■Performance Trends

1. Financial Summary for the Fiscal Year Ending March 31, 2024

The consolidated financial results for the fiscal year ended 2024/3 of Mia Health Holdings ＜7129＞ were sales of 22,722 million yen, up 2.1% from the previous fiscal year; operating income of 395 million yen, up 106.8%; ordinary income of 374 million yen, up 121.0%; and net income attributable to parent company shareholders, down 97.4% to 5 million yen. Sales, operating profit, and ordinary profit hit record highs, and surpassed company plans and landed. Regarding net income attributable to parent company shareholders, in addition to the fact that special profit, centered on subsidy income, decreased by 315 million yen from the previous fiscal year, profit declined drastically due to the recording of impairment losses of 256 million yen in the nursing care business, etc.

Looking at the year-on-year increase or decrease by business segment, sales declined 119 million yen due to the effects of implementing the closure of unprofitable establishments in the nursing care business, but sales increased by 320 million yen in the pharmaceutical business and 287 million yen in the childcare business. Also, although segment profit declined by 20 million yen in addition to that, the three main businesses all increased profit, and in particular, the childcare business increased profits by 146 million yen, which seemed to drive overall profit.

(1) Pharmaceutical business

Sales in the pharmaceutical business increased 3.6% from the previous fiscal year to 9,306 million yen, and segment profit increased 2.7% to 545 million yen. The number of stores remained flat at 42 compared to the end of the previous fiscal year. In 2024/1, 1 store of Monzen Pharmacy (Fuchu-shi, Tokyo) was closed*, and 1 medical mall-type pharmacy (Taito Ward, Tokyo) was opened.

* It operated as a pharmacy in front of Sakakibara Memorial Hospital, but after a competitor's on-site pharmacy was established, the number of prescriptions decreased and it was decided to close.

Sales increased for the third consecutive term, with a 3.6% increase in the number of prescriptions compared to the previous fiscal year, and sales also increased as the unit price of prescriptions also increased 0.2% and began to rise for the first time in 3 fiscal years. The number of prescriptions remained steady, with an increase of 2.0% in existing stores due to the relaxation of suppression of outpatient examinations due to the end of the COVID-19 pandemic and the spread of influenza, and the effect of opening new stores (1 store for the fiscal year ending 2023/3, 1 store for the fiscal year ending 2024/3) was a factor of 1.6% increase. Among prescription unit prices, drug fee unit prices remained flat compared to the previous fiscal year. Although there was an effect of drug price revisions (down about 5.0% from the previous fiscal year), it was offset by an increase in infectious disease patients and the number of prescriptions for expensive medical products. The increase in technical fee unit prices was due to the enhancement of services as “primary pharmacies” and the strengthening of efforts to add generic drug dispensing systems. Segment profit increased for the first time in four fiscal years due to an increase in technical fee unit prices directly linked to profit.

Note, for the Adachi Medical Center attached to Tokyo Women's Medical University, where the number of patients visiting the hospital has been sluggish since it was newly established in January 2022, the 2024/3 fiscal year remained at just over 50% of the initial assumption (1,200 people per day). The main reason is that the number of medical subjects initially planned at the same center has not been reached due to a shortage of doctors. As a result, the occupancy rate of the 2 stores (Kohoku store, Kohoku 2nd store) established by the company as monzen pharmacies is also sluggish. However, the position as a core medical institution responsible for regional health care has not changed, and the company sees that the number of patients initially anticipated will be reached over the next few years, and it is expected that it will contribute to profits in the medium term as a large store.

(Author: FISCO Visiting Analyst Joe Sato)