Sumitomo Pharma Co U/Adr (SMDPY) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

My name is Toru Kimura, the President and CEO of Sumitomo Pharma. Thank you all for joining us today. The presentation materials have been made public, and I will now provide an explanation of this quarter's financial results based on those materials. As outlined in the agenda, I will first go over the Q3 financial summary, followed by our FY2024 earnings forecast, and then discuss research and development. After that, we will open the floor for the Q&A session. First, here is an overview of our Q3 financial results. In addition to revenue growth, our cost reduction initiatives have been effective, enabling us to return to profitability in terms of core operating profit. This is one of the key highlights of this quarter. Revenue increased by 24.7% year-on-year, while both SG&A expenses and R&D expenses were significantly reduced. As a result, also supported by the impact of the weaker yen, we achieved profitability at the net income level as well. Although I will not go into the detail today, I understand that many of you are concerned about our borrowings. The repayment deadline for our bridge loan has already been extended to the end of March 2025, Additionally, we continue to discuss necessary refinancing measures with financial institutions as well as our parent company, Sumitomo Chemical. Next, here are the core-based financial figures for Q3. Revenue came in at 293.2 billion yen, representing an increase of 58.2 billion yen year-on-year. Looking at the rightmost column, you will see the May 14th forecast. which reflects our internal budget. At the end of Q3, our progress stood at 86.7% of this forecast. Gross profit reached 179.7 billion yen, an increase of 37.8 billion yen. As I mentioned earlier, SG&A expenses and R&D expenses were reduced by 52.2 billion yen...