Full Year 2025 Terumo Corp Earnings Call Transcript
Key Points
- Terumo Corp (TRUMF) achieved record high sales revenues surpassing JPY1 trillion for the first time, with a 12% growth over the previous year.
- Operating profit reached a record high for the fourth consecutive year, despite a one-time expense, due to strong revenue growth.
- Free cash flow increased significantly, exceeding JPY100 billion for the first time, driven by expanded operating cash flow.
- The cardiovascular company segment showed strong global sales revenue growth, particularly in the US, with an 8% increase on a local currency basis.
- The company expects a 32% increase in operating profit for fiscal 2025, driven by business expansion and the absence of previous one-time expenses.
- General and administrative expenses increased due to additional provisions for bonuses and one-time litigation expenses.
- The company faced negative gross margin effects due to the loss and writedown of products in preparation for new product expansion.
- Price declines in China due to value-based purchasing impacted revenue, although partially offset by price increases elsewhere.
- The impact of US reciprocal tariffs remains uncertain, with a potential maximum impact of approximately JPY17 billion.
- Challenges in the external environment, such as inflation and currency fluctuations, have negatively affected certain business segments.
I'm CFO Hagimoto.
Thank you for your time, to, listen to our financial results meeting. First of all, I'd like to provide an overview of the end of year financial results for the fiscal year ending March 31, 2025.
First of all, as was announced in the press release, as of April this year, we've changed some business names and disclosed segments. So please do note that today's explanation uses these changed names and segments.
Continuing on now, here are the highlights of the financial results in fiscal '24 sales revenues surpassed JPY1 trillion for the first time. Revenue growth was 12% over the previous year due to continued demand growth globally, especially in the US, as well as the trend toward a weaker JPY. The operating profit, in addition to this 12% revenue growth operating profit recorded a one-time expense of 24.2 billion yenan but achieved a record high profit for the fourth consecutive year due to growth exceeding that amount.
Net income and free cash flow also reached record highs respectively.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
