Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2022 (FY2021)
February 9, 2022
Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation
Safe Harbor for 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.
The market share information in this presentation is partly derived from our own independent research. 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
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp
©TERUMO CORPORATION | 2 / 24 |
Highlights
FY21 Q3/Q3 YTD results
Revenue: Highest-ever quarterly and Q3 YTD revenue. Continued recovery of demand in Cardiac & Vascular, steady performance in other companies
Adjusted Operating Profit: Over 20% profit increase in Q3 YTD, despite the negative effects anticipated at the beginning of the fiscal year, as well as effects of cost inflation and lower production level
Upward revision of FY21 guidance
Added 12.0 B JPY to revenue. No change in profits
Temporary decline in number of procedures and other healthcare demand is anticipated in Q4 due to COVID-19 resurgence. Also, despite some expected cost increase due to inflation and lower production level, we aim to achieve the guidance by expense control
©TERUMO CORPORATION | 3 / 24 |
P&L Results
Revenue: Highest-ever quarterly and Q3 YTD revenue. Cardiac & Vascular demand recovery continued, especially in TIS. In Q3, despite normalized demand of thermometers and infection prevention products, disposable products demand further recovered and performance remained steady overall
Adjusted Operating Profit: Despite the negative impacts of production level adjustment and volume-based procurement (VBP) in China, as well as cost inflation and lower production level, product mix improvement and positive FX impact contributed to 21% YTD growth
100 M JPY | FY20 Q3 YTD | FY21 Q3 YTD | YoY% | YoY% (FXN) | FY20 Q3 | FY21 Q3 | YoY% | ||
Revenue | 4,486 | 5,235 | 17% | 12% | 1,653 | 1,788 | 8% | ||
Gross Profit | 2,413 | 2,788 | 16% | 10% | 908 | 926 | 2% | ||
(%) | (53.8%) | (53.3%) | (54.9%) | (51.8%) | |||||
SG&A Expenses | 1,307 | 1,463 | 12% | 8% | 447 | 507 | 13% | ||
(%) | (29.1%) | (27.9%) | (27.1%) | (28.4%) | |||||
R&D Expenses | 359 | 375 | 4% | 1% | 128 | 128 | 0% | ||
(%) | (8.0%) | (7.2%) | (7.7%) | (7.2%) | |||||
Other Income and Expenses | 6 | -6 | - | - | 2 | -5 | - | ||
Operating Profit | 753 | 945 | 25% | 17% | 334 | 286 | -15% | ||
(%) | (16.8%) | (18.0%) | (20.2%) | (16.0%) | |||||
Adjusted Operating Profit | 885 | 1,072 | 21% | 13% | 372 | 330 | -11% | ||
(%) | (19.7%) | (20.5%) | (22.5%) | (18.5%) | |||||
Profit before Tax | 749 | 930 | 24% | 343 | 278 | -19% | |||
(%) | (16.7%) | (17.8%) | (20.7%) | (15.5%) | |||||
Profit for the Year | 586 | 717 | 22% | 268 | 217 | -19% | |||
(%) | (13.1%) | (13.7%) | (16.2%) | (12.1%) | |||||
Average Exchange Rate(USD/EUR) | 106JPY/122JPY | 111JPY/131JPY | 105JPY/125JPY | 114JPY/130JPY | |||||
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Adjusted Operating Profit Variance Analysis (Q3 YTD)
(100 M JPY)
Gross
margin
Price | ||||||
-27 | ||||||
JP NHI | ||||||
-2 | SG&A | FX | ||||
R&D | ||||||
Production | MDR | Others | ||||
G/P | Adjustment | |||||
-2 |
increment | IT |
by sales | |
-2 | |
increase | |
FY20 | FY20 | FY21 | FY21 |
Q3 YTD | Q3 YTD | Q3 YTD | Q3 YTD |
OP | Adj. OP | Adj. OP | OP |
©TERUMO CORPORATION | 5 / 24 |
G/P increment by sales increase:
The revenue increased in all companies, particularly Cardiac & Vascular, compared with FY20 Q3 YTD impacted by COVID-19
Gross margin:
Negative effects of cost inflation (freight, raw material, and labor cost), and lower production level, were exceeded by positive impact of product mix improvement from sales increase in Cardiac & Vascular, especially TIS
Price:
Decline mainly due to VBP in China for TIS products
SG&A:
Large increase compared with FY20 Q3 YTD in which expense usage was slow due to COVID-19
FX:
Positive impact from flow mainly by CNY and EUR. Small impact from stock
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Terumo Corporation published this content on 09 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2022 06:17:09 UTC.