Operating Results（FY2024 3Q）
|
Net sales
|
136.7
billions of yen | Year-on-year
+18.1
%
|
|
Operating profit
|
32.3
billions of yen | Year-on-year
+69.1
%
|
|---|
|
Ordinary profit
|
35.1
billions of yen | Year-on-year
+56.9
%
|
|---|
|
Profit attributable to owners of parent
|
26.5
billions of yen | Year-on-year
+64.5
%
|
|---|
Net sales
-
The earnings forecast was revised on February 6, 2025.
Profit attributable to owners of parent
Net sales increased 18.1% year on year, to 136,773 million yen.
The cost of sales increased 5.7% year on year, to 43,200 million yen, duThe cost of sales increased 10.2% year on year, to 66,967 million yen, due to sales growth and higher processing costs and crude drug procurement costs. The cost-to-sales ratio dropped 3.5 percentage points, to 49.0%, 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 4.2% year on year, to 37,425 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 3.6 percentage points year on year, to 27.4%, attributable to the increase in net sales.
As a result of the above, operating profit increased 69.1% year on year, to 32,380 million yen, while the operating profit margin rose 7.2 percentage points, to 23.7%. Ordinary profit increased 56.9% year on year, to 35,151 million yen. Profit attributable to owners of parent increased 64.5% year on year, to 26,567 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 20.6% year on year, to 122,880 million yen. Sales of 129 prescription Kampo preparations increased 20.8% year on year, to 117,904 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 a year ago, given the absence of the front-loaded orders that occurred in March 2024 in association with price revisions.
In addition, sales of OTC Kampo formulations in the domestic business increased 22.3% year on year, to 4,037 million yen, reflecting a rise in the number of stores handling the products.
China business
Net sales of the China business totaled 13,892 million yen. 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, sales of crude drugs fell 3.3% year on year, mainly due to the impact of certain suppliers’ restrained purchases occurred temporarily in the first quarter of the fiscal year, although sales of crude drug pieces rose 38.4% year on year.
Financial condition（FY2024 3Q）
Liabilities and net assets
Total assets at the end of the third quarter increased 35,553 million yen from the end of the previous fiscal year, to 463,807 million yen. Current assets increased 25,317 million yen from the end of the previous fiscal year, mainly due to a rise in cash and deposits, raw materials and supplies. Non-current assets increased 10,235 million yen from the end of the previous fiscal year, mainly due to increases in property, plant and equipment.
Total liabilities were 145,484 million yen, an increase of 12,594 million yen from the end of the previous fiscal year. Current liabilities increased 4,875 million yen from the end of the previous fiscal year mainly due to an increase in short-term borrowings and income taxes payable. Non-current liabilities increased 7,719 million yen from the end of the previous fiscal year mainly due to a rise in long-term borrowings.
Net assets totaled 318,322 million yen, an increase of 22,958 million yen from the end of the previous fiscal year. Shareholders’ equity rose 17,583 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated other comprehensive income climbed 3,509 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign currency translation adjustment. Non-controlling interests increased 1,865 million yen from the end of the previous fiscal year.
As a result, the equity ratio decreased by 0.3 percentage points to 62.9%.
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 information they seek from the most suitable channels and at the most appropriate times.
In the China business, the Company aims to deliver an operating profit by expanding sales of crude drugs and crude drug pieces for decoction in crude drug platforms. Moreover, it will engage in M&A as well as research and development focused on classic prescriptions for the purpose of expanding the traditional Chinese medicinal product business in the formulation platforms.
As announced in “Tsumura Announces Revision of Earnings Forecast” dated February 6, 2025, the Company revised its projections of full-year consolidated business performance for the fiscal year ending March 31, 2025 released on May 9, 2024 in light of recent performance trends. Details are as follows.
|
Net sales
|
182.3
billions of yen | Year-on-year
+20.9
%
|
|
Operating profit
|
40.0
billions of yen | Year-on-year
+99.8
%
|
|---|
|
Ordinary profit
|
44.0
billions of yen | Year-on-year
+87.3
%
|
|---|
|
Profit attributable to owners of parent
|
34.0
billions of yen | Year-on-year
+103.5
%
|
|---|
|
ROE
|
12.0
% |
|
|---|
|
Profit per share
|
447.79
yen |
|
|---|
provided by StockWeather.com,Inc.