Sumitomo Pharma Co U/Adr (SMDPY) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

My name is Toru Kimura, President and CEO of Sumitomo Pharma. Thank you for attending this briefing today. Today, as shown here, we will provide a summary of our 2024 financial results and our 2025 forecast, followed by Reboot 2027 and finally a Q&A session. Here are the financial results for FY2024. The results were almost in line with the revised forecast announced on April 28th. Revenue was 398.8 billion yen, an increase of 84.3 billion yen from the previous year. Growth in three key products mainly in the U.S. contributed to the increase. We have been working to reduce R&D expenses as part of our efforts to cut costs through drastic business restructuring and as part of our selection and concentration efforts. As a result, selling general and administrative expenses decreased by 68.7 billion yen to 167.7 billion, and R&D expenses decreased 42.4 billion from the previous year to 48.5 billion yen. In the fiscal year under review, 13.7 billion yen was recorded in others core basis, because we spun off part of our regenerative medicine cell therapy business and transferred some of our shares to Sumitomo Chemical. As a result, core operating profit was 43.2 billion yen, an increase of 176.1 billion yen compared to FY2023, which was a very difficult year. The ¥14.3 billion recorded as adjustments includes restructuring costs in North America or Japan and a small impairment loss on TWIMIG. As a result, operating profit was ¥28.8 billion, an increase of ¥383.7 billion from FY2023. As for financial income and costs, we recorded a loss of 11.2 billion yen due to foreign exchange losses, interest and others. As a result, net profit was 23.6 billion yen, and net profit attributable to owners of the parent increased by 338.6 billion yen compared to the previous year, far exce...