2024-07-27 08:42:05 ET
Chugai Pharmaceutical Co., Ltd. (CHGCF)
Q2 2024 Earnings Conference Call
July 24, 2024 04:00 AM ET
Company Participants
Kae Miyata - Head of Corporate Communications
Osamu Okuda - President and Chief Executive Officer
Tsukasa Kusano - Executive Vice President, Head of Project & Lifecycle Management Unit
Iwaaki Taniguchi - Chief Financial Officer
Conference Call Participants
Shinichiro Muraoka - Morgan Stanley
Matsubara - Nomura Securities
Kasumi Haruta - UBS Securities
Seiji Wakao - JPMorgan Securities Japan Co., Ltd.
Kazuaki Hashiguchi - Daiwa Securities Group Inc
Presentation
Operator
Thank you for joining Chugai's Conference on Financial Year 2024 Second Quarter Financial Results. I am Miyata from Corporate Communications and IR. I would like to serve as your moderator today.
Today, we have an on-site presentation as well as a Zoom Webinar. Today's agenda is on the screen in the venue, as well as on the screen of the web streaming. Today's conference is going to be held in Japanese, but through the Zoom Webinar, you will be able to listen to the simultaneous interpretation in English. [Operator Instructions] Before each speakers presentation we will allow you to capture the screen. Questions will be taken after all presentations are over. We have half an hour for Q&A. Please ask your questions actively. [Operator Instructions].
Now, Dr. Okuda is going to present the financial year 2024 second quarter overview and refinement of five reforms on TOP I 2030. If you would like to capture the screen, this is your time to do so.
Osamu Okuda
I'm Okuda, I am President, and CEO. First, I would like to look back on the first half performance of the year and I would like to talk about TOP I 2030, our strategy, and refinement of five reforms on TOP I 2030. Please turn to Page 5 for fuel material.
So, the first half performance progressed very nicely on track. The revenue compared to the last year was minus 4.6%. And this was a marked improvement compared to the big negative growth of the first quarter of 24.1%. And it's because of the Ronapreve supplied to the government of JPY81.2 billion in the third quarter of the last year. And operating profit and net income, despite of the declining, the revenue increased by more than 10%. This is thanks to the good performance of exports to Roche, especially Hemlibra.
Hemlibra export grew quite dramatically. And because of the product mix change, the operating income margin was 47.5%, which is high profitability. So, thus, the progress in the first half was very good, and for the full year, we expect record high operating profit as well as record high net income. Next slide, Page 6, please. Our core business is nicely growing according to this chart. This is looking at factors affecting the difference of the top line compared to the same period of last year. Excluding Ronapreve, the revenue increased by JPY54.4 billion or 10.9%.
So, let's go from the left. The domestic sales. New products and mainstay products grew very nicely, but there was a negative impact of NHI drug price revisions. Due to that, domestic sales declined by JPY15.2 billion. Overseas sales increased significantly by higher sales volume and ForEx impact surpassing the decline in export unit price. And overseas sales increased by JPY59 billion. Especially, Hemlibra and Actemra progressed very well in terms of exports. And other revenue increased mainly due to the increase in Hemlibra-related royalty income as well as one-time income....
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Chugai Pharmaceutical Co., Ltd. (CHGCF) Q2 2024 Earnings Call Transcript