Terumo (4543) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue and profit, with revenue rising 19.9% year-over-year to ¥258.2 billion, driven by strong global demand and favorable exchange rates.

• Profit growth outpaced sales due to improved margins, effective cost controls, and pricing measures.

• Overseas revenue surged 22.4%, led by TIS (catheter) and blood center businesses; Japan revenue rose 11.3%.

• All business segments and regions posted double-digit growth, with robust performance in Europe, the U.S., and emerging markets.

• EPS for the quarter was ¥22.82 after a two-for-one share split.

Financial highlights

• Revenue reached ¥258.2 billion, up 20% year-over-year (10% excluding FX impact); operating profit was ¥44.6 billion, up 51% (24% excluding FX).

• Adjusted operating profit rose 48% to ¥51.1 billion; net income grew 50% to ¥33.9 billion.

• Gross margin improved to 53.3% from 51.0% year-over-year.

• One-time factors, including recovery from prior year supply issues and inventory adjustments, contributed about ¥3 billion to revenue.

• SG&A expenses increased in line with business expansion and included a ¥2.2 billion uplift from a change in exchange rate calculation for inventory.

Outlook and guidance

• FY2025 revenue guidance maintained at ¥980.0 billion, with adjusted operating profit of ¥185.0 billion and profit forecast at ¥122.0 billion.

• Guidance incorporates expected impacts from China VBP pricing and ongoing exchange rate volatility.

• Focus remains on high value-added products, cost improvements, and SG&A management amid industry uncertainty.

• No revision to full-year guidance; a conservative approach is planned for Q2 onwards due to macroeconomic uncertainties.