Takeda Pharmaceutical, the Japanese drugmaker, announced a 15% decrease in its first-quarter net profit compared to the previous year, despite experiencing revenue growth in various key business areas. The net profit for the quarter ended June 30 amounted to ¥89.395 billion ($637.4 million). It is important to note that the year-earlier period had seen a rise in the company’s bottom line due to financial gains associated with acquisitions.
The reported profit fell below the estimate of ¥113.53 billion as predicted by a poll of analysts conducted by S&P Global Market Intelligence.
On a positive note, Takeda’s first-quarter revenue saw a year-on-year increase of 8.9%, reaching ¥1.059 trillion. This growth can be attributed to a weaker yen and expansion in key business sectors, except for oncology. Notably, sales of the ulcerative colitis drug Entyvio surged by 14% from the previous year, amounting to ¥192.0 billion.
Moreover, Takeda’s operating profit margin demonstrated improvement, rising to 15.9% compared to 15.5% in the same period last year.
Despite these financial results, Takeda Pharmaceutical has decided to maintain its revenue and net-profit projections for the fiscal year ending in March 2024. The company expects a 4.7% decline in revenue, totaling ¥3.840 trillion, and anticipates a 55% decrease in net profit, amounting to ¥142.00 billion.