FY2024 1Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the first quarter of the consolidated fiscal year, despite a gradual return to normal in economic activities, future prospects remained uncertain as a result of factors such as due to the ongoing geopolitical risks, decreased value of the yen on international currency markets and rising prices of energy and raw materials. Even under such conditions, however, the favorable trend in the Group's businesses continued from the previous fiscal year. Thus, both sales and profit increased from the same period of the previous year. However, the Group's business grew due to the growth of the pharmaceutical business and veterinary pharmaceutical business, resulting in net sales of 16,352 million yen (up 2.1% YoY), an increase of 329 million yen from the same period of the previous fiscal year. On the profit front, operating profit increased to 1,758 million yen (up 3.1% YoY) and ordinary profit rose to 1,813 million yen (up 0.2% YoY) due to cost improvement efforts despite an increase in R&D and other expenses. On the other hand, profit attributable to owners of parent was 1,273 million yen (down 10.9% YoY), down 155 million yen from the same period of the previous year, due to an increase in income taxes as well as reaction to the recording of a gain on sales of investment securities as extraordinary income in the previous year.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
14,493 |
|
|
|
| Animal health business |
1,800 |
|
|
|
| Other businesses |
57 |
|
|
|
(i) Pharmaceutical business
The pharmaceutical business, which focuses on the three fields of internal medicine, obstetrics and gynecology, and urology, showed favorable trends overall despite the impact of the periodical NHI drug price revisions. A look at results by product shows that results in the obstetrics and gynecology area were driven by the growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 2,644 million yen (up 2.6% YoY). In addition to these, sales of the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol) increased significantly to 1,743 million yen (up 24.5% YoY), following the previous year. In the internal medicine area, sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 2,076 million yen (up 0.7% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) increased to 1,645 million yen (up 7.9% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release agent LEUPRORELIN were 1,021 million yen (down 14.3% YoY).
As a result of the above factors, the segment sales were 14,493 million yen (up 0.5% YoY), and the segment profit was 2,012 million yen (down 0.5% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives, were 1,800 million yen (up 15.4% YoY). The segment profit was 73 million yen (vs. a loss of 1 million yen in the same period of the previous year).
(iii) Other businesses
Sales of the other businesses, which include clinical testing, medical devices, etc., were 57 million yen (up 37.6% YoY). However, the segment loss was 5 million yen (vs. a loss of 27 million yen in the same period of the previous year).
Financial Position
Overview of Financial Position Summary
-
Total assets
87,321 million yen
Change from end of previous fiscal year
(3.8%)
-
Net assets
63,329 million yen
Change from end of previous fiscal year
2.3%
-
Equity ratio
72.5 ％
Change from end of previous fiscal year
4.3point
Overview of Financial Position
(Assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 87,321 million yen, down 3,423 million yen from the end of the previous consolidated fiscal year under review. This figure was due primarily to decreases in cash and deposits, and securities.
(Liabilities)
Total liabilities at the end of the first quarter of the consolidated fiscal year under review stood at 23,992 million yen, down 4,822 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in other in current liabilities, short-term borrowings and long-term borrowings.
(Net assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 63,329 million yen, up 1,398 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent and an increase in valuation difference on available-for-sale securities reflecting rising share prices.
The resulting equity ratio was 72.5%, up 4.3 percentage points from the end of the previous consolidated fiscal year.
FY2023 Consolidated Financial Overview
Operating Results
Operating Results Summary
The Group’s net sales in the consolidated fiscal year under review were 62,843 million yen, up 2,381 million yen year on year (YoY). This was due mainly to growth in the pharmaceutical business driven by the growth in obstetrics and gynecological products. Cost of sales was 32,178 million yen, and cost of sales ratio was down 1.5% YoY, resulting in an increase of 2,079 million yen in gross profit YoY to 30,664 million yen. At the same time, selling, general and administrative expenses rose by 687 million yen YoY to 24,164 million yen. As a result, operating profit was up 1,392 million yen YoY to 6,500 million yen, for a ratio of operating profit to net sales of 10.3%. Ordinary profit was 6,522 million yen, after recording 414 million yen in non-operating income and 392 million yen in non-operating expenses. While the Company recorded 3,340 million yen during the period in extraordinary income associated with sale of investment securities, profit attributable to owners of parent was up 3,307 million yen YoY to 7,545 million yen.
In addition, ASKA Pharmaceutical Co., Ltd. a subsidiary of the Company, has executed a capital increase agreement to issue new shares of its equity method affiliate, Ha Tay Pharmaceutical Joint Stock Company, with the aim of strengthening the partnership between the two companies.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
14,420 |
28,404 |
43,603 |
56,016 |
| Animal Health business |
1,560 |
3,162 |
5,096 |
6,664 |
| Others |
42 |
80 |
124 |
162 |
(i) Pharmaceutical business
The pharmaceutical business, which focuses on the three fields: internal medicine, obstetrics and gynecology, and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by product shows that the results in the field of obstetrics and gynecology were driven by the large-scale growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 9,906 million yen (up 12.1% YoY), and the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol), which went on sale in June 2022, largely drove performance with sales of 6,125 million yen (up 66.3% YoY). Sales also grew in the internal medicine area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 7,862 million yen (up 1.7% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) to 5,864 million yen (up 8.7% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release agent LEUPRORELIN (leuprorelin) were 4,430 million yen (down 11.4% YoY).
As a result of the above factors, the segment sales were 56,016 million yen (up 4.5% YoY), and segment profit was 7,647 million yen (up 32.3% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives, were 6,664 million yen (up 0.0% YoY). However, the segment profit was 195 million yen (down 52.3% YoY) due to rising costs of raw materials and other items.
(iii) Other businesses
Sales of other businesses, which include clinical testing, medical devices, were 162 million yen (down 26.3% YoY). Segment loss was 125 million yen (vs. a loss of 6 million yen in the same period of the previous year).
Financial Position
Financial Position Summary
-
Total assets
90,745 million yen
YOY
4.1%
-
Net assets
61,930 million yen
YOY
13.6%
-
Equity ratio
68.2 ％
YOY
5.6point
Overview of Financial Position
(Assets)
Total assets at the end of the consolidated fiscal year under review stood at 90,745 million yen, up 3,607 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in merchandise and finished goods, and investment securities, despite a decrease in distributorship.
(Liabilities)
Total liabilities at the end of the consolidated fiscal year under review stood at 28,815 million yen, down 3,789 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in retirement benefit liability and long-term borrowings (including current portion of long-term borrowings).
(Net assets)
Total assets at the end of the consolidated fiscal year under review stood at 61,930 million yen, up 7,396 million yen from the end of the consolidated fiscal previous year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent.
The resulting equity ratio was 68.2%, up 5.6 percentage points from the end of the previous consolidated fiscal year.
Cash Flow Summary
-
Cash flows from
operating activities
1,486 million yen
-
Cash flows from
investing activities
1,706 million yen
-
Cash flows from
financing activities
(3,943) million yen
-
Cash and cash
equivalents
at end of period
16,738 million yen
Overview of Cash Flow Position
The balance of cash and cash equivalents at the end of the current consolidated fiscal year stood at 16,738 million yen, down 766 million yen from the end of the previous consolidated fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,486 million yen (vs. a gain of 3,351 million yen in the same period of the previous year), due mainly to the recording of profit before income taxes, despite a decrease in retirement benefit liability.
(Cash flows from investing activities)
Net cash provided by investing activities was 1,706 million yen (vs. a loss of 1,126 million yen in the same period of the previous year). This was due mainly to sales of investment securities.
(Cash flows from financing activities)
Net cash used in financing activities was 3,943 million yen (vs. a loss of 1,820 million yen in the same period of the previous year). This was due mainly to repayments of long-term borrowings.
FY2023 3Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the third quarter of the consolidated fiscal year, despite a gradual return to normal in social activities in
response to developments including progress in balancing economic activities with prevention measures for COVID 19, future prospects remained uncertain as a result of factors such as the global economic impact of the prolonged
Russia-Ukraine crisis, rising prices of energy and raw materials due to a decrease in the value of the yen on
international currency markets as well as supply chain disruption. Even under such conditions, however, the Group's
business continued to show favorable results from the previous fiscal year, mainly due to the growth of new products
and further cost reduction efforts.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
14,420 |
28,404 |
43,603 |
|
| Animal health business |
1,560 |
3,162 |
5,096 |
|
| Other businesses |
42 |
80 |
124 |
|
(i) Pharmaceutical business
The pharmaceutical business, which focuses on the three fields: internal medicine, obstetrics and gynecology, and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by product shows that results in the obstetrics and gynecology area were driven by the large-scale growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 7,873 million yen (up 12.6% YoY), and the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol), which went on sale in June 2022, largely drove performance with sales of 4,604 million yen (up 81.4% YoY). Sales also grew in the internal medicine area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 6,104 million yen (up 1.2% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) to 4,572 million yen (up 8.1% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release agent LEUPRORELIN (leuprorelin) were 3,476 million yen (down 11.5% YoY).
As a result of the above factors, the segment sales were 43,603 million yen (up 4.0% YoY), and segment profit was 6,346 million yen (up 17.1% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives,
were 5,096 million yen (down 1.7% YoY), maintaining the same level as the previous year. However, the segment
profit was 186 million yen (down 55.3% YoY) due to rising costs of raw materials and other items.
(iii) Other businesses
Sales results for other businesses, which include clinical testing and medical devices, were 124 million yen (down 19.9% YoY). Segment loss was 103 million yen (vs. a loss of 26 million yen in the same period of the previous year).
Financial Position
Overview of Financial Position Summay
-
Total assets
94,857 million yen
QOQ
8.9%
-
Net assets
60,391 million yen
QOQ
10.7%
-
Equity ratio
63.7 ％
QOQ
1.1point
Overview of Financial Position
(Assets)
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at 94,857 million yen, up 7,719 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in accounts receivable - trade, cash and deposits, and raw materials and supplies despite decreases in intangible assets.
(Liabilities)
Total liabilities at the end of the third quarter of the consolidated fiscal year under review stood at 34,465 million yen, up 1,861 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in notes and accounts payable – trade and in other current liabilities, despite decreases in long-term borrowings and short-term borrowings.
(Net assets)
Total net assets at the end of the third quarter of the consolidated fiscal year under review stood at 60,391 million yen, up 5,858 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent.
The resulting equity ratio was 63.7%, up 1.1 percentage points from the end of the previous consolidated fiscal year.
FY2023 2Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the second quarter of the consolidated fiscal year, despite the further progress on the gradual normalization of economic activities in response to the lifting of COVID-19 restrictions, the future outlook remains uncertain as a result of factors such as rising costs due to a rapid decrease in the value of the yen on international currency markets and rising prices of energy and raw materials. Even under such conditions, however, the favorable trend in the Group's businesses continued from the previous fiscal year.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
14,420 |
28,404 |
|
|
| Animal health business |
1,560 |
3,162 |
|
|
| Other businesses |
42 |
80 |
|
|
(i) Pharmaceutical business
The pharmaceutical business, which focuses on the three fields of internal medicine, obstetrics and gynecology, and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by product shows that results in the obstetrics and gynecology area were driven by the favorable growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 5,186 million yen (up 14.6% YoY). In addition to these, sales of the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol), which went on sale in June 2022, increased significantly to 2,909 million yen (up 127.4% YoY), following the previous year. Sales also grew steadily in the internal medicine area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 4,000 million yen (up 2.0% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) to 2,997 million yen (up 8.7% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release agent LEUPRORELIN were 2,321 million yen (down 11.4% YoY).
As a result of the above factors, the segment sales were 28,404 million yen (up 5.8% YoY), and the segment profit
was 3,658 million yen (up 16.5% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives,
were 3,162 million yen (down 2.2% YoY), maintaining the same level as the previous year. However, the segment
profit was 44 million yen (down 80.6% YoY) due to rising costs of raw materials and other items.
(iii) Other businesses
Sales results for other businesses, which include clinical testing, and medical devices, grew to 80 million yen (down 6.6% YoY). Segment loss was 61 million yen (vs. a loss of 20 million yen in the same period of the previous year).
Financial Position
Overview of Financial Position Summary
-
Total assets
91,920 million yen
Change from end of previous fiscal year
5.5%
-
Net assets
58,621 million yen
Change from end of previous fiscal year
7.5%
-
Equity ratio
63.8 ％
Change from end of previous fiscal year
1.2point
Overview of Financial Position
(Assets)
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at 91,920 million yen, up 4,782 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in accounts such as cash and deposits, and accounts receivable - trade.
(Liabilities)
Total liabilities at the end of the second quarter of the consolidated fiscal year under review stood at 33,299 million yen, up 694 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in notes and accounts payable – trade, income taxes payable, and electronically recorded obligations – operating, despite decreases in short-term borrowings and long-term borrowings.
（Net assets）
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at 58,621 million yen, up 4,087 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent.
The resulting equity ratio was 63.8%, up 1.2 percentage points from the end of the previous consolidated fiscal year.
Cash Flow Summary
-
Cash flows from operating activities
3,097 million yen
-
Cash flows from investing activities
1,382 million yen
-
Cash flows from financing activities
(2,539) million yen
-
Cash and cash equivalents at end of period
19,446 million yen
Overview of Cash Flow Position
The balance of cash and cash equivalents at the end of the second quarter of the consolidated fiscal year stood at 19,446 million yen, up 1,940 million yen from the end of the previous consolidated fiscal year.
The standing of each type of cash flow for the second quarter of the consolidated fiscal year, and major contributing factors of each, are summarized below.
(Cash flows from operating activities)
Net cash provided by operating activities was 3,097 million yen (vs. a gain of 1,666 million yen in the same period of the previous year), due mainly to the recording of profit before income taxes and depreciation and an increase in trade payables which more than covered a decrease in trade receivables.
(Cash flows from investing activities)
Net cash provided by investing activities was 1,382 million yen (vs. a loss of 199 million yen in the same period of the previous year), due mainly to gain on sales of investment securities.
(Cash flows from financing activities)
Net cash used in financing activities was 2,539 million yen (vs. a loss of 1,346 million yen in the same period of the previous year), due mainly to repayments of long-term borrowings.
FY2023 1Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the first quarter of the consolidated fiscal year, despite a gradual return to normal in social activities in response to developments including progress in balancing economic activities with prevention measures for COVID-19, future prospects remained uncertain as a result of factors such as rising costs due to a rapid decrease in the value of the yen on international currency markets and rising prices of energy and raw materials as well as the global economic impact of the prolonged Ukraine situation. Even under such conditions, however, the favorable trend in the Group's businesses continued from the previous fiscal year. Thus, both sales and profit increased from the same period of the previous year.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
14,420 |
|
|
|
| Animal health business |
1,560 |
|
|
|
| Other businesses |
42 |
|
|
|
(i)Pharmaceutical business
The pharmaceutical business, which focuses on the three fields of internal medicine, obstetrics and gynecology, and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by product shows that results in the obstetrics and gynecology area were driven by the favorable growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 2,576 million yen (up 14.0% YoY). In addition to these, sales of the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol), which went on sale in June 2022, increased significantly to 1,401 million yen (up 240.1% YoY), following the previous year. Sales also grew steadily in the internal medicine area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 2,062 million yen (up 1.1% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) to 1,525 million yen (up 8.6% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release agent LEUPRORELIN were 1,192 million yen (down 12.2% YoY).
As a result of the above factors, the segment sales were 14,420 million yen (up 5.7% YoY), and the segment profit was 2,021 million yen (up 17.0% YoY).
(ii)Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives, were 1,560 million yen (down 2.1% YoY), maintaining the same level as the previous year. However, the segment loss was 1 million yen (vs. a profit of 124 million yen in the same period of the previous year) due to rising costs of raw materials and other items.
(iii)Other businesses
Sales of the other businesses, which include clinical testing, medical devices, etc., were 42 million yen (up 44.1% YoY) because sales of the hair-growth hormone measurement kits made a positive contribution. However, the segment loss was 27 million yen (vs. a loss of 18 million yen in the same period of the previous year) due to an increase in selling expenses.
Financial Position
Overview of Financial Position Summary
-
Total assets
89,166 million yen
Change from end of previous fiscal year
2.3%
-
Net assets
56,881 million yen
Change from end of previous fiscal year
4.3%
-
Equity ratio
63.8 ％
Change from end of previous fiscal year
1.2point
Overview of Financial Position
(Assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 89,166 million yen, up 2,028 million yen from the end of the previous consolidated fiscal year under review. This figure was due primarily to increases in investment securities, and accounts receivable - trade.
(Liabilities)
Total liabilities at the end of the first quarter of the consolidated fiscal year under review stood at 32,285 million yen, down 318 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in short-term borrowings and long-term borrowings, despite a decrease in accounts payable – trade.
(Net assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 56,881 million yen, up 2,347 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent and an increase in valuation difference on available-for-sale securities reflecting rising share prices.
The resulting equity ratio was 63.8%, up 1.2 percentage points from the end of the previous consolidated fiscal year.
FY2022 Consolidated Financial Overview
Operating Results
Operating Results Summary
The Group’s net sales in the consolidated fiscal year under review were 60,461 million yen, up 3,853 million yen year on
year (YoY). This was due mainly to increased sales in the Animal Health Business, which experienced favorable sales of
feed additives, in addition to growth in the Medical Pharmaceuticals Business driven by the introduction of new products
and other factors. Cost of sales was 31,876 million yen, down 0.7% YoY, resulting in an increase of 2,233 million yen in
gross profit to 28,584 million yen. At the same time, selling, general and administrative expenses rose by 1,920 million yen
YoY to 23,476 million yen, and as a result operating profit was up 312 million yen YoY to 5,108 million yen, for a ratio of
operating profit to net sales of 8.4%. Ordinary profit was 5,232 million yen, after recording 433 million yen in non-operating
income and 308 million yen in non-operating expenses. While we recorded 124 million yen during the period in extraordinary
income associated with sale of investment securities, due to factors including a rebound from the recording of extraordinary
income associated with sale of property, plant, and equipment in the same period last year, profit for the period attributable
to owners of parent was down 51 million yen to 4,238 million yen.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
13,646 |
26,851 |
41,916 |
53,579 |
| Animal Health business |
1,593 |
3,234 |
5,187 |
6,660 |
| Other businesses |
29 |
86 |
155 |
220 |
(i) Pharmaceutical business
The pharmaceutical drug business, which focuses on the three fields of internal medicine, obstetrics and gynecology, and
urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by
product shows that results in the obstetrics and gynecology area were driven by the large-scale growth in the uterine fibroid
and endometriosis agent RELUMINA (relugolix), to 8,839 million yen (up 20.5% YoY), and steady growth in the
dysmenorrhea agent FREWELL (norethisterone/ ethinylestradiol), to 3,489 million yen (up 0.8% YoY), despite more than
approximately 10% reduction in the NHI price revision in April 2022. In addition to these, the dysmenorrhea agent DroEthi
(drospirenone/ ethinylestradiol), which went on sale in June 2022, largely drove performance with sales of 3,671 million
yen. Furthermore, both the major products of internal medicine, the thyroid hormone agent THYRADIN and the poorly
absorbable rifamycin antimicrobial agent RIFXIMA, for which we carried out activities intended to achieve its solid
incorporation into clinical practice guidelines, showed steady growth, of 7,733 million yen (up 3.1% YoY) and 5,397 million
yen (up 11.2% YoY), respectively. In the urology field, sales of the LH-RH derivative microcapsule sustained release agent
LEUPRORELIN were 4,999 million yen (down 3.6% YoY).
As a result of the above factors, net sales were 53,579 million yen (up 5.5% YoY) in this segment, and segment profit was
5,779 million yen (up 13.6% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives, grew to
6,660 million yen (up 18.3% YoY), thanks to strong sales of feed additives products. Segment profit was 409 million yen
(up 8.6% YoY).
(iii) Other businesses
Sales results for other businesses, which include clinical testing, medical devices, and supplements, grew to 220 million
yen (up 19.0% YoY). The hair-growth hormone measurement kits that launched in the previous fiscal year made a positive
contribution to sales. However, Segment loss was 6 million yen (vs. a loss of 16 million yen in the same period of the
previous year).。
Financial Position
Financial Position Summary
-
Total assets
87,138 million yen
QOQ
4.6%
-
Net assets
54,533 million yen
QOQ
11.5%
-
Equity ratio
62.6 ％
QOQ
3.9point
Overview of Financial Position
(Assets)
Total assets at the end of the consolidated fiscal year under review stood at 87,138 million yen, up 3,840 million yen from
the end of the previous consolidated fiscal year. This figure was due primarily to increases in accounts such as cash and
deposits, notes and accounts receivable - trade, and contract assets, raw materials and supplies, and investment securities,
and others, despite decreases in distributorship and securities.
(Liabilities)
Total liabilities at the end of the consolidated fiscal year under review stood at 32,604 million yen, down 1,800 million yen
from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in long-term borrowings
including current portion, and electronically recorded obligations - operating.
(Net assets)
Total assets at the end of the consolidated fiscal year under review stood at 54,533 million yen, up 5,641 million yen from
the end of the consolidated fiscal previous year. This figure was due primarily to an increase in retained earnings resulting
from the recording of profit attributable to owners of parent and an increase in valuation difference on available-for-sale
securities reflecting rising share prices.
The resulting equity ratio was 62.6%, up 3.9 percentage points from the end of the previous consolidated fiscal year.
Cash Flow Summary
-
Cash flows from
operating activities
3,351 million yen
-
Cash flows from
investing activities
(1,126) million yen
-
Cash flows from
financing activities
(1,820) million yen
-
Cash and cash
equivalents
at end of period
17,505 million yen
Overview of Cash Flow Position
The balance of cash and cash equivalents at the end of the current consolidated fiscal year stood at 17,505 million yen, up
- 4 -
402 million yen from the end of the previous consolidated fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities was 3,351 million yen (vs. a gain of 2,842 million yen in the same period of the
previous year), due mainly to profit before income taxes, impairment, and depreciation, which more than offset proceeds
from sale of property, plant and equipment.
(Cash flows from investing activities)
Net cash used by investing activities was 1,126 million yen (vs. a gain of 6,743 million yen in the same period of the previous
year). This was due mainly to acquisition of property, plant, and equipment and of securities.
(Cash flows from financing activities)
Net cash used in financing activities was 1,820 million yen (vs. a loss of 2,996 million yen in the same period of the previous
year). This was due mainly to repayments of long-term borrowings.
FY2022 3Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the third quarter of the consolidated fiscal year, despite a gradual return to normal in social activities in
response to developments including progress in balancing economic activities with prevention measures for COVID 19, future prospects remained uncertain as a result of factors such as the global economic impact of the prolonged
Russia-Ukraine crisis, rising prices of energy and raw materials due to a decrease in the value of the yen on
international currency markets as well as supply chain disruption. Even under such conditions, however, the Group's
business continued to show favorable results from the previous fiscal year, mainly due to the growth of new products
and further cost reduction efforts.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
13,646 |
26,851 |
41,916 |
|
| Animal health business |
1,593 |
3,234 |
5,187 |
|
| Other businesses |
29 |
86 |
155 |
|
(i) Pharmaceutical business
The pharmaceutical drug business, which focuses on the three fields of internal medicine, obstetrics and gynecology,
and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at
results by product shows that results in the obstetrics and gynecology area were driven by the large-scale growth in
the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 6,995 million yen (up 22.4% YoY), and steady
growth in the dysmenorrhea agent FREWELL (norethisterone/ ethinylestradiol), to 2,718 million yen (up 2.8% YoY).
In addition to these, the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol), which went on sale in June
2022, largely drove performance with sales of 2,538 million yen. Sales also grew steadily in the internal medicine
area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in this field, grew to 6,031
million yen (up 3.2% YoY) and those of the poorly absorbable rifamycin antimicrobial agent RIFXIMA (rifaximin) to
4,230 million yen (up 11.5% YoY). In the urology field, sales of the LH-RH derivative microcapsule sustained-release
agent LEUPRORELIN (leuprorelin) were 3,930 million yen (down 0.1% YoY).
As a result of the above factors, net sales were 41,916 million yen (up 5.6% YoY) in this segment, and segment
income was 5,418 million yen (up 10.9% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives,
grew to 5,187 million yen (up 18.5% YoY), thanks to strong sales of feed additives and other products. Segment
income was 417 million yen (up 26.7% YoY).
(iii) Other businesses
Sales results for other businesses, which include clinical testing, medical devices, and supplements, grew to 155
million yen (up 34.0% YoY), although the hair-growth hormone measurement kits introduced in the previous fiscal
year made a positive contribution to sales. Segment loss was 26 million yen (vs. a loss of 42 million yen in the same
period of the previous year).
Financial Position
Overview of Financial Position Summay
-
Total assets
90,794 million yen
QOQ
9.0%
-
Net assets
54,080 million yen
QOQ
10.6%
-
Equity ratio
59.6 ％
QOQ
0.9point
Overview of Financial Position
(Assets)
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at 90,794 million yen,
up 7,496 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases
in accounts such as cash and deposits, notes and accounts receivable - trade, and contract assets, raw materials
and supplies, and investment securities despite decreases in securities and intangible assets.
(Liabilities)
Total liabilities at the end of the third quarter of the consolidated fiscal year under review stood at 36,713 million yen,
up 2,308 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases
in notes and accounts payable – trade and in other current liabilities, despite decreases in Electronically recorded
obligations - operating. The total of short-term borrowings and long-term borrowings decreased through repayment.
(Net assets)
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at 54,080 million yen,
up 5,188 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase
in retained earnings resulting from the recording of profit attributable to owners of parent and an increase in valuation
difference on available-for-sale securities reflecting rising share prices.
The resulting equity ratio was 59.6%, up 0.9 percentage points from the end of the previous consolidated fiscal year.
FY2022 2Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the second quarter of the consolidated fiscal year, despite a gradual return to normal in social and economic
activities as restrictions on activities related to COVID-19 were eased, future prospects remained uncertain due to the
economic impact caused by cost increasing factors such as the lengthening of the Russia-Ukraine crisis, a rapid
decrease in the value of the yen on international currency markets, and rising prices of energy and raw materials.
Even under such conditions, however, the favorable trend in the Group's businesses continued from the previous
fiscal year
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
13,646 |
26,851 |
|
|
| Animal health business |
1,593 |
3,234 |
|
|
| Others |
29 |
86 |
|
|
(i) Pharmaceutical business
The pharmaceutical drug business, which focuses on the three fields of internal medicine, obstetrics and gynecology,
and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at
results by product shows that results in the obstetrics and gynecology field were driven by the second consecutive
year of large-scale growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 4,524 million yen
(up 22.2% YoY), and steady growth in the dysmenorrhea agent FREWELL (norethisterone/ ethinylestradiol), to 1,765
million yen (up 5.9% YoY). In addition to these, the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol),
which went on sale in June of this year, largely drove performance with sales of 1,279 million yen. Sales also grew
steadily in the internal medicine field, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main
product in this field, grew to 3,921 million yen (up 3.5% YoY) and those of the poorly absorbable rifamycin
antimicrobial agent RIFXIMA (rifaximin) to 2,757 million yen (up 11.9% YoY). In the urology field, sales of the LH-RH
derivative microcapsule sustained-release agent LEUPRORELIN (leuprorelin) were 2,619 million yen (up 3.9% YoY).
As a result of the above factors, net sales were 26,851 million yen (up 4.8% YoY) in this segment, and segment
income was 3,141 million yen (up 12.3% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives,
grew to 3,234 million yen (up 15.9% YoY), thanks to strong sales of feed additives and other products. Segment
income was 231 million yen (up 1.0% YoY).
(iii) Other businesses
Sales results for other businesses, which include clinical testing, medical devices, and supplements, grew to 86
million yen (up 29.7% YoY). Although the hair hormone level measurement kits introduced in the previous fiscal year
made a positive contribution to sales, segment loss was 20 million yen (vs. a loss of 26 million yen in the same period
of the previous year).
Financial Position
Overview of Financial Position Summary
-
Total assets
86,227 million yen
QOQ
3.5%
-
Net assets
52,002 million yen
QOQ
6.3%
-
Equity ratio
60.3 ％
QOQ
1.6point
Overview of Financial Position
(Assets)
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at 86,227 million yen,
up 2,929 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases
in accounts such as cash and deposits, notes, accounts receivable, and contract assets and raw materials and
supplies.
(Liabilities)
Total liabilities at the end of the second quarter of the consolidated fiscal year under review stood at 34,224 million
yen, down 180 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to
decreases in electronically recorded obligations, despite increases in notes and accounts payable – trade and in
other current liabilities. The total of short-term borrowings and long-term borrowings decreased through repayment.
(Net assets）
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at 52,002 million yen,
up 3,109 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase
in retained earnings resulting from the recording of profit attributable to owners of parent and an increase in valuation
difference on available-for-sale securities reflecting rising share prices.
The resulting equity ratio was 60.3%, up 1.6 percentage points from the end of the previous consolidated fiscal year.
Cash Flow Summary
-
Cash flows from operating activities
1,666 million yen
-
Cash flows from investing activities
(199) million yen
-
Cash flows from investing activities
(1,346) million yen
-
Cash and cash equivalents at end of period
17,224 million yen
Overview of Cash Flow Position
The balance of cash and cash equivalents at the end of the second quarter of the consolidated fiscal year (“funds”
hereinafter) stood at 17,224 million yen, up 121 million yen from the end of the previous consolidated fiscal year.
The standing of each type of cash flow for the second quarter of the consolidated fiscal year, and major contributing
factors of each, are summarized below.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,666 million yen (vs. a gain of 1,417 million yen in the same period of
the previous year), due mainly to profit before income taxes and depreciation, which more than covered an increase
in notes and accounts receivable-trade and an increase in inventories.
(Cash flows from investing activities)
Net cash provided by investing activities was 199 million yen (vs. a loss of 427 million yen in the same period of the
previous year), due mainly to gain of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities was 1,346 million yen (vs. a loss of 1,386 million yen in the same period of the
previous year), due mainly to repayments of long-term borrowings.
FY2022 1Q Consolidated Financial Overview
Operating Results
Overview of Operating Results
During the first quarter of the consolidated fiscal year, despite a gradual return to normal in social activities in
response to developments including progress in balancing economic activities with prevention measures for COVID19, future prospects remained uncertain as a result of factors such as rising costs due to a rapid decrease in the
value of the yen on international currency markets and rising prices of energy and raw materials as well as the global
economic impact of the Russia-Ukraine crisis. Even under such conditions, however, the favorable trend in the
Group's businesses continued from the previous fiscal year.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
13,646 |
|
|
|
| Animal health business |
1,593 |
|
|
|
| Other businesses |
29 |
|
|
|
(i) Pharmaceutical business
The pharmaceutical drug business, which focuses on the three fields of internal medicine, obstetrics and gynecology,
and urology, showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at
results by product shows that results in the obstetrics and gynecology area were driven by the second consecutive
year of large-scale growth in the uterine fibroid and endometriosis agent RELUMINA (relugolix), to 2,259 million yen
(up 26.3% YoY), and double-digit growth in the dysmenorrhea agent FREWELL (norethisterone/ ethinylestradiol), to
888 million yen (up 10.4% YoY). In addition to these, the dysmenorrhea agent DroEthi (drospirenone/ ethinylestradiol),
which went on sale in June of this year, got off to a strong start with sales of 412 million yen. Sales also grew steadily
in the internal medicine area, as sales of the thyroid hormone agent THYRADIN (levothyroxine), our main product in
this field, grew to 2,040 million yen (up 4.9% YoY) and those of the poorly absorbable rifamycin antimicrobial agent
RIFXIMA (rifaximin) to 1,404 million yen (up 12.6% YoY). In the urology field, sales of the LH-RH derivative
microcapsule sustained-release agent LEUPRORELIN were 1,357 million yen (up 16.9% YoY).
As a result of the above factors, net sales were 13,646 million yen (up 6.3% YoY) in this segment, and segment
income was 1,728 million yen (up 38.5% YoY).
(ii) Animal health business
Sales of the animal health business, which sells products such as animal health drugs and feed additives, grew to
1,593 million yen (up 17.9% YoY), thanks to strong sales of feed additives and other products. Segment income was
124 million yen (up 20.1% YoY).
(iii) Other businesses
Sales results for other businesses, which include clinical testing, medical devices, and supplements, fell to 29 million
yen (down 2.7% YoY), although the hair-growth hormone measurement kits introduced in the previous fiscal year
made a positive contribution to sales. Segment loss was 18 million yen (vs. a loss of 2 million yen in the same period
of the previous year).
Financial Position
Overview of Financial Position Summary
-
Total assets
84,764 million yen
QOQ
1.7%
-
Net assets
50,477 million yen
QOQ
3.2%
-
Equity ratio
59.6 ％
QOQ
0.9point
Overview of Financial Position
(Assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 84,764 million yen, up 1,467 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to increases in accounts such as cash and deposits, investment securities, and merchandise and finished goods, despite decreases in securities and intangible assets.
(Liabilities)
Total liabilities at the end of the first quarter of the consolidated fiscal year under review stood at 34,287 million yen, down 117 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in electronically recorded obligations and in other provisions under current liabilities, despite increases in notes and accounts payable – trade and in other current liabilities. The total of short-term borrowings and long-term borrowings decreased through repayment.
(Net assets)
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at 50,477 million yen, up 1,584 million yen from the end of the previous consolidated fiscal year. This figure was due primarily to an increase in retained earnings resulting from the recording of profit attributable to owners of parent and an increase in valuation difference on available-for-sale securities reflecting rising share prices.
The resulting equity ratio was 59.6%, up 0.9 percentage points from the end of the previous consolidated fiscal year.
FY2021 Consolidated Financial Overview
Operating Results
Overview of Operating Results
The Group’s net sales in the consolidated fiscal year under review were 56,607 million yen. Cost of sales was 30,255
million yen and selling, general and administrative expenses were 21,556 million yen, resulting in operating profit of
4,795 million yen. Ordinary profit was 4,880 million yen, after recording 379 million yen in non-operating income and 294
million yen in non-operating expenses. As a result of factors including the recording of 9,425 million yen in gain on sale of
non-current assets through the sale of land and buildings owned by the consolidated subsidiary ASKA Pharmaceutical
Co., Ltd., 9,683 million yen was recorded in extraordinary income. On the other hand, 8,400 million yen was recorded in
extraordinary losses due to factors including the recording of 1,151 million yen in loss on valuation of investment
securities, in addition to 6,891 million yen in extraordinary losses resulting from causes such as impairment of intangible
assets due to suspension of development of CDB-2914 (Ulipristal) applied for by ASKA Pharmaceutical Co., Ltd. As a
result of the above factors, profit attributable to owners of parent was 4,290 million yen.
Segment
Net sales
(Millions of yen)
| Segment name |
1Q |
2Q |
3Q |
Full year |
| Pharmaceutical business |
12,840 |
25,619 |
39,685 |
50,791 |
| Animal health business |
1,351 |
- |
- |
- |
| Others |
30 |
2,857 |
4,494 |
5,816 |
(i) Pharmaceutical business
Despite the impact of developments such as the first intermediate-year revision of NHI drug prices implemented in April
2021 and progress of measures to keep down medical care costs, the pharmaceutical drugs business showed favorable
performance overall, due to factors such as growth in obstetrics and gynecology products, which are a major product line.
A look at results by product shows considerable growth in the obstetrics and gynecology area, to 7,334 million yen for the
GnRH antagonist RELUMINA and 3,463 million yen for the dysmenorrhea agent FREWELL. In the internal medicine
area, in addition to increases of 7,499 million yen for the thyroid hormone THYRADIN and 4,854 million yen for the poorly
absorbable rifamycin antimicrobial agent RIFXIMA, growth in alternative demand spurred by problems in competitors’
supplies led to results of 12,394 million yen for the authorized generic CANDESARTAN and 5,183 million yen for the LHRH derivative microcapsule sustained-release formulation LEUPRORELIN.
As a result of the above factors, net sales were 50,791 million yen in this segment, and segment income was 5,088
million yen.
(ii) Others
Sales results for other businesses, which include animal health drugs, clinical testing, and medical devices, were
favorable, centered on drugs for livestock and companion animals and feed additives in the animal health drugs
business.
As a result of the above factors, net sales were 5,816 million yen in this segment, and segment income was 360 million
yen.。
Financial Position
Overview of Financial Position Summary
-
Total assets
83,297 million yen
QOQ
0.8%
-
Net assets
48,892 million yen
QOQ
9.8%
-
Equity ratio
58.7 ％
QOQ
4.8point
Overview of Financial Position
(Assets)
Total assets at the end of the consolidated fiscal year under review stood at 83,297 million yen, comprising primarily 49,557 million yen in current assets, including 12,103 million yen in cash and deposits, 14,482 million yen in accounts receivable - trade, and 10,016 million yen in merchandise and finished goods, and 33,739 million yen in non-current assets, including 10,936 million yen in property, plant and equipment and 12,223 million yen in investment securities.
(Liabilities)
Total liabilities at the end of the consolidated fiscal year under review stood at 34,404 million yen, comprising primarily 16,011 million yen in current liabilities, including 3,118 million yen in notes and accounts payable - trade, 3,723 million yen in electronically recorded obligations, and 4,867 million yen in accounts payable - other, and 18,393 million yen in non-current liabilities, including 12,323 million yen in long-term borrowings and 5,730 million yen in retirement benefit liability.
(Net assets)
Total liabilities at the end of the consolidated fiscal year under review stood at 48,892 million yen, comprising primarily 45,419 million yen in shareholders’ equity, including 45,833 million yen in retained earnings, and 3,473 million yen in accumulated other comprehensive income, including 3,231 million yen in valuation difference on available-for-sale securities.
The resulting equity ratio was 58.7%.
Cash Flow Summary
-
Cash flows from operating activities
2,842 million yen
-
Cash flows from investing activities
6,743 million yen
-
Cash flows from financing activities
(2,996) million yen
-
Cash and cash equivalents at end of period
17,103 million yen
Overview of Cash Flow Position
The balance of cash and cash equivalents at the end of the current consolidated fiscal year (“funds” hereinafter) stood at 17,103 million yen.
The standing of each type of cash flow for the current fiscal year, and major contributing factors of each, are summarized below.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,842 million yen, due mainly to profit before income taxes, impairment, and depreciation, which more than offset proceeds from sale of property, plant and equipment.
(Cash flows from investing activities)
Net cash provided by investing activities was 6,743 million yen, due mainly to sale of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities was 2,996 million yen, due mainly to repayments of long-term borrowings.