Takeda Pharmaceutical Company Announces Restructuring Plan and Profit Forecast: A Detailed Analysis

2024-05-09 08:48:18

Japanese pharmaceutical company Takeda posted a net profit of 144.1 billion yen (863 million euros) in its full fiscal year, which ended in March, representing a 54.6% decline compared to the previous year. which has announced a restructuring plan that will include adjustments to the workforce. Revenue for the year as a whole was 4.26 trillion yen (25.51 billion euros), up 5.9%. Looking ahead to the current fiscal year, Takeda expects to achieve a net profit of ¥58 billion (€347 million), as well as revenue of ¥4.35 trillion (€26.05 billion). “In an otherwise challenging year, our core financial results reinforce my confidence in our resilience and our ability to navigate the near-term impact of generic competition to return to sustainable revenue and earnings growth from fiscal 2025,” said Takeda’s president and CEO Christopher Weber. On the other hand, Takeda announced this Thursday that its board has approved a multi-year program to improve organizational agility, spending efficiency and better leverage the company’s capabilities in data, digital and technology (DD&T). The program will begin implementation this fiscal year and includes initiatives to optimize the workforce, simplify certain divisional structures and rigorously prioritize its R&D portfolio, while investing in DD&T to increase productivity and efficiency across the organization. As a result of the planned initiatives, Takeda estimates that it will incur exceptional restructuring costs of 140 billion yen (838 million euros) in the current fiscal year, which is already reflected in the forecast presented this Thursday for fiscal year 2024, while the company expects lower restructuring costs in fiscal years 2025 and 2026. Takeda estimates that the efficiencies and savings resulting from the multi-year program, offset by investments in the project portfolio and DD&T, will increase the margin by 100 to 250 basis points of profit each year from fiscal year 2025, depending on several factors, including the business environment and exchange rates.

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