In its new Three-year Business Plan, BEACON 2030 Phase II, the Company will implement the reform of the profit structure and make investments in growth areas.
Hirokazu Ogino,
Representative Director,
President and Chief Executive Officer
First, we would like to sincerely thank our shareholders for your continued support.
We hereby report the results for FY2023 ended March 31, 2024.
In FY2023, the Company posted record highs in sales mainly due to yen depreciation. In Japan, sales of consumables & services and IT system solutions increased favorably. Internationally, the shortage of nurses and inflation of prices deteriorated medical institutions’ business. There was also the impact of the anti-corruption campaign in China. As a result, sales in Europe decreased on a local currency basis and sales in North America and China fell short of the Company’s forecasts. Operating income decreased because of increases in the cost of goods sold due to an increase in devaluation of inventories, as well as increased SG&A expenses due to the strengthening of human resources and R&D investment. The Company decided to pay a year-end dividend of 31 yen per share. As a result, the full-year dividend for FY2023 was 61 yen per share, including the interim dividend of 30 yen per share. The Company has revised the indicator and target for shareholder returns from a consolidated dividend payout ratio of 30% or more to a consolidated total return ratio of 35% or more. The consolidated total return ratio in FY2023 was 36.7%, including share buyback of ¥1.1 billion in February 2024. Effective July 1, 2024, each share of common stock will be split into two shares. The Company will also acquire up to 10 billion yen of its own shares from August 2024 to March 2025.
In its new Three-year Business Plan, BEACON 2030 Phase II, starting from April 2024, the Company will implement the reform of the profit structure, make investments in growth areas, and establish collaborations between new business models and existing businesses. The Company aims to achieve targets for three indicators, which consist of growth, profitability, and capital efficiency, by conducting six key measures such as “Enhance Product Competitiveness” and “Focus on Growth of North America Business”. In FY2024, the Company forecasts its overall sales and operating income to be ¥229,000 million and ¥23,000 million, respectively. Gross profit margin is expected to improve as devaluation of inventories will decrease. The Company will also focus on improving personnel productivity, while SG&A expenses are expected to increase due to wage increases.
We deeply appreciate your continued support.
We hereby report the results for FY2023 ended March 31, 2024.
In FY2023, the Company posted record highs in sales mainly due to yen depreciation. In Japan, sales of consumables & services and IT system solutions increased favorably. Internationally, the shortage of nurses and inflation of prices deteriorated medical institutions’ business. There was also the impact of the anti-corruption campaign in China. As a result, sales in Europe decreased on a local currency basis and sales in North America and China fell short of the Company’s forecasts. Operating income decreased because of increases in the cost of goods sold due to an increase in devaluation of inventories, as well as increased SG&A expenses due to the strengthening of human resources and R&D investment. The Company decided to pay a year-end dividend of 31 yen per share. As a result, the full-year dividend for FY2023 was 61 yen per share, including the interim dividend of 30 yen per share. The Company has revised the indicator and target for shareholder returns from a consolidated dividend payout ratio of 30% or more to a consolidated total return ratio of 35% or more. The consolidated total return ratio in FY2023 was 36.7%, including share buyback of ¥1.1 billion in February 2024. Effective July 1, 2024, each share of common stock will be split into two shares. The Company will also acquire up to 10 billion yen of its own shares from August 2024 to March 2025.
In its new Three-year Business Plan, BEACON 2030 Phase II, starting from April 2024, the Company will implement the reform of the profit structure, make investments in growth areas, and establish collaborations between new business models and existing businesses. The Company aims to achieve targets for three indicators, which consist of growth, profitability, and capital efficiency, by conducting six key measures such as “Enhance Product Competitiveness” and “Focus on Growth of North America Business”. In FY2024, the Company forecasts its overall sales and operating income to be ¥229,000 million and ¥23,000 million, respectively. Gross profit margin is expected to improve as devaluation of inventories will decrease. The Company will also focus on improving personnel productivity, while SG&A expenses are expected to increase due to wage increases.
We deeply appreciate your continued support.
