Tokyo, July 31, 2007 - Kyowa Hakko Kogyo Co., Ltd. today announced its first quarter financial results for the three-month period from April 1, 2008 to June 30, 2008.
Consolidated net sales for the period were ¥125.4 billion, an increase of 32.1% compared to the first three months of the previous fiscal year, which was largely due to the new consolidation of Kirin Pharma following the implementation of a share exchange on April 1, 2008, and also the receipt of a large, one-off out-licensing payment in the Pharmaceuticals business.
Operating income increased by 125.6 % to ¥17.0 billion, driven mainly by a large increase in Pharmaceuticals business sales, despite a goodwill amortization expense of ¥2.3 billion accounted for in SG&A expenses resulting from the share exchange with Kirin Pharma accounted for as a reverse acquisition business combination. Likewise, recurring income was up by 124.5% to 18.7 billion, while net income was up by 80.2% to ¥9.5 billion, affected by a ¥1.5 billion extraordinary loss due to impairment losses and other factors.
Commenting on the results, Yuzuru Matsuda, President and CEO of Kyowa Hakko said, ‘Underlying sales growth in our core businesses was strong, although our reported sales and profits were affected significantly by the consolidation of Kirin Pharma, the large one-off out-licensing payment from Amgen, and goodwill amortization. We have made a strong start to our new three-year medium term plan and there is no change in our forecasts for full-year sales and profits. Our plans to form a strategic alliance with the Kirin Group and integrate our business with Kirin Pharma to form Kyowa Hakko Kirin in October 2008 are proceeding smoothly and on schedule.’