Pharma Foods International revises forecast, records special loss

Pharma Foods International has revised its consolidated full-year financial forecast for the fiscal year ending July 31, 2025. While net sales are projected to increase slightly to JPY 65,200 million and operating profit to JPY 2,300 million, the company anticipates a substantial decrease in net income attributable to owners of the parent, from an initial JPY 1,600 million to JPY 350 million. This revision is largely attributed to increased advertising investments by consolidated subsidiary Meiji Yakuhin Co., Ltd., which led to a significant increase in regular mail-order customers, despite the difficulty of recovering these investments within a single fiscal year.

In a separate announcement, the company will record a non-consolidated special loss of JPY 2.3 bn in its individual financial statements for the fiscal year ending July 2025. This valuation loss stems from the impairment of shares in Meiji Yakuhin, whose net assets declined due to substantial upfront advertising investments not recovered in the current fiscal year. This special loss will only affect the non-consolidated financial statements and will be eliminated in the consolidated financial statements, therefore having no impact on the company's consolidated results.

Despite the decline in consolidated net income, Pharma Foods International highlighted strong sales of new products, including LACTRON Tablets and TENRAI SEIRYU Tablets, which target unmet health needs such as intestinal health and tinnitus. The increase in Meiji Yakuhin's customer base, reaching approximately 2.7 times the previous fiscal year's level, reflects the aggressive investment strategy to acquire new customers.