Net sales increased 6.4% compared to the previous consolidated fiscal year, to 192,615 million yen.

The cost of sales ratio increased by 2.5 points compared to the same period last year, reaching 52.5%, due to a temporary rise in costs from the strategic buildup of raw material crude drug inventory in Japan and the consolidation of Shanghai Hongqiao Traditional Chinese Drug Pieces Co., Ltd.

Selling, general and administrative expenses increased 11.6% compared to the previous consolidated fiscal year, reaching 56,296 million yen, mainly due to higher costs related to salaries and allowances, increased expenses for strengthening information provision activities, DX-related costs, and the impact of consolidating Shanghai Hongqiao Traditional Chinese Drug Pieces Co., Ltd. The SGA ratio rose 1.3 points compared to the previous consolidated fiscal year, reaching 29.2%.

As a result, operating profit decreased 12.2% compared to the previous consolidated fiscal year, amounting to 35,219 million yen, and the operating profit margin declined 3.9 points from the same period last year to 18.3%.Ordinary profit decreased 5.7% compared to the same period last year, totaling 40,036 million yen, and net profit attributable to owners of parent decreased 13.3% compared to the previous consolidated fiscal year, amounting to 28,117 million yen.

Net sales of the domestic business increased 0.4% compared to the previous consolidated fiscal year, to 161,172 million yen.

Sales of 129 prescription Kampo preparations decreased 0.1% compared to the previous consolidated fiscal year, to 153,918 million yen.
Due to the epidemic of infectious diseases ending earlier than expected, distribution inventories at the end of the third quarter were at high levels, and in addition, actual sales of infection-related prescriptions in the fourth quarter fell below the previous year, resulting in shipments for this consolidated fiscal year falling short of the previous consolidated fiscal year.

The actual demand, measured by actual sales volume delivered from pharmaceutical agents and wholesalers to medical institutions, increased by 2.0% compared with the previous consolidated fiscal year as a result of expanded prescriptions related to edema, headaches, dizziness, anxiety, and insomnia driven by hybrid information-provision activities combining e-promotion and MR activities after the limited-shipment restrictions were lifted

In addition, sales of healthcare products (such as OTC Kampo medicines) increased by 17.4% compared to the previous consolidated fiscal year, reaching 6,206 million yen, due to an expansion in the number of stores handling these products.

Sales in the China business increased by 52.4% compared to the previous consolidated fiscal year to 31,442 million yen due to the consolidation of Shanghai Hongqiao Traditional Chinese Drug Pieces Co., Ltd. and the growth in sales of raw material crude drug and drug pieces (chopped crude drugs) at Ping An Tsumura Pharma Inc. and SHENZHEN TSUMURA MEDICINE CO., LTD., among others.

Total assets at the end of the fiscal year increased 128,385 million yen from the end of the previous fiscal year to 592,766 million yen. Current assets increased 53,502 million yen compared to the end of the previous consolidated fiscal year, mainly due to increases in merchandise and finished goods, and raw materials and supplies. Non-current assets increased 74,883 million yen compared to the end of the previous consolidated fiscal year, primarily due to increases in property, plant and equipment and intangible assets such as goodwill.

The total liabilities amounted to 221,162 million yen, an increase of 86,892 million yen compared to the end of the previous consolidated fiscal year. Current liabilities increased by 74,883 million yen compared to the end of the previous consolidated fiscal year due to an increase in notes and accounts payable-trade and long-term borrowings scheduled for repayment within one year. Non-current liabilities increased 65,547 million yen compared to the end of the previous consolidated fiscal year, due to an increase in long-term borrowings.

Net assets totaled 371,603 million yen, an increase of 41,493 million yen from the end of the previous fiscal year. Shareholders' equity increased 12,654 million yen compared to the previous consolidated fiscal year-end due to factors such as an increase in retained earnings. Accumulated other comprehensive income increased 8,544 million yen compared to the end of the previous consolidated fiscal year due to an increase in deferred gains or losses on hedges and the foreign currency translation adjustment account and other factors. Non-controlling interests increased 20,295 million yen from the end of the previous fiscal year.
As a result, the equity ratio decreased 10.4 points to 54.3%.