Operating Results（FY2024 1Q）
|
Net sales
|
43.6
billions of yen | Year-on-year
+18.0
%
|
|
Operating profit
|
10.5
billions of yen | Year-on-year
+125.7
%
|
|---|
|
Ordinary profit
|
14.1
billions of yen | Year-on-year
+135.7
%
|
|---|
|
Profit attributable to owners of parent
|
11.1
billions of yen | Year-on-year
+158.1
%
|
|---|
Profit attributable to owners of parent
Net sales increased 18.0% year on year, to 43,690 million yen.
The cost of sales increased 2.5% year on year, to 20,858 million yen, due mainly to growth in sales and a rise in the cost of procuring crude drugs. The cost-to-sales ratio dropped 7.2 percentage points, to 47.7%, owing to the application of price revision for unprofitable products, despite the rise in the cost of procuring crude drugs, etc.
Selling, general and administrative expenses increased 2.1% year on year, to 12,257 million yen. The increase was mainly due to an increase in depreciation costs associated with the operation of the integrated trunk system and the impact of the depreciation of the yen. The SGA ratio fell 4.3 percentage points year on year, to 28.1%, attributable to the increase in net sales.
As a result of the above, operating profit increased 125.7% year on year, to 10,575 million yen, while the operating profit margin rose 11.6 percentage points, to 24.2%. Ordinary profit increased 135.7%, to 14,118 million yen, partly attributable to the recording of foreign exchange gains on loans to overseas subsidiaries. Profit attributable to owners of parent increased 158.1% year on year, to 11,180 million yen, owing to the posting of extraordinary income associated with sales of shares in cross-shareholding, in addition to the foregoing.
Segment data
Domestic business
Net sales of the domestic business increased 21.7% year on year, to 40,134 million yen. Sales of 129 prescription Kampo preparations increased 21.9% year on year, to 38,820 million yen. Sales of Daikenchuto, Yokukansan and Goshajinkigan increased markedly, partly owing to the effect of the application of price revision for unprofitable products. Sales of Goreisan increased, attributable to the lifting of restrictions on shipments and activities to provide information according to needs related to headaches and dizziness. On the other hand, sales of Rikkunshito, Hangeshashinto, Hochuekkito, Kamishoyosan, Kamikihito and Ninjin’yoeito decreased compared to a year ago, given the absence of the surge in demand that occurred in March in association with price revisions.
In addition, sales of OTC Kampo formulations in the domestic business increased 17.8% year on year, to 985 million yen, reflecting a rise in the number of stores handling the products.
China business
Net sales of the China business declined 12.1% year on year, to 3,556 million yen. This was because certain suppliers temporarily held off purchases, causing a fall in sales of crude drugs, the mainstay of the China business, in the crude drug platforms (Ping An Tsumura Pharma Inc., Shenzhen Tsumura Medicine Co., Ltd. and others) that mainly sell crude drugs and crude drug pieces for decoction.
Financial condition（FY2024 1Q）
Liabilities and net assets
Total assets at the end of the first quarter increased 16,909 million yen from the end of the previous fiscal year to 445,163 million yen. Current assets increased 16,102 million yen from the end of the previous fiscal year, mainly due to a rise in notes and accounts receivable trade. Non-current assets increased 807 million yen from the end of the previous fiscal year, mainly due to an increase in property, plant and equipment.
Total liabilities were 137,611 million yen, an increase of 4,721 million yen from the end of the previous fiscal year. Current liabilities increased 5,161 million yen from the end of the previous fiscal year. Non-current liabilities decreased 439 million yen from the end of the previous fiscal year.
Net assets totaled 307,552 million yen, an increase of 12,188 million yen from the end of the previous fiscal year. Shareholders’ equity rose 7,353 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated other comprehensive income climbed 3,718 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign currency translation adjustment. Non-controlling interests increased 1,115 million yen from the end of the previous fiscal year.
As a result, the equity ratio rose 0.1 percentage points, to 63.3%.
Earnings forecast（FY2024)
With respect to results forecasts for the fiscal year ending March 31, 2025, the net sales forecast is 185,000 million yen, in view of the growth of prescription Kampo products in Japan, an increase in revenue associated with drug price revisions and a trend towards growth in the China business.
Net sales from the China business are expected to account for 21,600 million yen of this total. Profit forecasts are operating profit of 39,500 million yen (up 97.3%), ordinary profit of 39,500 million yen (up 68.1%), and profit attributable to owners of parent of 28,500 million yen (up 70.6%). This was attributable to the positive effects of drug price revisions contributing to increased revenues, although it will likely be partly offset by exchange rates (weakening yen), prices of energy and raw and other materials remaining at high levels, and rising procurement prices of certain crude drugs.
In Japan, the Company will conduct intensive capital investment, research and development and information supply activities, with the aim of strengthening the stable product supply structure and achieving a sustained expansion in the Kampo domain in the future. Specifically, capital investment will continue to reinforce production capacity and improve productivity. In research and development, the Company will seek to expand the standard of care for Kampo and develop evidence, to work on personalized Kampo treatment utilizing leading-edge technology, and to contribute to public health depending on each person’s life stage (treatment, pre-symptomatic disease, cure (prevention)). With respect to information supply activities, Kampo DX Promotion Department will be launched for a hybrid promotion that combines MR activities and e-promotion, with the aim of realizing a medical setting in which the majority of physicians prescribe 10 or more prescriptions of ethical Kampo formulation based on Kampo medicine. The Company will strive to pursue initiatives to enable each healthcare professional to obtain and use the inform
|
Net sales
|
185.0
billions of yen | Year-on-year
+22.6
%
|
|
Operating profit
|
39.5
billions of yen | Year-on-year
+97.3
%
|
|---|
|
Ordinary profit
|
39.5
billions of yen | Year-on-year
+68.1
%
|
|---|
|
Profit attributable to owners of parent
|
28.5
billions of yen | Year-on-year
+70.6
%
|
|---|
|
ROE
|
10.0
% |
|
|---|
|
Profit per share
|
375.35
yen |
|
|---|
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