PHARMARISE HOLDINGS CORPORATION Consolidated Financial Results for the Fiscal Year Ended May 31, 2022 (Japan GAAP)
July 8, 2022 | |||
Company name: | Pharmarise Holdings Corporation | Listed on: | Tokyo Stock Exchange, Prime Market |
Code number: | 2796 | URL | https://www.pharmarise.com/en/ |
Representative: | Masayuki Akiyama, President & COO | ||
Inquiries: | Yutaka Numata, Director | Phone: +81-3-3362-7130 | |
Scheduled date of annual shareholders' meeting: | August 25, 2022 | ||
Scheduled date to commence dividend payments: | August 26, 2022 | ||
Scheduled date to file annual securities report: | August 26, 2022 | ||
Preparation of supplementary material on financial results: | None | ||
Holding of financial results briefing: | Yes (for analysts and institutional investors) |
(Amounts of less than one million yen are rounded down.)
1. Consolidated financial results for the fiscal year ended May 31, 2022 (from June 1, 2021 to May 31, 2022)
(1) Consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||
May 31, 2022 | 51,608 | (1.4) | 1,520 | 22.0 | 1,517 | 17.7 | 447 | 5.0 | |||||||
May 31, 2021 | 52,324 | 2.5 | 1,246 | 20.4 | 1,288 | 25.9 | 426 | (26.2) | |||||||
(Note) Comprehensive income Fiscal year ended May 31, 2022: | 453 million yen | [9.2%] | |||||||||||||
Fiscal year ended May 31, 2021: | 414 million yen | [-28.5%] | |||||||||||||
Earnings per share | Diluted Earnings | Return on equity | Ratio of ordinary | Ratio of operating | |||||||||||
per share | profit to total assets | profit to net sales | |||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | ||||||||||
May 31, 2022 | 47.99 | 36.29 | 7.2 | 6.3 | 2.9 | ||||||||||
May 31, 2021 | 45.83 | 34.64 | 7.3 | 5.2 | 2.4 | ||||||||||
(Reference) Share of profit (loss) of entities accounted for using equity method | |||||||||||||||
Fiscal year ended May 31, 2022: ‒ million yen | Fiscal year ended May 31, 2021: ‒ million yen | ||||||||||||||
(2) Consolidated financial position | |||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||
As of | Million yen | Million yen | % | Yen | |||||||||||
May 31, 2022 | 23,746 | 6,699 | 26.9 | 684.20 | |||||||||||
May 31, 2021 | 24,724 | 6,331 | 24.3 | 646.66 |
(Reference) Equity | As of May 31, 2022: 6,399 million yen | As of May 31, 2021: | 6,012 million yen | |
(3) Consolidated cash flows | ||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Fiscal year ended | Million yen | Million yen | Million yen | Million yen |
May 31, 2022 | 713 | (292) | (1,034) | 3,991 |
May 31, 2021 | (728) | |||
1,945 | (1,076) | 4,604 |
2. Cash dividends
Dividend per share | Ratio of | |||||||
First | Second | Third | Fiscal year- | Total dividend | Payout ratio | dividends to net | ||
Annual | payments (total) | (consolidated) | assets | |||||
quarter-end | quarter-end | quarter-end | end | |||||
(consolidated) | ||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % |
May 31, 2021 | ‒ | 0.00 | ‒ | 14.00 | 14.00 | 130 | 30.5 | 2.2 |
May 31, 2022 | ‒ | 0.00 | ‒ | 14.00 | 14.00 | 130 | 29.2 | 2.1 |
Fiscal year ending | ||||||||
May 31, 2023 | ‒ | 0.00 | ‒ | 14.00 | 14.00 | 24.1 | ||
(forecast) |
3. Consolidated earnings forecasts for the fiscal year ending May 31, 2023 (from June 1, 2022 to May 31, 2023)
(Percentages represent year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Earnings attributable | Earnings per share | ||||||
to owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Six months | 25,860 | (0.2) | 768 | (2.5) | 748 | (8.1) | 219 | (12.6) | 23.40 | |
Full year | 51,909 | 0.6 | 1,606 | 5.7 | 1,561 | 2.9 | 543 | 21.4 | 58.07 |
―1―
* Notes
(1) Changes in significant subsidiaries during the year (changes in specified subsidiaries accompanying changes in the scope of
consolidation): No | |
New: ― (company name) | Exception: ― (company name) |
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
(ii) | Changes in accounting policies other than (i): | No |
(iii) | Changes in accounting estimates: | No |
(iv) | Retrospective restatement: | No |
(3) Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
As of May 31, 2022 | 9,673,785 shares | As of May 31, 2021 | 9,615,515 shares |
- Total number of treasury shares at the end of the period:
As of May 31, 2022 | 321,100 shares | As of May 31, 2021 | 317,800 shares |
(iii) Average number of shares issued and outstanding in each period | |||
Fiscal year ended May 31, 2022 | 9,331,334 shares | Fiscal year ended May 31, 2021 | 9,305,437 shares |
- These consolidated financial results are outside the scope of audit by certified public accountants or audit firms.
-
Explanation regarding appropriate use of business forecasts and other special instructions
The forward-looking statements such as forecasts of financial results contained in this material are based on information available to the Company at the time of the publication of this document and certain assumptions that the Company considers to be reasonable, and may differ materially from the actual results due to various factors. For conditions regarding the assumptions for results forecasts and notes on the use of results forecasts, etc., please refer to page 8 of the accompanying materials "1. Overview of Operating Results,
(4) Future outlook."
―2―
Accompanying Materials - Contents | ||
1. Overview of Operating Results .......................................................................................................................... | 4 | |
(1) | Overview of operating results for the fiscal year under review .................................................................... | 4 |
(2) | Overview of financial position for the fiscal year under review................................................................... | 6 |
(3) | Overview of cash flows for the fiscal year under review ............................................................................. | 7 |
(4) | Future outlook .............................................................................................................................................. | 8 |
(5) | Important events related to the going concern assumption, etc. ................................................................... | 8 |
2. Basic Approach towards Selection of Accounting Standards ............................................................................. | 8 | |
3. Consolidated Financial Statements and Notes on Important Matters ................................................................. | 9 | |
(1) | Consolidated balance sheet........................................................................................................................... | 9 |
(2) | Consolidated statements of income and comprehensive income ................................................................ | 11 |
(3) | Consolidated statements of changes in equity ............................................................................................ | 13 |
(4) | Consolidated statements of cash flows ....................................................................................................... | 15 |
(5) | Notes on consolidated financial statements ................................................................................................ | 17 |
(Note on going concern premise) ................................................................................................................. | 17 | |
(Changes in accounting policy).................................................................................................................... | 17 | |
(Segment information, etc.).......................................................................................................................... | 18 | |
(Per share information) ................................................................................................................................ | 22 | |
(Significant subsequent events).................................................................................................................... | 22 |
―3―
1. Overview of Operating Results
(1) Overview of operating results for the fiscal year under review
During the consolidated fiscal year under review (June 1, 2021 through May 31, 2022), there were signs of recovery in the Japanese economy as the challenging conditions created by COVID-19 eased. Economic and social activities are normalizing, reflecting strict infection control, and the economy is expected to recover. Nevertheless, close attention needs to be paid to downside risks associated with any resurgence of COVID-19, the situation in Ukraine, the weaker yen, and ongoing high prices of raw materials, among other issues.
The pharmacy industry faces continued needs to expand the use of generic drugs and to step-up efforts to promote self-medication in response to social needs for curbing medical expenses, while working to realize the Vision of Pharmacies for Patients announced by the Ministry of Health, Labour and Welfare. The Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices ("Pharmaceuticals and Medical Devices Act") was revised on December 4, 2019 for the first time in five years. Major changes include the additions of an obligation by pharmacists to monitor drug usage and to give instructions on drug usage, the introduction of instructions on drug usage using videophone, the principle of providing package inserts in electronic form, and the introduction of pharmacies cooperating with local health care facilities and pharmacies cooperating with specialized medical institutions. Meanwhile, competition is intensifying with entries from neighboring industries, and the business environment, which reflects the medical fee and drug price revisions in April 2020 and April 2022 and a drug price revision in April 2021 and the effects of COVID-19, demands that pharmacies increase their management efforts.
In this environment, Pharmarise Holdings Corporation ("the Company") and its consolidated subsidiaries ("the Group") announced the Medium-term Management Plan LSG (Leading to Sustainable Growth) 2024 on December 24, 2021, which is based on Medium-term Management Plan SFG (Steps for Future Growth) 2021-building a management infrastructure to achieve growth-announced on November 8, 2018 ("the Previous Medium-term Management Plan"). Under Medium-term Management Plan LSG 2024, the Group will endeavor to strengthen competitiveness and achieve growth to enhance shareholder value by (i) increasing efforts to become the corporate group preferred by investors, (ii) developing business, primarily the dispensing business, to enhance revenue, and (iii) enhancing the profit structure by strengthening the management infrastructure.
Under the Previous Medium-term Management Plan, the Group has been implementing a Continual Support Program and a Healthy Life Adviser program, programs to extend the healthy life expectancy of the elderly, to enhance its competitiveness. Since prior to the implementation of the medium-term management plan, the Group has been working to promote community health care (home medical care and dispensing at facilities), expand the use of generic drugs, and promote the use of electronic medicine notebooks. The Group has also been seeking to promote self-medication and expand business outside the health insurance system.
During the consolidated fiscal year under review, net sales totaled 51,608 million yen (down 1.4% year on year), with operating profit of 1,520 million yen (up 22.0%) and ordinary profit of 1,517 million yen (up 17.7%). Profit attributable to owners of parent came to 447 million yen (up 5.0%).
Net sales declined 1.4% year on year, chiefly due to the adoption of the Accounting Standard for Revenue Recognition, a drug price revision, and a decrease in sales in the Drug/Convenience Store Business.
Operating profit, ordinary profit, and profit attributable to owners of parent all increased year on year, chiefly reflecting signs of a recovery in the number of prescriptions against a backdrop of the easing of restrictions on hospital visits due to COVID-19, an increase in dispensing technical fees received, and cost cutting through the control of selling, general and administrative expenses.
Segment performance was as follows.
Dispensing Pharmacy Business
In the fiscal year under review, nine pharmacies were opened, and six pharmacies were closed. At the end of the fiscal year under review, the number of pharmacies operated by the Group was 301. Pharmarise Co., Ltd. opened one pharmacy in each of Hokkaido, Niigata, Chiba, Tokyo, Aichi, and Okinawa and three pharmacies in Osaka.
In operating pharmacies, the Group continues to pursue the following initiatives to make family pharmacies the pharmacies of choice:
-
providing community health care (home medical care and dispensing at facilities, (ii) promoting generic drugs, (iii) promoting the use of Pocket Pharmacy, an electronic medicine notebook, to centrally manage patient information, address double dosing, identify combinations of drugs, and check the amount of remaining drugs more accurately, and (iv) providing around-the-clock dispensing. Meanwhile, the Group has been developing pharmacies that support self-medication. Those pharmacies sell products for self-medication, including over-the-counter drugs and health food, and implement the Continual Support Program.
The medication follow-up function included in the electronic medicine notebook that the Group is developing and the Pocket Meeting, an online medication guidance app, help fulfill pharmacists' obligation to monitor drug usage and give instructions on drug usage and provide instructions on drug usage using the videophone, which is set out in the revised Pharmaceuticals and Medical Devices Act. The usage of the function and app has been increasing. The Group's pharmacies cooperating with local health care facilities are increasing steadily. At the end of May this year, the number of those pharmacies was 96. The Group is making preparations for pharmacies
―4―
cooperating with specialized medical institutions to achieve certification. The number of "health support pharmacies" was 71 at the end of the fiscal year under review (increasing 39 from a year earlier). The Group will continue to strive to increase the number.
In the fiscal year under review, net sales in the Dispensing Pharmacy Business declined to 42,038 million yen (down 1.2% year on year), mainly due to the adoption of the Accounting Standard for Revenue Recognition and a drug price revision, but segment profit increased to 1,745 million yen (up 20.9% year on year), chiefly reflecting signs of recovery in the number of prescriptions against a backdrop of the easing of restrictions on hospital visits due to COVID-19, a rise in dispensing technical fees received, and cost reductions through the control of selling, general and administrative expenses.
Drug/Convenience Store Business
In the fiscal year under review, two stores without any pharmacy section opened and six stores closed in this segment. At the end of the fiscal year under review, the number of stores operated by the Group in this segment stood at 45.
The Drug/Convenience Store Business primarily operates drugstores, etc. of Pharmarise Co., Ltd. and engages in the sale of cosmetics and the management of convenience stores.
Sales for the Drug/Convenience Store Business decreased by 4.5% year on year, to 7,602 million yen, and the segment loss was 146 million yen (the segment loss in the previous year was 42 million yen). This was chiefly due to the absence of special demand related to COVID-19 in the previous fiscal year and a decrease in sales of common cold drugs and hey fever drugs at drugstores and a slow recovery in demand at convenience stores in city centers, including business districts.
Storage and Management of Medical Documents Business
The Storage and Management of Medical Documents Business engages in business peripheral to the Dispensing Pharmacy Business. The business stores and manages primarily paper medical documents and X-ray films of Kotobuki Data Bank Co., Ltd. There is still ongoing demand for the storage and management of medical data, but retention periods are being shortened and expenses are gradually being cut. The Group is actively conducting sales activities to attain new customers and tap into peripheral demand.
In this environment, net sales and segment profit increased 12.5% and 68.1% year on year, to 699 million yen and 108 million yen, respectively, in the consolidated fiscal year under review.
Medical Mall Management Business
The Medical Mall Management Business is a business related to the medical mall that Pharmarise Co., Ltd. operates in JR Tower Office Plaza Sapporo at JR Sapporo Station.
Net sales and segment profit increased 2.4% and 11.9% year on year, to 503 million yen and 67 million yen, respectively, in the fiscal year under review.
Other
The main businesses in the Other segment are as follows: (i) system integration, etc. that Mythos Co., Ltd. provides to pharmaceutical companies, (ii) medical IT solutions, etc. that Medical Front Corporation provides, (iii) temporary help provided by Laycare Center Co., Ltd., and (iv) fee-charging employment placement service provided by WEEC, Inc.
Net sales increased 6.8% year on year, to 764 million yen, and segment profit increased 1.0% year on year, to 41 million yen in the fiscal year under review.
―5―
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Pharmarise Holdings Corporation published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 08:53:04 UTC.
