Sysmex (6869) investor relations material

Executive summary

• Net sales for the first nine months declined 1.6% year-over-year to ¥361,168 million, with operating profit down 27.7% to ¥48,657 million and profit attributable to owners of the parent down 20.9% to ¥33,694 million.

• Sales grew in the Americas and EMEA, mainly in hematology and urinalysis, while China saw a 20.1% local currency decline due to healthcare cost controls and inventory adjustments.

• Overseas sales increased slightly, offsetting a significant decline in Japan, while comprehensive income rose 23.7% to ¥60,121 million.

• Operating profit was impacted by lower sales, additional U.S. tariffs, and a decrease in gross profit.

• Profit progress rate reached 74.9%, reflecting foreign exchange and tax effects from the liquidation of an affiliated company.

Financial highlights

• Net sales: ¥361.1 billion, down 1.6% year-over-year; operating profit: ¥48.6 billion, down 27.7%; profit attributable to owners: ¥33.6 billion, down 20.9%.

• Gross profit was ¥187,631 million, down from ¥198,809 million year-over-year.

• SG&A expenses rose 9.3% to ¥120,206 million, while R&D expenses fell 9.3% to ¥20,444 million.

• Basic earnings per share dropped to ¥54.05 from ¥68.35 year-over-year.

• Forex impact: sales -¥0.09 billion, SG&A +¥0.50 billion, operating profit -¥2.68 billion.

Outlook and guidance

• Full-year net sales forecast revised down to ¥500.0 billion (-1.7%), operating profit to ¥62.0 billion (-29.2%), and profit attributable to owners to ¥41.0 billion.

• Basic EPS forecasted at ¥65.77; dividend forecast is ¥38.00 per share, including a ¥1.00 commemorative dividend.

• Downward revision reflects greater-than-expected impact in China, medical robotics business plan revision in Japan, and other regional conditions.

• Q4 expected to see the most pronounced year-on-year decline in China, with stabilization anticipated in the second half of the next fiscal year.