Difference between Forecast and Actual Results for the Fiscal Year Ended March 2021

Difference between Forecast and Actual Results for the Fiscal Year Ended March 2021

May 11, 2021

OSAKA, Japan, May 11, 2021 – Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) (“Takeda”) announced a difference between the forecast disclosed on February 4, 2021 for the full year consolidated financials for the fiscal year ending March 31, 2021 (FY2020), and the actual results announced today. Under Tokyo Stock Exchange reporting requirements, Takeda is required to announce this difference due to Profit before income taxes and Net profit attributable to owners of the Company both exceeding the previous forecast by more than 30%.

Profit before tax exceeded the forecast by +42.0%, primarily due to a gain on the sale of Takeda Consumer Healthcare Company Ltd., partially offset by an additional remeasurement of contingent consideration assets. Net profit attributable to owners of the Company exceeded the forecast by 108.3%, reflecting the increase in profit before tax, as well as a lower reported tax rate. Please refer to details below.


  1. Difference between Forecast and Actual Results for the Fiscal Year Ended March 31, 2021


(millions of yen)





Profit before
income taxes

Net profit attributable
to owners of
the Company

Basic earnings
per share

Core EPS

Previous Forecast (A)*






115.56 yen

420 yen

Actual Results (B)






240.72 yen

420 yen

Discrepancy (B-A)






Change %






* Announced on February 4, 2021.


  1. Reasons for Difference

Revenue was lower than the previous forecast by 2.2 billion JPY, or 0.1%, at 3,197.8 billion JPY, primarily due to business momentum offset by earlier closing of divestitures.

Core Operating Profit was lower by 16.1 billion JPY, or 1.6%, at 967.9 billion JPY, reflecting accelerated delivery of cost synergies offset by an increase of R&D spend and earlier closing of divestitures. The impact from the spread of the novel coronavirus infectious disease (COVID-19) on FY2020 results was immaterial. For details, please refer to section 1. (4) of the Financial Statements for the Fiscal Year Ended March 31, 2021: “Impact of the Spread of the Novel Coronavirus Infectious Disease (COVID-19) and Takeda’s Initiatives in Response”.

Operating Profit was higher than the previous forecast by 75.3 billion JPY, at 509.3 billion JPY. This increase was primarily driven by a gain on the sale of Takeda Consumer Healthcare Company Ltd. (139.5 billion JPY), partially offset by an additional remeasurement of contingent consideration assets on XIIDRA (54.3 billion JPY).

Net profit for the period attributable to owners of the Company was higher than the previous forecast by 195.5 billion JPY, at 376.0 billion JPY. This was due to higher profit before income taxes, as well as a lower reported tax rate due to various factors including legal entity optimization, recognition of additional deferred tax assets and restructuring loss benefits.


  1. FY2020 Management Guidance

Management Guidance for the fiscal year ended March 31, 2021 (FY2020), on an underlying basis was delivered due to growth of Takeda’s 14 Global Brands and accelerated delivery of cost synergies.



Management Guidance
(February 4, 2021)

FY2020 Actual Results

Underlying Revenue Growth

Low-single-digit growth


Underlying Core Operating Profit Growth

High-single-digit growth


Underlying Core Operating Profit Margin



Underlying Core EPS Growth

Low-teen growth




About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited (TSE: 4502/NYSE: TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to discover and deliver life-transforming treatments, guided by our commitment to patients, our people and the planet. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Genetics and Hematology, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people’s lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries. For more information, visit https://www.takeda.com.


Media Contacts:                                   Investor Contacts:
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Certain Non-IFRS Financial Measures
This press release includes certain non-IFRS financial measures and targets. Takeda's management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this press release. Non-IFRS results exclude certain income and cost items which are included in IFRS results. By including these non-IFRS measures, management intends to provide investors with additional information to further analyze Takeda's performance, core results and underlying trends. Non-IFRS results are not prepared in accordance with IFRS and non-IFRS information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with IFRS. Investors are encouraged to review the reconciliations of non-IFRS financial measures to their most directly comparable IFRS measures.


Medical information
This press release contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development.


Financial information
Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").