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Financial Information

Business Results

We are a private equity company, and our shares are restricted for transfer. However, business results are published here as a reference for clients.

Main Financial Index

(in million yens)
Period ended December 2016 Year
Period ended December 2017 Year
Period ended December 2018 Year
Net sales 9,663 -4.3% 9,551 -1.2% 9,854 +3.2%
Operating profit
(Operating profit margin)
-80.6% 269
+174.5% 221
Ordinary profit
(Ordinary profit margin)
-82.1% 274
+197.8% 209
Profit after tax
(Profit margin after tax)
-180.9% 655
- 132
Depreciation 468 -4.9% 415 -11.3% 367 -11.6%
Operating profit before depreciation
(Operating profit margin before depreciation)
-43.2% 684
+20.8% 588
Total capital 14,275 -3.0% 14,166 -0.8% 14,457 +2.1%
Shareholder's equity
(Shareholder's equity ratio)
-3.7% 10,521
+4.9% 10,634
Liabilities with interest
(Ratio of liabilities with interest)
+72.7% 984
-38.7% 782
Return on assets
-2.3% 4.6% 0.9%
Return on equity
-3.3% 6.2% 1.2%
Number of employees 219 220 219
Net sales per employee 44,125
thousand yen
thousand yen
thousand yen
Ordinary profit per employee 422
thousand yen
thousand yen
thousand yen

Operation Overview and Outlook

Since its foundation in 1950, our company has achieved rapid growth as a specialized manufacturer of pharmaceuticals listed in the Japanese Pharmacopoeia (JP). In recent years, we have continued expanding our business by positioning the manufacture and sales of medical disinfectants and magnesium oxide preparations (laxative) as the mainstream business line as they represent evolving products in the field of JP pharmaceuticals.

As part of effort to further expand our business, we have been investing aggressively in both tangible and intangible resources recently. For tangible resources, we completed the Shin-Sayama Distribution Center with an automated distribution system in 2000, obtained a new site for our plant in Iruma, Saitama, in 2002, and built the first building for the Iruma Plant specialized in the manufacture of new products in 2003 and the second building in 2007. We extended the second and first buildings in 2009 and 2012, respectively. For intangible resources, with the aim of providing scientific information to medical institutions, we launched "Carlisle", a publication on healthcare-associated infection in 1996 and "Y's Square", a website providing information specializing in the same, in 1998. Since then, we have actively published information on infection prevention measures and held seminars for healthcare professionals, which served to enhance customer trust and our brand power.

The current environment surrounding ethical pharmaceutical manufacturers remains tough as a result of the promotion of medical cost management policies by the public administration, along with the rising cost of raw materials. Our company has, however, secured stable growth by continuing to focus on the development of products that cater to the needs of the medical front and enhance the quality of life of patients by expanding the manufacture and sales of new products. Currently it still maintains its solid upward trend backed by increased sales of MaglaxTM Tablet (currently called "Magnesium Oxide Tablet "Yoshida""), a magnesium oxide preparation launched in 1999, and the successive introduction of new disinfection-related products. We also launched MaglaxTM Granules 83% (currently called "Magnesium Oxide Fine Granules 83% "Yoshida"") in 2006, another dosage form of the magnesium oxide preparation, and HexizacTM AL Solution 1% in 2010, a chlorhexidine preparation that received increased recognition as an antiseptic in recent years.

In an effort to further expand operations while stabilizing our management base on a permanent basis, we have been implementing plans to increase staff in the technical and sales departments and to make a large-scale investment in production facilities in recent years.In 2016, although our profit declined significantly from the previous fiscal year because of such factors as the change in the revenue recognition method, it was only about 140 million yen less than 2015 from the calculation based on the previous revenue recognition method. In the course of changing the name of our key product, MaglaxTM Preparations (former product name), to a Japanese accepted name (JAN), we increased the product inventory to avoid an out-of-stock situation so that we could fully fulfill our product supply responsibility. However, Maglax was replaced by those with the new JAN more quickly than expected, so we were forced to dispose of the excess inventory and eventually recorded a net loss for the fiscal year. In 2017, some factors such as the unexpectedly significant change in the environment surrounding the pharmaceutical industry inevitably contributed to our lower earnings than those in the previous year. However, because of our ongoing efforts to reduce sales costs and expenses, the operating profits before amortization, which represent real corporate performance, substantially increased.

In 2018, with the implementation of drug price revisions taking place and the introduction of “drug disribution improvement guidelines” under the leadership of the Japanese Government, the business environment for the pharmaceuticals industry became harsh; however, we were able to achieve an increase in revenue over the previous term thanks to factors such as projects for which we have been steadily building up marketing activities bearing fruit (in the form of sales). With regard to profits, manufacturing costs increased due to the impact of the weak yen, forcing a decrease in profits compared with the previous term for operating profits before amortization, which is the measure of true capability. In 2019, it is predicted that adverse winds will blow even stronger, with government policies to suppress pharmaceutical prices continuing to strengthen; the impact on pharmaceutical prices due to the increase in consumption tax scheduled for October being uncertain; and concrete moves to resume discussions on the issues of multi-drug administration (polypharmacy) and the introduction of drug formularies being made. However, we can expect that new projects that were realized in the previous term will remain on track, with the prospect that we will be able to achieve an increase in both revenue and profits. Furthermore, with regard to the issues of polypharmacy and the introduction of drug formularies, we intend to respond positively and appropriately. By surpassing our long-held target of 10 billion yen in sales, we aim to secure our position as a medium-sized business in both name and substance as we celebrate the 70th anniversary of the company’s establishment on July 15, 2020.

Based on the following, we believe that we have a bright outlook for a continued increase in sales: (1) a further increase in sales of magnesium oxide preparations can be expected due to high potential demand for these preparations; (2) as for the disinfectant business, the high recognition we obtained in the field of academic information is increasingly bearing fruit in the form of business outcomes. Moreover, we plan to continue proactively promoting R&D activities that accurately grasp the needs of the medical community to maintain long-term growth.With a good financial constitution and the trust we have established with financial institutions, we have no destabilizing factors with respect to capital.

February 20, 2019
Yoshida Pharmaceutical
Masahiro Endo, President