Consolidated Financial Results for the Three Months Ended June 30, 2023 [Japan GAAP]
August 2, 2023
Company name | : Japan Lifeline Co., Ltd. |
Code No. | : 7575 |
Stock Exchange Listing | : The Prime Market of the Tokyo Stock Exchange |
URL | : https://www.japanlifeline.com/ |
Representative | : Keisuke Suzuki, President and CEO |
Contact person | : Takeyoshi Egawa, Vice President, Business Administration Department |
TEL | : +81-3-6711-5200 |
Scheduled date to file the Quarterly Securities Report | : August 10, 2023 |
Scheduled date to commence dividend payment | : - |
Supplementary documents to the financial results for the period | : Available |
Presentation on quarterly results | : Not available |
(Amounts are rounded down to million yen)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)
(1) Consolidated operating results | (% indicates year-on-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Three | months | ended | 12,954 | (0.1) | 3,176 | 17.3 | 3,244 | 21.3 | 2,330 | 19.7 | ||
June 30, 2023 | ||||||||||||
Three | months | ended | 12,969 | 2.8 | 2,707 | 16.7 | 2,674 | 10.6 | 1,946 | 14.3 | ||
June 30, 2022 | ||||||||||||
(Note) | Comprehensive income: Three months ended June 30, 2023 | : 2,437 million yen; | 19.6 % | |||||||||
Three months ended June 30, 2022 | : 2,038 million yen; | 6.6 % | ||||||||||
Earnings per share | Diluted earnings | |||||||||||
per share | ||||||||||||
Yen | Yen | |||||||||||
Three | months | ended | 30.03 | - | ||||||||
June 30, 2023 | ||||||||||||
Three | months | ended | 24.73 | - | ||||||||
June 30, 2022 | ||||||||||||
- Consolidated financial position
Total assets | Net assets | Equity ratio | |||||||||
Millions of yen | Millions of yen | % | |||||||||
As of June 30, 2023 | 71,322 | 54,981 | 77.1 | ||||||||
As of March 31, 2023 | 74,641 | 56,195 | 75.3 | ||||||||
(Reference) Shareholders' equity: | As of June 30, 2023 | : 54,981 million yen | |||||||||
As of March 31, 2023 | : 56,195 million yen | ||||||||||
2. | Dividends | ||||||||||
Cash dividends per share | |||||||||||
1Q End | 2Q End | 3Q End | Year-End | Total | |||||||
Yen | Yen | Yen | Yen | Yen | |||||||
Year ended March 31, 2023 | - | 0.00 | - | 38.00 | 38.00 | ||||||
Year ending March 31, 2024 | - | ||||||||||
Year ending March 31, 2024 (forecast) | 0.00 | - | 38.00 | 38.00 | |||||||
(Note) Revisions to cash dividends forecast most recently announced : None |
3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
(% represents change from the previous year)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | ||||||
owners of parent | per share | |||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Yen | ||
yen | yen | yen | yen | |||||||
Six months ending | 23,880 | (6.3) | 4,488 | (12.3) | 4,499 | (12.0) | 3,235 | (12.6) | 41.17 | |
September 30,2023 | ||||||||||
Year ending March | 48,807 | (5.7) | 9,763 | (9.9) | 9,531 | (12.6) | 6,854 | (0.5) | 89.13 | |
31, 2024 | ||||||||||
(Note) Revisions to the forecast of consolidated financial results most recently announced | : None |
* Notes
- Changes in significant subsidiaries during the period (change in specified subsidiaries resulting in scope of consolidation): None
- Application of specific accounting treatments for the preparation of the consolidated quarterly financial statement: None
- Changes in accounting policies, changes in accounting estimates and restatements
(i) Changes in accounting policies due to the revision of accounting standards (ii) Changes in accounting policies other than (i)
(iii) Changes in accounting estimates (iv) Restatement
(Notes) For details, please refer to "2. Consolidated Financial Statements and Primary Notes (3) Notes to Consolidated Financial Statements Changes in Accounting Policies".
- Number of issued shares outstanding (common stock)
- Number of issued shares at the end of the period (including treasury stock):
Three months ended June 30, 2023 | : 82,919,976 | Shares |
Year ended March 31, 2023 | : 82,919,976 | Shares |
- Number of shares held as treasury stock at the end of the period:
Three months ended June 30, 2023 | : 5,653,073 | shares |
Year ended March 31, 2023 | : 4,999,561 | shares |
- Average number of issued shares outstanding during the period, after deducting shares held as treasury stock:
Three months ended June 30, 2023 | : 77,603,344 | shares |
Three months ended June 30, 2022 | : 78,704,802 | shares |
(Notes) The Company has adopted a BIP (Board Incentive Plan) trust, assuming the number of shares held by the trust are included in
the number of treasury stock of "(4) Number of issued shares outstanding (common stock)".
*This Summary Report is out of scope for quarterly review by the external auditors.
*Explanation for the appropriate use of forecast of the consolidated financial results and other special notes.
Any forward-looking statements in the summary report, such as results forecasts, are based on the information currently available to the
Company and certain assumptions that the Company deems to be reasonable at the time this report was prepared. Actual results may
differ significantly from the forecasts due to various factors. For the suppositions that form the assumptions for earnings forecasts and
cautions concerning the use thereof, please refer to "1. Qualitative Information (3) Explanation of Consolidated Financial Guidance".
1. Qualitative Information
- Explanation of Business Results
Forward-looking statements below are based on our judgment as of the end of the first quarter of the current consolidated fiscal year.
(Business Environment)
In the first quarter, our sales generally performed well due to an increase in the number of surgeries in hospitals. This was partly a result of the reclassification of COVID-19 as a "Class 5 Infectious Disease" in May 2023, requiring hospitals to take less severe measures. The number of cases of atrial fibrillation (AF) ablation treatment, which significantly impacts our performance, increased by about 9% compared to the same period last year in the first quarter. This exceeded our initial expectations of a 6% increase for the full year.
However, the "RF Needle," a main product of EP/Ablation, ended its exclusive distribution agreement at the end of the previous fiscal year. From this fiscal year, we changed our business flow by signing a contract with Boston Scientific Japan to provide sales support services. While this change resulted in a decrease in revenue, it contributed to an improvement in the gross profit margin because it did not involve product procurement.
As a result, the performance of the first quarter saw a slight decrease in sales compared to the same period last year, but each stage of profit significantly increased. The profit margin also improved.
The Japanese yen saw significant fluctuations against the U.S. dollar in the foreign exchange market. However, we saw no significant impact on our earnings in the first quarter. This is because we purchase over 70% of our products in yen and use the moving average method to calculate cost of sales, which smooths out any temporary increases in purchase costs over the long term.
(Business Performance) | ||||||
The earnings for the first quarter are as follows. | ||||||
Unit: Millions of yen | ||||||
Three Months Ended | Three Months Ended | |||||
Summary of | June 30, 2022 | June 30, 2023 | Increase/ | Increase/ | ||
Profit & Loss Statement | Amount | Vs Sales | Amount | Vs Sales | (Decrease) | (Decrease)% |
Ratio% | Ratio% | |||||
Net Sales | 12,969 | 100.0 | 12,954 | 100.0 | (14) | (0.1%) |
Gross Profit | 7,458 | 57.5 | 7,887 | 60.9 | 428 | 5.8% |
Operating Profit | 2,707 | 20.9 | 3,176 | 24.5 | 468 | 17.3% |
Ordinary Profit | 2,674 | 20.6 | 3,244 | 25.0 | 569 | 21.3% |
Quarterly Net Profit | ||||||
Attributable to Owners | 1,946 | 15.0 | 2,330 | 18.0 | 384 | 19.7% |
of Parent |
- Net sales
Net sales decreased by 14 million yen year-to-year, to 12,954 million yen. Details are shown in the Sales by Product section below.
- Gross profit
Gross profit increased by 428 million yen year-to-year, to 7,887 million yen. The increase in in-house product sales due to the increase in AF case numbers, and the decrease in third-party products due to the change in the commercial flow of the RF Needle, resulted in our in-house sales ratio being 5.2 pts higher at 59.8% compared to the same period last year. Furthermore, the loss in disposal and write-down of inventories decreased by 118 million yen compared to the same period last year. As a result, the gross profit margin was 3.4 pts higher at 60.9% compared to the same period last year.
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- Operating Profit
Operating profit increased by 468 million yen year-to-year, to 3,176 million yen. Although sales and general administrative
expenses remained at the same level due to increased sales-related costs associated with increased business activity, there were
temporary miscellaneous income and a decrease in research and development expenses. As a result, the operating profit margin was
3.6 pts higher at 24.5% compared to the same period last year.
- Ordinary Profit
Ordinary profit increased by 569 million yen year-to-year, to 3,244 million yen. Non-operating income was 132 million yen,
mainly comprising of interest received. Non-operating expenses was 65 million yen, including provisions for doubtful accounts
related to receivables from business partners.
- Quarterly Net Profit Attributable to Owners of the Parent
Quarterly net profit attributable to the owners of the parent increased by 384 million yen year-to-year, to 2,330 million yen. Due
to the impact of tax deductions and other factors, our corporate tax burden rate was 28.1%.
(Sales by Product)
Unit: Millions of yen | ||||
Product Category | Three Months Ended | Three Months Ended | Increase/ | Increase/ |
June 30, 2022 | June 30, 2023 | (Decrease) | (Decrease)% | |
Cardiac Rhythm Management | 3,094 | 3,446 | 352 | 11.4% |
EP/Ablation | 6,662 | 6,272 | (390) | (5.9%) |
Cardiovascular | 2,611 | 2,853 | 241 | 9.2% |
Gastrointestinal | 599 | 381 | (218) | (36.4%) |
Total | 12,969 | 12,954 | (14) | (0.1%) |
(Note) The main products classified in each product category are as follows.
Effective from the first quarter of the current fiscal year, the Company has changed the names of product categories, so that "Cardiovascular" corresponds to the former "Cardiovascular Surgery", and "Gastrointestinal" corresponds to the former "Gastrointestinal/PI". In addition, the product category of Atrial septum defect closure has been changed from the former "Gastrointestinal/PI" to "Cardiovascular". Consequently, for the year-on-year comparisons, the figures for the same period of the previous fiscal year are reorganized into the changed product categories for comparative analysis.
Cardiac Rhythm | Pacemaker, T-ICD (Transvascular Implantable Cardioverter Defibrillator), S-ICD |
Management | (Subcutaneous Implantable Cardioverter Defibrillator), CRT-P (Cardiac Resynchronization |
Therapy Pacemaker), CRT-D (Cardiac Resynchronization Therapy Defibrillator), AED | |
(Automated External Defibrillator) | |
EP/Ablation | Electrophysiology catheter, Ablation catheter, Endoscopic laser ablation catheter, Internal |
cardioversion catheter, Esophageal temperature monitoring catheter, Radiofrequency | |
transseptal needle, Steerable sheath | |
Cardiovascular | Vascular graft, Open stent graft, Stent graft, Embolic coil, Aspiration catheter, Atrial septum |
defect closing device | |
Gastrointestinal | Bile duct tube stent, Bile duct dilation balloon, Cholangioscope system, Colonic stent, Gastro- |
duodenal stent, Radiofrequency ablation needle for liver cancer treatment |
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- Cardiac Rhythm Management
Sales related to pacemakers increased by 5.2% compared to the same period last year. While competitors' new products penetration and low pricing strategies subsided at the moment, we increased face-to-face sales using catheters and other tools that support the proper implantation of leads during surgery. As a result, we secured a slightly higher share than the same period last year.
Sales related to ICDs increased by 15.1% compared to the same period last year. We have positioned the S-ICD, which is a unique product in the industry, as a strategic product and have focused on nationwide sales expansion measures. In the first quarter, sales outpaced market expansion due to an increase in new adoption hospitals and an improvement in the repeat rate. Also, for T-ICDs, we initially planned sales to be on par with the same period last year, but sales were strong because we were able to acquire more replacement cases than expected.
Overall, Cardiac Rhythm Management net sales were 3,446 million yen, up 11.4% YoY.
- EP/Ablation
EP catheter sales increased by 12.3% compared to the same period last year. Against the backdrop of an increase in AF case numbers exceeding expectations, sales of our in-house products such as the internal atrial cardioversion catheter BeeAT, the electrophysiology catheter EP Star, and the esophageal temperature monitoring catheter Esophastar were strong. In particular, for EP Star, the sales growth was beyond that of the case numbers, due to a shortage of other companies' products.
Ablation catheter sales decreased by 29.0% compared to the same period last year. Our supplier for the endoscopic laser ablation catheter HeartLight X3 experienced a shortage of raw materials. This led to a continued lack of sufficient product supply, and we had to limit our expansion to new accounts, putting a damper on our sales.
Other sales significantly decreased by 66.1% compared to the same period last year due to the change in the commercial flow of RF Needle.
Overall, EP/Ablation net sales were 6,272 million yen, down 5.9% YoY.
- Cardiovascular
Vascular graft-related sales increased by 5.6% compared to the same period last year. This was due to the steady increase in market share of our in-house vascular graft, J Graft, and the third-party abdominal stent graft. With regards to our open stent graft Frozenix, the sales were steady in the first quarter but slightly decreased because of the particularly strong sales in the same period last year.
Neurovascular-related sales increased dramatically, about 5.7 times compared to the same period last year. We have identified the expansion of the neurovascular area as one of our medium-term priority measures, and we plan to launch about 10 products in the next few years. In the first quarter, in addition to the embolic coil Avenir, which we started selling from the previous fiscal year, we launched a new thrombus aspiration catheter Esperance. Both products have received good reviews in the medical field, and sales have progressed above plan.
Other sales decreased by 12.5% compared to the same period last year. The number of catheter treatments for pediatric atrial septal defect was low, resulting in a decrease in sales for atrial septal defect closure devices.
Overall, Cardiovascular net sales were 2,853 million yen, up 9.2% YoY.
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JLL - Japan Lifeline Co. Ltd. published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 07:24:10 UTC.