Summary of Consolidated Financial Results [ IFRS ]
for the First Three Months of the Fiscal Year Ending March 31, 2023
August 4, 2022
Listed company name
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Scheduled date for filing of quarterly report Scheduled date for dividend payment Preparation of supplementary material for quarterly earnings
Holding of earnings announcement
- Sysmex Corporation
- 6869
- Tokyo Stock Exchange
- www.sysmex.co.jp/en
- Hisashi Ietsugu, Chairman and CEO
- Kensuke Iizuka, Senior Executive Officer and Executive Vice President of Corporate Business Administration
- 078(265)-0500
- August 10, 2022
- ―
- Yes
- Yes
(Unit: Millions of Yen)
1. Results for the First Three Months of the Fiscal Year Ending March 31, 2023
(1) Operating results
(% changes as compared with the corresponding period of the previous fiscal year)
Net Sales | Operating profit | Profit before tax | Profit | ||||||||||||||
Three months | 86,029 | 8.4% | 11,053 | (25.3)% | 12,847 | (10.1)% | 7,993 | (18.1)% | |||||||||
ended Jun. 30, 2022 | |||||||||||||||||
Three months | 79,363 | 31.2% | 14,796 | 112.7% | 14,296 | 120.6% | 9,756 | 119.6% | |||||||||
ended Jun. 30, 2021 | |||||||||||||||||
Profit | Total | Basic earnings | Diluted earnings | ||||||||||||||
attributable to | |||||||||||||||||
comprehensive | |||||||||||||||||
owners of the | per share (Yen) | per share (Yen) | |||||||||||||||
income | |||||||||||||||||
parent | |||||||||||||||||
Three months ended Jun. 30, 2022 | 8,030 | (18.2)% | 21,835 | 93.0% | 38.38 | 38.37 | |||||||||||
Three months ended Jun. 30, 2021 | 9,815 | 118.7% | 128.1% | 46.96 | 46.87 | ||||||||||||
11,313 |
Note: Changes in accounting policy have been retroactively applied to the figures for the first three months of the fiscal year ended March 31, 2022. Figures shown here are after this retroactive application.
(2) Financial condition
Equity attributable | Equity attributable | ||||||||
Total assets | Total equity | to owners of the | to owners of the | ||||||
parent | parent to total assets | ||||||||
As of Jun. 30, 2022 | 487,656 | 362,788 | 362,075 | 74.2 | |||||
As of Mar. 31, 2022 | 483,707 | 349,053 | 348,303 | 72.0 | |||||
2. Dividend
Dividend per share | |||||||
First quarter | Second quarter | Third quarter | Year-end | Annual | |||
(Yen) | (Yen) | (Yen) | (Yen) | (Yen) | |||
Year ended Mar. 31, 2022 |  ̄ | 37.00 |  ̄ | 39.00 | 76.00 | ||
Year ending Mar. 31, 2023 | |||||||
 ̄ | |||||||
Year ending Mar. 31, 2023 | 40.00 | 40.00 | 80.00 | ||||
(Forecast) |  ̄ | ||||||
Note: Revision of dividends forecast for this period: No
3. Financial Forecast for the Year Ending March 31, 2023
(% changes as compared with the corresponding period of the previous fiscal year)
Net Sales | Operating profit | Profit before tax | Profit attributable to | Basic earnings | ||||||
owners of the parent | per share (Yen) | |||||||||
Six months | ||||||||||
ending Sep. | 193,000 | 14.4% | 38,000 | 14.3% | 36,300 | 14.8% | 25,000 | 14.0% | 119.49 | |
30, 2022 | ||||||||||
Year ending | 410,000 | 12.7% | 76,000 | 12.7% | 72,500 | 12.7% | 50,000 | 13.4% | 238.99 | |
Mar. 31, 2023 | ||||||||||
Notes:
- Revision of financial forecast for this period: No
- Changes in accounting policy for the fiscal year ended March 31, 2022 have been retroactively applied. Year-on-year changes shown for the six months ending September 30, 2022 reflect this retroactive application.
4. Other Information
-
Changes in significant consolidated subsidiaries (which resulted in changes in scope of consolidation): Yes
Excluded: One company (Sysmex International Reagents Co., Ltd.) - Changes in accounting policies and accounting estimates
- Changes in accounting policies required by IFRS: No
- Other changes in accounting policies: No
- Changes in accounting estimates: No
- Number of outstanding stock (common stock)
- Number of outstanding stock at the end of each fiscal period (including treasury stock): 209,665,482 shares as of Jun. 30, 2022; 209,657,362 shares as of Mar. 31, 2022
- Number of treasury stock at the end of each fiscal period:
447,255 shares as of Jun. 30, 2022; 447,255 shares as of Mar. 31, 2022
- Average number of outstanding stock for each period (cumulative): 209,214,577 shares for the three months ended Jun. 30, 2022 209,003,218 shares for the three months ended Jun. 30, 2021
Note: Quarterly summaries of financial results are excluded from quarterly reviews.
- Explanation regarding the appropriate use of financial forecast and other information
- Basic earnings per share have been revised from the figures indicated in the consolidated financial forecast announced on May 12, 2022, in accordance with changes in the number of shares of outstanding stock and treasury stock. No other figures in the financial forecast have been revised.
- The forecasts and future projections contained herein have been prepared on the basis of rational decisions given the information available as of the date of announcement of this document. These forecasts do not represent a commitment by the Company, and actual performance may differ substantially from forecasts for a variety of reasons. Please refer to "3) Consolidated financial forecast" within "1. Qualitative information on quarterly financial results" on page 5 of the attachment to this document for cautionary statements concerning the conditions and performance forecasts that serve as the basis for these forecasts.
- Supplementary financial materials (in Japanese and English) will be posted on the Sysmex website on Thursday, August 4, 2022.
Content of Supplementary Materials | ||
1. Qualitative information on quarterly financial results | 2 | |
1) | Operating performance analysis | 2 |
2) | Financial conditions analysis | 4 |
3) | Consolidated financial forecast | 5 |
2. Condensed quarterly consolidated financial statements and notes | 6 | |
1) | Condensed quarterly consolidated statement of financial position | 6 |
2) | Condensed quarterly consolidated statement of income | 8 |
3) | Condensed quarterly consolidated statement of other comprehensive income | 9 |
4) | Condensed quarterly consolidated statement of changes in equity | 10 |
5) | Condensed quarterly consolidated statement of cash flows | 12 |
6) | Notes to the condensed quarterly consolidated financial statements | 13 |
1. Notes related to the going concern assumption | 13 | |
2. Segment information | 13 |
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1. Qualitative information on quarterly financial results
- Operating performance analysis
Future-related information contained in the text below is based on the judgement as of the end of the fiscal period under review.
In the past, the Group booked configuration and customization costs in cloud computing contracts as other non-current assets. However, in the fiscal year ended March 31, 2022 we began recognizing these costs as expenses when the services are received, in accordance with a decision announced in April 2021 by the IFRS Interpretation Guidelines Committee. These changes in accounting policy have been applied retroactively, and we are comparing and analyzing the figures for the first quarter of the previous fiscal year to reflect this retroactive treatment.
In the first quarter of the fiscal year ending March 31, 2023, the Japanese economy was characterized by a gradual easing of the severe situation brought about by COVID-19. Economic activity resumed, and corporate earnings, capital investment and personal consumption showed some signs of recovery. Even so, the outlook remained clouded by such factors as high resource prices and rising import costs, as yen depreciation continued. Overseas, the overall trend is toward recovery, although the situation varies by country and region. There are concerns about an economic slowdown due to soaring energy and raw material prices stemming from increasing geopolitical risks, as well as a shift toward tighter U.S. monetary policy.
On the healthcare front, aging populations in developed countries are driving demand for more efficient healthcare. Economic growth in emerging markets is causing healthcare demand to increase and prompting higher levels of healthcare quality and service enhancements. At the same time, rapid advances in the application of artificial intelligence, information and communications technology, and other leading-edge technologies to the healthcare sector are expected to continue providing opportunities for growth. The global COVID-19 pandemic has also prompted considerations about healthcare systems and the potential for major changes in the healthcare environment itself. We anticipate further opportunities for growth, such as improving access to healthcare and a focus on self-medication.
Under these circumstances, in an effort to expand its product portfolio in the hematology field Sysmex launched sample transportation system modules that can be connected to the XR-Series Automated Hematology Analyzer, its next-generation flagship model. The modules are equipped with the world's first automated measurement function for quality control material*1. They also enable sample sorting, sample archiving, and automated transportation of cleaning materials, will facilitate greater automation and efficiency in clinical testing operations. We will contribute toward the optimization of laboratory operations according to regional characteristics and facilities' needs. In addition, we will continue advancing our product portfolio in the hematology field to this end.
Sysmex acquired additional shares in Astrego Diagnostics AB, changing the company from an equity-method affiliate to a wholly owned subsidiary. Through this acquisition, Sysmex aims to accelerate the clinical application of a rapid antimicrobial susceptibility test*2 that Astrego is developing for urinary tract infections*3. Going forward, the companies aim to address medical issues through initiatives to counter antimicrobial resistance*4.
As an initiative toward the realization of personalized medicine, Sysmex submitted an application for manufacturing and marketing approval to the Pharmaceuticals and Medical Devices Agency (PMDA) for a genetic panel testing system for inherited retinal dystrophy (IRD)*5. The system uses a next-generation sequencer*6 to detect and analyze information on multiple genetic mutations in target genes taken from the blood of patients with IRD. This testing system is designed ultimately to assist in the planning of treatment and low vision care*7 tailored to the causative genes as well as molecular evidence-based genetic counseling. As a result, we hope to contribute significantly to the quality of life of patients by clarifying the risk of developing IRD and prediction of symptom progression.
As the global general distributor, Sysmex continued to market hinotori™ to medical institutions in Japan. (The hinotori Surgical Robot System is the first made-in-Japanrobotic-assisted surgery system.) Based on our launch in the Japanese market, we are putting together regulatory affairs and sales systems in preparation to enter overseas markets.
*1 According to Sysmex's research
*2 Antimicrobial susceptibility test:
A test to determine the efficacy of various antimicrobial drugs against pathogenic bacteria detected in a sample.
*3 Urinary tract infections:
The urinary tract runs between the kidneys and the urethral opening. Inflammations due to
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the incursion of bacteria into the urinary tract are known as urinary tract infections. Such infections can lead to bladder inflammation and pyelonephritis (inflammation of the kidneys).
*4 Antimicrobial resistance:
This phenomenon occurs when living organisms develop a resistance to a drug, whose efficacy is reduced or nullified as a result. Bacteria that have developed microbial resistance are known as antimicrobial-resistant bacteria.
*5 Inherited retinal dystrophy:
A hereditary progressive disease presumably caused by a gene mutation. Several diseases that present similar symptoms are collectively referred to as IRD. Its main symptoms include night blindness (difficulty seeing in dim light), tunnel vision (a narrowing field of vision), and progressive loss of vision, which can lead to a complete loss of vision in severe cases. It is estimated that one out of every 4,000 to 8,000 people develops an IRD. The most common IRD subtype is Retinitis Pigmentosa (a designated intractable disease, Notification No: 90).
*6 Next-generation sequencer:
An analyzer for reading large volumes of DNA base sequences.
*7 Low vision care:
To those who experience any difficulty in their daily lives due to vision problems, a wide variety of support is offered, including the provision of advice or medical devices to improve quality of life, provision of various counseling and information services on careers and employment, and use of welfare programs.
Net sales by destination
Three months ended | Three months ended | YoY | |||||
June 30, 2021 | June 30, 2022 | ||||||
(Previous | |||||||
Amount | Percentage of | Amount | Percentage of | ||||
period = 100) | |||||||
(Millions of yen) | total (%) | (Millions of yen) | total (%) | ||||
Japan | 12,226 | 15.4 | 12,963 | 15.1 | 106.0 | ||
Americas | 18,160 | 22.9 | 23,092 | 26.8 | 127.2 | ||
EMEA | 25,244 | 31.8 | 27,254 | 31.7 | 108.0 | ||
China | 17,363 | 21.9 | 14,543 | 16.9 | 83.8 | ||
Asia Pacific | 6,368 | 8.0 | 8,174 | 9.5 | 128.4 | ||
Overseas subtotal | 67,136 | 84.6 | 73,065 | 84.9 | 108.8 | ||
Total | 79,363 | 100.0 | 86,029 | 100.0 | 108.4 | ||
In Japan, sales rose for hemostasis and immunochemistry reagents, mainly in relation to COVID-
19 testing. Sales of medical robotics instruments also grew. As a result, sales in Japan rose 6.0% year on year, to ¥12,963 million.
Overseas, testing demand recovered compared with the first three months of the previous fiscal year, when demand was affected by COVID-19. In the hematology field, sales of reagents increased, as did sales of reagents in the urinalysis and hemostasis fields. These factors, plus ongoing yen depreciation, caused overseas Group sales to rise 8.8% year on year, to ¥73,065 million. The overseas sales ratio rose 0.3 percentage point, to 84.9%.
Selling, general and administrative (SG&A) expenses expanded 15.6%, to ¥25,157 million, owing mainly to the resumption of sales and service activities that had been constrained across all regions in the previous period due to the pandemic. In addition, R&D expenses increased 25.9% year on year, to ¥6,916 million, owing to active investment in development.
As a result, during the first three months of the fiscal year ending March 31, 2023, the Group recorded consolidated net sales of ¥86,029 million, up 8.4% year on year. Operating profit fell 25.3%, to ¥11,053 million; profit before tax declined 10.1%, to ¥12,847 million, and profit attributable to owners of the parent contracted by 18.2%, to ¥8,030 million.
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Sysmex Corporation published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 06:06:04 UTC.