Kobayashi Pharmaceutical Reports Financial Results for the First Quarter Ended June 30, 2006.Tokyo, Japan, July 25, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Kobayashi Pharmaceutical, Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4967), a leading importer and distributor of medical equipment and pharmaceutical and consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and wholesaler, has announced consolidated financial results for the first quarter ended June 30, 2006. In a quarter with a firmer floor for consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , the Group continued to cultivate cul·ti·vate tr.v. cul·ti·vat·ed, cul·ti·vat·ing, cul·ti·vates 1. a. To improve and prepare (land), as by plowing or fertilizing, for raising crops; till. b. the spirit of its "Creation and Innovation" management concept, develop latent Hidden; concealed; that which does not appear upon the face of an item. For example, a latent defect in the title to a parcel of real property is one that is not discoverable by an inspection of the title made with ordinary care. customer needs by providing products and services to create new markets while offering new added-value products and services in markets in which the Group already maintains a presence. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the first quarter grew to 62,668 million yen, an increase of 2.0% from the previous fiscal year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was 3,609 million yen, a decrease of 9.7% from the previous year, and ordinary income was 3,106 million yen, a decrease of 13.5%. Net income for the first quarter registered at 2,429 million yen, an increase of 44.6%, following 1,437 million yen in impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. losses accounted for as extraordinary losses in the same period the previous year. I. First Quarter Financial Summary (April 1, 2006 - June 30, 2006) (1) Consolidated Operating Results
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(Millions of Yen)
April 1 - June 30, FY 3/31,
2006 % 2005 % 2006
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Operating Revenues 62,668 2.0 61,414 14.9 246,852
Operating Income 3,609 (9.7) 3,998 39.3 16,879
Ordinary Income 3,106 (13.5) 3,591 44.3 15,151
Net Income 2,429 44.6 1,680 0.0 7,474
Net Income per Share (Yen) 58.82 40.37 179.17
Net Income per Share,
diluted (Yen) 58.73 -- 170.01
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(2) Consolidated Financial Position
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(Millions of Yen)
As of June 30, As of March 31,
2006 2005 2006
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Total Assets 160,206 149,996 151,945
Shareholders' Equity 70,519 60,985 66,811
Shareholders' Equity Ratio 44.0% 40.7% 44.0%
Shareholders' Equity
per Share (Yen) 1,706.88 1,465.28 1,617,10
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(3) Consolidated Cash Flows
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(Millions of Yen)
As of June 30, As of March 31,
2006 2005 2006
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Cash Flows from
Operating Activities (1,155) (283) 13,159
Cash Flows from
Investing Activities 2,981 518 (6,414)
Cash Flows from
Financing Activities (2,499) 888 (1,419)
Cash and Cash Equivalents,
End of Term 23,761 20,170 24,436
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II. Summary of Performance by Business Segment Consumer Products Operations: The Consumer Product Operations segment saw the introduction of 18 new products (excluding nutritional supplement foods) in the spring, including the internal preparation 'Nicitol' for combustion of internal stomach fat and the household deodorant deodorant /de·odor·ant/ (de-o´der-int) 1. masking offensive odors. 2. an agent that so acts. de·o·dor·ant n. 'Cleair', which contributed to sales growth. There were also strong trends in the 'Shouyou' oral hygiene Oral Hygiene Definition Oral hygiene is the practice of keeping the mouth clean and healthy by brushing and flossing to prevent tooth decay and gum disease. preparation and 'Inochi no Haha A', a female health aid marketed since June of last year. As a result, segment sales increased 1,301 million yen, or 5.9%, from the previous year to 23,508 million yen. In spite of reductions in manufacturing costs and other expenses, operating income decreased 693 million yen, or 17.1%, from the previous year to 3,358 million yen, due to aggressive advertising aimed at enhancing the Company's brands. Wholesale Operations: The Wholesale Operations segment faced a difficult business environment due to inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather that hurt the performance of summer products at drug stores, which are the Company's principal customers. However, segment sales rose 239 million yen or 0.6% over the previous period, to 41,246 million yen, as a result of the new consolidation of KS Tohoku in the current quarter. As a result of declines in sales of health foods and summer products, though, the segment posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 175 million yen, a decline of 135 million yen compared to the previous year. Medical Devices Operations: Segment sales trended strongly due to domestic marketing of proprietary products and stress on the orthopedic surgery Orthopedic Surgery Definition Orthopedic (sometimes spelled orthopaedic) surgery is surgery performed by a medical specialist, such as an orthopedist or orthopedic surgeon, trained to deal with problems that develop in the bones, joints, and ligaments field, in which market expansion is foreseen fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. . In the U.S., margins improved because of introduction of new customer administration systems and reduction of expenses in the indirect sector. As a result, segment sales increased by 448 million yen or 11.8% over the previous year, to 4,256 million yen, and operating income increased by 360 million yen over the previous year to 318 million yen. III. Changes in Financial Position Compared to the end of the previous fiscal year, total assets increased by 8,260 million yen but a gain of 3,707 million yen in net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. resulted in no change in the equity capital ratio of 44%. By existing standards, the ratio was 42.2%. Among the principal factors in the increase were gains of 5,849 million yen in current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. (trade notes and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ) and 2,116 million yen in inventories due to new subsidiary consolidation. Similarly, current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. (trade notes and accounts payable) increased by 7,517 million yen and short-term borrowings by 1,356 million yen. Cash Flows from Operating Activities Cash used in operating activities was 1,155 million yen. Although net income in the first quarter before tax and other adjustments was 4,767 million yen, corporate and other tax payments amounted to 4,012 million yen. Cash Flows from Investing Activities Net cash used in investing activities was 2,981 million yen. This included 330 million yen for the acquisition of tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , but proceeds from the sale of tangible fixed assets and transfer of goodwill amounted to 1,160 million yen and 1,127 million yen, respectively. Cash Flows from Financing Activities Net cash used in financing activities totaled 2,499 million yen, due to 1,569 million yen in dividend and other payments. (4) Consolidated Projections for the Fiscal Year Ending March 31, 2007 <pre> ------------------------------------------------------------------------ (Millions of Yen) Full Year Interim ------------------------------------------------------------------------ Net Sales 268,000 135,000 Ordinary Income 16,000 8,000 Net Income 8,600 4,500 Net Income per Share (yen) 207.19 -- ------------------------------------------------------------------------ </pre> Results for the first quarter of the current fiscal year changed roughly in line with forecasts. Therefore, the Company has not revised the interim or full-year earnings projections that were announced on May 17, 2006. About Kobayashi Pharmaceutical Kobayashi Pharmaceutical (TSE: 4967; OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : KBYPF) first opened for business in 1919, and its management policy has always been to provide people and society with wonderful comfort through "Creativity and Innovation". Over the years the Company has expanded its scope, developing into a cluster of enterprises with three principal businesses: Consumer Products Operation, Wholesale Operation and Medical Devices Operation. In the fiscal year ended March 31, 2006, Kobayashi achieved increases in sales and profits for the eighth consecutive year since the introduction of consolidated accounting. Source: Kobayashi Pharmaceutical Contact: Kobayashi Pharmaceutical Online http://www.kobayashi.co.jp/english/contact/index.html?lid=1 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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