TSUMURA & CO. First Quarter Business Results for Fiscal 2023
August 4, 2023
Director, and CFO
Muneki Handa
agenda
01
First Quarter Business Results for FY 2023
2
Roadmap for the Realization of the TSUMURA VISION
"Cho-WA" 2031
1st stage
FY2022-2024
-Germination-
2nd stage
FY2025-2027
-Growth-
3rd stage
FY2028-2031
-Flowering-
Prescription Kampo
Products
Standardization of Kampo treatments
Personalized Kampo treatments
Over 50% physicians write 10 or more Kampo prescriptions
50% of physicians write basic |
prescriptions in all treatment areas |
R&D
Personalized Kampo
treatmentsResearch Scientific study of pre-
symptomatic diseases
Development
Social
implementation
Chinese
operations
Formulation
platform
Crude drug
platform
Research
platform
Traditional Chinese medical products business
Crude drugs, drug pieces and Yakushokudogen products
Traditional Chinese Medicine Research Center
Market
entry
Sales
expansion
Establishment
Build
foundations
Establish brands
Function
expansion
Establish brands
Lead industry development
Evidence-building for traditional
Chinese medical products
Smart factory
Expand scope of
automation
Shift to oversight/management
Realize smart factories
Labor
productivity
Sales
Production
Crude drugs
Sales per MR (Yen/MR)
Physical labor productivity
Personnel expenses per crude drug arranging volume
Double productivity | |
(vs. FY2021) | 3 |
1Q Business Results for FY 2023
【Million yen】 | 1Q | 1Q | YoY | Progress | |||
FY 2022 | FY 2023 | 1H plan | Rate | ||||
results | results | Amount | Change | （vs. 1H plan） | |||
Sales | 34,417 | 37,036 | +2,618 | +7.6% | 74,000 | 50.0％ | |
Domestic business | 31,562 | 32,988 | +1,426 | +4.5% | 65,900 | 50.1％ | |
％ | |||||||
China business | 2,855 | 4,047 | +1,191 | +41.7% | 8,100 | ||
50.0 | |||||||
Operating profit | 6,353 | 4,684 | (1,668) | (26.3)% | 9,500 | 49.3％ | |
Domestic business | 6,404 | 4,684 | (1,719) | (26.9)％ | 9,900 | 47.3％ | |
－ | － | ||||||
China business | (50) | 0 | +51 | (400) | |||
Ordinary profit | 8,665 | 5,989 | (2,676) | (30.9)% | 9,800 | 61.1％ | |
Profit | 6,632 | 4,332 | (2,300) | (34.7)% | 6,800 | 63.7％ | |
attributable to owners of | |||||||
parent | |||||||
PL translation rate (CNY) | 18.32 | 19.36 | +1.04 | － | － | － | |
*Forex rate at the time overseas subsidiaries' PLs were incorporated; differs from the import rate for raw material crude drugs
Ratio to total sales
Domestic business： Prescription Kampo Products
86.0%
China business：
Crude Drug Platform 10.9%
Domestic business： OTC Kampo etc. 2.3%
Domestic business： Other prescription pharmaceuticals 0.8%
4
Key Points in Performance
・Net sales rose reflecting growth in the domestic and China businesses
・Profit declined chiefly due to impact from unrealized gains, a rise in the cost of procuring crude drugs, and impact from a depreciation in the yen's value
Net sales | 37,036 | million yen | YoY | ＋7.6％ | Progress rate | 50.0％ | |
(vs. 1H plan) | |||||||
◼ | Domestic business | Total sales for the 129 prescription Kampo products: 31,838 million yen, up 5.2% year-on-year | |||||
Total sales of the OTC Kampo formulations and other healthcare products: 837 million yen, down 7.2% year-on-year | |||||||
◼ | China business | Raw material crude drugs, drug pieces, Yakushokudogen products, etc. : 4,047 million yen, rose 41.7% year-on-year | |||||
Operating profit | 4,684 | million yen | YoY | (26.3)％ | Progress rate | 49.3％ | |
(vs. 1H plan) | |||||||
Operating profit margin | 12.6 | ％ | YoY | (5.9)pt |
- Cost-to-salesratio: 54.9%, +7.1pt YoY: In the same period of the previous year, unrealized gains contracted due to the lockdown of Shanghai; Unrealized gain is expected to rise in FY2023 owing to an increase in inventory; In addition, there is impact from crude drug procurement costs and devaluation of the yen
- SG&A ratio: 32.4%, (1.3)pt YoY: Sales growth offset growth investments, mainly in the DX transformation for Kampo value chain
Ordinary profit | 5,989 | million yen | YoY | (30.9)％ | Progress rate | 61.1％ |
(vs. 1H plan) | ||||||
- Foreign exchange gain primarily related to loans to overseas subsidiaries: 929 million yen, down 1,070
million yen year-on-year*Foreign exchange gain not posted in plan
Profit attributable to | 4,332 | million yen | YoY | (34.7)％ | Progress rate | 63.7％ |
owners of parent | (vs. 1H plan) | |||||
5
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Disclaimer
Tsumura & Co. published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 08:23:10 UTC.
