Kobayashi Pharmaceutical Reports Financial Results for the Year Ended March 31, 2008.Tokyo, Japan, May 12, 2008 - (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 Co., 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, today announced consolidated financial results for the full year ended March 31, 2008. The Group increased sales of product categories with high profit margins by aggressively investing in advertising to develop its brands, reduced production costs through thorough efforts to reduce costs, and overhauled sales promotion expenses. 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 546 million yen (3.0%) year on year to 18,576 million yen, ordinary income increased 674 million yen (4.5%) year on year to 15,687 million yen, and net income expanded 207 million yen (2.5%) year on year to 8,504 million yen. Kobashou Co., Ltd., which was responsible for wholesale operations, was turned into a wholly-owned subsidiary of Mediceo Paltac Holdings through a stock swap A stock swap also known as a share swap or equity swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. on January 2008. Kobashou's sales were not included in consolidated figures for wholesale operations starting in the fourth quarter. As a result, sales fell 28,195 million yen (-11.0%) year on year to 228,826 million yen. I. Consolidated Financial Summary for the Full Year Ended March 31, 2008
(Millions of Yen)
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Full Year Ended Full Year Ended YoY Change
March 31, 2008 March 31, 2007 Percent
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Operating Results
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Net Sales 228,826 257,022 (11.0)
Operating Income 18,576 18,029 3.0
Ordinary Income 15,687 15,012 4.5
Net Income 8,504 8,297 2.5
Net Income/Share (Y) 205.62 200.77
Net Income/Share, Diluted (Y) 205.42 200.47
Return on Equity (ROE) 11.2 11.7
Return on Assets (ROA) 10.9 9.5
Ordinary Income to
Operating Revenues Ratio 8.1 7.0
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Financial Position
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Total Assets 122,409 164,555
Total Sh'holders Equity 77,182 77,236
Sh'holders Equity Ratio 63.0% 45.2%
Shareholders EPS (Yen) 1,863.24 1,799.87
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Cash Flows
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Net Cash from
Operating Activities 12,209 8,833
Net Cash from
Investing Activities (6,442) (11,803)
Net Cash from
Financing Activities (5,310) (2,433)
Cash and Cash Equivalents
at End of Period 17,164 19,090
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II. Segment Analysis 1) Consumer Products Operation The Group introduced 24 new products (excluding nutritional supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. ) in order to create new markets and expand existing ones. Among the products, the internal medicine Naripitan that helps ringing of the ears, the sanitary sanitary /san·i·tary/ (san´i-tar?e) promoting or pertaining to health. san·i·tar·y adj. 1. Of or relating to health. 2. product Sarasaty Sara Li E provides menstrual menstrual /men·stru·al/ (men´stroo-al) pertaining to the menses or to menstruation. men·stru·al or men·stru·ous adj. Of or relating to menstruation. comfort, and Toilet Shoshu Shabon, an air deodorizing air freshener air freshener n → ambientador m air freshener air n → désodorisant m air freshener air n → that gives bathrooms a refreshing, clean scent, made strong contributions to sales. As for existing products, sales of Nicitol 85, a diet pill diet pill Drug slang A euphemism for an amphetamine Vox populi An agent that either ↓ appetite or ↑ basal metabolic rate–eg, amphetamines–by prescription and OTC diet aids–eg phenylpropanolamine, ephedrine, caffeine; in high doses, DPs for reducing abdominal abdominal /ab·dom·i·nal/ (ab-dom´i-n'l) pertaining to the abdomen. ab·dom·i·nal adj. Of or relating to the abdomen. n. An abdominal muscle. fat, grew as the market for metabolic syndrome metabolic syndrome n. See syndrome X. Metabolic syndrome A group of risk factors for heart disease, diabetes, and stroke. related products expanded, and sales of the toilet tank cleaner Bluelet continued to be strong. Furthermore, sales of body warmers body warmer Noun a sleeveless quilted jerkin, worn as an outer garment within Japan were firm as a result of a stretch of cold weather from the start of the year and aggressive efforts were made to expand the body warmer business overseas; therefore sales rose 8,417 million yen (8.2%) to 110,920 million yen. Operating income increased 1,444 million yen (8.7%) year on year to 18,005 million yen for various reasons including growth in sales of product categories with high profit margins and reductions in production costs as a result of thorough cost-cutting efforts. 2) Wholesale Operation Kobashou Co., Ltd. was turned into a wholly-owned subsidiary of Mediceo Paltac Holdings through a stock swap in January 2008, and therefore was excluded from the scope of consolidation for the wholesale operations starting in the fourth quarter. As for the earnings during the first three quarters, sales reached 131,962 million yen since sales of (Chinese) herbal herbal, early botanical book containing descriptions and illustrations of herbs and plants with their properties, chiefly those qualities that made them useful as medicines or condiments. Most of the herbals were written between c.1470 and c. products such as products to improve one's life, winter goods, and food products were firm although market conditions for contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. products, a core category, were harsh. There was also fierce competition among drugstore operators, which are important clients, to open new outlets and to reduce prices, resulting in 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 131 million yen. 3) Medical Devices Operation Kobayashi Pharmaceutical Co., Ltd. recorded firms sales of both operating room operating room n. Abbr. OR A room equipped for performing surgical operations. related products such as electrosurgical generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. and orthopedics orthopedics (ôrthəpē`dĭks), medical specialty concerned with deformities, injuries, and diseases of the bones, joints, ligaments, tendons, and muscles. related products, the market for which is expected to grow. While artificial ventilator ventilator /ven·ti·la·tor/ (ven´ti-la-tor) 1. an apparatus for qualifying the air breathed through it. 2. a device for giving artificial respiration or aiding in pulmonary ventilation. manufacturer eVent Medical Ltd., shares of which were purchased in November 2006, was included in the scope of consolidation, all shares in three Shield Healthcare Centers, which were involved in the home-nursing business, were transferred, resulting in sales falling 5,767 million yen (-35.0%) to 10,728 million yen. The Group also recorded an operating loss of 418 million yen since aggressive investments were made to grow eVent Medical's artificial ventilator business. 4) Other Operations Other Operations (transportation, sales promotion, market research, etc.) are conducted on a financially independent basis by Kobayashi Pharmaceutical's subsidiaries in support of the Company's three principal businesses and to contribute to the profits of those businesses. The Group reviewed the transfer values of the materials and services these operations provide. Therefore, sales fell 5.018 million yen (38.3%) year on year to 8,094 million yen, but operating income rose 41 million yen (10.6%) year on year to 431 million yen. However, sales include sales and transfers between segments, which totaled 9.142 million yen for the previous fiscal year and 6.306 million for current fiscal year. III. Financial Position Total assets decreased 42,146 million yen compared with the end of the previous fiscal year. Wholesale operations were removed from the scope of consolidation, and therefore, under 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 declined 25,109 million yen and inventories declined 7,494 million yen. Under 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 fell 36,042 million yen, and under 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. , retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. rose 5,354 million yen. Cash flows from operating activities: Net cash provided by operating activities increased 3,376 million yen to 12,209 million yen compared to the previous fiscal period. This was primarily because account payables Payables Related: Accounts payable increased 7,676 million yen while account receivables account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. declined 3,758 million yen. Cash flows from investing activities: Net cash used in investing activities totaled 6,442 million yen, an increase of 5,361 million yen over the previous fiscal period. This was mainly due to the ongoing acquisition of shares in companies such as eVent Medical and Heatmax Inc., as initiated in the previous quarter. 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. : Net cash used in financing operations totaled 5,310 million yen, an increase of 2,877 million yen compared to the previous fiscal period. This was mainly due to an increase in the payment of dividends in this fiscal period. Therefore, the term-end balance of cash and cash equivalents decreased 1,926 million yen over the previous fiscal period to 17,164 million yen. Business conditions will remain harsh, but the Group will strive to further improve its working capital such as reducing inventories and account receivables based on management that is aware of the efficiency of invested capital. Stable investments in plants and equipment for product development are expected to average those of the previous fiscal year. We do not anticipate any large investments other than capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , and as a result, we expect cash flows from investing activities to decrease compared to the previous fiscal year. Cash flow from financing activities is forecast to remain level with the previous fiscal year. Trend of Cash Flow Indices
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March/04 March/05 March/06 March/07 March/08
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Equity Ratio 42.4% 44.7% 44.0% 45.2% 63.0%
Equity Ratio on Value 91.8% 90.5% 113.9% 112.3% 129.8%
Debt Redemption
Schedule (year) 0.8 0.3 0.1 0.4 0.1
Interest Coverage
Ratio 90.5 96.7 140.6 125.1 193.6
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* Equity Ratio = Net Asset / Gross Asset
Equity Ratio on Value = Gross Aggregate Market Price / Gross Asset
Debt Redemption Schedule = Debt with Interest / Operating Cash Flow
Interest Coverage Ratio = Operating Cash Flow / Interest Payment
IV. Forecasts for Fiscal Year Ending March 31, 2009 As for the outlook for the Japanese economy, it is expected that various uncertainties will remain such as the US economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and duration of high crude oil prices. Under these conditions, the Group must implement both strategies to further expand the scope of business and to promote growth and strategies to further strengthen leading existing businesses and brands in order to increase the Group's ability to become number one in fields related to consumer products and medical devices that the Group has expanded into. Within the consumer product segment, the Group is working to develop both existing brands and new products that provide satisfaction that consumers have not experienced before. In addition, management resources will be invested in overseas business in order to further expand the business. Within the medical device business, the Group will strengthen its abilities as a manufacturer and develop and sell its own products while also further promoting the introduction of new products in specified fields the Group has entered. Since the wholesale operations sales have not been included in consolidated figures since the fourth quarter of fiscal 2008, fiscal 2009 sales are expected to decline 99,826 million yen (-43.6%) year on year to 129,000 million yen. Furthermore, operating income is projected to shrink shrink Vox populi noun A psychiatrist 2,976 million yen (-16.0%) to 15,600 million yen and ordinary income is forecast to decline 287 million yen (-1.8%) year on year to 15,400 million yen because of changes in accounting treatment stemming from the application of "accounting standards for the valuation of inventory assets" starting in fiscal 2009. If the same accounting standards were applied in fiscal 2008, fiscal 2009 operating income would be expected to increase 866 million yen (5.9%) year on year and ordinary income would be projected to raise 500 million yen (3.4%). Fiscal 2009 net income is projected to increase 296 million yen (3.5%) year on year to 8,800 million yen. V. Profit Distribution and Fiscal 2008 and 2009 Dividends Kobayashi Pharmaceutical regards the distribution of profits to shareholders as one of the Company's most important management policies, and will continue to focus on strengthening this area. For this reason, we ensure that adequate internal reserves for high-growth-oriented business development and strengthening the corporate structure are preserved. At the same time, the Company intends to promote a dividend policy that will reflect consolidated results while maintaining a basic policy of providing stable dividend payments. Internal reserves will be utilized for M&A to grow the consumer products and the medical devices operations and for vigorous investment in expansion overseas. The basic policy of the company is to pay dividends twice a year - interim dividends and the year-end dividends Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. . Based on this policy, the common dividend is expected to be 54.00 yen per share in the fiscal year ended March 2008 (an interim dividend of 27.00 yen per share and a year-end dividend of 27.00 yen per share) and 58.00 yen per share in the fiscal year ending March 2009 (an interim dividend of 29 yen and a year-end dividend of 29 yen per share). 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 two principal businesses: Consumer Products Operation and Medical Devices Operation. In the fiscal year ended March 31, 2008, Kobayashi achieved increases in sales and profits for the tenth consecutive year since the introduction of consolidated accounting. For more information, please visit www.kobayashi.co.jp . Source: Kobayashi Pharmaceutical Contact: Kobayashi Pharmaceutical https://hint.kobayashi.co.jp/inq/inq0109.html Japan Corporate News Network. All rights reserved. |
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