May 9, 2025
Listed exchanges : Tokyo
Listed company name : Kobayashi Pharmaceutical Co., Ltd. Code 4967
URL : https://www.kobayashi.co.jp/english/index.html
Representative officer : Norikazu Toyoda, President & COO Contact : Yumi Nakagawa,
Executive Officer, General Manager, Financial Department
Tel : +81-6-6222-0142
Expected date for starting payment of dividends :
Preparation of supplementary explanation documents for Financial Statements: Yes Holding of an analyst meeting for the financial results: Yes (For analysts and investors)
(Any fraction less than 1 million yen is rounded down to the nearest million yen.)
-
Consolidated Results for 1st Quarter of Fiscal Year Ending December 31, 2025
(January 1, 2025 to March 31, 2025)
-
Consolidated Operating Results (accumulation)
(% figures represent changes from same period in previous year)
Q1 of FY ending December 31, 2025
Q1 of FY ended December 31, 2024
Net sales
32,607
millions of yen
(10.6)
%
36,485
millions of yen
9.0
%
Operating income
2,535
(49.6)
5,028
(0.6)
Ordinary income
2,401
(56.0)
5,461
5.7
Net income attributable to owners of the parent
1,624
66.5
976
(72.9)
Net income per share
21.86
yen
13.13
yen
(Note) Comprehensive income
Q1 of FY ending December 31, 2025: 2,052 million yen (%) Q1 of FY ended December 31, 2024: 4,383 million yen (9.0%)
- Consolidated Financial Position
Q1 of FY ending December 31, 2025
FY ended December 31, 2024
Total assets
251,752
millions of yen
265,368
millions of yen
Net assets
207,058
213,471
Shareholders' equity ratio
82.0
%
80.2
%
(Reference) Shareholders' equity
Q1 of FY ending December 31, 2025: 206,341 million yen FY ended December 31, 2024: 212,778 million yen
-
Consolidated Operating Results (accumulation)
-
Dividends
FY ended December 31, 2024
FY ending December 31, 2025
FY ending December 31, 2025 (forecasts)
Dividends per share
Q1 end
Q2 end
43.00
yen
44.00
yen
Q3 end
Year-end
59.00
60.00
Total
102.00
104.00
(Note) Revision to the latest dividend forecast: None
-
Forecasts of Consolidated Operational Results for Year Ending December 31, 2025
(January 1, 2025 to December 31, 2025)
(% figures represent changes from previous period.)
Full year
Net sales
171,000
millions of yen
3.3
%
Operating income
14,000
(43.7)
Ordinary income
15,300
(43.0)
Net income attributable to owners of the parent
10,500
4.3
Net income per share
141.25
yen
(Note) Revision of the latest forecasts for operational results: None
* Notes
Significant changes in the scope of consolidation during the period under review: None
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: Yes
Changes in accounting policies other than 1): None
Changes in accounting estimates: None
Retrospective restatement: None
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on quarterly consolidated financial statements (Notes on changes in accounting policies)" on page 8 of the attachment.
Issued shares (common shares)
1) Number of shares issued at period-end (including treasury stock): | Q1 of FY ending December 31, 2025 | 78,050,000 shares | FY ended December 31, 2024 | 78,050,000 shares |
2) Number of shares of treasury stock at period-end: | Q1 of FY ending December 31, 2025 | 3,711,181 shares | FY ended December 31, 2024 | 3,711,181 shares |
3) Average number of shares outstanding during period (consolidated cumulative quarters) | Q1 of FY ending December 31, 2025 | 74,338,819 shares | Q1 of FY ended December 31, 2024 | 74,338,914 shares |
Review of the attached quarterly consolidated financial statements by a certified public accountant or an independent auditor: None
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. Qualitative Information on Quarterly 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 on Friday, May 9, 2025. 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.
-
Table of contents for the attachment
Qualitative Information on Quarterly Results 2
Explanation of operational results 2
Explanation of financial position 3
Explanation of future forecast information, such as forecast of consolidated results 3
Quarterly Consolidated Financial Statements and Main Notes 4
Quarterly consolidated balance sheet 4
Quarterly consolidated statements of income
and quarterly consolidated statements of comprehensive income 6
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 changes in accounting policies) 8
(Notes on quarterly consolidated balance sheet) 8
(Notes on quarterly consolidated statement of income) 8
(Notes on quarterly consolidated statement of cash flows) 8
(Notes on segment information, etc.) 9
(Notes on revenue recognition) 10
(Notes on important subsequent events) 11
Qualitative Information on Quarterly Results
Explanation of operational results
We sincerely apologize for the significant inconvenience and concern caused to our valued customers who have suffered health issues, as well as to our shareholders and all other stakeholders surrounding our company, in relation to our benikoji-related products. The Company is sincerely committed to compensating customers who have developed health problems, and continue making every effort to prevent recurrence of the incident and restore trust.
During the first three-month period of the consolidated fiscal year (January 1, 2025 to March 31, 2025), 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 32,607 million yen (−10.6% year on year), 2,535 million yen (−49.6% year on year), 2,401 million yen (−56.0% year on year), and 1,624 million yen (+66.5% 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, and another 17 in the
fall, of 2024. 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 effectively removes 10 major unpleasant household odors 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 products from inbound tourists rose, contributing to sales growth.
However, the Company suspended advertising of all of its products from March 22, 2024 after it announced a voluntary recall of benikoji-related products. As a result, sales of healthcare products, in particular, declined. On the other hand, sales of household products, especially led by deodorizing air fresheners, grew despite the suspension of advertisements. Thanks to lower temperatures from January to March 2025, sales of body warmers increased. 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 23,537 million yen (−12.9% year on year) and segment income of 2,541 million yen (−34.0% year on year).
Net sales included inter-segment sales or transfers, which totaled 870 million yen in the first three-month period of the previous consolidated fiscal year and 766 million yen in the same period of the current consolidated year.
(Breakdown of sales to external customers)
Q1 ended March 31, 2024
(January 1, 2024 to
March 31, 2024)
Q1 ended March 31, 2025
(January 1, 2025 to
March 31, 2025)
Change
Amount (millions of yen)
Amount (millions of yen)
Amount (millions of yen)
Change (%)
Healthcare products
15,519
12,752
(2,767)
(17.8)
Household products
8,595
8,626
31
0.4
Body warmers
415
640
225
54.1
Direct marketing
1,608
751
(856)
(53.3)
Total
26,139
22,771
(3,367)
(12.9)
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, as temperatures from January to March 2025 were lower than those during the same period in 2024, sales of body warmers grew. Furthermore, Focus Consumer Healthcare, LLC, which we acquired in 2023, launched new products of nutritional supplements and OTC pharmaceuticals. In
addition, growth in sales, driven by positive foreign currency translation effects, led to an increase in net sales.
In China, the Company experienced a decline in sales. This was due to a smaller number of influenza patients with fever compared to previous years, resulting in reduced demand for Netsusama Sheets.
In Southeast Asia, net sales decreased due to a shift in shipment timing and a sluggish demand for Netsusama Sheet in reaction to the sales growth driven by the prevalence of infectious diseases in the last year.
As a result, net sales and segment income were 10,091 million yen (−5.1% year on year) and 0 million yen (−100.0% year on year), respectively.
Net sales include inter-segment sales or transfers, which totaled 439 million yen in the first three-month period of the previous consolidated fiscal year and 382 million yen in the same period of the current consolidated year.
(Breakdown of sales to external customers)
Q1 ended March 31, 2024
(January 1, 2024 to
March 31, 2024)
Q1 ended March 31, 2025
(January 1, 2025 to
March 31, 2025)
Change
Amount (millions of yen)
Amount (millions of yen)
Amount (millions of yen)
Change (%)
United States
3,873
4,837
964
24.9
China
2,802
1,992
(810)
(28.9)
Southeast Asia
2,705
2,038
(666)
(24.6)
Others
807
839
32
4.0
Total
10,188
9,708
(479)
(4.7)
Other
Businesses in this segment include the transportation business, the manufacture and sale of plastic containers, real estate management, and advertising 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 1,425 million yen (−15.1% year on year) and 36 million yen (−65.4% year on year), respectively.
Net sales include inter-segment sales or transfers, which totaled 1,520 million yen in the first three-month period of the previous consolidated fiscal year and 1,298 million yen in the same period of the current consolidated year.
Explanation of financial position
Total assets decreased by 13,616 million yen from the balance as of the end of the previous consolidated fiscal year to 251,752 million yen. This was attributable mainly to an increase of 1,532 million yen in cash and deposits, a decrease of 16,808 million yen in notes and accounts receivable-trade, and a rise of 2,877 million yen in merchandise and finished goods.
Liabilities fell by 7,203 million yen from the balance as of the end of the previous consolidated fiscal year to 44,693 million yen. This was attributable mainly to a decrease of 7,453 million yen in accounts payable-other.
Net assets declined by 6,413 million yen from the balance as of the end of the previous consolidated fiscal year to 207,058 million yen, bringing the shareholders' equity ratio to 82.0%. This was attributable mainly to a decrease of 2,761 million yen in retained earnings and a fall of 3,258 million yen in foreign currency translation adjustment.
Explanation of future forecast information, such as forecast of consolidated results
The Group did not revise its forecast of consolidated results for the fiscal year ending December 31, 2025, which it announced via the Summary of Financial Statements for the Fiscal Year Ended December 31, 2024 released on February 10, 2025.
-
Quarterly Consolidated Financial Statements and Main Notes
Quarterly consolidated balance sheet
(millions of yen)
Previous consolidated fiscal year
(December 31, 2024)
Q1 of current consolidated fiscal year (March 31, 2025)
ASSETS
Current assets
Cash and deposits
50,873
52,405
Notes and accounts receivable-trade
49,442
32,633
Short-term investment securities
14,872
14,874
Merchandise and finished goods
15,143
18,021
Work in process
2,091
2,313
Raw materials and supplies
6,929
7,056
Other
5,174
5,086
Allowance for doubtful accounts
(58)
(58)
Total current assets
144,468
132,332
Non-current assets
Property, plant and equipment
Buildings and structures, net
32,461
32,860
Machinery, equipment and vehicles, net
6,476
6,648
Tools, furniture and fixtures, net
2,485
2,422
Land
5,947
5,879
Leased assets, net
815
753
Construction in progress
19,261
19,101
Total property, plant and equipment
67,448
67,666
Intangible assets
Goodwill
9,260
8,406
Trademark rights
8,220
7,395
Software
2,662
2,759
Other
530
488
Total intangible assets
20,674
19,049
Investment and other assets
Investment securities
24,617
24,214
Long-term loans receivable
1,269
1,309
Retirement benefit asset
750
776
Deferred tax assets
3,087
3,422
Real estate for investment, net
2,650
2,641
Other
1,730
1,713
Allowance for doubtful accounts
(1,328)
(1,374)
Total investments and other assets
32,777
32,703
Total non-current assets
120,900
119,419
Total assets
265,368
251,752
(millions of yen)
Previous consolidated fiscal year
(December 31, 2024)
Q1 of current
consolidated fiscal year (March 31, 2025)
LIABILITIES
Current liabilities
Notes and accounts payable-trade
8,264
9,040
Electronically recorded obligations-operating
6,424
6,108
Accounts payable-other
17,117
9,663
Lease obligations
343
363
Income taxes payable
1,913
1,227
Accrued consumption taxes
346
598
Provision for bonuses
2,840
4,076
Provision for product recall-related losses
3,970
3,086
Other
5,202
5,518
Total current liabilities
46,423
39,684
Non-current liabilities
Lease obligations
503
426
Deferred tax liabilities
1,554
1,183
Net defined benefit liability
1,005
1,023
Other
2,409
2,375
Total non-current liabilities
5,473
5,009
Total liabilities
51,896
44,693
NET ASSETS
Shareholders' equity
Capital stock
3,450
3,450
Capital surplus
522
522
Retained earnings
208,240
205,479
Treasury stock
(24,767)
(24,767)
Total shareholders' equity
187,445
184,684
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
12,469
12,040
Foreign currency translation adjustment
12,300
9,041
Re-measurements of retirement benefit plans
563
574
Total accumulated other comprehensive income
25,333
21,657
Share acquisition rights
688
713
Non-controlling interests
4
2
Total net assets
213,471
207,058
Total liabilities and net assets
265,368
251,752
Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
(Quarterly consolidated statements of income) (Three-month period ended March 31, 2025)
(millions of yen)
Three-month period ended March 31, 2024
(January 1, 2024 to
March 31, 2024)
Three-month period ended March 31, 2025
(January 1, 2025 to
March 31, 2025)
Net sales
36,485
32,607
Cost of sales
15,534
15,924
Gross profit
20,951
16,682
Selling, general and administrative expenses
15,922
14,147
Operating income
5,028
2,535
Non-operating income
Interest income
69
51
Dividend income
1
6
Real estate rent
73
76
Foreign exchange gains
226
Other
153
109
Total non-operating income
525
244
Non-operating expenses
Interest expenses
4
4
Rent cost of real estate
25
25
Foreign exchange losses
272
Provision of allowance for doubtful accounts
53
56
Other
9
18
Total non-operating expenses
93
378
Ordinary income
5,461
2,401
Extraordinary income
Gain on sales of non-current assets
1
54
Gain on sale of investment securities
0
16
Other
8
Total extraordinary income
1
79
Extraordinary loss
Loss on sales and retirement of non-current assets
8
4
Losses related to defective products
3,648
688
Other
218
45
Total extraordinary loss
3,876
738
Income before income taxes
1,586
1,743
Income taxes - current
2,067
947
Income taxes - deferred
(1,457)
(826)
Total income taxes
610
120
Net income
976
1,623
(Loss) attributable to non-controlling interests
(1)
Net income attributable to owners of the parent
976
1,624
(Quarterly consolidated statements of comprehensive income) (Three-month period ended March 31, 2025)
(millions of yen)
Three-month period ended March 31, 2024
(January 1, 2024 to
March 31, 2024)
Three-month period ended March 31, 2025
(January 1, 2025 to
March 31, 2025)
Net income
976
1,623
Other comprehensive income
Valuation difference on available-for-sale securities
249
(428)
Foreign currency translation adjustment
3,132
(3,258)
Adjustment for retirement benefits
25
11
Total other comprehensive income
3,407
(3,676)
Quarterly comprehensive income
4,383
(2,052)
(Quarterly comprehensive income attributable to)
Quarterly comprehensive income attributable to owners of the parent
4,383
(2,050)
Quarterly comprehensive income attributable to non-
controlling interests
(1)
Notes on quarterly consolidated financial statements (Notes on assumption of going concern)
Not applicable
(Notes on a significant change in shareholders' equity)
Not applicable
(Notes on changes in accounting policies)
(Application of Practical Solution on the Accounting for and Disclosure of Current Taxes Related to Global Minimum Tax Rules)
"Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules" (ASBJ PITF No. 46, on March 22, 2024) has been applied from the beginning of the first quarter of the consolidated fiscal year ending December 31, 2025. Current taxes related to global minimum tax rules were not recorded in the financial statements for the first quarter of the current consolidated fiscal year because ASBJ PITF No. 7 was applied.
(Notes on the quarterly consolidated balance sheet)
(Contingent liabilities)
After receiving reports that customers who ingested Benikoji CholesteHelp, a functional food product it marketed, developed health problems, Kobayashi Pharmaceutical has continued recalling the product and benikoji raw materials (manufactured by the Company). A component analysis identified the presence of puberulic acid, which has nephrotoxicity, in a certain benikoji raw material lot. The Company has been providing compensation to customers who developed health problems from ingesting Benikoji CholesteHelp, etc.
In the light of the current situation, the Company has recorded expenses within a reasonably estimated range at present as a provision for product recall-related losses. The expenses include mainly (1) expenses for recovering benikoji raw materials for business partners and (2) expenses related to compensating customers who developed health problems. However, with respect to expenses that cannot be reasonably estimated at present-those arising from unforeseen disclosures or legal actions by business partners and customers-the Company is currently unable to determine the total amount, and additional costs may be incurred.
Expenses for recovering benikoji raw materials for business partners
Kobayashi Pharmaceutical directly marketed benikoji raw materials to 52 business partners, who sold them to domestic and international customers. These Kobayashi Pharmaceutical Group business partners have been recovering benikoji-related products. The Company requested them to gather information related to the product recall. Based on information regarding the expenses for recovering benikoji-related products individually collected from its business partners, the Company estimated and recorded the cost of a product recall that it may incur in the future within a reasonably estimated range.
Expenses related to compensating customers who developed health problems
In accordance with the compensation policy and compensation details outlined in the press release titled "Compensation for customers who have experienced health issues due to consuming Kobayashi Pharmaceutical's Beni-koji CholesteHelp and other products," dated August 8, 2024, Kobayashi Pharmaceutical has been providing compensation to affected customers, including coverage for medical and transportation expenses, consolation payments, and compensation for lost wages and residual disability. Based on the status of outpatient visits and hospitalizations, as well as the unit prices used to calculate consolation payments, and compensation for lost wages and residual disability, etc., the Company has estimated and recorded compensation expenses that it may incur in the future within a reasonably estimated range.
(Notes on quarterly consolidated statement of income)
In the first three-month period of the consolidated fiscal year, the Company recorded expenses for recovering benikoji-related products and expenses related to the product recall as an extraordinary loss of 688 million yen for recall-related losses. The product recall-related losses mainly consist of the recovery of benikoji raw materials for business partners and compensation to customers who developed health problems.
(Notes on quarterly consolidated statement of cash flows)
The Company did not prepare a consolidated statement of cash flows for the three-month period ended March 31, 2025. Depreciation (including amortization of intangible assets, excluding goodwill) and amortization of goodwill are stated below.
The three-month period ended March 31, 2024 (January 1, 2024 to March 31, 2024) | The three-month period ended March 31, 2025 (January 1, 2025 to March 31, 2025) | |
Depreciation | 1,441 million yen | 1,832 million yen |
Amortization of goodwill | 345 million yen | 354 million yen |
(Notes on segment information, etc.)
[Segment information]
Q1 of previous consolidated fiscal year (January 1, 2024 to March 31, 2024)
Information on net sales, income or loss by reportable segment
(Unit: millions of yen)
Reportable Segments
Other (Note 1)
Grand Total
Adjustment (Note 2)
Figures in quarterly consolidated statements of income (Note 3)
Domestic Business
International Business
Total
Net sales
Japan
26,139
26,139
157
26,296
26,296
United States
3,873
3,873
3,873
3,873
China
2,802
2,802
2,802
2,802
Southeast Asia
2,705
2,705
2,705
2,705
Other
807
807
807
807
Revenue from contracts with customers
26,139
10,188
36,327
157
36,485
36,485
Net sales to outside customers
26,139
10,188
36,327
157
36,485
36,485
Inter-segment sales and transfers
870
439
1,310
1,520
2,830
(2,830)
Total
27,010
10,628
37,638
1,678
39,316
(2,830)
36,485
Segment income
3,849
1,061
4,910
106
5,017
11
5,028
(Notes) 1. Other represents businesses that are not included in reportable segments, such as the transportation business, manufacture and sale of plastic containers, real estate management, and advertisement planning and production.
Adjustments of 11 million yen in segment income are eliminations among segments.
Segment income is adjusted with operating income in the quarterly consolidated statements of income.
Q1 of current consolidated fiscal year (January 1, 2025 to March 31, 2025)
Information on net sales, income or loss by reportable segment
(Unit: millions of yen)
Reportable Segments
Other (Note 1)
Grand Total
Adjustment (Note 2)
Figures in quarterly consolidated statements of income (Note 3)
Domestic Business
International Business
Total
Net sales
Japan
22,771
22,771
127
22,898
22,898
United States
4,837
4,837
4,837
4,837
China
1,992
1,992
1,992
1,992
Southeast Asia
2,038
2,038
2,038
2,038
Other
839
839
839
839
Revenue from contracts with customers
22,771
9,708
32,480
127
32,607
32,607
Net sales to outside customers
22,771
9,708
32,480
127
32,607
32,607
Inter-segment sales and transfers
766
382
1,148
1,298
2,447
(2,447)
Total
23,537
10,091
33,629
1,425
35,054
(2,447)
32,607
Segment income
2,541
0
2,541
36
2,578
(42)
2,535
(Notes) 1. Other represents businesses that are not included in reportable segments, such as the transportation business, manufacture and sale of plastic containers, real estate management, and advertisement planning and production.
Adjustments of 42 million yen in segment income are eliminations among segments.
Segment income is adjusted with operating income in the quarterly consolidated statements of income.
(Notes on revenue recognition)
Information broken down by revenue from contracts with customers is stated in "Notes (Notes on segment information, etc.)."
(Notes on important subsequent events)
(Ongoing suspension of the manufacture and sale of Meitan Hompo products, and subsequent closure of the Kinokawa Plant)
At a meeting of Board of Directors held on April 14, 2025, Kobayashi Pharmaceutical resolved to continue to suspend the manufacture and sale of Meitan Hompo products, and to close Meitan Hompo's facilities located in Kinokawa City, Wakayama Prefecture ("Kinokawa Plant") on June 30, 2025. Meitan Hompo Co., Ltd. ("Meitan Hompo") is a consolidated subsidiary of the Company.
Outline of Meitan Hompo
Name: Meitan Hompo Co., Ltd.
Location: 1088-11 Kitaseida, Kinokawa City, Wakayama Prefecture
Business: Manufacture and sale of health food products containing ume extract
Date of incorporation: November 21, 1969 (founded on July 11, 1925)
Reasons for the closure
In 2019, Kobayashi Pharmaceutical acquired shares of Meitan Hompo, which manufactured and sold products containing ume extract (hereinafter, "Meitan Hompo's products"), making it a group company. Thereafter, the Company relocated its benikoji raw material manufacturing facilities to the Kinokawa Plant as part of its efforts to optimize the management resources of its group companies. However, as a result of the benikoji-related products recall case, the Company announced its withdrawal from the Benikoji business in August 2024. Furthermore, Meitan Hompo has suspended the operation of the Kinokawa Plant and sales of its products. Under the situation, in light of a reassessment of the growth potential and profitability of the manufacturing and sales businesses of Meitan Hompo's products, along with the associated investments required therefor, the Company concluded that there is currently no clear business outlook. Consequently, it resolved to continue to suspend the sale of Meitan Hompo's products for a while. Accordingly, there is no prospect for resuming operations at the Kinokawa Plant, which is a dedicated manufacturing facility for Meitan Hompo products, and the Company decided to close the site.
Following the suspension of operations, Kobayashi Pharmaceutical will communicate sincerely with all stakeholders associated with the Kinokawa Plant, and will provide individualized support to each employee to help them succeed both within and outside the Company.
On the other hand, the Company has received inquiries from some customers regarding the resumption of sales of Meitan Hompo products. In addition to carefully evaluating the potential of ume as an ingredient, it will consider the possibility of introducing new products in the medium to long
term.
Schedule for the closure
April 14, 2025: Resolution by the board of directors of Kobayashi Pharmaceutical June 30, 2025: Closure of the Kinokawa Plant (planned)
Impact on business results in the future
The impact of the plant closure on Kobayashi Pharmaceutical's consolidated financial results is expected to be minimal. If any matters requiring disclosure arise in the future, the Company will disclose them promptly.