook and guidance

• FY2024 revenue forecast revised to ¥2,310.0 billion, with business profit guidance raised to ¥420 billion (+¥30 billion from August revision).

• Net profit forecast increased to ¥320 billion (+¥18 billion), reflecting strong business momentum.

• Basic EPS forecast at ¥443.24; dividend forecast at ¥120 per share.

• Research and development expenses for FY2024 expected to be ¥316.0 billion, lower than previous guidance.

• Exchange rate assumptions updated to ¥150/USD and ¥163/EUR.