Increase in the Sales Mix of High-Margin Proprietary Products

「Within the product mix, the growth rate of proprietary products in EP/ablation was low due to the penetration of PFA, while purchased products recorded a high growth rate. As a result, the proprietary-product ratio was 56.0%, down 1.4 percentage points from the previous fiscal year, and the gross profit margin declined 1.0 percentage point to 59.4%.」

「The proportion of in-house products fell to 56.0% (down 1.4 points year on year), while the gross profit margin declined to 59.4% (down 1.0 point year on year).」

「The gross profit margin was 60.0%, down 0.6 percentage points from the same period of the previous year. In addition to the decline in selling prices noted above, a deterioration in the product mix had an impact. The proprietary-product ratio was 55.1%, down 2.5 percentage points from the same period of the previous year.」

「The impact of margin deterioration was absorbed by lower manufacturing costs and reduced inventory disposal and valuation losses.」

「The proprietary-product ratio was 57.6%, down 1.5 percentage points from the same period of the previous year, due to higher sales of purchased products, including cerebrovascular products and femoral-vein hemostasis devices. Meanwhile, the gross profit margin was maintained at 60.6%, roughly in line with the same period of the previous year, due to the withdrawal from the low-profitability coronary intervention business and lower costs for proprietary products.」

「The proprietary-product ratio rose 4.6 percentage points year on year to 59.0%, due to higher sales of proprietary products resulting from an increase in AF cases and lower sales of purchased products resulting from the change in the distribution channel for RF Needle. In addition, inventory disposal and valuation losses decreased by ¥182 million from the same period of the previous year. As a result, the gross profit margin was 60.8%, up 3.3 percentage points from the same period of the previous year.」

「Net sales increased by ¥684 million from the same period of the previous year to ¥15,231 million. The proprietary-product ratio rose 5.2 percentage points year on year to 59.1%, due to higher sales of proprietary products resulting from an increase in AF cases and lower sales of purchased products resulting from the change in the distribution channel for RF Needle. In addition, inventory disposal and valuation losses decreased by ¥141 million from the same period of the previous year. As a result, the gross profit margin was 60.6%, up 3.5 percentage points from the same period of the previous year.」

「As a result, the gross profit margin was 60.9%, up 3.4 percentage points from the same period of the previous year.」

「The gross profit margin rose 1.8 percentage points from the previous fiscal year to 57.8%. The main reasons were a ¥1,413 million year-on-year reduction in losses on the disposal and valuation of inventories, including product and merchandise inventories and raw materials, and a 2.5 percentage point increase in the Company’s product ratio to 54.9%. These factors absorbed the negative impact of the deterioration in the gross profit margin accompanying the reimbursement price revision and lower sales volumes of certain products.」

「The gross profit margin was 57.5%, up 1.7 percentage points from the same period of the previous year. The main reason was that the proprietary-product ratio rose 2.5 percentage points to 54.4%, absorbing negative effects including a deterioration in the gross profit margin associated with revisions to reimbursement prices and lower sales volumes for certain products.」

「The proprietary-product ratio rose 2.6 percentage points from the same period of the previous year to 53.9%. As a result, the gross profit margin rose 0.2 percentage points to 57.1%.」

「The proprietary-product ratio rose 3.2 percentage points from the same period of the previous year to 54.6%.」

「EP/ablation and surgical-related products, most of which are proprietary products, remained solid, and the proprietary-product ratio of net sales increased. As a result, negative factors were absorbed, and the gross profit margin rose 0.1 percentage points from the previous fiscal year.」

「Against a backdrop of recovering procedure volumes as COVID-19 infections declined, sales of proprietary products in EP and ablation and surgical applications remained strong, increasing their share of sales.」

「As sales of proprietary products in EP and ablation and surgical applications increased significantly from the same period of the previous fiscal year, the proprietary product share of sales rose and the gross profit margin improved by 1.7 percentage points.」

「For the fiscal year ending March 2022, as the number of procedures recovers, the sales mix of proprietary products, including EP and ablation products and surgical products, is expected to rise by 0.9 percentage points from the previous fiscal year to 50.8%, and the gross profit margin is expected to improve.」

「Sales of EP and ablation products, which had declined as the number of procedures fell due to COVID-19, are recovering. Sales of the Company's proprietary open stent grafts in the surgical field are also growing, resulting in quarterly improvements in the proprietary product mix and gross profit margin. However, for the cumulative third quarter of the fiscal year, the gross profit margin declined by 0.9 percentage points from the same period of the previous fiscal year as sales of purchased products, including BSC CRM-related products, increased.」

「Sales of purchased products increased as sales of BSC CRM-related products, for which full-scale sales began in September 2019, grew. Meanwhile, sales of proprietary products such as EP and ablation products declined due to the impact of COVID-19, particularly during the first quarter, lowering the proprietary product mix and causing the gross profit margin to decline by 2.0 percentage points from the same period of the previous fiscal year.」

「Sales of purchased products increased as sales of BSC CRM-related products grew, while sales of proprietary products such as EP and ablation products declined due to the impact of COVID-19. As a result, the gross profit margin declined by 3.5 percentage points from the same period of the previous fiscal year.」

「In terms of profit, the sales scale expanded substantially following the launch of CRM-related products manufactured by BSC, despite the impact of the October 2019 reduction in reimbursement prices. At the same time, the sales mix of proprietary products, which have higher margins than purchased products, declined. S-ICD also made a temporarily limited contribution to profit during the period when it was sold ahead of other BSC products, causing the gross profit margin to decline by 4.7 percentage points from the previous fiscal year.」

「The sales mix of proprietary products declined as sales of CRM-related products manufactured by BSC expanded rapidly following the advance launch of S-ICD in April 2019 and the launch of all products in September 2019. In addition, S-ICD made a limited contribution to profit during the advance-sales period, and the revision of reimbursement prices following the consumption tax increase in October 2019 also had an impact, among other factors, causing the gross profit margin to decline by 4.8 percentage points from the same period of the previous fiscal year.」

「Sales of S-ICD manufactured by BSC, which began on an advance basis in April 2019, were strong, and purchased products increased as full-scale sales of BSC products began in September, causing the sales mix of proprietary products to decline. In addition, S-ICD made only a limited contribution to profit during the advance-sales period through August 2019, among other factors, causing the gross profit margin to decline by 3.8 percentage points from the same period of the previous fiscal year.」

「Sales of purchased products increased, driven by the contribution of new products, causing the sales mix of proprietary products to decline slightly. Although sales of S-ICD manufactured by Boston Scientific, for which advance sales began in April 2019, were strong, its contribution to profit during the advance-sales period was lower than after full-scale sales began in September 2019. As a result, among other factors, the gross profit margin declined by 3.1 percentage points from the same period of the previous fiscal year.」

「Although the sales mix of proprietary products was broadly at the same level as in the previous fiscal year, the gross profit margin on a non-consolidated basis improved as highly profitable proprietary products grew. On a consolidated basis, however, the positive ¥1.17 billion impact on gross profit recorded in the previous fiscal year as an adjustment to unrealized profits associated with the merger of a subsidiary did not recur, causing the gross profit margin to decline by 1.7 percentage points from the previous fiscal year.」

「Although the sales mix of proprietary products was at the same level as in the same period of the previous fiscal year, the gross profit margin on a non-consolidated basis improved as highly profitable proprietary products grew. On a consolidated basis, however, the positive ¥829 million impact on gross profit recorded in the same period of the previous fiscal year as an adjustment to unrealized profits associated with the merger of a subsidiary did not recur, causing the gross profit margin to decline by 1.0 percentage point from the same period of the previous fiscal year.」

「Although the sales mix of proprietary products declined from the same period of the previous fiscal year as sales of purchased products, including new products, increased, sales of highly profitable proprietary products grew, resulting in an improvement in the gross profit margin on a non-consolidated basis.」

「Although the sales mix shifted toward purchased products due in part to the introduction of new products, the standalone gross profit margin improved year on year because sales of the Company’s highly profitable products expanded.」

「In terms of profit, sales of highly profitable items increased for both purchased products and proprietary products. In addition, adjustments to unrealized profits associated with the absorption merger of a consolidated subsidiary resulted in a positive ¥1.17 billion impact on gross profit, contributing to a 3.6-percentage-point improvement in the gross profit margin from the previous fiscal year.」

「In addition to growth in sales of highly profitable products, both sourced and our own, the gross profit margin improved 3.7 percentage points year on year due in part to adjustments for unrealized gains associated with the absorption merger of a consolidated subsidiary effective 1 April last year.」

「In both purchased products and proprietary products, sales of highly profitable items increased. In addition, adjustments to unrealized profits associated with the absorption merger of a consolidated subsidiary effective 1 April of this year contributed to a 3.7-percentage-point improvement in the gross profit margin from the same period of the previous fiscal year.」

「In both purchased products and proprietary products, sales of highly profitable items increased. In addition, adjustments to unrealized profits associated with the absorption merger of a consolidated subsidiary effective 1 April of this year contributed to a 3.8-percentage-point improvement in the gross profit margin from the same period of the previous fiscal year.」

「The gross profit margin improved by 2.7 percentage points from the previous fiscal year as the cost of proprietary products improved and the sales mix of highly profitable new products among purchased products increased.」

「In addition to increased sales of highly profitable products in the Company's proprietary product portfolio, the shift toward new products among purchased products improved profitability, resulting in a 2.0-percentage-point improvement in the gross profit margin from the same period of the previous fiscal year.」

「In addition to increased sales of highly profitable products in the Company's proprietary product portfolio, the shift toward new products among purchased products improved profitability, resulting in a 1.9-percentage-point improvement in the gross profit margin from the same period of the previous fiscal year.」

「The gross profit margin improved by 1.5 percentage points from the same period of the previous fiscal year, mainly because sales of highly profitable products in the Company's proprietary product portfolio increased.」

「As the sales mix of highly profitable proprietary products, mainly unique products, increased, the gross profit margin improved by 2.2 percentage points from the previous fiscal year.」