Daiichi Sankyo Company, Limited (DSKYF) Q2 2022 Earnings Call Transcript

Daiichi Sankyo Company, Limited (OTCPK:DSKYF) Q2 2022 Results Conference Call October 31, 2022 1:30 AM ET

Company Participants

Sunao Manabe - Representative Director, President and CEO
Wataru Takasaki - Head, R&D Division
Hiroyuki Okuzawa - Head, Corporate Planning and Management Division, CFO

Conference Call Participants

Hidemaru Yamaguchi - Citigroup Securities
Seiji Wakao - JPMorgan Securities
Shinichiro Muraoka - Morgan Stanley
Kazuaki Hashiguchi - Daiwa Securities
Naomi Kumagai - Mitsubishi UFJ Morgan Stanley Securities
Fumiyoshi Sakai - Credit Suisse

Sunao Manabe

Manabe speaking. Thank you very much for joining Daiichi Sankyo's financial results presentation out of your very busy schedule today. I'm going to explain FY 2022 second quarter financial results we announced at 1 p.m. on Monday, October 31, Japan Time, based on the presentation materials.

Please turn to Page 3. Today, I'm going to cover FY 2022 second quarter consolidated financial results, FY 2022 forecast and business update in that order. Then Wataru Takasaki, R&D Division Head, will explain our R&D update. We will entertain your questions at the end.

Please turn to Page 4. This is an overview of FY 2022 second quarter consolidated results. Revenue increased by ¥77.8 billion or 14.7% year-on-year to reach ¥607.8 billion.

Cost of sales decreased by ¥13.2 billion from the previous year. SG&A expenses rose by ¥44 billion, and R&D expenditure increased by ¥44.8 billion year-on-year. As a result, core operating profit increased to ¥84.8 billion, up by ¥2.1 billion or 2.5% year-on-year. Operating profit, including temporary gains and losses increased to ¥95.6 billion, up ¥10.8 billion or 12.8% year-on-year. Profit attributable to owners of the company was ¥58.3 billion, down by ¥4.2 billion or 6.7% due to an increase in income taxes, et cetera. As for the actual currency rates, the U.S. dollar was ¥133.98. The yen depreciated by ¥24.18 against the dollar year-on-year. The euro was ¥138.72. The yen depreciated by ¥7.83 against the euro.