In the pharmaceutical wholesaling business, we made efforts to respond to shipment adjustments due to the tight supply and demand of antipyretics and analgesics, cough medicines, expectorants, and measles vaccines. 3 Sales of specialty pharmaceuticals and other limited-handling products for selected wholesalers continued to grow. This together with changes in the distribution arrangements at some pharmaceutical manufacturers also contributed to increased sales. In price negotiations with medical institutions, we continued our efforts to negotiate unit prices for individual products in order to better reflect their individual value and distribution costs. Our actions for customer support systems included strengthening promotions using video and remote detailing, promoting the introduction of the ENIFvoice series mainly to drugstores, facilitating a switch from ENIF to FutureENIF, and ramping up the proposal activity of Byoin-Navi’s website-creating service. As a result, the pharmaceutical wholesaling business posted net sales of 1,424,488 million yen (an increase of 6.3% on a year-on-year basis) and segment profit (operating profit) of 19,453 million yen (an increase of 39.0% on a year-on-year basis) for the consolidated fiscal year under review.

In the dispensing pharmacy business, in order to implement the “Transformation of the dispensing pharmacy business,” which is a key measure of the Medium-term Management Plan, we reorganized operating companies, opened and closed pharmacies with an emphasis on profitability, and worked to strengthen cooperation with clinics specialized in providing home-based care. In addition, we have launched a portal application, Kyoso Mirai Pharmacy Health Navi, which includes a function for sending prescriptions and an electronic medicine notebook, to promote digitalization. During this fiscal year under review, although the number of prescriptions increased owing to a rebound from patients’ reluctance to seek care, the transitional measure for the community support system incentives was terminated, reducing technical fees. As a result, net sales of the dispensing pharmacy business were 93,789 million yen (an increase of 1.6% year on year) and segment profit (operating profit) was 1,546 million yen (a decrease of 36.4% year on year).

In the pharmaceutical manufacturing and sales business, the Group engaged in the stable supply of high-quality and high value-added pharmaceuticals by strictly monitoring the quality of products based on its own verification system and establishing a planned production system．The number of large hospitals with 200 or more beds that adopted generic drugs sold by KYOSOMIRAI PHARMA exceeded 1,000. As a result, the pharmaceutical manufacturing and sales business posted net sales of 10,593 million yen (an increase of 6.5% on a year-on-year basis.) and segment profit (operating profit) of 755 million yen (a decrease of 12.6% on a year-on-year basis.).

In the other peripheral businesses, net sales amounted to 6,147 million yen (a decrease of 7.4% on a year-on year basis.) and segment profit (operating profit) was 448 million yen (a decrease of 27.9% on a year-on-year basis.).

 

（Note） Segment sales include inter-segment transactions.