Financial Results for the Fiscal Year Ended March 31, 2024 (FY2023)
May 14, 2024
Jin Hagimoto
Chief Financial Officer Terumo Corporation
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 / 14 |
Highlights
FY23 Results
Record highs in revenue, operating profit, and net income
Revenue growth driven by Americas and Europe, +7% companywide (excluding exchange rate effects)
Operating profit growth outpaced sales growth, +14% companywide (excluding exchange rate effects)
FY24 Guidance
Continued global growth, revenue growth +7% (excluding exchange rate effects)
Operating profit up 16% (excluding exchange rate effects) due to expansion of highly profitable businesses
©TERUMO CORPORATION | 3 / 14 |
P&L
Revenue: Record high. TIS, blood center business, Neuro, and Vascular led with double-digit growth
Operating profit: Record high. Steady progress in profit improvement measures. SG&A expenses increased due to increased headcount to expand sales of therapeutic devices in North America
100M JPY | FY22 Q4 YTD | FY23 Q4 YTD | Change | Change excluding |
FX impact | ||||
Revenue | 8,202 | 9,219 | 12% | 7% |
Gross Profit | 4,174 | 4,792 | 15% | 9% |
(%) | (50.9%) | (52.0%) | ||
SG&A Expenses | 2,383 | 2,759 | 16% | 10% |
(%) | (29.1%) | (29.9%) | ||
R&D Expenses | 616 | 691 | 12% | 8% |
(%) | (7.5%) | (7.5%) | ||
Other Income and Expenses | -2 | 59 | - | - |
Operating Profit | 1,173 | 1,401 | 19% | 14% |
(%) | (14.3%) | (15.2%) | ||
Adjusted Operating Profit | 1,380 | 1,568 | 14% | 8% |
(%) | (16.8%) | (17.0%) | ||
Profit before Tax | 1,161 | 1,408 | 21% | |
(%) | (14.2%) | (15.3%) | ||
Profit for the Year | 893 | 1,064 | 19% | |
(%) | (10.9%) | (11.5%) |
Average exchange rate (USD/EUR) 135JPY/141JPY 145JPY/157JPY
FY22 Q4 | FY23 Q4 | Change |
2,022 | 2,389 | 18% |
990 | 1,243 | 26% |
(49.0%) | (52.0%) | |
597 | 737 | 23% |
(29.5%) | (30.9%) | |
160 | 199 | 25% |
(7.9%) | (8.3%) | |
5 | 39 | 651% |
238 | 346 | 45% |
(11.8%) | (14.5%) | |
284 | 371 | 30% |
(14.1%) | (15.5%) | |
240 | 351 | 46% |
(11.9%) | (14.7%) | |
191 | 265 | 38% |
(9.5%) | (11.1%) |
132JPY/142JPY 149JPY/161JPY
©TERUMO CORPORATION | 4 / 14 |
OPVariance Analysis (Q4):Profitabilityimprovements as planned
(100M JPY)
Price
+35
Gross | Reimbur- | SG&A | FX |
margin | sement | increase | R&D |
G/P | price | increase | |
+6 | |||
increment | |||
by | |||
sales | |||
increase |
FY22 Q4 FY22 Q4 | FY23 Q4 | FY23 Q4 |
OP Adj. OP | Adj. OP | OP |
G/P increment by sales increase: TIS, Neuro led the driver C&V
Gross margin:
Mitigation of inflationary effects, and cost reduction effects
Price:
Global promotion of price revision
SG&A increase:
Increased sales force for expansion of therapeutic devices sales in US
FX:
+3.6B JPY flow impact; -2.6B JPY stock impact
©TERUMO CORPORATION | 5 / 14 |
OP Variance Analysis (Q4 YTD): As planned in all areas
(100M JPY)
Gross | Price | ||
+100 | |||
margin | Reimbur- | SG&A | FX |
G/P | sement | increase | R&D |
price | increase | ||
increment | +27 | ||
by | |||
sales | |||
increase |
FY22 | FY22 | FY23 | FY23 |
Q4 YTD | Q4 YTD | Q4 YTD Q4 YTD | |
OP | Adj. OP | Adj. OP | OP |
G/P increment by sales increase: Drivers were C&V and TBCT
Gross margin:
One-time costs offset by inflation mitigation, cost reductions, and product mix improvements
Price:
Global promotion of price revision
SG&A increase:
Increased sales force for expansion of therapeutic devices sales in US
FX:
+10.2B JPY flow impact; -5.2B JPY stock impact
©TERUMO CORPORATION | 6 / 14 |
Revenue by Region: Therapeutic devices strong in Americas, Europe: Asia drove high growth rate
FY23 Q4 YTD | |
Regional | |
breakdown | |
Americas | |
36% | Japan |
23% | Europe |
21% | China |
9% | Asia and |
12% | Others |
C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, | ||||||||||||||||
TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular | ||||||||||||||||
Revenue (100M JPY) | FY23 Q4 YTD | Comments | ||||||||||||||
YoY change | ||||||||||||||||
Q4 YTD | ( ) FX Neutral | |||||||||||||||
Q4 | ||||||||||||||||
FY21 | 2,204 | 592 | 14% | C&V's Neuro / Vascular, TBCT's blood center | ||||||||||||
FY22 | 2,866 | 742 | business grew double digits even when | |||||||||||||
(8%) | ||||||||||||||||
3,280 | excluding exchange rate effects | |||||||||||||||
FY23 | 898 | |||||||||||||||
All companies grew. Vascular performed | ||||||||||||||||
2,061 | 511 | |||||||||||||||
2,074 | 503 | 2% | favorably at C&V, PS at TMCS, and the blood | |||||||||||||
2,111 | 524 | center business at TBCT | ||||||||||||||
1,404 | 364 | Double-digit growth in Neuro / Vascular in C&V, | ||||||||||||||
20% | even when excluding exchange rate effects; | |||||||||||||||
1,600 | 414 | sustained growth in the TBCT blood center | ||||||||||||||
(8%) | ||||||||||||||||
1,915 | 525 | business | ||||||||||||||
594 | 147 | 10% | All companies grew. C&V was led by double- | |||||||||||||
719 | 153 | digit growth in TIS. TBCT's blood center | ||||||||||||||
(8%) | business and TMCS also performed well, with | |||||||||||||||
794 | 194 | |||||||||||||||
double-digit growth | ||||||||||||||||
770 | 184 | |||||||||||||||
19% | All companies continued to grow. Double-digit | |||||||||||||||
943 | 209 | |||||||||||||||
(13%) | growth in TIS, CV, blood center business, and | |||||||||||||||
1,118 | 249 | |||||||||||||||
apheresis therapy, even when excluding | ||||||||||||||||
exchange rate fluctuations
©TERUMO CORPORATION | 7 / 14 |
C&V: Continued global demand, driven by double-digit growth in Vascular and Neuro
(C&V: Cardiac and Vascular, TIS: Interventional Systems) | (100M JPY) | ||||||||||||||
Q4 YTD | Q4 | Comments | Q4 YTD | ||||||||||||
YoY | |||||||||||||||
( ) FX Neutral | |||||||||||||||
TIS: | Access and therapeutic demand expanded globally. | ||||||||||||||
5,557 | |||||||||||||||
4,806 | Volume-based procurement (VBP) in China caused | +451 | |||||||||||||
3,971 | distributors to hold off from buying; however | ||||||||||||||
double-digit growth continued | |||||||||||||||
Revenue | 16% | Neuro- | Stroke device market share recovered in US and | ||||||||||||
+122 | |||||||||||||||
(9%) | 1,480 | vascular: | Europe. China decreased due to return to normal | ||||||||||||
1,027 1,217 | after FY22 initial inventory buildup by new | ||||||||||||||
22% | distributors; demand remains steady | ||||||||||||||
Cardio- | Japan hardware demand returned to normal, but | +76 | |||||||||||||
1,122 1,239 | |||||||||||||||
vascular: | US and Asia sales stayed strong | ||||||||||||||
932 | |||||||||||||||
Adjusted | Vascular | US and Europe were drivers. Hybrid product and | +102 | ||||||||||||
10% | Graft: | stent graft sales expansion continued | |||||||||||||
Operating | 286 | 319 | |||||||||||||
(7%) | 209 | ||||||||||||||
Profit | |||||||||||||||
12% | |||||||||||||||
Profit: | Increased sales and profitability improvement. | ||||||||||||||
FY21 | FY22 | FY23 | FY21 | FY22 | FY23 | ||||||||||
SG&A increased due to sales force expansion for | |||||||||||||||
Profit% | 23% | 23% | 22% | 20% | 23% | 22% | growth of therapeutic devices sales in US | ||||||||
©TERUMO CORPORATION | 8 / 14 |
TMCS: Increased revenue and profit despite impact of Nutrition business divestiture, return to normal of thermometers
(TMCS: Medical Care Solutions) | (100M JPY) | |||||||||||||
Q4 YTD | Q4 | Comments | Q4 YTD | |||||||||||
YoY | ||||||||||||||
( ) FX Neutral | ||||||||||||||
HCS | In Japan, the company is rebounding from | |||||||||||||
1,853 1,917 1,976 | Hospital Care | the decline in sales resulting from the | +48 | |||||||||||
Solutions: | divestiture of its nutrition business by revising | |||||||||||||
its pricing policy and strong performance in | ||||||||||||||
Revenue | infusion sets. Overseas sales were solid, | |||||||||||||
3% | driven by Asia and Latin America | |||||||||||||
(1%) | 503 | LCS | Thermometer demand returned to normal. | |||||||||||
466 | 462 | -18 | ||||||||||||
Life Care | Japan blood glucose self-measurement | |||||||||||||
9% | ||||||||||||||
Solutions: | product sales down due to stiffer competition | |||||||||||||
236 | 198 | PS | The CDMO business performed well in | +29 | ||||||||||
Adjusted | 148 | Pharmaceutical | Japan | |||||||||||
Solutions: | ||||||||||||||
Operating | 33% | |||||||||||||
Profit | 43 | 38 | ||||||||||||
(31%) | 22 | |||||||||||||
69% | Profit: | Substantial increase due to ease of inflation | ||||||||||||
FY21 | FY22 | FY23 | FY21 | FY22 | FY23 | impact and price policy revision effects | ||||||||
Profit% | 13% | 8% | 10% | 9% | 5% | 8% | ||||||||
9 / 14 | ||||||||||||||
©TERUMO CORPORATION |
TBCT: Strong blood center business drove large profit increase
(TBCT: Blood and Cell Technologies) | (100M JPY) | ||||||||||||||||
Q4 YTD | Q4 | Comments | Q4 YTD | ||||||||||||||
YoY | |||||||||||||||||
( ) FX Neutral | |||||||||||||||||
Blood Center | Whole blood collection-related products | ||||||||||||||||
1,683 | +183 | ||||||||||||||||
1,476 | Solutions: | performed well in Asia and Americas | |||||||||||||||
Revenue | 1,206 | ||||||||||||||||
14% | Therapeutic | Cell collection demand expanded in US. | +44 | ||||||||||||||
Solutions: | Therapeutic apheresis for | ||||||||||||||||
(8%) | 342 | 405 | hospitals | strong in Asia | |||||||||||||
304 | |||||||||||||||||
Cell Therapy | Minus YoY due to sale of a | ||||||||||||||||
18% | -21 | ||||||||||||||||
Technologies: | business. | Cell therapy investment | |||||||||||||||
208 | expansion led to | ||||||||||||||||
164 | steady trend in cell processing system | ||||||||||||||||
Adjusted | 112 | sales | |||||||||||||||
47% | 37 | ||||||||||||||||
Operating | 25 | Profit: | |||||||||||||||
(52%) | -18 | ||||||||||||||||
Profit | Significant increase in profit due to higher | ||||||||||||||||
FY21 | FY22 | FY23 | FY21 | FY22 | FY23 | sales revenue. The positive effects of the | |||||||||||
pricing policy and the transfer of production | |||||||||||||||||
to Costa Rica also contributed. Q4 recorded | |||||||||||||||||
Profit% | 17% | 8% | 10% | 12% | -5% | 6% | a one-time expense for impairment of | ||||||||||
10 / 14 | intangible assets | ||||||||||||||||
©TERUMO CORPORATION |
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Terumo Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 06:50:01 UTC.