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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 2018 Year
Period ended December 2019 Year
Period ended December 2020 Year
Net sales 9,854 +3.2% 9,680 -1.8% 9,829 +1.5%
Operating profit
(Operating profit margin)
-17.8% 195
-11.8% 545
Ordinary profit
(Ordinary profit margin)
-23.7% 223
+6.7% 530
Profit after tax
(Profit margin after tax)
-79.8% 142
+7.6% 324
Depreciation 367 -11.6% 337 -8.2% 333 -1.2%
Operating profit before depreciation
(Operating profit margin before depreciation)
-14.0% 532
-9.5% 878
Total capital 14,457 +2.1% 14,792 +2.3% 16,665 +12.7%
Shareholder's equity
(Shareholder's equity ratio)
+1.1% 10,756
+1.1% 11,062
Liabilities with interest
(Ratio of liabilities with interest)
-20.5% 982
+25.6% 2,382
Return on assets
0.9% 1.0% 1.9%
Return on equity
1.2% 1.3% 2.9%
Number of employees 219 224 222
Net sales per employee 44,994
thousand yen
thousand yen
thousand yen
Ordinary profit per employee 953
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 ShinSayama 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. MaglaxTM Tablet (currently called "Magnesium Oxide Tablet 'Yoshida'"), a magnesium oxide preparation launched in 1999, has grown to be one of our main products. We maintain a healthy balance between the two departments of laxatives (magnesium oxide preparations) and disinfectants, and these are the sources or our ability to secure stable sales. 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.
2018 was a harsh business environment for this industry because it was a year in which drug price revisions were conducted and in which “Guidelines for the Improvement of Commercial Transaction Practices of Ethical Drugs by the national government were introduced, but we accomplished an increase of revenue compared to the previous period due to factors such as the fact that cases for which we have steadily accumulated business activities thus far came to fruition as results (sales). In terms of profits, “operating profits before depreciation,” which indicate true abilities, were forced to be a decrease of profits compared to the previous period, due to factors such as an increase of manufacturing costs because of the influence of an underlying condition of a weak yen.
In 2019, net sales stopped at 9.68 billion yen (an increase of -174 million yen compared to the previous period, and a growth rate increase of -1.8%) because of the factors of being forced to struggle under government policies to suppress pharmaceutical costs that continued to be forcefully promoted, and the market for magnesium oxide preparations, which are some of our main products, was caught up in low-price competition. However, we also note the fact that disinfectants, which are another main product, are favorably causing sales to grow. In terms of profits, the amount of added value {Sales − Price of external purchases (Raw materials costs + External order costs + Costs of purchased products)} declined from the effect of a reduction in sales, but we were able to keep the amount of decreased profit compared to the previous period comparatively small by taking care to cut costs.
In 2020, we experienced downward pressure on revenue due to developments that included difficult conditions for sale of magnesium oxide preparations, which are some of our main products, as a result of factors such as intensification of competition along with decreases in the numbers of patients being examined or hospitalized during the COVID-19 pandemic since the start of the year and suspension of supplying some loss-making products while striving to earn the understanding of medical institutions. Still, demand for disinfectants was very strong in response to COVID-19, and as a result we were able to record growth in revenues while more than covering the effects of such downward pressure. Profits increased substantially year on year, due mainly to factors such as improvements in production efficiency and reduced costs as a result of restraint on sales activities during the COVID-19 pandemic.
Supplemental explanation of the shareholder's (equity) capital ratio at the end of the period ended December 2020. The main reasons for the decrease of 6.3% year on year to 66.4% in the shareholder's (equity) capital ratio at the end of the period ended December 2020 were borrowing using a credit line of 1.4 billion yen with our main banks and retention of an equal amount as funds on hand, in preparation for uncertainties in funds demand during COVID19. Incidentally, shareholder's (equity) capital at the end of the period ended December 2020 stood at 11.062 billion yen, up 306 million yen from the end of the previous period. The effective shareholder's (equity) capital ratio after deducting borrowing of 1.4 billion yen and deposits of 1.4 billion yen was 72.5%.

While 2021 will be a year in which production and sales structures will be greatly restricted by COVID-19, since there are no signs of when the pandemic will be brought under control and to an end, we intend to do business while keeping in mind at all times our “Mission”, as a “Manufacturer and seller of pharmaceuticals, to fulfil our responsibility to supply high-quality pharmaceuticals”. While the business environment of the pharmaceuticals industry is becoming increasingly severe—for example, intermediate-year drug-price revisions will take place in April of this year—we intend to overcome these challenges while recognizing the importance of our status as a company that manufactures and sells the pharmaceuticals that the world needs. Although demand for disinfectants is expected to remain strong, competition is intensifying due to a succession of new entrants to the disinfectants segment since the second half of last year. In consideration of a possible future breakdown in the balance between supply and demand as a result, we expect it to be difficult to secure sales of disinfectants at the same level as last year. Accordingly, we expect a slight decrease in sales from last year to be inevitable. While a decrease in profits from last year will be unavoidable due to downward pressure from factors such as rising depreciation expenses resulting from demand for updating machinery, we expect to be able to secure adequate profits through means including productivity improvements from accelerating business streamlining efforts and continuing to focus on cutting costs.
We intend to follow the intent of the Guidelines for Sales Information and Provision Activities for Ethical Drugs that were put into effect in April 2019 and will continue to carry out appropriate sales information activities.

While potential demand for magnesium oxide preparations is strong, it also is a fact that competition has been intensifying recently. We will strive to recover sales, which have been sluggish recently, through steadily implementing various measures related to magnesium oxide preparations.
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. We have a good financial constitution and have established trust with financial institutions, we have no destabilizing factors with respect to capital.

February 22, 2021
Yoshida Pharmaceutical
Masahiro Endo, President