Consolidated Financial Results
The Daiichi Sankyo Group ("the Group") posted consolidated net sales for the fiscal year ended March 2010 (FY2009) of ¥952.1 billion, a year-on-year gain of 13.1%, despite a general trend toward a stronger yen. This was mainly due to a sales contribution of ¥146.6 billion by Ranbaxy Laboratories Limited ("Ranbaxy"), which became a subsidiary in November 2008.
In terms of profitability, operating income increased 7.5% to ¥95.5 billion and ordinary income soared 86.9% to ¥103.1 billion. This was due to the growth in net sales, which was offset by increased investment in R&D. Reflecting the discontinuation of tax relief on clinical research spending as well as adjustments made to corporate tax payments from previous years, the Group posted net income of ¥41.9 billion, compared with a consolidated net loss of ¥215.5 billion in the previous year.
Geographical Segment Information
■ Japan
Net sales in Japan declined 1.9% year on year to ¥519.4 billion.
Sales of prescription drugs rose 1.0% to ¥421.1 billion, boosted by increased sales of leading products such as the antihypertensive agents Olmetec® and Calblock® and the anti-inflammatory analgesic Loxonin®.
Royalty income and exports to overseas licensees generated sales of ¥50.3 billion (down 17.5% year on year). This reflected the impact of a stronger yen and a reduction in exports of levofloxacin, a synthetic antibacterial agent.
Net sales of healthcare (OTC) products totaled ¥43.7 billion, falling 7.4% year on year. This was due to lower sales of those OTC lines classified as Category 1 medicines, which include Gaster 10®.
■ North America
Net sales in North America increased 16.6% year on year to ¥222.5 billion.
Although the shift toward a stronger yen affected sales due to translation effects, the Group recorded further increases in sales in local currency terms. Major contributors to growth included the antihypertensive agents Benicar® and AZOR®, the antihyperlipidemic agent and treatment for type 2 diabetes Welchol®, and the anemia treatment Venofer®. Sales by Ranbaxy also made a contribution to growth.
■ Europe
Net sales in Europe increased 28.2% year on year to ¥99.3 billion. This mainly reflected growth in sales of the antihypertensive agents Olmetec® and Sevikar® and a sales contribution by Ranbaxy.
■ India
Net sales in India totaled ¥59.9 billion, an increase of 292.8% compared with the previous year. This mainly reflected sales by Ranbaxy.
■ Other regions
Net sales in other regions increased 76.4% to ¥51.0 billion due to the sales contribution from Ranbaxy, among other factors.
■ Full Year
Billions of yen
| |
FY2005 |
FY2006 |
FY2007 |
FY2008 |
FY2009 |
|---|---|---|---|---|---|
| Net sales | 925.9 | 929.5 | 880.1 | 842.1 | 952.1 |
| Cost of sales | 290.7 | 265.2 | 234.6 | 214.4 | 278 |
| Cost of sales ratio | 31.4% | 28.5% | 26.7% | 25.5% | 29.2 |
| Selling,general and administrative | 480.5 | 528.0 | 488.7 | 538.9 | 578.6 |
| SG&A ratio | 51.9% | 56.8% | 55.5% | 64.0% | 60.8% |
| Research and development | 158.7 | 170.7 | 163.5 | 184.5 | 196.8 |
| R&D ratio | 17.1% | 18.4% | 18.6% | 21.9% | 20.7% |
| Operating income | 154.7 | 136.3 | 156.8 | 88.9 | 95.5 |
| Non-operating income | 11.0 | 20.0 | 17.0 | 12.3 | 28.2 |
| Non-operating expenses | 6.0 | 4.2 | 4.8 | 46.0 | 20.6 |
| Ordinary income | 159.7 | 152.1 | 169.1 | 55.2 | 103.1 |
| Extraordinary gain | 6.9 | 73.5 | 16.1 | 3.8 | 5.9 |
| Extraordinary losses | 29.7 | 98.7 | 18.3 | 367.2 | 11.6 |
| Net income | 87.7 | 78.5 | 97.7 | ▲215.5 | 41.9 |
Financial Indicators
■ Full Year
Billions of yen
| FY2005 As of Mar.31 |
FY2006 As of Mar.31 |
FY2007 As of Mar.31 |
FY2008 As of Mar.31 |
FY2009 As of Mar.31 |
|
|---|---|---|---|---|---|
| Assets | 1,596.1 | 1,636.8 | 1,487.9 | 1,494.6 | 1,489.5 |
| Net assets | － | 1,272.1 | 1,244.5 | 888.6 | 889.5 |
| Net cash provided by (used in) operating activities | 132.8 | 106.4 | 66.7 | 78.4 | 130.2 |
| Net cash provided by (used in) investing activities | ▲39.3 | 45.3 | ▲49.4 | ▲413.9 | 42.6 |
| Net cash used in financing activities | ▲50.1 | ▲40.8 | ▲82.9 | 98.1 | ▲89.1 |
| Free Cash Flow | 93.5 | 151.7 | 17.3 | ▲335.5 | 172.9 |
| Cash and cash equivalents,end of period | 401.0 | 513.2 | 444.3 | 177.8 | 259.2 |
| Shareholder's equity ratio | 77.5% | 77.5% | 83.6% | 57.7% | 57.4% |
| Dividend on equity(DOE) | 2.9% | 3.5% | 4.0% | 5.4% | 4.9% |
| Return on equity(ROE) | 7.3% | 6.3% | 7.8% | ▲20.5% | 4.9% |
| Earnings per share(EPS) | 119.4yen | 107.7yen | 135.3yen | ▲304.2yen | 59.4yen |
| Book value per share(BPS) | 1,696.9yen | 1,740.2yen | 1,730.1yen | 1,226.0yen | 1,215.6yen |
| Total number of common shares | 729 million | 729 million | 719 million | 704 million | 704 million |
| Dividend per share | 50yen | 60yen | 70yen | 80yen | 60.0yen |
| Dividend payout ratio | 40.5% | 55.7% | 51.7% | - | 100.9% |
| Overseas sales | 307.2 | 356.7 | 358.6 | 373.3 | 482.3 |
| /Net sales | 33.2% | 38.4% | 40.8% | 44.3% | 50.7% |
| Capital expenditure | 30.1 | 31.5 | 21.1 | 19.6 | 42.7 |
| Depreciation expense | 44.4 | 39.9 | 38.7 | 40.6 | 45.9 |
| Number of consolidated subsidiaries | 57 | 54 | 43 | 100 | 99 |
| Number of employees | 18,434 | 15,358 | 15,349 | 28,895 | 29,825 |
Historical Data
