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Financial results presentation4350MEDICAL SYSTEM NETWORK Co.,Ltd.Retail

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

In the interim period of the fiscal year ending March 2027, revenue increased 4.7% year on year, driven by growth in the regional pharmacy network business and other operations, while operating profit declined 44.7% due to increases in pharmaceutical procurement prices, personnel expenses, and system-related costs. Results exceeded the interim plan for both revenue and operating profit, but the full-year profit progress rate is low.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-44.7
Year-on-year change in operating income (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥66,887 million+4.7%
Operating profit¥710 million-44.7%
Ordinary income¥607 million-50.0%
Net income¥57 million-87.2%
Operating profit margin
Rate1.1
Year-on-year change (points)-0.9
Full-year earnings forecast
Net Sales
¥136,000 million
EBITDA
¥6,420 million
Operating profit
¥3,000 million
Ordinary income
¥2,700 million
Profit attributable to owners of the parent
¥1,000 million
Earnings per share
¥34.21
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales49.2
EBITDA36.8
Operating profit23.7
Ordinary income22.5
Profit attributable to owners of the parent5.8
Regional Pharmacy Network Business Revenue49.3
Regional Pharmacy Network Business Segment Profit36.5
Rental and Facilities-Related Business / Food-Service Business / Home-Visit Nursing Business Revenue44.8
Number of new store openings and M&A transactions50
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both revenue and operating profit exceeded the interim plan. However, the number of new store openings and M&A transactions is expected to fall short of plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year on year against the same period last year
Net Sales
Community Pharmacy Network3,522
Rental Facilities82
Food services and home-visit nursing-531
Other-49
Operating profit
Community Pharmacy Network-351
Rental Facilities3
Food services and home-visit nursing-26
Adjustments-200
Versus plan
Net Sales
Community Pharmacy Network1,093
Rental Facilities-141
Food services and home-visit nursing18
Other116
Operating profit
Community Pharmacy Network-27
Rental Facilities-13
Food services and home-visit nursing-21
Other73
New initiatives
  • Launch of MEDISYS ONE, an integrated portal site for pharmacies and medical institutions
  • Full-scale operation of the integrated customer platform
  • Planned opening of the Mita Logistics Center
  • Organizing and standardizing service menus in the food, housing, sleep and prevention fields, and beginning their rollout at priority locations
  • Establishment of a cross-selling structure leveraging the customer management platform
Key KPIsA metric the company considers important as a management benchmark.
  • Number of support cases18,400 Facility
    Year on year against the same period last year+22.7%
  • Number of patients with chronic diseases127.9 10,000 people
    Year on year against the same period last year-0.7%
  • Pharmaceutical transaction volume¥4,633 100 million
    Year on year against the same period last yearNot disclosed
  • ARPU¥74.6 thousand
    Year on year against the same period last year+0.1%
  • Number of trading locations10,124 Stores
    Year on year against the same period last year+23.0%
  • Number of products handled126 Options
    Year on year against the same period last year+5.0%
  • Dispensing Reimbursements¥55,777 million
    Year on year against the same period last year+5.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
All Stores
Number of prescriptions
5,153 thousand prescriptions+3.0%
Prescription Unit Price
¥10,824 per prescription+2.3%
Existing stores
Number of prescriptions
4,866 thousand prescriptions-0.3%
Prescription Unit Price
¥11,001 per prescription+3.5%
Segment results
Community Pharmacy Network Business
Net Sales
¥64,930 million+5.7%
Segment profit
¥2,205 million-13.8%
Rental and Facilities-Related Business / Food-Service Business / Home-Visit Nursing Business
Net Sales
¥2,338 million-16.1%
Segment profit
¥0 million
Medium-term management plan targets
Pharmaceutical transaction volume¥1 trillion in the final year
Number of trading locations15,550 stores in the final year
Number of products handled250 products in the final year
Number of stores and locations
Number of Stores at Period-End474 Stores
Store openings during the period6 Stores
Store Closures and Business Transfers During the Period5 Stores
M&A During the Period1 Stores
Logistics facilitiesMita Logistics Center scheduled to open in March 2027
Capital expenditures
292 Million yen system-related investment
Annual Dividend
Annual dividend per share¥12
Interim¥6
End of period¥6
Payout ratio
Rate35.1
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥66,887 million (YoY +4.7%)
Operating profit¥710 million (YoY -44.7%)
Ordinary income¥607 million (YoY -50.0%)
Net income¥57 million (YoY -87.2%)
Operating profit marginRate 1.1 / Year-on-year change (points) -0.9
Full-year earnings forecastNet Sales ¥136,000 million / EBITDA ¥6,420 million / Operating profit ¥3,000 million / Ordinary income ¥2,700 million / Profit attributable to owners of the parent ¥1,000 million / Earnings per share ¥34.21
Progress against full-year forecastNet Sales 49.2 / EBITDA 36.8 / Operating profit 23.7 / Ordinary income 22.5 / Profit attributable to owners of the parent 5.8 / Regional Pharmacy Network Business Revenue 49.3 / Regional Pharmacy Network Business Segment Profit 36.5 / Rental and Facilities-Related Business / Food-Service Business / Home-Visit Nursing Business Revenue 44.8 / Number of new store openings and M&A transactions 50
Self-assessment against the planBoth revenue and operating profit exceeded the interim plan. However, the number of new store openings and M&A transactions is expected to fall short of plan.
Segment resultsCommunity Pharmacy Network Business Net Sales ¥64,930 million (YoY +5.7%) / Segment profit ¥2,205 million (YoY -13.8%) / Rental and Facilities-Related Business / Food-Service Business / Home-Visit Nursing Business Net Sales ¥2,338 million (YoY -16.1%) / Segment profit ¥0 million
Breakdown of Factors Affecting the ChangeYear on year against the same period last year Net Sales Community Pharmacy Network 3,522 / Rental Facilities 82 / Food services and home-visit nursing -531 / Other -49 / Operating profit Community Pharmacy Network -351 / Rental Facilities 3 / Food services and home-visit nursing -26 / Adjustments -200 / Versus plan Net Sales Community Pharmacy Network 1,093 / Rental Facilities -141 / Food services and home-visit nursing 18 / Other 116 / Operating profit Community Pharmacy Network -27 / Rental Facilities -13 / Food services and home-visit nursing -21 / Other 73
Key KPIsIndicator name Number of support cases / Value 18,400 Facility / Year on year against the same period last year 22.7 Facility, Indicator name Number of patients with chronic diseases / Value 127.9 10,000 people / Year on year against the same period last year -0.7 10,000 people, Indicator name Pharmaceutical transaction volume / Value ¥4,633 100 million / Year on year against the same period last year Not disclosed, Indicator name ARPU / Value ¥74.6 thousand / Year on year against the same period last year ¥0.1 thousand, Indicator name Number of trading locations / Value 10,124 Stores / Year on year against the same period last year 23 Stores, Indicator name Number of products handled / Value 126 Options / Year on year against the same period last year 5 Options, Indicator name Dispensing Reimbursements / Value ¥55,777 million / Year on year against the same period last year ¥5.3 million
Unit price and quantity metricsAll Stores Number of prescriptions 5,153 thousand prescriptions (YoY +3.0%) / Prescription Unit Price ¥10,824 per prescription (YoY +2.3%) / Existing stores Number of prescriptions 4,866 thousand prescriptions (YoY -0.3%) / Prescription Unit Price ¥11,001 per prescription (YoY +3.5%)
Number of stores and locationsNumber of Stores at Period-End 474 Stores / Store openings during the period 6 Stores / Store Closures and Business Transfers During the Period 5 Stores / M&A During the Period 1 Stores / Logistics facilities Mita Logistics Center scheduled to open in March 2027
Medium-term management plan targetsPharmaceutical transaction volume ¥1 trillion in the final year / Number of trading locations 15,550 stores in the final year / Number of products handled 250 products in the final year
Annual DividendAnnual dividend per share ¥12 / Interim ¥6 / End of period ¥6
Payout ratioRate 35.1
Capital expenditures292 Million yen (system-related investment)
New initiativesLaunch of MEDISYS ONE, an integrated portal site for pharmacies and medical institutions, Full-scale operation of the integrated customer platform, Planned opening of the Mita Logistics Center, Organizing and standardizing service menus in the food, housing, sleep and prevention fields, and beginning their rollout at priority locations, Establishment of a cross-selling structure leveraging the customer management platform
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Although the number of supported customers increased steadily, profit declined due to higher pharmaceutical procurement prices, increased personnel expenses, and higher system-related costs associated with integrating the customer management platform. Revenue from other businesses also declined following the partial transfer of the contract catering business.

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Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | MEDICAL SYSTEM NETWORK Co.,Ltd. (4350) timely disclosure | Komori