Consolidated financial results and position
| 2016/9 | 2017/9 | 2018/9 | 2019/9 | 2020/9 | |
|---|---|---|---|---|---|
| Net Sales (¥millions) |
62,039 | 65,282 | 69,869 | 74,373 | 76,098 |
| Operating income (¥millions) |
3,363 | 3,897 | 4,321 | 4,405 | 2,605 |
| Ratio of operating income (%) |
5.4% | 6.0% | 6.2% | 5.9％ | 3.4％ |
| Ordinary profits (¥millions) |
2,989 | 3,732 | 4,061 | 3,841 | 2,867 |
| Ratio of ordinary profits (%) |
4.8% | 5.7% | 5.8% | 5.2％ | 3.8％ |
| Profit attributable to owners of parent(¥million) | 878 | 1,550 | 1,487 | 1,822 | 1,505 |
| Total assets (¥millions) |
59,104 | 65,605 | 78,034 | 80,179 | 89,517 |
| Shareholders’ equity (¥millions) |
21,397 | 23,608 | 33,536 | 32,994 | 34,011 |
| Ratio of Shareholders’ equity (%) |
35.5% | 34.9% | 28.9% | 27.8％ | 26.4％ |
Net Sales
Operating income and ratio of operating income
Ordinary profits and ratio of ordinary profits
Profit attributable to owners of parent
Total Assets
Shareholders equity and ratio of shareholders equity
Earnings Forecast
In the pharmaceutical industry, while creation of innovative drugs is anticipated through technological innovation and industry-government-academia collaboration towards providing personalized medicine or “precision medicine”, there is increasing pressure to reduce drug prices such as annual NHI drug price revision starting in 2021.
Pharmaceutical companies are focusing on expanding their development pipelines through M&A, and they are also developing pharmaceuticals with new drug discovery platform technologies and providing total care for diseases from prevention to diagnosis, treatment, and prognosis. New technologies called the Fourth Industrial Revolution such as artificial intelligence (AI) and IoT are bringing significant changes to the society. Digital treatment and on-line medical consultation are introduced in the healthcare arena, and as people’s attitudes toward medicine and health change, industry, government, academia and civil society are collaborating to achieve innovation to address the decreasing birthrate and aging population.
The global pandemic of COVID-19 has a broad impact ranging from social economy to personal values, and it is believed to accelerate the digitalization and innovation in the healthcare sector.
CMIC Group is executing the focus activities in the mid-term business plan (FY2019-2021) to adapt ourselves to the rapidly changing external environment in a timely and flexible manner. While promoting various measures including 1) Acceleration of PVC model, 2) Promoting globalization, and 3) Creation of Healthcare business, we have started the “Healthcare Revolution” project to transform ourselves from business model centering on pharmaceutical drugs to creation of new healthcare business. We will continue to create new businesses that will contribute to maintaining and improving personal health, and utilize our talents in the healthcare arena.
In the next fiscal year, while we expect the impact of COVID-19 to continue to some extent, assuming that our business environment will gradually recover following the progress of treatment drug and vaccine development. We expect both sales and operating income to increase compared with this fiscal year.
| 2020/9 results （¥millions） |
2021/9 forecast （¥millions） |
Change | |
|---|---|---|---|
| Net Sales | 76,098 | 80,000 | 5.1% |
| Operating Income | 2,605 | 3,300 | 26.6% |
| Ordinary Profits | 2,867 | 3,100 | 8.1% |
| Profit attributable to owners of parent | 1,505 | 1,650 | 9.6% |
Net Sales
Operating income and ratio of operating income
Forecast for FY ending Sept. 2021 (by segment)
CRO Business
Sales and operating income growth is expected for CRO business due to increase in clinical research and post-marketing surveillance, steady performance in clinical trials, and strong order intake for non-clinical operations.
CDMO Business
Sales and operating income are expected to increase due to the increase of contract manufacturing volume in Japan and acquisition of new projects in the United States, despite the upfront investment costs for the contract manufacturing of biopharmaceutical API that started in July 2020.
CSO Business
Sales figures are expected to be at the same level as this fiscal year. As for operating income, the margin went up due to limited MR activities and curtailed expenses in this fiscal year following the COVID-19 outbreak. However, operating income is expected to go down in the next fiscal year assuming that we will return to normal activities.
Healthcare Business
Despite the upfront investment required for new businesses, thanks to the increased number of clinical researches for SMO operations, steady performance in clinical trials, and growth in new business, we expect an increase in both sales and operating income.
Innovative Pharma Model Business
Sales figures are expected to be at the same level as this fiscal year, but operating income is expected to go down due to promotion of R&D activities for orphan drugs.
| 2020/9 results （¥millions） |
2021/9 forecast （¥millions) |
Change | ||
| CRO Business | Sales | 34,242 | 36,100 | 5.4% |
| Operating Income | 5,052 | 5,550 | 9.9% | |
| CDMO Business | Sales | 20,832 | 22,100 | 6.1% |
| Operating Income | (412) | 100 | － | |
| CSO Business | Sales | 8,626 | 8,500 | (1.5)% |
| Operating Income | 834 | 650 | (22.2)% | |
| Healthcare Business | Sales | 9,903 | 10,750 | 8.5% |
| Operating Income | 583 | 700 | 20.0% | |
| IPM Business | Sales | 3,395 | 3,450 | 1.6% |
| Operating Income | 169 | 0 | － | |
| Adjustments | Sales | (901) | (900) | － |
| Operating Income | (3,621) | (3,700) | － | |
| Consolidated | Sales | 76,098 | 80,000 | 5.1% |
| Operating Income | 2,605 | 3,300 | 26.6% | |
Dividend Forecast
| Interim Dividend (yen) | Year End Dividend (yen) | Annual (yen) | Dividend Payout Ratio（%) |
|
|---|---|---|---|---|
| 2021/9 Forecast | 5.00 | 22.00 | 27.00 | 29.6 |
| 2020/9 Results | 5.00 | 20.00 | 25.00 | 30.0 |
See “Dividends” in the Stock Information for details of past.
