Top Message

I would like to express my deepest gratitude to you, our shareholders, for your continued understanding and support. The Daito Group’s financial performance for the 82nd period (fiscal year ended May 2024) was as follows.

We achieved net sales of 46,895 million yen (an increase of 4.0% year on year). However, despite the increase in net sales and the resulting increase in earnings, operating profit decreased to 3,894 million yen by 25.2% year on year while ordinary profit decreased to 3,923 million yen by 24.1% year on year. Net income attributable to Daito’s common shareholders also decreased to 3,295 million yen by 8.5% year on year. These decreases are explained mainly by rises in R&D costs and raw material costs due to the depreciation of the yen.

In Japan, in addition to drug price revisions becoming an annual event in FY2021, a co-payment scheme for selective use of off-patent long-listed products (original drugs to which generic alternatives are available) will be adopted in October 2024, which is expected to further accelerate the use of generic drugs. These changes have placed the Japanese pharmaceutical industry in a harsher business environment and have been requiring Daito to make further efforts to streamline its management.

In this business environment, the Daito Group formulated Daito Transformation Plan 2027 (DTP2027), a new Medium-term Management Plan, and announced it in July 2024. This Medium-term Management Plan defines the Group’s key goal indicators (KGIs), including net sales and EBITDA, along with targets for them, and the five pillars of the Group’s business strategy for achieving those targets: (1) Streamlining the existing businesses; (2) Strengthening our China business; (3) Entering into new businesses; (4) Addressing a PBR of below 1.0 and enhancing capital allocation; and (5) Investing in human capital. Aiming to achieve further growth, we will make Group-wide efforts to implement this Medium-term Management Plan in a reliable manner and achieve our targets.

For the details of DTP2027, our new Medium-term Management Plan, please refer to the financial results briefing materials for institutional investors dated July 17, 2024 .

We will devote all-out efforts to contributing to healthier lives of people by manufacturing and providing high-quality pharmaceutical products.
We sincerely appreciate the increased and continued support from our shareholders for our future.

President and CEO Hiroshi Matsumori