Q1 2027 Terumo Corp Earnings Call Transcript
Key Points
- Record high quarterly revenue of JPY311.8 billion, up 9% on a local currency basis, driven by strong global demand, particularly in the Americas.
- Operating profit surged 60% year-on-year to JPY89.5 billion, supported by a US tariff refund and one-time settlement proceeds, with adjusted operating profit up 35%.
- Cardiac and Vascular (C&V) company achieved 70% local currency revenue growth, led by strong TIS demand and robust Neuro business performance, especially in China, Japan, and Europe.
- Global Blood Solutions performed well, with Trima and Reveos automated blood processing systems driving growth, and the organ technologies business saw 39% revenue growth.
- Full-year profit guidance revised upward, reflecting the tariff refund and settlement proceeds, with expectations of record highs in both revenue and profit for FY26.
- Revenue outlook for the full year remains unchanged, indicating no upward revision despite strong Q1 performance.
- Tariffs paid in the current fiscal year had a negative impact of JPY4.7 billion in Q1, partially offsetting the refund benefit.
- The voluntary recall of certain Relay Thoracic Stent Graft System products impacted revenue in the aortic business, though offset by other products.
- TMCS profit margin was affected by the labor custom investment plant acquired last year, reducing margin to 13% (16% excluding this impact).
- China market growth was slow, negatively impacting TMCS performance in that region.
I'm Jin Hagimoto, CFO of Terumo. Let me begin with an overview of our financial results for the first quarter of the fiscal year ending March 2027.
We achieved record high revenue for the quarter, reaching JPY311.8 billion, supported by a favorable business environment. Demand remains strong globally, particularly in the Americas, resulting in 9% year-on-year growth on a local currency basis.
On the profit side, in addition to solid revenue growth, earnings benefited from a US tariff refund and one-time income, resulting in a significant increase. Even excluding these temporary positive factors, strong business performance enabled us to achieve record high quarterly profit.
Enlightened of this performance, we are revising our full-year guidance upward from the projects announced in May. While our revenue outlook and earnings from business operations remain unchanged, we have incorporated the impact of the US tariff refund and one-time income,
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