Financial Results: First Half of Fiscal Year Ending March 2013

TOHO HOLDINGS CO., LTD. reported its consolidated financial results for the first half of the fiscal year ending March 2013, covering the period from April 1, 2012, to September 30, 2012. The company’s primary objective during this period was to navigate a challenging market environment characterized by a 6.0% average reduction in National Health Insurance (NHI) drug prices. To maintain competitiveness, the group utilized a strategy balancing customer support services with pharmaceutical sales, alongside efforts to address distribution inefficiencies and pricing gaps between NHI and market rates.

Financial performance showed positive growth across key metrics compared to the same period in the previous year. Net sales reached 556,184 million yen, a 3.1% increase, while operating income rose significantly by 76.4% to 7,252 million yen. Ordinary income and net income also saw substantial gains, increasing by 42.6% and 52.9%, respectively. The pharmaceutical wholesaling segment served as the primary driver of this growth, reporting 535,234 million yen in sales and a 214.6% increase in segment profit. Conversely, the dispensing pharmacy segment experienced a 13.8% decline in segment profit, attributed to the costs associated with establishing new pharmacies and hiring additional pharmacists.

The company’s financial position remained stable, with total assets of 528,037 million yen and a shareholder equity ratio of 23.9%. During this period, the company implemented a change in its depreciation method for tangible fixed assets acquired after April 1, 2012, to align with revisions in the Corporation Tax Law. Despite the operational challenges posed by regulatory price revisions, the company maintained its full-year earnings projections, signaling confidence in its ongoing proposal-based marketing and service expansion strategies.