Sumitomo Pharma Co U/Adr (SMDPY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

As it is now time, we would like to begin the Sumitomo Pharma Company Limited Q3 Financial Results Briefing for FI 2025. Thank you very much for joining us today despite your busy schedules. I am Toru Kimura, Representative Director, President and CEO. I would like to explain our Q3 FI 2025 financial results. First, please turn to page 3. Here we present our business performance for Q3 FI 2025 on a core basis. As you can see, revenue amounted to 347.7 billion yen, gross profit was 202.6 billion yen, Core operating profit was 109.4 billion yen, and net profit attributable to owners of the parent was 107.7 billion yen. Compared with the same period last year, revenue increased by 54.6 billion yen, while core operating profit increased by 87.9 billion yen year over year. On the cost side, selling, general and administrative expenses were restrained by 8 billion yen and R&D expenses by 7.5 billion yen. As a result, profit attributable to owners of the parent increased by 86.5 billion yen to 107.7 billion yen. At our Q2 financial results announcement on October 31st, we revised our full-year performance forecast. Even relative to that revised forecast, we achieved an overperformance with core operating profit reaching an achievement rate of 112.8%. We had previously believed that H2 of the fiscal year would represent the bottom of our profit and loss profile, but the Q3 results exceeded our expectations and we interpret this as steady progress in profit improvement. At the same time, we believe that foreign exchange effects and inventory buildup beyond our initial assumptions also contributed in part to these results. Traditionally, for our company, Q4 tends to see insurance resets in North America and a concentration of expenses. For that reason, we have left our full ye...