In the pharmaceutical wholesaling business, we continued our efforts to deliver COVID-19-related products. We also worked to adjust shipments of generic drugs due to violations of Good Manufacturing Practices (GMP) by generic drug manufacturers and to adjust shipments of analgesic antipyretic drugs due to tight supply and demand balance. Sales of specialty pharmaceuticals and other products that can only be delivered by certain wholesalers are growing steadily, and increased demand for COVID-19 drugs and test kits is also contributing significantly to our performance. With regard to price negotiations with medical institutions, we worked to secure appropriate profits by further promoting price negotiations commensurate with the value of individual products and distribution costs. As for the customer support systems, we launched new online promotions using remote detailing, and actively engaged in proposal activities for the online medical care and medication instruction system “KAITOS,” the Initial Examination Reservation Service, centralized administration system of pharmacy operations "Mizar", and other systems.
As a result, the pharmaceutical wholesaling business posted net sales of 1,336,766 million yen (an increase of 9.9% on a year-on-year basis) and segment profit (operating profit) of 10,443 million yen (an increase of 4.8% on a year-on-year basis) for the consolidated fiscal year under review.

In the dispensing pharmacy business, we implemented opening of new stores and closure on the basis of profitability while responding to the revision of dispensing fees.
Also in a bid to provide high-quality medical services, we worked on the use of digital tools such as medication follow-up on social media, online medication instruction, and prescription transmission applications, as well as the training of family pharmacists. Since October 2022, Kyoso Mirai Akiho Pharmacy in Sakata City, Yamagata Prefecture, has been participating in the "Model Project for Electronic Prescription" led by the Ministry of Health, Labour and Welfare to collect examples of the use of electronic prescriptions and relevant issues. Furthermore, in order to contain COVID-19 as soon as possible, while we implemented thorough measures against infectious diseases at our stores, we also sold antigen test kits and conducted free PCR and antigen tests in response to the government’s project to make PCR and other tests free.
As a result, the dispensing pharmacy business posted net sales of 92,346 million yen (an increase of 0.6% on a year-on-year basis) and segment profit (operating profit) of 2,431 million yen (a decrease of 18.0% on a year-on-year basis).

In the pharmaceutical manufacturing and sales business, we worked to ensure a stable supply of high-quality, high-value-added generic drugs through thorough quality control based on a proprietary verification system developed in-house and a planned production system based on demand. However, a surge in demand caused by shipment adjustments by other generic drug manufacturers affected some of the Company’s products.
In addition, we continued to expand our product lineup by launching 3 ingredients and 5 products of new generic drugs during the consolidated fiscal year under review. As of the end of March 2023, the product lineup was composed of 89 ingredients and 208 products. As a result, the pharmaceutical manufacturing and sales business posted net sales of 9,944 million yen (an increase of 9.4% on a year-on-year basis) and segment profit (operating profit) of 864 million yen (a decrease of 2.3% on a year-on-year basis).

In the other peripheral businesses, net sales amounted to 6,635 million yen (an increase of 16.1% on a year-on-year basis) and segment profit (operating profit) was 621 million yen (an increase of 57.2% on a year-on-year basis).

 

（Note） Segment sales include inter-segment transactions.