Terumo Corp (TRUMF) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello. I am the CAEFO, Muto. I will give an overview of our earnings results for the first quarter of the fiscal year ending March 31, 2024. Here are the highlights of this earnings report. Q1 sales revenue was our highest ever for a quarter. Strong global demand continued as sales grew 5% when excluding FX. Operating profit was minus 1% when excluding FX. However, during the quarter, the positive impact of our profitability improvement measures exceeded the negative impact of inflation for the first time. And progress is as planned toward achieving our annual guidance. Further, profit for the year grew year on year, resulting in both increased sales and profit. In addition, it was decided, at today's Board of Directors meeting, that we will acquire up to 20 billion yen in treasury stock during this fiscal year. Next slide, please. Here are the P&L results. Sales revenue was driven by the TIS and vascular graft businesses of the cardiac and vascular company, and by the blood center business of the blood and cell technologies company, all of which grew in the double digits. Operating profit dropped slightly, but positive impacts from the price policy revision and cost reduction measures are happening as expected. We will reap even greater results from these profitability improvements in the second half. At the same time, we are strengthening SG&A investment in the expansion of therapeutic devices in growth markets like the United States. In profit for the year, finance costs such as FX loss decreased, to help us secure increased profit. Next slide, please. The graph shows the operating profitability quarterly trend of the group and adjusted operating profitability by company. The previous Q4 saw a high amount of one-time expenses, including inventory adjustment and in...