Meiji Holdings Co., Ltd. Meiji Holdings Co., Ltd. Financial Results- For the First Half of FYE March 2017 -  

H1 Operating Income: Increase in Food Segment and Decrease in Pharmaceutical Segment

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Operating income from food segment outperformed while income from pharmaceuticals segment declined. We believe that strategies for both businesses are progressing favorably.
Food segment
Operating income was JPY 38.8 billion, an increase of JPY 10.0 billion year on year and JPY 8.0 billion above previous forecast.
Although retirement benefit costs increased, income grew thanks to decrease in raw material costs, improving efficiency, and sales growth of added-value products - core products.
Pharmaceuticals segment
Operating losses of JPY 1.3 billion against previous forecast of JPY 1.8 billion in operating income.
Factors resulting in operating losses are:

 - NHI drug price revision

 - Upfront payment for Bilanoa

 - Intense price competition for generics

 - Increased marketing costs for newly launched drugs