Sysmex (6869) Q1 2027 earnings summary

Executive summary

• Net sales for the first quarter rose to ¥130.6 billion, up 23.6% year-on-year, with operating profit at ¥14.8 billion, up 39.5%, and profit attributable to owners at ¥8.6 billion, up 90.9%, driven by strong growth in the Americas, Japan, and yen depreciation.

• Significant sales growth in hematology, especially in the Americas, and solid performance in EMEA and AP regions; China declined 33.8% as forecast.

• Higher profits resulted from increased sales and the elimination of prior-year one-time inventory revaluation factors.

• Cash flows from operating activities reached ¥35.5 billion, with free cash flow at ¥17.0 billion, both showing substantial year-over-year increases.

• SG&A and R&D expenses increased due to business expansion but remained under control.

Financial highlights

• Operating margin improved to 11.3%, up 1.2 percentage points year-on-year, with cost of sales at ¥64.3 billion (49.3% of sales), SG&A at ¥42.6 billion (32.6%), and R&D at ¥7.2 billion (5.5%).

• Profit attributable to owners margin rose to 6.7% from 4.3% year-on-year.

• Basic EPS increased to ¥14.17 from ¥7.30 year-on-year.

• Cash and cash equivalents increased by ¥29,517 million to ¥113,634 million.

• Exchange rates: 1 USD = ¥159.3, 1 EUR = ¥185.3, 1 CNY = ¥23.4.

Outlook and guidance

• First-half forecast revised upward: net sales ¥265.0 billion (+14.0% YoY), operating profit ¥25.0 billion, profit attributable to owners ¥15.0 billion, reflecting strong Americas performance and FX trends.

• Full-year forecast: net sales ¥545.0 billion (+9.0% YoY), operating profit ¥60.0 billion (+15.8%), profit attributable to owners ¥37.0 billion (+4.4%), with interim dividend forecast raised to ¥20.00 per share and annual to ¥40.00 per share.

• One-time expenses related to a business review may be incurred in Q2 and are factored into forecasts.

• China sales expected to decline 20% year-on-year for the full year, with gradual easing of negative impacts in the second half.

• Guidance may be updated pending regulatory and business developments in China.