Kyowa Hakko Nine-Month Operating Income Up 20.6%; Raises Full-year Forecasts
Kyowa Hakko Kogyo Co., Ltd. (Kyowa Hakko; TOKYO:4151) today
announced its third quarter financial results for the nine-month
period from April 1, 2007 to December 31, 2007. Consolidated net sales
for the period were JPY297.6 billion, an increase of 11.0% compared to
the first nine months of the previous fiscal year. Business
performance, particularly in the Chemicals business was ahead of plans
for the fiscal year. Sales in each business segment increased compared
to the first nine months of the previous fiscal year and as a result
operating income increased by 20.6% to JPY32.4 billion and recurring
income was up 18.7% to JPY32.7 billion. Net income increased by 106.3%
to JPY24.0 billion partly due to JPY7.5 billion in extraordinary
income from the sale of fixed assets.
Commenting on the results, Yuzuru Matsuda, President and CEO of
Kyowa Hakko said, ´We have maintained the momentum we achieved at the
interim stage and sales grew in each of our business segments.
Performance to date in fiscal 2007, particularly in the Chemicals
business, is ahead of our plans and as a result we have raised our
forecasts for full-year operating income and recurring income. Our
plans to form a strategic alliance with the Kirin Group and integrate
our business with Kirin Pharma to form Kyowa Hakko Kirin are
proceeding smoothly and on schedule.´
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Summary of operating results for the nine months ended December 31,
2007
(Amounts less than JPY 100 million have been
ignored)
Billions of yen %
------------------------------------------------
Consolidated results Consolidated Change
for the period ended results for the
December 31, 2007 period ended
December 31, 2006
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Net sales 297.6 268.1 +11.0%
Operating income 32.4 26.8 +20.6%
Recurring income 32.7 27.5 +18.7%
Net income 24.0 11.6 +106.3%
Net income per share JPY 60.55 JPY 28.63 +111.5%
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Segmental performance
In the Pharmaceuticals business, sales increased compared to the
first nine months of last fiscal year primarily driven by a strong
performance from our core products. Sales of Coniel, a treatment for
hypertension and angina pectoris, were lower than those in the first
nine months of the previous fiscal year, however, sales of products
such as Allelock (olopatadine hydrochloride), an antiallergic agent
and Navelbine, an anticancer agent, grew. Sales of Patanol, an
antiallergic ophthalmic solution, which was launched in October 2006,
also performed well. Income from the licensing-out of technologies and
export of pharmaceutical products continued to perform very well, as
sales of antiallergic agent Olopatadine hydrochloride that are
outlicensed to Alcon, Inc. increased.
In the Bio-Chemicals business, sales increased compared to the
first nine months of last fiscal year due to strong sales of core
amino acid, nucleic acid, and related compounds mainly in overseas
markets and growth in sales of healthcare products. Sales of vitamins
and other products of Daiichi Fine Chemical, which became a
consolidated subsidiary this fiscal year, also performed well.
In the Chemicals business, sales were much higher compared to the
first nine months of last fiscal year as rising prices of fuel and raw
materials led to generally high product prices in domestic and foreign
markets.
In the Food business, growth in sales of natural seasonings and
other products contributed to higher sales than in the first nine
months of last fiscal year.
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Forecasts for the fiscal year ending March 31, 2008(1)
Billions of Yen %
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FORECAST Change compared
Fiscal Year ending to the previous
March 31, 2008 fiscal year
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Net sales 395.0 +11.5%
Operating income 38.0 +23.8%
Recurring income 38.0 +23.0%
Net income 26.0 +104.8%
Net income per share JPY 65.35 +108.7%
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Our results for the first nine months of fiscal 2007 were ahead of
plan, driven by strong performance primarily from the Chemicals
business. As a result, our forecasts for fiscal 2007 operating income
and recurring income have each been revised upwards by JPY2.0 billion
compared to forecasts that were announced on October 29, 2007.
(1)The above forecasts are based on information available and
assumptions made at the time of release of this document about a
number of uncertain factors that can affect results in the future. It
is possible that actual results are materially different for a wide
variety of reasons.
For further information please access:
http://ir.kyowa.co.jp/english/index.cfm
This document is an English translation of parts of the
Japanese-language original. All financial information has been
prepared in accordance with generally accepted accounting principles
in Japan. It contains forward-looking statements based on a number of
assumptions and beliefs made by management in light of information
currently available. Actual financial results may differ materially
depending on a number of factors, including fluctuations in exchange
rates, changing economic conditions, legislative and regulatory
developments, delays in new product launches, and pricing and product
initiatives of competitors.