Eiken Chemical : Business Results for the Fiscal Year Ended March 31, 2024
May 09, 2024 at 11:51 am IST
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Business Results for
the Fiscal Year Ended March 31, 2024
EIKEN CHEMICAL CO., LTD. (Code: 4549)
May 9, 2024
Index
Earnings highlight for the fiscal year ended March 31, 2024
Financial forecast for the fiscal year ending March 31, 2025
Our business environment and measures to address issues
Our capital policy
Sustainability initiatives leading to enhanced corporate value
Other topics for the fiscal year ended March 31, 2024
2
Earnings highlight for
the fiscal year ended March 31, 2024
3
Earnings highlight for the fiscal year ended March 31, 2024
Executive summary for the fiscal year ended March 31, 2024
External environment
Reclassification of COVID-19 in Japan: Designated infectious disease Class 2→ Class 5
Rising costs for logistics and raw material procurement, etc., due to yen depreciation and high crude oil prices
The Company's business results
Net sales for overseas showed strong sales in fecal occult blood tests (mainly in Europe), urinalysis tests, and tuberculosis genetic tests
Sales of COVID-19-related testing reagents decreased significantly year on year due to lower demand for COVID-19 genetic tests
Profits decreased due to lower sales of COVID-19 testing reagents, which are high-profit items, a change in the sales mix due to lower patent fee income from the LAMP method, higher costs, and higher depreciation linked to the start of operations of a new research building aimed at R&D to support future growth.
Other
Implemented share buyback and retirement of all shares acquired
Number of shares acquired: 2.5 million shares; total acquisition: ¥4,636 million; acquisition period: January 31, 2024-March 19, 2024
Released our first integrated report, EIKEN CHEMICAL Integrated Report 2023
4
Results of the fiscal year ended March 31, 2024-YoY change
Net sales fell sharply due to decrease in demand for COVID-19 testing reagents
Profits decreased due to changes in sales mix, and higher depreciation and SG&A expenses
FY ended Mar. 31, 2023
FY ended Mar. 31, 2024
YoY
(Millions of yen)
Percentage of net
(Millions of yen)
Percentage of net sales
(Millions of yen)
Change
sales
Net sales
43,271
100.0%
40,052
100.0%
-3,219
-7.4%
Japan
34,474
79.7%
29,936
74.7%
-4,538
-13.2%
Europe
2,596
6.0%
3,929
9.8%
1,333
+51.3%
North America
2,019
4.7%
1,959
4.9%
-60
-3.0%
Asia/Oceania/Other
4,181
9.7%
4,227
10.6%
46
+1.1%
Cost of sales
22,765
52.6%
23,328
58.2%
563
+2.5%
Gross profit
20,506
47.4%
16,723
41.8%
-3,783
-18.4%
Selling, general and
13,049
30.2%
13,345
33.2%
296
+2.3%
administrative expenses
Operating profit
7,457
17.3%
3,377
8.4%
-4,080
-54.7%
Ordinary profit
7,568
17.5%
3,568
8.9%
-4,000
-52.8%
Net profit
5,736
13.3%
2,634
6.6%
-3,102
-54.1%
5
Earnings by segment-YoY change
Sales of molecular test dropped sharply YoY despite strong performance in fecal occult blood tests, our main product
FY ended Mar. 31, 2023
FY ended Mar. 31, 2024
YoY
(Millions of yen)
Composition
(Millions of yen)
Composition
(Millions of yen)
Change
Fecal immunochemical
11,188
25.9%
12,315
30.8%
1,127
+10.0%
tests reagents
Immunological and serological reagents
9,529
22.0%
9,394
23.5%
-135
-1.4%
Urinalysis test strips
4,143
9.6%
4,401
11.0%
258
+6.2%
Microbiological reagents
3,938
9.1%
4,312
10.8%
374
+9.5%
Clinical chemistry test reagents
590
1.4%
575
1.4%
-15
-2.5%
Equipment/culture mediums related to
2,165
5.0%
1,961
4.9%
-204
-9.4%
food and environment
Molecular test (LAMP)
7,343
17.0%
2,625
6.6%
-4,718
-64.2%
Medical devices/Others
4,373
10.1%
4,464
11.2%
91
+2.1%
Total
43,271
100.0%
40,052
100.0%
-3,219
-7.4%
6
Earnings details by segment (1)
Fecal immunochemical tests reagents
Sales were firm in Japan and overseas
Net sales by segment
Of which overseas sales
Overseas sales as share of total
(Millions of yen)
12,315
12,000
11,233
46%
11,188
48%
10,000
45%
8,000
4,989 5,972
6,000
5,184
4,000
2,000
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
Immunological and serological reagents
Sales of COVID-19 antigen and antibody detection kits decreased
(Millions of yen)
Net sales by segment
50%
10,000
9,359
9,529
9,394
45%
8,000
40%
6,000
35%
4,000
2,000
30% 0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
7
Earnings details by segment (2)
Urinalysis test strips
Sales were firm in Japan and overseas
(Millions of yen)
Net sales by segment
Microbiological reagents
Demand for products related to infectious diseases other than COVID-19 increased
(Millions of yen)
Net sales by segment
5,000
4,401
4,143
4,000
3,783
3,000
2,000
1,000
5,000
4,000
3,000
2,000
1,000
4,321
3,924 3,938
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
8
Earnings details by segment (3)
Clinical chemistry test reagents
Sales declined due to severe market conditions
(Millions of yen)
599
590
Net sales by segment
600
575
500
400
300
200
100
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
Equipment/culture mediums related to food and environment
Profitability improved despite lower sales due to the impact of price increases
(Millions of yen)
2,252
Net sales by segment
2,165
2,000
1,961
1,000
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
9
Earnings details by segment (4)
Molecular test (LAMP)
Demand for COVID-19 testing reagents dropped sharply,
and patent fee income declined as LAMP method patents
expired in key countries
Patent fees: ¥402 million (¥1,554 million in the previous
fiscal year)
Net sales by segment
(Millions of yen)
8,000
7,445
7,343
7,000
6,000
5,000
4,000
3,000
2,625
2,000
1,000
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
10
Medical devices/Others
Performance in medical devices was flat
Net sales by segment
(Millions of yen)
5,000
4,396 4,373 4,464
4,000
3,000
2,000
1,000
0
FY ended Mar. 31,
FY ended Mar. 31,
FY ended Mar. 31,
2022
2023
2024
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Disclaimer
EIKEN Chemical Co. Ltd. published this content on
09 May 2024 and is solely responsible for the information contained therein. Distributed by
Public, unedited and unaltered, on
09 May 2024 06:20:08 UTC.
EIKEN CHEMICAL CO., LTD. is a Japan-based company principally engaged in the manufacture and sale of test drugs. Through its subsidiaries, the Company involves in the processing, manufacture, purchase and sale of test agents. The products and services include microbial testing reagents, urine testing reagents, immunoserologic testing reagents, biochemical testing reagents and instrument food environment-related media.
EIKEN CHEMICAL CO., LTD. 
