Operating Results（FY2024）
|
Net sales
|
181.0
billions of yen | Year-on-year
+20.1
%
|
|
Operating profit
|
40.1
billions of yen | Year-on-year
+100.5
%
|
|---|
|
Ordinary profit
|
42.4
billions of yen | Year-on-year
+80.7
%
|
|---|
|
Profit attributable to owners of parent
|
32.4
billions of yen | Year-on-year
+94.1
%
|
|---|
Net sales
-
The earnings forecast was revised on February 6, 2025.
Profit attributable to owners of parent
Net sales increased 20.1% compared to the previous consolidated fiscal year, to 181,093 million yen.
The cost of sales increased 10.3% compared to the previous consolidated fiscal year, to 90,509 million yen, mainly attributable to the growth in net sales, higher processing costs and crude drug procurement costs, including the impact of exchange rates. The cost-to-sales ratio dropped 4.4 percentage points, to 50.0% compared to the previous consolidated fiscal year, attributable to increases in the prices of 66 prescription Kampo preparations as a result of the application of price revisions for unprofitable products, offsetting the rise in processing costs and crude drugs procurement costs and other factors.
Selling, general and administrative expenses increased 3.4% compared to the previous consolidated fiscal year, to 50,458 million yen, mainly due to an increase in expenses associated with the operation of the integrated trunk system and the impact of the depreciation of the yen. The SGA ratio fell 4.5 percentage points compared to the previous consolidated fiscal year, to 27.9%, attributable to the increase in net sales.
As a result of the above, operating profit increased 100.5% compared to the previous consolidated fiscal year, to 40,125 million yen, while the operating profit margin rose 8.9 percentage points, to 22.2%. Ordinary profit increased 80.7% year on year, to 42,446 million yen. Profit attributable to owners of parent increased 94.1% year on year, to 32,428 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 21.5% compared to the previous consolidated fiscal year, to 160,459 million yen.
Sales of 129 prescription Kampo preparations increased 21.9% compared to the previous consolidated fiscal year, to 154,072 million yen, attributable to price rises of 66 prescriptions as a result of the application of price revisions in April 2024, for unprofitable products. Sales of Daikenchuto, Yokukansan and Goshajinkigan rose significantly, partly owing to the impact of price rises as a result of the application of price revisions for unprofitable products. Sales of Goreisan increased, attributable to activities to provide information according to needs related to headaches and dizziness. Sales of Rikkunshito, Hochuekkito, Kamishoyosan, Kamikihito and Ninjin’yoeito decreased compared to the previous consolidated fiscal year, given the absence of the front-loaded orders that occurred in March 2024 in association with price revisions.
Sales of OTC Kampo formulations in the domestic business increased 18.8% compared to the previous consolidated fiscal year, to 5,284 million yen, reflecting a rise in the number of stores handling the products.
China business
Net sales of the business in China were 20,633 million yen. Net sales of crude drugs increased 8.4%, and drug pieces (chopped crude drugs) increased 37.4% compared to the previous consolidated fiscal year on crude drug platforms (of Ping An Tsumura Pharmaceutical Co., Ltd., Shenzhen Tsumura Medicine Co., Ltd., etc.), which primarily include sales of crude drugs and crude drug pieces for decoction.
Financial condition（FY2024 ）
Liabilities and net assets
Total assets at the end of the fiscal year increased 36,126 million yen from the end of the previous fiscal year, to 464,380 million yen. Current assets increased 14,417 million yen from the end of the previous fiscal year, mainly due to a rise in raw materials and supplies, etc. Non-current assets increased 21,709 million yen from the end of the previous fiscal year, mainly due to increases in property, plant and equipment, etc.
Total liabilities were 134,270 million yen, increase of 1,381 million yen from the end of the previous fiscal year. Current liabilities decreased 6,643 million yen compared to the end of the previous fiscal year due to a decrease in short-term borrowings and a decrease current portion of bonds payable. Non-current liabilities increased by 8,025 million yen compared to the end of the previous consolidated fiscal year due to an increase in long-term borrowings, etc.
Net assets totaled 330,110 million yen, an increase of 34,745 million yen from the end of the previous fiscal year. Shareholders’ equity rose 22,545 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings, etc. Accumulated other comprehensive income climbed 7,182 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign currency translation adjustment, etc. Non-controlling interests increased 5,017 million yen from the end of the previous fiscal year.
As a result, the equity ratio increased 1.5 percentage points, to 64.7%.
Earnings forecast（FY2025)
With respect to results forecasts for the fiscal year ending March 31, 2026, the net sales forecast is 188,000 million yen, in view of the growth of prescription Kampo products in Japan, and a trend towards growth in the China business. Net sales from the China business are expected to account for 20,100 million yen of this total. Profit forecasts are operating profit of 34,200 million yen (down 14.8%), ordinary profit of 34,000 million yen (down 19.9%), and profit attributable to owners of parent of 23,000 million yen (down 29.1%), primarily due to increased manufacturing and processing costs at production base in China, which bears a high depreciation burden, and due to increased labor costs.
In the domestic business, the Company will conduct intensive capital investment, research and development and information supply activities this fiscal year, 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 reinforce production capacity aggressively 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, the company will promote the standardization of Kampo treatment by strengthening promotion of prescriptions with high medical needs, as well as promote individualized treatment by increasing the number of doctors who prescribe basic prescription Kampo formulations in each medical area. Additionally, by digitalizing information provision, we will work to create a system that enables each medical professional to obtain the information they need at any time.
In the China business, the company will expand sales of crude drugs and drug pieces (chopped herbal
|
Net sales
|
188.0
billions of yen | Year-on-year
+3.8
%
|
|
Operating profit
|
34.2
billions of yen | Year-on-year
-14.8
%
|
|---|
|
Ordinary profit
|
34.0
billions of yen | Year-on-year
-19.9
%
|
|---|
|
Profit attributable to owners of parent
|
23.0
billions of yen | Year-on-year
-29.1
%
|
|---|
|
ROE
|
7.5
% |
|
|---|
|
Profit per share
|
302.95
yen |
|
|---|
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