Daiichi Sankyo Raises Full-Year Forecasts on Forex Gains
-- Daiichi Sankyo (TYO:4568) raised its attributable profit forecast for the fiscal year ended March 31 to 2.5 billion yen from 1.7 billion yen previously, according to a Tokyo bourse filing on Friday.
The pharmaceutical firm now expects earnings per share to be 103.26 yen, up from the earlier forecast of 70.16 yen, while the estimate for net sales has been slightly increased to 35.8 billion yen from 35.3 billion yen.
The upward revision is primarily driven by a weaker Japanese yen compared with the company's initial assumption of 151 yen per U.S. dollar, resulting in significant foreign exchange gains on foreign currency-denominated assets and liabilities.
For the full year, the company recorded total foreign exchange gains of 609 million yen as non-operating income, though this was partially offset by a 227 million yen allowance for doubtful accounts and 301 million yen in derivative valuation losses.
Despite these offsets, the company expects ordinary profit to significantly exceed prior forecasts, while the year-end dividend forecast remains unchanged.