Concentration of Credit Risk Among a Small Number of Wholesalers
First written in FY2017. 3 of 9 entries say "Mitigated", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2017: 9 of 63 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026Lower credit concentration and higher trade receivablesAnnual report
「Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 69% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥87.229 billion and ¥88.415 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies declined from approximately 72% to approximately 69%, while trade receivables increased from ¥87.229 billion to ¥88.415 billion. - FY2025WorsenedAnnual report
「Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 72% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥73.319 billion and ¥87.229 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies increased from approximately 70% in the previous year to approximately 72%, while trade receivables also increased from ¥73.319 billion to ¥87.229 billion. - FY2024MitigatedAnnual report
「Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 70% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥86.297 billion and ¥73.319 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies declined from approximately 71% to approximately 70%, and trade receivables also decreased from ¥86.297 billion to ¥73.319 billion. - FY2023Lower credit concentration and higher trade receivablesAnnual report
「Revenue from the five largest group companies accounts for approximately 71% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥72.726 billion and ¥86.297 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies declined from approximately 72% to approximately 71%, while trade receivables increased from ¥72.726 billion to ¥86.297 billion. - FY2022Lower credit concentration and higher trade receivablesAnnual report
「Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 72% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥59.689 billion and ¥72.726 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies declined from approximately 73% in the previous year to approximately 72%, while trade receivables increased from ¥59.689 billion to ¥72.726 billion. - FY2021MitigatedAnnual report
「Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 73% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥56.591 billion and ¥59.689 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of revenue among the five largest group companies declined from approximately 76% in the previous year to approximately 73%. Trade receivables increased, however, and credit concentration risk remains. - FY2019Quantification of credit concentrationAnnual report
「Our group's revenue mainly comprises royalty income and sales of products through a small number of wholesalers. Revenue from the five largest group companies, including the parent company and its group companies, accounts for approximately 76% of revenue in the consolidated income statement. Trade receivables from these five largest group companies were ¥56.081 billion and ¥55.140 billion in the previous and current consolidated fiscal years, respectively.」
The concentration of credit risk among a small number of wholesalers and other customers has been newly quantified, with the five largest group companies accounting for approximately 76% of revenue and their trade receivables also disclosed. - FY2018MitigatedAnnual report
「As a general principle, our group establishes credit limits and transaction terms based on its credit management rules to mitigate monetary losses arising from defaults by these customers. To reduce concerns over collection, we also monitor payment due dates and outstanding balances for each customer, obtain credit information on major customers from third-party rating agencies, and conduct ongoing credit assessments. No material bad debt losses have been recorded on our group's trade receivables in the past.」
Although credit risk remains concentrated among a small number of wholesalers, the disclosure states that the group manages credit limits and transaction terms, payment due dates and outstanding balances, and credit assessments based on third-party ratings. - FY2017First statedAnnual report
「Like other pharmaceutical companies, our group sells products through a small number of wholesalers and is exposed to a concentration of credit risk with these wholesalers. If any of these wholesalers encounters financial difficulties, this could have a material adverse effect on our group's financial results.」
The disclosure explicitly identifies for the first time the concentration of credit risk arising from the sales structure involving a small number of wholesalers as a risk that could have a material impact if a customer experiences financial difficulties.