Latest Results

IFRS results

Revenue for the fiscal year under review was ¥1,257.9 billion (an increase of 7.5% year on year), operating profit for the fiscal year under review was ¥598.8 billion (an increase of 10.5% year on year), and net income for the fiscal year under review was ¥434.0 billion (an increase of 12.1% year on year). These results include non-Core items, which are excluded from the Core results that Chugai adopts to manage recurring business activities, such as amortization of intangible assets of ¥1.4 billion, impairment loss of intangible assets of ¥1.7 billion, business rebuilding expenses of ¥13.3 billion, expenses relating to the management decision to collectively discontinue in-house development projects, etc. of ¥16.4 billion, and restructuring expenses of ¥8.4 billion (income), including gain on sales of non-current assets in conjunction with the closing of a business office.

Core results

Revenue for the fiscal year under review was ¥1,257.9 billion (an increase of 7.5% year on year), due to an increase in sales.

Of revenue, sales were ¥1,077.8 billion (an increase of 8.0% year on year). Domestic sales exceeded the levels of the same period of the previous fiscal year due to the increase in the sales of new products Phesgo and PiaSky, and the mainstay products Vabysmo, Enspryng, and Hemlibra, despite the market penetration of generic drugs and the effects of the NHI drug price revisions. Overseas sales increased compared to the same period of the previous fiscal year due to the increase in the export of Hemlibra and Actemra to Roche. Other revenue was ¥180.1 billion (an increase of 4.3% year on year), due to the increase in income related to Hemlibra, despite a decrease in one-time income. Furthermore, cost to sales ratio was 32.6%, an improvement of 1.3 percentage points year on year, reflecting the effects of foreign exchange, a change in product mix, and other factors. As a result, gross profit amounted to ¥906.5 billion (an increase of 8.9% year on year).

Research and development expenses were ¥180.1 billion (an increase of 1.8% year on year) due to increases associated with investments into drug discovery/early development and the progress of development projects, etc., and selling, general and administration expenses were ¥103.2 billion (an increase of 1.0% year on year) due to an increase in various expenses. Other operating income (expense) was income of ¥0.0 billion (¥2.7 billion of income for the same period of the previous fiscal year). As a result, core operating profit was ¥623.2 billion (an increase of 12.1% year on year), and core net income has increased for a ninth consecutive fiscal year to ¥451.0 billion (an increase of 13.6% year on year).

Meanwhile, compared to the full year forecast announced on January 30, 2025, revenue exceeded the full year forecast by 5.7% to ¥1,257.9 billion, due to the favorable performance of both domestic and overseas sales. Furthermore, the cost to sales ratio improved 0.9 percentage points over the full year forecast to 32.6%, due to a change in product mix, etc., but research and development expenses of ¥180.1 billion (an increase of 1.2% over the full year forecast) and selling, general and administration expenses of ¥103.2 billion (an increase of 2.2% over the full year forecast) were almost par with the forecasts. As a result, core operating profit surpassed the full year forecast by 9.3% to reach ¥623.2 billion, and core net income increased by 10.0% to reach ¥451.0 billion.

(Billions of yen)

Revenue

Revenue is expected to increase to ¥1,345.0 billion (an increase of 6.9% year on year).

Of revenue, domestic sales are expected to increase to ¥498.0 billion (an increase of 5.4% year on year), due to an increase in sales volume of the new product Lunsumio as well as mainstay products, despite the decrease in sales caused by the effects of the NHI drug price revisions and the market penetration of generic drugs.

Overseas sales are expected to be at levels similar to the same period of the previous fiscal year at ¥602.0 billion (a decrease of 0.6% year on year), due to factors such as a decrease in Actemra despite the growth in sales of NEMLUVIO and Hemlibra.

Other revenue is expected to be ¥245.0 billion (an increase of 36.0% year on year). Royalty and profit-sharing income are forecasted to increase to ¥217.2 billion (an increase of 25.8% year on year), due to increases in out-licensed products to third parties and income related to Hemlibra. Other operating income is expected to be ¥27.8 billion (an increase of 270.7% year on year) due to the increase in one-time income.

Core Operating Profit / Core EPS

Gross profit is expected to be ¥961.5 billion (an increase of 6.1% year on year), with the assumption that the cost to sales ratio is 34.9%, which is a 2.3 percentage point improvement year on year, due to a change in the product mix, etc., in addition to the above outlook on revenue.

Due to investments into drug discovery/early development and increases associated with the progress of development projects, etc., research and development expenses are expected to be ¥190.0 billion (an increase of 5.5% year on year), and selling, general and administration expenses are expected to be ¥102.0 billion (a decrease of 1.2% year on year,) which is at the same level as the previous year.

As a result, Core operating profit is expected to reach ¥670.0 billion (an increase of 7.5% year on year) and Core net income is expected to increase to ¥485.0 billion (an increase of 7.5% year on year). Core EPS of ¥295.00 (an increase of 7.7% year on year) is also expected.