Pharmaceutical wholesaling business (91.94%)

In the pharmaceutical wholesaling business, despite the impact of the suspension from designated bidder lists due to violations of the Antimonopoly Act, the Group’s logistics functions and price management system were evaluated by pharmaceutical manufacturers, resulting in steady sales expansion of limited-handling products for selected wholesalers, such as specialty pharmaceuticals, and sales of COVID-19-related products, including therapeutic agents and test kits, also increased, contributing significantly to the business performance. In addition, we focused on delivering COVID-19 vaccines and drugs, as well as needles and syringes, and coordinating the collection and shipment of generic drugs. In price negotiations with medical institutions, we worked to reach an agreement at an appropriate price commensurate with product value and distribution costs, and continued to actively work on proposals for customer support systems. As a result, the pharmaceutical wholesaling business posted net sales of 1,216,019 million yen (an increase of 4.6% on a year-on-year basis) and segment profit (operating profit) of 9,967 million yen (an increase of 151.1% on a year-on-year basis) for the consolidated fiscal year under review.

Dispensing pharmacy business (6.94%)

In the dispensing pharmacy business, there was an improvement in the number of prescriptions required due to the easing of limited clinic visits by patients. Further, in order to provide safe and high-quality medical services, we strengthened the online medical dosing guidance system and actively worked to train family pharmacists and expand sales of OTC drugs and other products. In addition to responding to the revision of dispensing fees, we worked to improve profitability by optimizing inventories through the use of customer support systems, standardizing and streamlining store operations, and overhauling expenses. 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 91,801 million yen (an increase of 0.8% on a year-on-year basis) and segment profit (operating profit) of 2,963 million yen (an increase of 10.2% on a year-on-year basis).

Pharmaceutical manufacturing and sales business(0.69%)

In the pharmaceutical manufacturing and sales business, the Group has been engaged in stable supply of high-quality and high value-added pharmaceuticals by strictly monitoring the quality of products based on its own verification system. In addition, we continued to expand our product lineup by launching 8 ingredients and 15 products of new generic drugs during the consolidated fiscal year under review. As of the end of March 2022, the product lineup was composed of 88 ingredients and 209 products. As a result, the pharmaceutical manufacturing and sales business posted net sales of 9,093 million yen (an increase of 12.4% on a year-on-year basis) and segment profit (operating profit) of 884 million yen (an increase of 21.3% on a year-on-year basis).

Other peripheral businesses (0.43%)

In the other peripheral businesses, net sales amounted to 5,717 million yen and segment profit (operating profit) was 395 million yen.

 

(Note) Segment sales include inter-segment transactions.