Kobayashi Pharmaceutical Reports Financial Results for the Third Quarter Ended December 31, 2008Monday February 2 8:18 PMKobashou Co., Ltd., which was responsible for wholesale operations, became a wholly-owned subsidiary of Mediceo Paltac Holdings through a stock swap on January 2008. Kobashou's earnings were not included in consolidated figures for the affiliated companies doing wholesale operations starting in the fourth quarter ended in March 2008. As a result, sales figures for the third quarter ended December 31, 2008, likewise, fell 103,514 million yen (-51.2%) year on year to 98,683 million yen, and operating income fell 1,214 million yen (-7.6%) to 14,672 million yen. Ordinary income, however, increased 312 million yen (+2.3%) year on year to 14,127 million yen, and net income expanded 880 million yen (+11.1%) year on year to 8,782 million yen. Operating income fell year on year because of factors that impacted the cost of sales and changes to the accounting treatment of inventory valuations and losses on the valuation and disposal of inventories following the application of the Accounting for Inventory Valuations accounting standard starting this fiscal year.
I. Third Quarter Financial Summary (April 1, 2008 - December 31, 2008) (1) Consolidated Operating Results (Millions of Yen) ------------------------------------------------------------------------ April 1 - December 31, 2008 % 2007 % ------------------------------------------------------------------------ Net Sales 98,683 - 202,197 (0.1) Operating Income 14,672 - 15,886 (0.9) Ordinary Income 14,127 - 13,815 (1.9) Net Income 8,782 - 7,901 (6.7) Net Income per Share (Yen) 214.04 191.06 Net Income per Share, diluted (Yen) 213.96 190.87 ------------------------------------------------------------------------ (2) Consolidated Financial Position ------------------------------------------------------------------------ As of Dec 31, 2008 Mar 31, 2007 ------------------------------------------------------------------------ Total Assets 128,504 122,409 Shareholders' Equity 77,815 77,182 Shareholders' Equity Ratio 60.4% 63.0% Shareholders' Equity per Share (Yen) 1,896.92 1,863.24 ------------------------------------------------------------------------II. Performance by Business Segment Consumer Products Operation Thirteen products were introduced this year, including the OTC medical product Chikunain, which is effective for chronic inflammation of nasal passages, the medicinal cosmetic water Keshimin Eki, which helps prevent blemish and freckles, and the taped sock Aruku Tasuke, which reduces the burden when walking and prevents the feet from getting tired. In addition to firm sales the toilet bowl cleaner Bluelet and the breath refreshener Breath Care, and the sanitary product Sarasaty, all of which are core products, sales of food products, particularly mail order sales, were healthy. As a result, sales in the third quarter increased 1,336 million yen (+1.5%) year on year to 88,974 million yen. Operating income in the third quarter fell 1,593 million yen (-9.9%) year on year to 14,509 million yen. This followed factors that impacted the cost of sales, changes in the accounting treatment of inventory valuations and losses on the valuation and disposal of inventories following application of the Accounting for Inventory Valuations accounting standard starting this fiscal year. Medical Devices Operation Within the medical devices operations, efforts were made to raise brand awareness and expand the company's market share in the fields of orthopedic and operating room related products, the domestic market for which is expected to grow. As a result, sales in the third quarter rose 515 million yen (+6.6%) year on year to 8,352 million yen. The Group also recorded an operating loss of 260 million yen in the third quarter, compared to an operating loss of 317 million yen a year ago, since aggressive investments were continuously made in the eVent Medical Inc.'s artificial ventilator business. 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 two 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 in the third quarter fell 247 million yen (-4.0%) year on year to 5,957 million yen, but operating income rose 96 million yen (+28.8%) year on year to 430 million yen. However, sales include internal sales or transfers between segments, which totaled 4,799 million yen during the third quarter a year ago and 4,580 million for current quarter. III. Financial Position as of December 31, 2008 Current assets rose year on year to 74,803 million yen as a result of growth in cash and time deposits, and growth in trade notes and accounts receivable, and a decline in securities. Fixed assets fell year on year slightly to 53,700 million yen since there was an increase in assets covered by lease accounting, a decrease in goodwill, and a decline in investments in securities. Therefore, total assets equaled 128,504 million yen. Liabilities rose year on year to 50,689 million yen for various reasons including an increase in trade notes and accounts payable, an increase in accrued expenses, and an increase in lease liabilities due to the application of lease accounting. Net assets grew year on year to 77,815 million yen as the earned surplus rose, net unrealized holdings on securities fell, and the foreign currency translation adjustments shrank. IV. Forecast for the Fiscal Year Ending March 31, 2009 Sales for the third quarter were slightly below initial forecasts, but income generally came in as expected since sales of existing products with high profit margins were firm and costs were cut.
Both the Japanese and overseas economies are expected to continue to contract, and market conditions are projected to become even harsher. At the present time, earnings, however, are not expected to change substantially since various efforts are being made, including expanding sales of existing products, introducing new high added value products, and reducing costs. Therefore, consolidated earnings forecasts announced on May 8, 2008, have been left unchanged.
(Millions of Yen)
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FY March 31, 2009 (%)
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Net Sales 129,000 (43.6)
Operating Income 15,600 (16.0)
Ordinary Income 15,400 (1.8)
Net Income 8,800 3.5
Net Income per Share (yen) 212.66
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V. DividendThe Kobayashi Group paid a 29 yen interim dividend and anticipates a 29 yen dividend at the end of the year for a total dividend of 58 yen for the fiscal year. Note: The above forecasts are based on information available at the time of publication of the documents, and actual future business performance may differ from the forecasts due to unpredictable factors.
About Kobayashi Pharmaceutical Source: Kobayashi Pharmaceutical Contact: Kobayashi Pharmaceutical Online http://www.kobayashi.co.jp/english/contact/index.html?lid=1 Copyright 2009 JCN Newswire. All rights reserved. www.japancorp.net |
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