Declining profit margins in the pharmacy business due to revisions to dispensing fees and drug prices
First written in FY2017-Q1. 4 of 12 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2023.
Kamei moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2026: 6 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Dropped".
- FY2023DroppedAnnual reportThe FY2023 description of business and other risks and the full-year description of the pharmacy business do not explicitly identify declining profit margins due to revisions to dispensing fees and drug prices as a separate issue.
- FY2023-Q1WorsenedAnnual report
「In this business segment, the number of prescriptions increased due to the benefits of expanding the store network through new openings and initiatives to become the “primary-care pharmacist and pharmacy” chosen by local residents, among other factors. However, conditions were difficult due to the absence of sales of large medical equipment recorded in the same period of the previous year, the effects of revisions to dispensing fees and drug prices, and higher SG&A expenses associated with new store openings. As a result, revenue was ¥4,321 million, down 0.6% year on year, and the operating loss was ¥67 million, compared with an operating loss of ¥11 million in the same period of the previous year.」
Amid the continuing impact of revisions to dispensing fees and drug prices, store opening costs, and other factors, the operating loss expanded from ¥11 million in the same period of the previous fiscal year to ¥67 million. - FY2020-Q1RestatedAnnual report
「Although the number of prescriptions handled increased due to the effects of expanding the store network through new openings and initiatives to develop family pharmacist and pharmacy services chosen by local residents, conditions were somewhat challenging as the impact of the previous year's revisions to dispensing fees and drug prices continued.」
It states that the number of prescriptions handled increased, while the impact of the previous year's revisions to dispensing fees and drug prices continued. - FY2019RestatedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives. However, conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings. As a result, net sales were ¥1,722.2 million, down 0.3% year on year, and the company recorded an operating loss of ¥27.7 million, compared with operating profit of ¥30.3 million in the previous fiscal year.」
The impact of revisions to dispensing fees and drug prices and store opening costs continued, and the pharmacy business remained in a state in which it shifted from operating profit in the previous fiscal year to an operating loss for the full fiscal year. - FY2019-Q3WorsenedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives. However, conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings. As a result, net sales were ¥1,272.5 million, down 0.3% year on year, and the company recorded an operating loss of ¥33.1 million, compared with operating profit of ¥22.9 million in the previous fiscal year.」
The impact of revisions to dispensing fees and drug prices and new store opening costs continued, and the operating loss expanded from ¥279 million in the same period of the previous fiscal year to ¥331 million in the first three quarters under review. - FY2019-Q2WorsenedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives. However, conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings. As a result, net sales were ¥823.5 million, down 1.9% year on year, and the company recorded an operating loss of ¥27.9 million, compared with operating profit of ¥14.6 million in the previous fiscal year.」
The pharmacy business shifted from operating profit in the same period of the previous fiscal year to an operating loss due to revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings. - FY2019-Q1MaterialisedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives, but conditions remained challenging due to the impact of revisions to dispensing fees and drug prices. As a result, net sales were ¥415.0 million, down 1.9% year on year, and the company recorded an operating loss of ¥16.9 million, compared with operating profit of ¥8.1 million in the previous fiscal year.」
The impact of revisions to dispensing fees and drug prices continued, and the pharmacy business shifted from operating profit in the same period of the previous fiscal year to an operating loss. - FY2018DroppedAnnual report
「This segment performed well as the number of prescriptions handled increased due to the effects of expanding the store network through new openings and M&A, while initiatives in home healthcare and the development of family pharmacist and pharmacy services were also advanced.」
The current-year description of the pharmacy business makes no mention of declining profit margins due to revisions to dispensing fees and drug prices, indicating that the risks noted previously have been removed. - FY2017RestatedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives, but conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings.」
Revisions to dispensing fees and drug prices, together with higher selling, general and administrative expenses associated with new store openings, continue to weigh on earnings. - FY2017-Q3RestatedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives, but conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings.」
It continues to describe revisions to dispensing fees and drug prices, together with higher selling, general and administrative expenses associated with new store openings, as factors weighing on earnings. - FY2017-Q2WorsenedAnnual report
「The number of prescriptions processed grew as a result of new store openings, M&A and strengthened home healthcare initiatives, but conditions remained challenging due to the impact of revisions to dispensing fees and drug prices and higher selling, general and administrative expenses associated with new store openings.」
In addition to revisions to dispensing fees and drug prices, higher selling, general and administrative expenses associated with new store openings weighed on earnings, resulting in operating profit of ¥12 million, down 93.9% year on year. - FY2017-Q1MaterialisedAnnual report
「Although the number of prescriptions handled increased due to the effects of expanding the store network through new openings and M&A, as well as strengthened home healthcare initiatives, profit margins declined and conditions remained challenging due to the impact of revisions to dispensing fees and drug prices.」
It reports that the number of prescriptions handled increased while profit margins declined due to the impact of revisions to dispensing fees and drug prices.