Takeda Pharmaceuticals earnings: profits, EPS down over 50% in Q4 financial results

Japanese pharmaceutical titan Takeda (NYSE: TAK/TSE: 4502) today announced their financial results for Q4 and the full fiscal year of 2023.

The company described it in a press release as “a year of significant loss-of-exclusivity impact”, a grim picture which was backed up by the company’s financials.

FY 2023 financial results

Takeda saw a disheartening 56.4% decline in operating profit during 2023’s full year, and a 54.9% reduction in earnings per share (EPS) to just 92 yen.

Revenues were up marginally by 5.9%, but the company’s free cash flow also suffered heavily, dropping 36.5%.

Future 2024 guidance and beyond

Guidance on the company’s 2024 outlook was hardly rosy, thanks to some closing remarks by Takeda chief financial officer Milano Furuta:

While we anticipate revenue to remain flat or decline slightly at CER in FY 2024, we expect double-digit CER revenue Growth & launch products, accounting for approximately 50% of our total revenue, helping to offset remaining impact from generic competition.”

However, Furuta did add that things at Takeda are likely to look up significantly after that:

With no further significant loss of exclusivity impact expected from FY2025 until the early 2030s, we remain focused on returning to sustainable revenue and profit growth from FY 2025 onwards.”

Takeda investors, it seems, will need to take the long view if they wish to be optimistic about the stock’s future prospects… But what will happen, then, come the ‘early 2030s’?

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