Note: This document is a translation of the original Japanese version and provided for reference purposes only. In the
event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results
for the Six Months Ended September 30, 2021 (Japanese GAAP)
November 5, 2021 | ||
Company name: | Medical System Network Co., Ltd. | Listing: Tokyo Stock Exchange |
Stock code: | 4350 | URL: https://www.msnw.co.jp/eng/ |
Representative: | Inao Tajiri, President and Representative Director | |
Contact: | Eiji Hirashima, Executive Officer, Director of Finance and Director | |
Tel: | +81-11-613-7750 |
Scheduled date for quarterly report submission: | November 9, 2021 |
Scheduled date for dividend payment: | December 13, 2021 |
Preparation of supplemental explanatory materials: | Yes |
Results briefing to be held: | Yes (for institutional investors and analysts) |
(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1 to September 30, 2021)
(1) Consolidated operating results
(Percentages indicate YoY change)
Net sales | EBITDA | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | ||||||||||||
Six months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
52,169 | 2.2 | 3,253 | 16.7 | 1,862 | 37.4 | 2,235 | 60.0 | 1,431 | 147.2 | |||
September 30, 2021 | ||||||||||||
Six months ended | 51,045 | (2.2) | 2,787 | 22.5 | 1,355 | 70.1 | 1,397 | 78.1 | 578 | 165.1 | ||
September 30, 2020 | ||||||||||||
Note: Comprehensive income for the six months ended September 30, 2021 was 1,451 million yen (+153.1% YoY), and comprehensive income for the six months ended September 30, 2020 was 573 million yen (+332.7% YoY).
Note: EBITDA = (operating profit + depreciation + goodwill amortization)
Earnings per share | Diluted earnings | |
per share | ||
Six months ended | Yen | Yen |
47.46 | - | |
September 30, 2021 | ||
Six months ended | 19.08 | - |
September 30, 2020 | ||
Note: Please refer to "Appropriate use of earnings forecast and other special notes 2" for details of earnings per share calculations.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
As of | Million yen | Million yen | % | Yen |
62,433 | 12,504 | 20.0 | 413.81 | |
September 30, 2021 | ||||
As of | 64,448 | 11,187 | 17.3 | 370.23 |
March 31, 2021 | ||||
Reference: Shareholders' equity amounted to 12,488 million yen as of September 30, 2021 and 11,163 million as of March 31, 2021.
Note: Please refer to "Appropriate use of earnings forecast and other special notes 2" for details of shareholders' equity, equity ratio, and net assets per share calculations.
2. Dividends
Dividends per share | |||||
End of Q1 | End of Q2 | End of Q3 | Year-end | Total | |
Fiscal year ended | Yen | Yen | Yen | Yen | Yen |
- | 5.00 | - | 5.00 | 10.00 | |
March 31, 2021 | |||||
Fiscal year ending | - | 5.00 | |||
March 31, 2022 | |||||
Fiscal year ending | |||||
March 31, 2022 | - | 5.00 | 10.00 | ||
(forecast) |
Note: No revisions have been made to the Company's most recently announced dividend forecast.
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
(Percentages indicate YoY change)
Profit attributable | Earnings | ||||||||||
Net sales | EBITDA | Operating profit | Ordinary profit | to owners of | |||||||
per share | |||||||||||
parent | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full-year | 105,700 | 1.4 | 6,500 | 1.2 | 3,500 | 2.0 | 4,000 | 15.0 | 1,800 (18.1) | 59.69 |
Note: No revisions have been made to the Company's most recently announced consolidated earnings forecast.
Note: EBITDA = (operating profit + depreciation + goodwill amortization)
*Notes
(1) Changes in significant subsidiaries during the period under review: None
(Transfers of specified subsidiaries associated with changes in the Company's scope of consolidation) Newly added: None
Excluded: None
- Distinctive accounting methods applied when preparing quarterly consolidated financial statements: None
- Changes in accounting policies, accounting estimates and retrospective restatements
1. | Accounting policy changes due to accounting standard revisions, etc.: | Yes |
2. | Other accounting policy changes: | None |
3. | Changes in accounting estimates: | None |
4. | Retrospective restatements: | None |
Note: Please refer to "(4) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" within "2. Quarterly Consolidated Financial Statements and Primary Notes" on page 10 of the attached materials for details.
(4) Number of shares outstanding (common stock) | |||||
1. | Shares outstanding | As of September 30, 2021 | 30,642,600 | As of March 31, 2021 | 30,642,600 |
(including treasury stock) | |||||
2. | Treasury shares outstanding As of September 30, 2021 | 464,055 | As of March 31, 2021 | 489,055 | |
3. | Period-average shares | ||||
Six months ended | Six months ended | ||||
outstanding (cumulative | 30,163,381 | 30,343,965 | |||
September 30, 2021 | September 30, 2020 | ||||
quarterly figures) | |||||
Note: Please refer to "Appropriate use of earnings forecast and other special notes 2" for details of calculation method regarding period-end treasury stock numbers and period-average shares outstanding (cumulative quarterly figures).
*The financial information in this quarterly report is not subject to review by certified public accountants or auditing firms.
*Appropriate use of earnings forecast and other special notes
- The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company, and certain assumptions it considers reasonable, but are not intended to be a promise that the Company will achieve. Actual results may vary materially from forecasts due to a variety of factors. For matters concerning earnings forecasts, please refer to page 3 of the attached materials "1. Qualitative Information on Quarterly Financial Performance (3) Explanation of Consolidated Earnings Forecasts and Other Projections."
- In the quarterly consolidated balance sheets, the Company's shares held as trust assets of the Board Benefit Trust (BBT) are recorded as treasury stock. They are included in treasury stock in calculations of earnings per share, equity ratio, net assets per share, shareholders' equity, period-end treasury stock numbers, and period-average shares outstanding (cumulative quarterly figures).
Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Six Months Ended September 30, 2021
Accompanying Materials - Contents | ||
(2) | Explanation of Financial Position.................................................................................................................................. | 3 |
(3) | Explanation of Consolidated Earnings Forecasts and Other Projections ..................................................................... | 3 |
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................................. | 4 | |
(1) | Consolidated Balance Sheet ........................................................................................................................................ | 4 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income...................................... | 6 |
(3) | Consolidated Statement of Cash Flows ....................................................................................................................... | 8 |
(4) | Notes to Quarterly Consolidated Financial Statements .............................................................................................. | 10 |
(Notes to going concern assumptions)......................................................................................................................... | 10 | |
(Notes in the event of significant changes in shareholders' equity).............................................................................. | 10 | |
(Changes in accounting policies) ................................................................................................................................. | 10 | |
(Segment information).................................................................................................................................................. | 12 |
1
Medical System Network Co., Ltd.(4350) Consolidated Financial Results for the Six Months Ended September 30, 2021
1. Qualitative Information on Quarterly Financial Performance
(1) Explanation of Operating Results
During the six months ended September 30, 2021, the Company recorded consolidated net sales of 52,169 million yen (+2.2% YoY), operating profit of 1,862 million yen (+37.4%YoY), and ordinary profit of 2,235 million yen (+60.0% YoY). There was solid growth in the number of new network affiliates in the Pharmaceutical Network Business, and while prescription unit price fell in the Dispensing Pharmacy Business, the number of prescriptions recovered to a certain extent. Profit attributable to owners of parent was 1,431 million yen (+147.2% YoY), due to gains on the sale of investment securities and the impact of tax effects from the absorption-type merger with the Company's consolidated subsidiary, Home-Visit Nursing Care Station Himawari Co., Ltd., in July 2021.
Results by segment were as follows. Net sales for individual segments include intersegment sales.
1) Community Pharmacy Network Segment
In the Community Pharmacy Network Segment, we aim to provide value throughout the entire pharmaceutical supply chain. Our businesses include a pharmaceutical network to support pharmacy management, dispensing pharmacy operations, pharmaceutical manufacture and marketing, and a digital shift business using the communication app LINE.
In the Pharmaceutical Network Business, the environment surrounding the pharmacy industry has become increasingly severe as the NHI drug price list, which was previously revised every other year, is subject to the annual revision from April 2021. The number of new network affiliates continued to post solid growth amid mounting needs for operational stability in these circumstances. As of September 30, 2021, network affiliates totaled 6,700, comprising 419 Group dispensing pharmacies and 6,281 general network affiliates (an increase of 584 from March 31, 2021).
In the Dispensing Pharmacy Business, while the prescription unit price fell, the number of prescriptions recovered to a certain extent. As of September 30, 2021, the Company had 419 dispensing pharmacies, one care plan center, and eight drug/cosmetic stores.
In the Manufacture and Market Pharmaceuticals Business, we launched nine products (five ingredients) in the six months ended September 30, 2021, and had 77 products (39 ingredients) available as of September 30, 2021.
In the Digital Shift Business, as of the end of September 2021, the number of registered LINE users exceeded 170,000, the largest among dispensing pharmacies in Japan, with 552 pharmacies using the service.
As a result, segment sales for the six months ended September 30, 2021 were 49,663 million yen (+2.3% YoY) and operating profit was 2,885 million yen (+21.8% YoY).
2) Leasing and Facility-related Segment
In the Leasing and Facility-related Segment, while real estate lease revenue was generally solid, and orders for construction projects increased, occupancy rates at serviced residences for the elderly slumped as sales activities were restricted due to the COVID-19 pandemic. As a result, segment sales were 1,536 million yen (+6.8% YoY) and operating profit was 32 million yen (+97.5% YoY).
As of September 30, 2021, occupancy rates were stable at three of our five serviced residences for the elderly. At the remaining two, Wisteria Senri-Chuo had an occupancy rate of 78.1% (64 out of 82 units occupied), and Wisteria Minami-Ichijo had an occupancy rate of 70.7% (82 out of 116 units occupied). We plan to carry out marketing activities to reach our fiscal year-end target occupancy rate of 90%, while taking care to prevent COVID-19 infections.
3) Meal Catering Segment
In the Meal Catering Segment, the number of meals supplied fell during the COVID-19 pandemic, but gross profit improved as we changed suppliers. Segment sales were 1,166 million yen (-6.5% YoY) and operating profit was 1 million yen (operating loss of 13 million yen in the same period of the previous fiscal year).
4) Other Segment
The Other Segment provides home-visit nursing care. Segment sales were 152 million yen (+38.7% YoY) and the
2
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Medical System Network Co. Ltd. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 06:11:26 UTC.