Financial Results for the Fiscal Year
Ended March 31, 2023 (FY2022)
May 15, 2023
Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation
Hello. I am the CAFO, Muto. I will explain our earnings results for the fiscal year ended March 31, 2023.
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Safe Harbor for Forward-Looking Statements and Use of Document
Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not intended to be guarantees of future events or performance. Accordingly, it should be noted that actual results may differ from those forecasts or projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition. Information about products (including products currently in development) which is included in this material is not intended to constitute an advertisement or medical advice.
©TERUMO CORPORATION | 2 / 27 |
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Highlights
FY22 Revenue
Highest-ever sales revenue and OP; profit for the period increased
US drove sales revenue growth; +5% group-wide (excluding FX)
Profit temporarily down in Q4; shortfall against Feb. guidance
FY23 guidance
Continued global growth, +6% sales revenue growth (excluding FX)
Expand high-margin products for double-digit OP growth
©TERUMO CORPORATION | 3 / 27 |
First, the highlights of this earnings announcement.
The FY22 sales revenue and operating profit results were both our highest ever. We also secured an increase in profit for the year.
Sales revenue grew 5% when excluding FX impact, as strong global demand continued, led by the US market.
At the same time, profit was greatly affected throughout the year by inflation. Although we achieved an increase in profit, the most recent Q4 saw not only inflation impact, but also one-time downward factors, resulting in a shortfall against the guidance we announced in February.
Later I will explain these one-time factors from Q4 in more detail. Regarding the FY23 guidance:
Sales revenue will continue to grow globally, and we anticipate 6% growth (excluding FX) to exceed the growth of the previous year.
We will achieve improvement of operating profit in both amount
and rate, growing profit in a double-digit percentage and improving profitability through expansion of high-margin products, even more assertive pricing policies, and cost-reduction measures centered on manufacturing cost.
Next slide, please.
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P&L
Revenue: Highest ever. Strong demand continued in C&V field, especially US
OP: Although highest ever, impact from raw materials price increases and one-time Q4 costs drove profitability down
100M JPY | FY 21 Q4 YTD | FY 22 Q4 YTD Change | Change excluding | |
FX impact | ||||
Revenue | 7,033 | 8,202 | 17% | 5% |
Gross Profit | 3,693 | 4,174 | 13% | 2% |
% | (52.5%) | (50.9%) | ||
( ) | 1,991 | 2,383 | 20% | |
SG&A Expenses | 7% | |||
% | (28.3%) | (29.1%) | ||
( ) | 518 | 616 | 19% | |
R&D Expenses | 7% | |||
% | (7.4%) | (7.5%) | ||
( ) | -25 | -2 | - | |
Other Income and Expenses | - | |||
Operating Profit | 1,160 | 1,173 | 1% | -5% |
% | (16.5%) | (14.3%) | ||
( ) | 1,344 | 1,380 | 3% | |
Adjusted Operating Profit | -6% | |||
% | (19.1%) | (16.8%) | ||
( ) | 1,145 | 1,161 | 1% | |
Profit before Tax | ||||
% | (16.3%) | (14.2%) | ||
( ) | 888 | 893 | 1% | |
Profit for the Year | ||||
% | (12.6%) | (10.9%) | ||
( ) | ||||
Average exchange rate (USD/EUR) | 112JPY/131JPY 135JPY/141JPY | |||
©TERUMO CORPORATION | 4 / 27 |
FY21 Q4 | FY22 Q4 | Change |
1,798 | 2,022 | 12% |
905 | 990 | 9% |
(50.3%) | (49.0%) | |
528 | 597 | 13% |
(29.4%) | (29.5%) | |
144 | 160 | 11% |
(8.0%) | (7.9%) | |
-18 | 5 | - |
215 | 238 | 11% |
(12.0%) | (11.8%) | |
273 | 284 | 4% |
(15.2%) | (14.1%) | |
215 | 240 | 12% |
(11.9%) | (11.9%) | |
171 | 191 | 12% |
(9.5%) (9.5%) 116JPY/130JPY 132JPY/142JPY
Here are the P&L results.
Sales revenue exceeded 820 billion yen for the full year; our highest-ever result. Sales were driven by strong demand in the cardiovascular field globally, particularly the largest US market.
Operating profit was 117.3 billion yen; also our highest-ever result.
However, inflation and supply chain disruption required us to continually take measures throughout the year.
I will later explain how we plan to improve profitability in FY23. Next slide, please.
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Disclaimer
Terumo Corporation published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 06:39:06 UTC.