Nihon Chouzai Co., Ltd. Revises Earnings Guidance for the First Half Ended September 30, 2020
September 23, 2020 at 07:00 am
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Nihon Chouzai Co. Ltd. revised earnings guidance for the first half ended September 30, 2020. For the six month, the company expects Net sales of JPY 135,000 million as compared to JPY 138,895 million expected previously. Operating profit is expected to be JPY 2,300 million as compared to JPY 361 million expected previously. Profit attributable to owner of parent is expected to be JPY 1,000 million as compared to loss attributable to owner of parent of JPY 51 million expected previously. Net income per share is expected to be JPY 33.35 as compared to net loss per share of JPY 1.7 expected previously. Company revised guidance due to as for the current situation, the number of prescriptions decreased more than expected due to the continued curbs on outpatient treatment and other factors since July. As a result, although unit prices of prescriptions are still higher than expected due to longer prescription days, net sales for the first half of the fiscal year under review are expected to be slightly lower than the forecasts made at the beginning of the period. On the other hand, in terms of profit, each stage of profit is expected to be significantly higher than the initial forecasts, however without reaching the level of the same period of the previous fiscal year, as the results of the various cost-containment measures implemented throughout the entire Group have greatly exceeded the plan, and as a result of an increase in gross profit due to the implementation of a sales strategy emphasizing profitability in the pharmaceutical manufacturing and sales business, as well as strong sales of new, high- margin products.
NIHON CHOUZAI Co., Ltd is primarily engaged in the pharmacy business, the provision of staffing services, as well as the manufacture and sale of pharmaceutical products. The Company operates in three business segments. The Pharmacy segment is engaged in the operation of a chain of dispensing pharmacies. The Pharmaceutical Product Manufacturing and Distribution segment is engaged in the manufacture and nationwide sale of generic pharmaceutical products. The Healthcare Personnel Staffing Service segment is involved in the dispatching of pharmacists to various regional pharmacies.