Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
Summary of Financial Statements (Japanese GAAP) (Consolidated)
Financial Results for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
November 8, 2024 | ||
Listed exchanges | : Tokyo | |
Listed company name: Kobayashi Pharmaceutical Co., Ltd. | ||
Code | : 4967 | |
URL | :https://www.kobayashi.co.jp/english/index.html | |
Representative officer : Satoshi Yamane, President & COO | ||
Contact | : Yumi Nakagawa, | |
Executive Officer, General Manager, CFO Unit | ||
Tel | : +81-6-6222-0142 | |
Expected date for starting payment of dividends | : ⎯ | |
Preparation of supplementary documents for financial results | : Yes | |
Holding of an analyst meeting for financial results | : Yes (For institutional investors and analysts) |
(Any fraction less than 1 million yen is rounded down to the nearest million yen.)
1. Consolidated Results for 3rd Quarter of Fiscal Year Ending December 31, 2024 (January 1, 2024 to September 30, 2024)
(1) Consolidated Operating Results (accumulation)
(% figures represent changes from same period in previous year)
Q3 of FY ending December 31, 2024 | Q3 of FY ended December 31, 2023 | |||||||
Net sales | 114,459 | millions of yen | (3.9) % | 119,115 | millions of yen | 4.2 % | ||
Operating income | 16,976 | (12.4) | 19,387 | 3.4 | ||||
Ordinary income | 17,921 | (14.0) | 20,837 | 2.0 | ||||
Net income attributable to owners of | 5,344 | (65.5) | 15,498 | 6.9 | ||||
the parent | ||||||||
Net income per share | 71.90 | yen | 203.64 | yen | ||||
(Note) Comprehensive income: | Q3 of FY ending December 31, 2024: 7,173 million yen (69.9%) | |||||||
Q3 of FY ended December 31, 2023: 23,795 million yen 19.3% | ||||||||
(2) Consolidated Financial Position | ||||||||
Q3 of FY ending December 31, 2024 | As of December 31, 2023 | |||||||
Total assets | 250,484 | millions of yen | 267,473 | millions of yen | ||||
Net assets | 204,694 | 204,816 | ||||||
Shareholders' equity ratio | 81.5 % | 76.4 | % | |||||
(Reference) Shareholders' equity |
Q3 of FY ending December 31, 2024: 204,033 million yen
FY ended December 31, 2023: 204,370 million yen
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
2. Dividends
FY ended December 31, | FY ending December 31, | FY ending December 31, | ||
2023 | 2024 | 2024 (forecasts) | ||
Dividends per share | ||||
Q1 end | ⎯ | ⎯ | ||
Q2 end | 43.00 | yen | 43.00 yen | |
Q3 end | ⎯ | ⎯ | ||
Year-end | 58.00 | 59.00 yen | ||
Total | 101.00 | 102.00 | ||
(Note) Revision of the latest dividend forecast: None
3. Forecasts of Consolidated Operational Results for Fiscal Year Ending December 31, 2024 (January 1, 2024 to December 31, 2024)
(% figures represent changes from previous year)
Full year | |||
Net sales | 169,000 | millions of yen | (2.6) % |
Operating income | 24,000 | (6.9) | |
Ordinary income | 25,500 | (6.7) | |
Net income attributable to | 10,700 | (47.4) | |
owners of the parent | |||
Earnings per share | 143.94 | yen |
(Note) Revision of the latest forecasts of operational results: Yes
Concerning the revision to the forecasts of consolidated operational results, please refer to "Notice Regarding the Posting of Extraordinary Loss and the Revision to Forecasts of Consolidated Operational Results for Fiscal Year Ending December 31, 2024," announced on November 8, 2024.
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
* Notes
-
Significant changes in the scope of consolidation during the period under review: Yes
Included: One company; (Company name) KOBAYASHI Pharmaceutical Manufacturing (Thailand) Co., Ltd. - Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
-
Changes in accounting policies due to revisions of accounting standards: None Changes in accounting policies other than : None
Changes in accounting estimates: None
Retrospective restatement: None
- Issued shares (common shares)
- Number of shares issued at period-end (including treasury stock):
- Number of shares of treasury stock at period-end:
- Average number of shares outstanding during period (consolidated cumulative quarters):
Q3 of FY ending | 78,050,000 | FY ended | 78,050,000 |
December 31, 2024 | shares | December 31, 2023 | shares |
Q3 of FY ending | 3,711,112 | FY ended | 3,711,086 |
December 31, 2024 | shares | December 31, 2023 | shares |
Q3 of FY ending | 74,338,906 | Q3 of FY ended | 76,108,370 |
December 31, 2024 | shares | December 31, 2023 | shares |
- Review of the attached quarterly consolidated financial statements by a certified public accountant or an independent auditor: No
- Notes on proper use of forecasts and other matters
The forward-looking statements in this document concerning forecasting of operational results, etc. are based on currently available information and assumptions considered reasonable by the Company. Actual operational results may be significantly different from these statements due to various factors. For matters concerning forecasts for operational results, please refer to "1. Summary of Operational Results (3) Explanation of future forecast information, such as forecast of consolidated results" on page 3 of the attachment.
(Method to obtain the supplementary explanation documents for financial results)
The Company plans to hold a results presentation for institutional investors and securities analysts for financial results on Friday, November 8, 2024. It plans to post the supplementary documents for financial results to be distributed in the results presentation on its website on the date of the results presentation.
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024 | ||
KOBAYASHI PHARMACEUTICAL CO., LTD. | ||
Table of Contents for Attachment | ||
1. Summary of Operational Results | 2 | |
(1) | Summary of operational results for nine months ended September 30, 2024 | 2 |
(2) | Summary of financial position as of September 30, 2024 | 3 |
(3) | Explanation of future forecast information, such as forecast of consolidated results | 3 |
2. Quarterly Consolidated Financial Statements and Main Notes ····························· 4
(1) | Quarterly consolidated balance sheet | 4 |
(2) | Quarterly consolidated statements of income | |
and quarterly consolidated statements of comprehensive income | 6 | |
(3) | Notes on quarterly consolidated financial statements | 8 |
(Notes on assumption of going concern) | 8 | |
(Notes on a significant change in shareholders' equity) | 8 | |
(Notes on quarterly consolidated balance sheet) | 8 | |
(Notes on quarterly consolidated statement of income) | 8 | |
(Notes on quarterly consolidated statement of cash flows) | 9 | |
(Notes on segment information, etc.) | 9 | |
(Notes on revenue recognition) | 10 | |
(Notes on important subsequent event) | 10 |
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
1. Summary of Operational Results
(1) Summary of operational results for nine months ended September 30, 2024
Kobayashi Pharmaceutical deeply apologizes for the significant concerns and distress caused to many people regarding the occurrence of renal disorders among those who took Benikoji CholesteHelp, a functional food product it marketed. Under the initiative of the authorities, the Company has been conducting investigations, including the identification of the contamination pathway. At the same time, it will sincerely address compensation to customers who developed health problems and continue making greater efforts to prevent a recurrence of the incident and restore trust.
During the first nine-month period of the consolidated fiscal year (January 1, 2024 to September 30, 2024), economic activity resumed in many countries, and the number of people moving across countries and regions showed an upward trend along with the lessening of the number of new COVID-19 cases. However, in addition to rising geopolitical risks, there were concerns about a slowdown in consumption due to soaring raw material prices and higher energy costs. Accordingly, the outlook for the business environment surrounding the Kobayashi Pharmaceutical Group continued to remain uncertain.
As a result, net sales, operating income, ordinary income, and net income attributable to owners of the parent were 114,459 million yen (−3.9% year on year), 16,976 million yen (−12.4% year on year), 17,921 million yen (−14.0% year on year), and 5,344 million yen (−65.5% year on year), respectively.
Business results by segment were as follows:
Domestic Business
In the Domestic Business, the Company launched 15 new products in the spring of and another 17 in the fall of the current year. The products that contributed to growth in sales were Hipcure (an ointment for rash, eczema, etc. on the buttocks), Sawaday+ &Emotion (a functional air freshener with fragrances formulated to stabilize emotions), Shoshugen ZERO (an unscented deodorizer that is effective to remove 10 major household unpleasant smells without masking them with fragrances), and Curerea Dry (a drug to cure recurring skin troubles due to a weakened skin barrier function, such as dryness, roughness, and inflammation of the face, that works from within).
In addition, as the number of foreigners visiting Japan increased, demand for its products from inbound tourists rose, contributing to sales growth.
However, sales in the food category, including nutritional supplements, were sluggish due to the impact of a voluntary recall of benikoji-related products, and sales of healthcare products declined.
On the other hand, although the Company suspended advertisements of all its products in Japan, sales of household products, especially led by deodorizing air fresheners, grew. Furthermore, in the Direct Marketing Business, sales decreased due to an increase in the cancellation of regular subscriptions.
Consequently, the Company reported net sales of 86,390 million yen (−8.7% year on year) and segment income of 15,995 million yen (−0.1% year on year).
Net sales include inter-segment sales or transfers, which totaled 4,019 million yen in the first nine-month period of the previous consolidated fiscal year and 2,940 million yen in the same period of the current consolidated year.
(Breakdown of sales to external customers)
Q3 ended September 30, 2023 | Q3 ended September 30, 2024 | ||||
(January 1, 2023 to | (January 1, 2024 to | Change | |||
September 30, 2023) | September 30, 2024) | ||||
Amount | Amount | Amount | Change | ||
(millions of yen) | (millions of yen) | (millions of yen) | (%) | ||
Healthcare products | 47,472 | 43,109 | (4,362) | (9.2) | |
Household products | 34,875 | 35,280 | 404 | 1.2 | |
Body warmers | 2,564 | 1,366 | (1,198) | (46.7) | |
Direct marketing | 5,670 | 3,692 | (1,977) | (34.9) | |
Total | 90,583 | 83,449 | (7,133) | (7.9) | |
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
International Business
In the International Business, the Company markets body warmers, Netsusama Sheet (a cooling gel sheet for the forehead) and Ammeltz (an external anti-inflammatory), mostly in the United States, China, and Southeast Asia, and sought to expand sales by aggressively investing principally in advertising and sales promotion.
In the United States, the acquisition of Focus Consumer Healthcare, LLC, which markets nutritional supplements and OTC pharmaceuticals, in October 2023 contributed to growth in sales. Furthermore, growth in sales, driven by positive foreign currency translation effects, led to an increase in net sales.
In China, the Company suspended advertisements as it did in Japan after it announced a voluntary recall of benikoji-related products on March 22, 2024. However, the Company resumed advertisements in August. Although recent sales showed improvement, net sales decreased since it failed to offset the decline in sales during the suspension of advertising.
In Southeast Asia, sales of Netsusama Sheet and Ammeltz, mainstay products, increased robustly. Furthermore, positive effects of the weaker yen contributed to a growth in net sales.
As a result, net sales and segment income were 31,926 million yen (+7.8% year on year) and 760 million yen (−74.3% year on year), respectively.
Net sales include inter-segment sales or transfers, which totaled 1,528 million yen in the first nine-month period of the previous consolidated fiscal year and 1,276 million yen in the same period of the current consolidated year.
(Breakdown of sales to external customers)
Q3 ended September 30, 2023 | Q3 ended September 30, 2024 | ||||
(January 1, 2023 to | (January 1, 2024 to | Change | |||
September 30, 2023) | September 30, 2024) | ||||
Amount | Amount | Amount | Change | ||
(millions of yen) | (millions of yen) | (millions of yen) | (%) | ||
United States | 10,377 | 13,774 | 3,396 | 32.7 | |
China | 9,239 | 7,530 | (1,708) | (18.5) | |
Southeast Asia | 5,972 | 6,280 | 307 | 5.1 | |
Others | 2,489 | 3,064 | 575 | 23.1 | |
Total | 28,079 | 30,650 | 2,570 | 9.2 | |
Other Businesses
Businesses in this segment include the transportation business, manufacture and sale of plastic containers, real estate management, and advertisement planning and production. The companies in this business segment operate individually on a financially independent basis, and their delivery prices of materials and services were reviewed and revised as necessary.
As a result, net sales and segment income were 4,687 million yen (−10.1% year on year) and 136 million yen (−66.5% year on year), respectively.
Net sales include inter-segment sales or transfers, which totaled 4,760 million yen in the first nine-month period of the previous consolidated fiscal year and 4,328 million yen in the same period of the current year.
-
Summary of financial position as of September 30, 2024
Total assets decreased by 16,989 million yen from the balance as of the end of the previous consolidated fiscal year to 250,484 million yen. This was attributable mainly to a decline of 30,363 million yen in cash and deposits, a fall of 13,412 million yen in notes and accounts receivable-trade, an increase of 2,194 million yen in short-term investment securities, a growth of 7,045 million yen in merchandise and finished goods, a rise of 19,195 million yen in buildings and structures, and a decrease of 3,811 million yen in construction in progress.
Liabilities decreased by 16,867 million yen from the balance as of the end of the previous consolidated fiscal year to 45,789 million yen. This was attributable mainly to a decline of 10,810 million yen in accounts payable-other and a fall of 3,780 million yen in income taxes payable.
Net assets decreased by 122 million yen from the balance as of the end of the previous consolidated fiscal year to 204,694 million yen, bringing the shareholders' equity ratio to 81.5%. This was attributable mainly to a decline of 2,163 million yen in retained earnings, a rise of 800 million yen in valuation difference on available-for-sale securities, and a growth of 953 million yen in foreign currency translation adjustment. - Explanation of future forecast information, such as forecast of consolidated results
Concerning the forecast of consolidated results for the fiscal year ending December 31, 2024, please refer to "Notice Regarding the Posting of Extraordinary Loss and the Revision to Forecasts of Consolidated Operational Results for Fiscal Year Ending December 31, 2024," which the Company announced on November 8, 2024.
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
2. Quarterly Consolidated Financial Statements and Main Notes
(1) Quarterly consolidated balance sheet
(millions of yen) | ||||
Previous consolidated | End of 1st nine-month period | |||
fiscal year | of FY ending December 2024 | |||
(December 31, 2023) | (September 30, 2024) | |||
ASSETS | ||||
Current assets | ||||
Cash and deposits | 71,536 | 41,172 | ||
Notes and accounts receivable-trade | 53,028 | 39,615 | ||
Short-term investment securities | 8,300 | 10,494 | ||
Merchandise and finished goods | 13,308 | 20,354 | ||
Work in process | 1,767 | 1,967 | ||
Raw materials and supplies | 7,006 | 7,093 | ||
Other | 3,427 | 6,034 | ||
Allowance for doubtful accounts | (44) | (31) | ||
Total current assets | 158,331 | 126,700 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 10,611 | 29,806 | ||
Machinery, equipment and vehicles, net | 5,152 | 5,720 | ||
Tools, furniture and fixtures, net | 1,501 | 2,374 | ||
Land | 4,900 | 5,869 | ||
Leased assets, net | 964 | 931 | ||
Construction in progress | 24,534 | 20,722 | ||
Total property, plant and equipment | 47,665 | 65,425 | ||
Intangible assets | ||||
Goodwill | 9,655 | 8,687 | ||
Trademark rights | 8,792 | 7,775 | ||
Software | 2,664 | 2,575 | ||
Other | 501 | 504 | ||
Total intangible assets | 21,614 | 19,542 | ||
Investments and other assets | ||||
Investment securities | 32,124 | 30,894 | ||
Long-term loans receivable | 1,132 | 1,273 | ||
Retirement benefit asset | 292 | 381 | ||
Deferred tax assets | 2,647 | 3,107 | ||
Real estate for investment, net | 2,678 | 2,657 | ||
Other | 2,163 | 1,814 | ||
Allowance for doubtful accounts | (1,176) | (1,313) | ||
Total investments and other assets | 39,862 | 38,815 | ||
Total non-current assets | 109,142 | 123,783 | ||
Total assets | 267,473 | 250,484 |
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
(millions of yen) | |
Previous consolidated | End of 1st nine-month period |
fiscal year | of FY ending December 2024 |
(December 31, 2023) | (September 30, 2024) |
LIABILITIES
Current liabilities
Notes and accounts payable-trade Electronically recorded obligations-operating Accounts payable-other
Lease obligations
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for product recall-related losses
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Re-measurements of retirement benefit plans
8,745 | 7,987 | |||
8,560 | 5,879 | |||
25,037 | 14,227 | |||
379 | 371 | |||
4,059 | 278 | |||
788 | 193 | |||
2,705 | 1,503 | |||
⎯ | 3,069 | |||
5,836 | 6,124 | |||
56,111 | 39,635 | |||
608 | 592 | |||
2,594 | 2,216 | |||
939 | 998 | |||
2,403 | 2,347 | |||
6,545 | 6,154 | |||
62,656 | 45,789 | |||
3,450 | 3,450 | |||
522 | 522 | |||
205,681 | 203,518 | |||
(24,766) | (24,767) | |||
184,887 | 182,723 | |||
12,819 | 13,620 | |||
6,403 | 7,357 | |||
259 | 332 |
Total accumulated other comprehensive income | 19,483 | 21,310 | |
Share acquisition rights | 446 | 659 | |
Non-controlling interests | ⎯ | 1 | |
Total net assets | 204,816 | 204,694 | |
Total liabilities and net assets | 267,473 | 250,484 |
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
-
Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
(Quarterly consolidated statements of income)
(For the first nine-month period of the fiscal year ending December 31, 2024)
(millions of yen)
Nine-month period ended
September 30, 2023 (January 1, 2023 to September 30, 2023)
Nine-month period ended
September 30, 2024 (January 1, 2024 to September 30, 2024)
Net sales | 119,115 | 114,459 | ||
Cost of sales | 51,011 | 51,763 | ||
Gross profit | 68,103 | 62,695 | ||
Selling, general and administrative expenses | 48,715 | 45,719 | ||
Operating income | 19,387 | 16,976 | ||
Non-operating income | ||||
Interest income | 168 | 159 | ||
Dividend income | 261 | 307 | ||
Real estate rent | 221 | 223 | ||
Foreign exchange gains | 217 | ⎯ | ||
Compensation income | 400 | 306 | ||
Other | 466 | 411 | ||
Total non-operating income | 1,735 | 1,409 | ||
Non-operating expenses | ||||
Interest expenses | 23 | 23 | ||
Rent cost of real estate | 79 | 79 | ||
Foreign exchange losses | ⎯ | 125 | ||
Provision of allowance for doubtful accounts | 128 | 137 | ||
Other | 53 | 99 | ||
Total non-operating expenses | 285 | 464 | ||
Ordinary income | 20,837 | 17,921 | ||
Extraordinary income | ||||
Gain on sales of non-current assets | 2 | 8 | ||
Other | 431 | 0 | ||
Total extraordinary income | 434 | 9 | ||
Extraordinary loss | ||||
Loss on sales and retirement of non-current assets | 36 | 44 | ||
Losses related to defective products | ⎯ | 9,947 | ||
Other | 96 | 658 | ||
Total extraordinary loss | 132 | 10,650 | ||
Income before income taxes | 21,138 | 7,279 | ||
Income taxes - current | 5,894 | 3,142 | ||
Income taxes - deferred | (256) | (1,208) | ||
Total income taxes | 5,638 | 1,933 | ||
Net income | 15,500 | 5,346 | ||
Net income attributable to non-controlling interests | 1 | 1 | ||
Net income attributable to owners of the parent | 15,498 | 5,344 |
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Financial Statements for the 3rd Quarter of the Fiscal Year Ending December 31, 2024
KOBAYASHI PHARMACEUTICAL CO., LTD.
(Quarterly consolidated statements of comprehensive income)
(For the first nine-month period of the fiscal year ending December 31, 2024)
(millions of yen)
Nine-month period ended
September 30, 2023 (January 1, 2023 to September 30, 2023)
Nine-month period ended
September 30, 2024 (January 1, 2024 to September 30, 2024)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities Foreign currency translation adjustment Adjustment for retirement benefits
Total other comprehensive income
Quarterly comprehensive income (Comprehensive income attributable to)
Quarterly comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests
15,500 | 5,346 |
3,751 | 800 |
4,379 | 953 |
164 | 73 |
8,295 | 1,827 |
23,795 | 7,173 |
23,794 | 7,171 |
1 | 1 |
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