Terumo has agreed with CSL Plasma to end a supply contract for plasma-collection systems, and expects to book losses of about $610mn (about ¥97.5bn in the issuer's yen equivalent is the forecast cut to operating profit; the issuer's own conversion of the loss is about ¥97.5bn). The company announced the decision on October 8 and revised its guidance for the year to March 2027 at the same time.
What was agreed
Terumo Blood and Cell Technologies, a wholly owned subsidiary known as Terumo BCT, began working with CSL Plasma in 2021 and supplied plasma-collection systems to centres that CSL Plasma runs in the United States. The two companies have agreed to terminate the existing supply contract after a transition period they have agreed on. Terumo said it will now proceed with the termination under the agreed transition plan and period. The release does not give the length of the transition period or the contract's sales value.
The loss, in two parts
Terumo put the total financial impact at about $610mn (about ¥97.5bn). Of that, about $450mn (about ¥72.0bn) is an impairment loss on manufacturing equipment, machinery, product technology and other assets at its US production base. Terumo describes the impairment as non-cash. The remaining about $160mn (about ¥25.5bn) covers business losses during the transition period plus costs tied to the contract termination and business restructuring.
The company says all of these amounts are approximate and may change with future contract negotiations, transition terms and asset valuations. An extraordinary report filed with the Kanto Local Finance Bureau says the impairment and the other losses will be booked under "other expenses" in the consolidated results from the second quarter and from the third quarter onward of the year to March 2027.
Guidance: reported profit falls, adjusted profit holds
Terumo cut its forecast for operating profit to ¥160bn from ¥257.5bn, a fall of 37.9%. Profit attributable to owners of the parent drops to ¥120bn from ¥193.1bn, also down 37.9%, and basic earnings per share to ¥81.35 from ¥130.91. Revenue is now forecast at ¥1.2295tn, down 0.8% from ¥1.239tn.
| Metric | Previous forecast | Revised forecast | Change |
|---|---|---|---|
| Revenue | 1,239,000 | 1,229,500 | -0.8% |
| Adjusted operating profit | 274,500 | 274,500 | - |
| Operating profit | 257,500 | 160,000 | -37.9% |
| Profit attributable to owners of parent | 193,100 | 120,000 | -37.9% |
| Basic earnings per share (¥) | 130.91 | 81.35 | - |
Adjusted operating profit stays at ¥274.5bn. Terumo says the impairment lowers future amortisation, which it expects to lift adjusted operating profit by about ¥2bn. It also expects about ¥2bn of research and development and other costs from the Arsenal Medical acquisition it announced on September 30, and says both are included in the new forecast.
For comparison, the year to March 2026 produced operating profit of ¥176.3bn and profit attributable to owners of the parent of ¥135.9bn.
Strategy and filings
Terumo said it will keep putting resources into its core blood and cell technology business, serving blood centres, medical institutions and cell therapy customers.
The company filed the extraordinary report because the event materially affects its financial position, results of operations and cash flows. It then filed an amendment to its bond shelf registration, number 8-Kanto-1, which has a planned issuance cap of ¥200bn and ¥160bn of available capacity. The amendment adds the extraordinary report as a reference document and suspends the registration's effect on the filing date, October 8. The amendment does not state a bond issue plan.