For Immediate Release
Listed company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, Representative Director, President and CEO
(Code no.: 4568)
Please address inquiries to Noriaki Ishida, Executive Officer,
Vice President, Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com
Daiichi Sankyo Revises Fiscal 2014 Consolidated Forecasts
Tokyo, Japan (April 28, 2015) – In light of recent business trends, Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) has revised its forecasts of consolidated financial results (continuing operations) for fiscal 2014, announced on January 30, 2015. Details are as follows.
1. Revisions to the forecasts
Revisions to the forecasts of consolidated financial results for fiscal 2014 (from April 1, 2014 to March 31, 2015)
During fiscal 2014, consolidated subsidiary Ranbaxy Laboratories Limited (“Ranbaxy”) had been expected to be absorbed by Sun Pharmaceutical Industries Ltd. (“Sun Pharma”) through a merger and become discontinued operation in Daiichi Sankyo Consolidated results. In light of such expectation, Daiichi Sankyo has continued to communicate the forecast of consolidated financial results for fiscal 2014 only for continuing operations, which exclude the Ranbaxy business.
|
|
Revenue
|
Operating profit
|
Profit
before tax
|
Profit attributable to owners of the Company
|
Basic
earnings
per share
|
|
Millions of yen
|
Millions of yen
|
Millions of yen
|
Millions of yen
|
Yen
|
|
Previous forecasts (A)
|
900,000
|
100,000
|
100,000
|
65,000
|
92.33
|
|
Revised forecasts (B)
|
919,000
|
74,000
|
79,000
|
46,000
|
65.34
|
|
Change (B-A)
|
19,000
|
–26,000
|
–21,000
|
–19,000
|
|
|
Percentage of change
(%)
|
2.1
|
–26.0
|
–21.0
|
–29.2
|
|
|
(Reference)
Results of previous fiscal year (FY2013)
|
899,126
|
112,922
|
112,950
|
60,943
|
86.57
|
Though the numbers in the row of “(Reference) Results of previous fiscal year (FY 2013)” above are numbers for only continuing operation, only “Profit attributable to owners of the Company” includes both continuing and discontinued operations.
2. Reason for the revision
We now forecast revenue of ¥919 billion, higher than the previous forecast, partly due to a boost from the weak yen.
We revise down our forecast for operating profit by ¥26 billion to ¥74 billion due to an expected write-off loss of approximately ¥35 billion on goodwill related to anticancer agent Zelboraf, sold by consolidated subsidiary Plexxikon Inc.
We also forecast profit before tax of ¥79 billion, a reduction of ¥21 billion, reflecting the downward revision to operating profit, and profit attributable to owners of the Company (continuing operations) of ¥46 billion, a reduction of ¥19 billion.
We will disclose Revenue, Operating income, Profit before Tax only for continuing operations, and will disclose Profit for the year and Profit attributable to owner including both continuing and discontinued operations for fiscal 2014 (from April 1, 2014 to March 31, 2015).
As shown in the attached table, we project approximately \321 billion for profit attributable to the owners of the Company including discontinued operations, comprising \46 billion in profit for the period from continuing operations and \275 billion profit from discontinued operations, which was calculated by adjusting roughly \85 billion for profit/loss and tax expenses from \360 billion in gain on merger of subsidiary*.
* On March 25, 2015, we projected a gain on merger of subsidiary of approximately ¥340 billion (before tax effects), but accounting processes have resulted in a confirmed amount of roughly ¥360 billion.
Attached table
The projection of Fiscal 2014 (from April 1, 2014 to March 31, 2015)
|
|
Revenue
|
Operating profit
|
Profit
before tax
|
Profit attributable to owners of the Company
|
Basic
earnings
per share
|
|
Millions of yen
|
Millions of yen
|
Millions of yen
|
Millions of yen
|
Yen
|
|
Results of previous fiscal year (FY2013) (A)
|
899,126
|
112,922
|
112,950
|
60,943
|
86.57
|
|
Projection of Fiscal 2014 (B)
|
919,000
|
74,000
|
79,000
|
321,000
|
455.95
|
|
Change (B-A)
|
19,873
|
-38,922
|
-33,950
|
260,056
|
―
|
|
Percentage of change (%)
|
2.2
|
-34.5
|
-30.1
|
426.7
|
―
|