The Fiscal Year Ending March 31, 2025
Sales composition ratio
Pharmaceutical Wholesale Business
In the fiscal year ended March 31, 2025, net sales of the pharmaceutical wholesale business increased, reflecting growth in sales of influenza test kits and treatments due to the surge in cases mentioned earlier and growth in sales of products eligible for the price maintenance premium such as anticancer drugs, the cervical cancer vaccine, and the COVID-19 vaccine that started being given to patients in October. This growth offset the loss of revenue due to the impact of the NHI drug price revision and the negative impact of matters in other areas such as the year-on-year decline in sales of COVID-19-related products such as treatments and test kits. As already mentioned, operating profit grew due to the effect of the abovementioned increased sales and persistent price negotiations conscious of transactions costs, despite a reaction to the gain on reversal of allowance for doubtful accounts relating to large bad debt the previous year, the absence of the proceeds from national and local government-commissioned delivery of COVID-19 vaccines, and the posting of expenditures such as business investment expenses.
As a result, net sales were ¥564,614 million (102.1% of that of the same period of the previous year), and segment profit (operating profit) was ¥5,163 million (105.1% of that of the same period of the previous year).
Pharmacy Business
The pharmacy business achieved sales growth, mainly due to efforts to expand income from dispensing technical fees and income from pharmaceutical management fees, despite a decrease in the number of prescriptions received. However, profit fell, mainly due to the impact of NHI drug price revisions and longer duration prescriptions. As a result, net sales were ¥19,552 million (102.3% of that of the same period of the previous year), and segment profit (operating profit) was ¥251 million (81.0% of that of the same period of the previous year).
Veterinary Drug Wholesale Business
The veterinary drug wholesale business recorded net sales of ¥11,626 million (105.4% of that for the previous year), partly due to the conversion of Arrow medical Inc. (headquartered in Yokohama) into a consolidated subsidiary in August 2024, which offset the sometimes negative impact of a changeover in products after certain products started being sold directly by their manufacturers. However, segment profit (operating profit) was ¥314 million (89.6% of that for the same period of the previous year), reflecting the impact of higher purchase prices.
Other Businesses
Other businesses reported a smaller segment loss, mainly due to the recovery of sales in each business. As a result, net sales were ¥4,577 million (102.4% of that of the same period of the previous year), and segment loss (operating loss) was ¥78 million (segment loss for the same period of the previous year was ¥109 million).