|
|
 |
 | |  Jan. 23, 2006 | Corporate name: Kobayashi Pharmaceutical Co., Ltd.
President & COO: Yutaka KOBAYASHI
(Code No. 4967 The First Section of TSE/OSE) | |  | |
Kobayashi Pharmaceutical Announces Results for the Third Quarter Ended December 31, 2005 |
Kobayashi Pharmaceutical, Ltd. (TSE: 4967), a leading importer and distributor of medical equipment and pharmaceutical and consumer goods wholesaler, today announced consolidated financial results for the third quarter ended December 31, 2005. Net sales and operating, ordinary and net income all demonstrated strong improvement on the previous year.
Expanded investments in plants and equipment as a result of improved corporate earnings, a rally in consumer spending, and other factors indicated that Japan's economy in the third quarter had broken out of stagnation and embarked on a slow recovery trend, but prospects surrounding increasing crude oil prices and the future U.S. economy remain uncertain.
Throughout the term, Kobayashi sought to cultivate and reinforce the spirit of the Group concept of "creation and innovation, and development of customer needs by providing products and services to create new markets while striving for fresh added value products and services for entry into existing markets.
As a result, net sales amounted to 192,315 million yen, an increase of 16.6% from the previous fiscal year, operating income was 14,251 million yen, an increase of 8.4% from the previous year. Ordinary income was 13,225 million yen, an increase of 9.1% from the previous year, and net income for the quarter was 6,939 million yen, an increase of 10.8% from the previous year.
Consolidated Financial Summary (April 1, 2005 - September 30, 2005)
(1) Consolidated Operating Results
------------------------------------------------------------------------
(Millions of Yen)
April 1 - Dec. 31, FY 3/31,
2005 % 2004 % 2005
------------------------------------------------------------------------
Operating Revenues 192,315 16.6 165,003 (1.1) 215,708
Operating Income 14,251 8.4 13,141 (6.1) 15,698
Ordinary Income 13,225 9.1 12,121 (3.7) 14,159
Net Income 6,939 10.8 6,264 11.6 6,730
Net Income per Share (yen) 166.96 150.51 160.64
Net Income per Share,
diluted (yen) 166.91 -- --
------------------------------------------------------------------------
(2) Consolidated Financial Position
------------------------------------------------------------------------
(Millions of Yen)
As of December 31, As of March 31,
2005 2004 2005
------------------------------------------------------------------------
Total Assets 161,353 139,205 134,629
Shareholders' Equity 65.533 59,572 60,116
Shareholders' Equity Ratio 40.6% 42.8% 44.7%
Shareholders' Equity
per Share (Yen) 1,587.87 1,431.26 1,443.30
------------------------------------------------------------------------
(3) Consolidated Cash Flows
------------------------------------------------------------------------
(Millions of Yen)
As of December 31, As of March 31,
2004 2003 2005
------------------------------------------------------------------------
Cash Flows from
Operating Activities 9,705 6,695 8,364
Cash Flows from
Investing Activities (4,940) (2,411) (3,936)
Cash Flows from
Financing Activities (923) (3,510) (3,369)
Cash and Cash Equivalents,
End of term 22,950 18,702 19,035
------------------------------------------------------------------------
Please download the full Financial Statement for the Third Quarter ended December 31, 2005, here in [PDF/160KB], or via Bloomberg, MultexNet, Reuters Research or Thomson One Analytics.
Summary of Performance by Business Segment
Consumer Products Operation
This operation saw the development of existing brands such as "Shoshu Gen" aromatic deoderizer, "Inochi-no-Haha" feminine health care medicine which went on the market in June, "Eyebon Trolly Eye Lotion Dry Eye" launched in the fall, and "Mukumi Cure" massage socks, which contributed to sales growth. In addition, as a result of an increase in "Kairo" (disposable heating pad) sales due to record winter temperatures, sales of the Consumer Product Operation increased 4,601 million yen, or 6.5%, from the previous year to 75,149 million yen.
On the other hand, the operating income increased 1,004 million yen, or 8.1%, from the previous year to 13,441 million yen owing to the execution of the cost reduction in the cost of goods manufactured etc. in addition to the sales extension.
Wholesale Operation
Following the transfer on April 1 of Suzuken's general pharmaceutical wholesaling business, this segment's sales rose by 22,323 million yen, 22.4% over the previous year, to 121,879 million yen. But the effects of the integration by acquiring business were not fully reflected in operating results, and the operating income was 240 million yen, a decline of 180 million yen, or 42.8 % compared to the previous year.
Medical Devices Operation
In the domestic market, emphasis was placed on the orthopedic surgery domain with its prospects for market expansion, and in sales of surgical products such as electric scalpels, and sales tended strongly. On the other hand, indirect costs were reduced through the purchase of customer lists that helped lock in customers in the U.S. and the introduction of a new customer management system. As a result, sales increased by 479 million yen, or 4.0% compared with the previous year, to 12,501 million yen, and operating income rose by 140 million yen over the previous year to 288 million yen.
Changes in Financial Position
Kobayashi Pharmaceutical Group's financial position in the third quarter of fiscal 2005 was as follows.
Compared with the end of the previous fiscal year, total assets increased by 26,723 million yen but shareholder equity rose by only 5,416 million yen. As a result, shareholder equity ratio declined by 4.1 points.
The principal increases were a 14,241 million yen gain in current assets (trade notes and accounts receivable) and 2,458 million yen in inventory assets due to consolidation of subsidiaries. Similarly, current liabilities (trade notes and accounts payable) increased by 16,363 million yen.
Cash flows from operating activities
Net cash provided by operating activities totaled 9,705 million yen. Although net income in the third quarter before tax and other adjustments was 12,370 million yen, corporate and other tax payments amounted to 5,971 million yen.
Cash flows from investing activities
Net cash used in investing operations totaled 4,940 million yen. This is mainly due to the acquisition of tangible fixed assets for development of new products was 772 million yen and due to the acquisition of investments in securities through capital tie-ups.
Cash flows from financing activities
Net cash used in financing operations totaled 923 million yen. Capital outlays included 1,373 million yen in dividends paid and 1,217 million yen for the acquisition of treasury stock, balanced through a third party investment in the Kobasho subsidiary.
(4) Consolidated Projections for the FY ending March 31, 2006
------------------------------------------------------------------------
(Millions of Yen)
Net Sales 250,000
Ordinary Income 14,900
Net Income 7,100
Net Income per Share (yen) 169.52
------------------------------------------------------------------------
In the third quarter of fiscal 2005, results changed roughly in line with forecasts. Therefore, we have not revised the full-year earnings projections that we announced on May 17, 2005.
*The projections shown above are prepared based on information available as of the issuing date of this report, and therefore the actual results may differ from the projected figures due to various unknown factors.
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.
Contact:
Kobayashi Pharmaceutical
http://www.kobayashi.co.jp/english/contact/index.html
|
| | |
|
