Tsumura & Co
TSE:4540
Tsumura & Co
Tsumura & Co., a venerable name in the herbal medicine industry, traces its roots back to 1893. Emerging from Japan's rich pharmacopeia tradition, the company has carved a niche by blending age-old herbal knowledge with contemporary research and quality control. This synergy allows Tsumura to thrive in the modern marketplace, offering Kampo—a traditional Japanese herbal medicine—as their primary product line. Tsumura stands out in its meticulous approach to sourcing high-quality raw materials, employing state-of-the-art technology to ensure efficacy and safety. This rigorous quality assurance not only honors the integrity of traditional formulas but also aligns with the stringent standards of modern healthcare.
In its pursuit of growth, Tsumura expertly navigates the delicate balance between tradition and innovation. The company generates revenue through the sale of its Kampo products, which are widely used in clinics and hospitals across Japan, reflecting a significant integration into the mainstream healthcare system. Additionally, Tsumura's strategic collaborations with pharmaceutical companies expand its reach into international markets. Through educational initiatives, they further advocate for the understanding and acceptance of herbal medicine globally. By continually investing in research and development, Tsumura aims to bolster their product offerings, ensuring that the ancient wisdom of Kampo remains relevant in today's fast-paced, health-conscious world.
Tsumura & Co., a venerable name in the herbal medicine industry, traces its roots back to 1893. Emerging from Japan's rich pharmacopeia tradition, the company has carved a niche by blending age-old herbal knowledge with contemporary research and quality control. This synergy allows Tsumura to thrive in the modern marketplace, offering Kampo—a traditional Japanese herbal medicine—as their primary product line. Tsumura stands out in its meticulous approach to sourcing high-quality raw materials, employing state-of-the-art technology to ensure efficacy and safety. This rigorous quality assurance not only honors the integrity of traditional formulas but also aligns with the stringent standards of modern healthcare.
In its pursuit of growth, Tsumura expertly navigates the delicate balance between tradition and innovation. The company generates revenue through the sale of its Kampo products, which are widely used in clinics and hospitals across Japan, reflecting a significant integration into the mainstream healthcare system. Additionally, Tsumura's strategic collaborations with pharmaceutical companies expand its reach into international markets. Through educational initiatives, they further advocate for the understanding and acceptance of herbal medicine globally. By continually investing in research and development, Tsumura aims to bolster their product offerings, ensuring that the ancient wisdom of Kampo remains relevant in today's fast-paced, health-conscious world.
Financials: Net sales reached JPY 60.8 billion, up 4.3% year-on-year, with operating profit up 9.2% and ordinary profit up 3%.
Profitability: Operating profit exceeded plan by 20.7%, ordinary profit by 13.3%, but net sales slightly missed at 98.9% of plan.
Kampo Growth: Prescription Kampo product sales rose 4.2%, and OTC medicines increased 15.9% year-on-year.
Cost Ratios: Cost-to-sales ratio rose to 40.9%, while the cost-to-SG&A ratio improved to 43%.
Business Outlook: Full-year guidance maintained; company targets JPY 125 billion in sales and JPY 17 billion in operating profit.
China Strategy: Company is consolidating China business under Ping An Tsumura Group, dissolving other joint ventures, and expanding its crude drug platform.
Shareholder Returns: Interim and full-year dividends set at JPY 32 and JPY 64 per share, with a payout ratio forecasted at 39.8%.
