KOBAYASHI PHARMACEUTICAL CO.,LTD. (4967) Stock Price

Kobayashi Pharmaceutical operates primarily through domestic and international business divisions. The domestic business manufactures and sells pharmaceuticals and consumer products, while the international business supplies products to overseas markets. The Kobayashi Pharmaceutical Group operates through 40 subsidiaries, managing a diverse portfolio of businesses.

The Healthcare segment provides pharmaceuticals and oral care products. Key brands include Anmerutz, Eyebon, Nodonuru, Inochi no Haha, and Naishitol. These products are sold through affiliated companies both domestically and internationally.

The Consumer Products segment handles fragrances, deodorizers, miscellaneous goods, and food items. Popular products include Sawaday, Musou Kuukan, Bluelet, Shoshuigen, Kimco, and Toire Sono Ato. These are distributed to markets through domestic and international affiliated companies.

Kobayashi Pharmaceutical maintains holding companies in the United States and China to support regional operations. Kobayashi Healthcare International, Inc. oversees the U.S. market, while Kobayashi Pharmaceutical (China) Limited manages operations in China.

Other business operations include asset management, transportation, manufacturing and sales of synthetic resin containers, real estate management, advertising planning and production, promotional product manufacturing, sales promotion and market research, retail operations, pharmacy management, and cleaning services. These operations are conducted through affiliated companies.

Kobayashi Pharmaceutical is focusing on rebuilding trust and preventing recurrence following issues with its red koji-related products. The company has withdrawn its medium-term management plan announced in February 2023 and is developing a new management strategy. The operating environment remains uncertain, with rising raw material costs and geopolitical risks creating headwinds.

The company is proceeding with compensation for customers affected by health issues while implementing recurrence prevention measures. It has established three pillars: reforming quality and safety awareness, strengthening corporate governance, and creating a new Kobayashi Pharmaceutical. These efforts include reinforcing quality assurance systems and refreshing the board of directors.

Looking toward medium to long-term growth, the company aims for structural reform and a return to growth. It will promote portfolio management to optimize SKU numbers and improve advertising efficiency. The company will also review unprofitable operations and expand resources dedicated to quality and safety investments.

In new product development, the company will focus on quality and functionality to create products that customers will cherish long-term. International operations will serve as a growth pillar, with investments targeted at high-growth markets. A new business development division has been established to explore new business areas. Through these initiatives, the company plans to restore profit levels within three years.