Kobayashi Pharmaceutical Reports Financial Results for the Year Ended March 31, 2006.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, May 16, 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 Kobayashi (小林 "small forest") is the 9th most common Japanese surname. People
TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4967; OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : KBYPF), a leading importer and distributor of medical equipment, and pharmaceutical wholesaler, has announced consolidated financial results for the full fiscal year ended March 31, 2006. Sales were strong in each of the Company's three principle groups - Consumer Products Operations, Wholesale Operations and Medical Devices Operations - and as result Kobayashi is pleased to announce year-on-year increases in sales and profits for the eight consecutive year since the introduction of consolidated accounting. In this term, the Company fully manifested the spirit of its "Creativity and Innovation" management concept, drawing out 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 offering products and services that encourage the development of new markets while invigorating in·vig·or·ate tr.v. in·vig·or·at·ed, in·vig·or·at·ing, in·vig·or·ates To impart vigor, strength, or vitality to; animate: "A few whiffs of the raw, strong scent of phlox invigorated her" existing markets by offering products and services with new added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
In terms of profits, aggressive advertising investment was carried out with a view to brand cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or in Japan and overseas, but thoroughgoing thor·ough·go·ing adj. 1. Very thorough; complete: thoroughgoing research. 2. Unmitigated; unqualified: a thoroughgoing villain. manufacturing cost price reductions cut costs, and SG&A expenses were revamped. As a result, 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. rose by 1,180 million yen, a year-on-year increase of 7.5%, to 16,879 million yen. Income before taxes amounted to 15,151 million yen, an increase of 992 million yen (7.0%) year-on-year. Accordingly, net income amounted to 7,474 million yen, a year-on-year gain of 744 million yen (11.1%). 1. Consolidated Financial Summary for the Full Year Ended March 31, 2006
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(millions of yen)
Full Year Ended Full Year Ended YoY Change
March 31, 2006 March 31, 2005 Percent
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Operating Results
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Net Sales 246,852 215,708 14.4
Operating Income 16,879 15,698 7.5
Income Before Taxes 15,151 14,159 7.0
Net Income 7,474 6,730 11.1
EPS (basic)(yen) 179.17 160.64
EPS (diluted)(yen) 179.01 -
ROE (%) 11.8 11.7
Income before taxes/
total assets (%) 10.6 10.8
Income before taxes/
total sales (%) 6.1 6.6
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Financial Position
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Total Assets 151,945 134,629
Total Sh'holders Equity 66,811 60,116
Sh'holders Equity Ratio 44.0 44.7
Shareholders EPS (Yen) 1,617.10 1,443.30
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Cash Flows
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Net Cash from
Operating Activities 13,159 8,364
Net Cash from
Investing Activities (6,414) (3,936)
Net Cash from
Financing Activities (1,419) (3,369)
Cash and Cash Equivalents
at End of Period 24,436 19,035
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2. Summary of Performance by Business Segment During the Full Year Ended March 31, 2006 Consumer Products Operation With a view to new market creation and expansion of existing markets, the segment saw the start of sales of 14 new products (excluding nutritional supplement foods). In addition to efforts 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. such existing brands as the "Shoushu Gen" deodorizer deodorizer or deodorant, substance used to absorb or eliminate offensive odors. Disinfectants such as hydrogen peroxide, chlorine, and chlorine compounds eliminate odors caused by microorganisms. and 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, the "Inochi-no-Haha A" female hygiene hygiene, science of preserving and promoting the health of both the individual and the community. It has many aspects: personal hygiene (proper living habits, cleanliness of body and clothing, healthful diet, a balanced regimen of rest and exercise); domestic hygiene preparation went on sale in June June: see month. , while the record cold winter stimulated chiropractic chiropractic (kīrəprăk`tĭk) [Gr.,=doing by hand], medical practice based on the theory that all disease results from a disruption of the functions of the nerves. sales. As a result, segment sales rose by 5,503 million yen (6.2%) year-on-year to 94,776 million yen. In addition to the sales gain, profits benefited from thoroughgoing manufacturing cost price reductions, with the result that segment operating income increased by 954 million yen (6.6%) year-on-year to 15,446 million yen. Wholesale Operation Sales rose by 28,577 million yen (22.3%) year-on-year to 156,934 million yen upon the transfer, on April 1, of Suzuken's general pharmaceutical wholesaling business to this segment. Business expansion enabled the benefits of scale and bundled product stocking-in from manufacturers improved profit margins, but business transfer-driven integration effects were not fully reflected in operating results. Segment operating income declined by 364 million yen, a decrease of 45.6% year-on-year, to 435 million yen. Medical Devices Operation At Kobayashi Medical Company, stress was placed on sales of electrical scalpels and other surgical equipment, and on the cosmetic surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. domain, for which market growth 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 Company, with proprietary brand development being vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. pursued, January January: see month. saw the start of artificial bone marketing. At the three Shield Health Care Center companies in the U.S., purchase of customer lists enabled sales growth by locking in customers. At the same time, the Company worked to improve margins by bringing in a new customer management system and reducing indirect expenses. As a result, segment sales rose by 1,070 million yen (6.7%) year-on-year to 17,126 million yen, and operating income gained by 393 million yen (207.9%) year-on-year to 582 million yen. Investment income of 263 million yen, down from 330 million yen in the previous period, was derived from the Medicon equity method affiliate. Other Operations Other Operations supports the above three segments with transportation, sales promotion, market research and other services. Although they are managed as independent income centers, this segment contributes to their profits. Delivery prices of materials and services were appropriately revised. As a result, segment sales rose by 771 million yen, an increase of 6.3% year-on-year to 12,976 million yen, while operating income increased by 262 million yen (187.1% year-on-year) to 402 million yen. Sales here include inter-segment sales or internal transfers; that amount was 9,053 million yen in the current consolidated fiscal year and 8,434 million yen in the previous period. 3. Summary of Cash Flows as of March 31, 2006 - Cash flows from operating activities Cash acquired as a result of operating activities was 13,159 million yen, an increase of 4,795 million yen year-on-year, due to a gain of 1,240 million yen in income before tax and other adjustments and to improvement in the working capital balance. - Cash flows from investing activities Cash used in investing activities was 6,414 million yen, higher by 2,478 million yen, due to purchase of metal molds and others for new product development and acquisition of investment securities incident to capital tieups. - Cash flow from financing activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. Cash used in financing activities decreased by 1,950 million yen to 1,419 million yen, due to higher dividend payouts and stock buybacks Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. , but the subsidiary Kobashou Co., Ltd received capital. In consequence of the foregoing, the balance of cash and equivalents at the end of the period increased by 5,401 million yen year-on-year to 24,436 million yen. 3. Forecast for the Fiscal Year Ending March 31, 2007 Prospects are for an all-around recovery in Japan's economy, supported by ongoing corporate earnings improvement and firming trends in 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. . Against this background, and with a view to reinforcing competitiveness toward premier status in its business domains, the Company sees as necessary the adoption of strategies to further strengthen the existing businesses and brands that are its foundation. The Company will also seek further expansion of its business content and simultaneously carry out strategies to promote growth. Targets for the next consolidated fiscal year are sales of 268,000 million yen, an increase of 21,148 million yen (8.6% year-on-year). The Company projects operating income of 17,800 million yen (up 921 million yen, 5.5% year-on-year), income before taxes of 16,000 million yen (849 million yen, 6.0%) and net income of 8,600 million yen (1,126 million yen, 15.1%), with profits driven by ongoing cost price reductions and other cost cuts.
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(millions of yen)
March 31, 2007 March 31, 2006 Change
Amount % Amount % Amount %
Net Sales 268,000 100.0 246,852 100.0 21,148 8.6
Operating Income 16,000 6.0 5,151 6.1 849 5.6
Net Income 8,600 3.2 7,474 3.0 1,126 15.1
Net Income/share (Y) 207.31 179.17 28.14 15.7
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The Company's basic policy is to maintain stable dividends at 38 yen per share in the coming term. About Kobayashi Pharmaceutical Kobayashi Pharmaceutical (TSE: 4967; OTC: KBYPF) first opened for business in 1919, and 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, 2005, Kobayashi achieved increases in sales and profits for the seventh consecutive year since the introduction of consolidated accounting. Source: Kobayashi Pharmaceutical Contact: Kobayashi Pharmaceutical https://hint.kobayashi.co.jp/inq/inq0109.html Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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