Message from the Chairman and CEO
Net sales expanded, driven by higher sales of reagents in the hematology1 and other fields.
Profit attributable to owners of the parent declined, partly due to the impact of a gain on sale of shares of an affiliated company in the previous term.
During the first nine months of the fiscal year ending March 31, 2019, the Sysmex Group recorded higher net sales, stemming from higher reagent sales (centering on the hematology, hemostasis and immunochemistry fields) and robust performance from the life science business. However, operating profit fell year on year, due to the impact of temporary factors in the same period of the previous fiscal year, as well as to higher R&D expenses in line with business expansion. Despite a lower tax rate, profit attributable to owners of the parent was also down due to the impact of a gain on sale of shares of an affiliated company in the previous term. Year on year, net sales was up 2.9%, operating profit fell 4.5%, and profit attributable to owners of the parent decreased 5.4%. At the exchange rates prevailing one year earlier, net sales would have been up 3.7%, and operating profit down 5.0%.
Sales in the Japan segment rose, thanks to higher sales of reagents in various fields. Overseas, despite sales were down in the Asia Pacific segment, reflecting the impact of large tenders in the preceding fiscal year, sales rose in all other geographic segments, bolstered by firm reagent sales. As a result, the Group’s overseas sales ratio was 84.7%.
We maintain unchanged the consolidated performance forecast we announced in November 2018 for the full fiscal year ending March 31, 20192.
In December 2018, Sysmex received manufacturing and marketing approval in Japan for the first time for the OncoGuide™ NCC Oncopanel System, which the Company developed jointly with the National Cancer Center, to be used in cancer genome profiling. This system facilitates the selection of therapeutic drugs and treatment methods to match the gene mutations of individual patients. Our aims are to deliver a new method for diagnosing cancer as quickly as possible and to promote the advancement of healthcare. (For details, please see our press release)
1 Hematology field: The field of in vitro diagnostics that determines whether precise testing is necessary by analyzing the number, type and size of red, white and other blood cells.
2 These forecasts are based on information available as of the date of this release. Actual results may differ from these forecast due to unforeseen factors and future events.