Shionogi & Co., Ltd. (Headquartered in Osaka, Japan; CEO: Isao Teshirogi, Ph.D.; hereafter referred to as “Shionogi”) has announced revisions to its dividend forecasts for the fiscal year ending March 31, 2024 (fiscal 2023; April 1, 2023 – March 31, 2024). These revisions follow the initial dividend forecasts disclosed on May 10, 2023.
Reasons for Revisions to Dividend Forecasts:
Shionogi is committed to maximizing corporate value by striking a balance between investment in growth and shareholder returns. The company aims to share the benefits of mid-to-long term profit growth with its shareholders. In alignment with this objective, Shionogi plans to steadily increase its consolidated dividends, targeting a Dividend on Equity (DOE) of 4% or higher.
In fiscal 2023, Shionogi introduced a revised version of its Medium-term Business Plan, STS2030. This initiative focuses on reinforcing the company’s position as a drug-discovery-based pharmaceutical entity while transitioning into a Health-as-a-Service (HaaS) provider, offering a comprehensive array of healthcare products and services to society. These efforts aim to deliver new value to both patients and society at large by addressing healthcare challenges more effectively.
As a result of these endeavors, Shionogi has witnessed expanded sales of key products such as Xocova, a COVID-19 treatment drug, and its influenza franchise, particularly Xofluza, within Japan. The establishment of a multi-drug respiratory infectious disease portfolio has contributed to stable profits throughout the fiscal year, enhancing the resilience of Shionogi’s acute infectious disease business against shifting epidemics. The company is actively pursuing the “test and treat” approach to facilitate prompt access to infectious disease medications for patients in need. Furthermore, through strategic partnerships, Shionogi has successfully expanded the global reach of its in-house discovered products such as Xocova, Xofluza, and cefiderocol, all of which are integral to the STS2030 Revision.
Additionally, significant progress has been made in advancing Shionogi’s next-generation growth drivers through intensive investment in multiple research and development projects. The company is confident in having laid a robust foundation for future growth.
Furthermore, the HIV franchise, in partnership with ViiV, has yielded increasing royalty and dividend income surpassing previous forecasts. This growth can be attributed to the rising sales of innovative long-acting injectable products like Cabenuva and oral two-drug regimens such as Dovato. Shionogi anticipates sustained medium-to-long term growth in the HIV franchise.
Continuing its capital policy aimed at enhancing shareholder return and capital efficiency, Shionogi repurchased its own shares (10,842,100 shares, valued at approximately 75 billion yen, reaching a record high) and canceled treasury shares (10,840,000 shares, constituting 3.53% of total outstanding shares before cancellation) in fiscal 2023. These actions align with the company’s flexible capital policy, which is in line with consistent business progress.
Based on the aforementioned progress and considering its current financial standing, as well as key shareholder return indicators like EPS, DOE, and ROE outlined in the STS2030 Revision, Shionogi intends to increase its year-end cash dividend by 10 yen per share. Consequently, the previously announced dividend of 75 yen per share will be revised to 85 yen per share. Together with the interim cash dividend, Shionogi will distribute annual cash dividends of 160 yen per share, reflecting a 25 yen increase per share from the previous fiscal year, marking the 12th consecutive year of dividend increase.
