Japan’s Kobayashi Pharmaceutical reported a plunge in annual net profit following the recall of a dietary supplement linked to health disorders. The decline is the first since it went public 25 years ago in 1999.

Profit in 2024 fell by more than half from the previous year to 10 billion yen, or 65 million dollars.

The supplement containing yeast-fermented rice known as “beni-koji” has been linked to kidney ailments and other health problems among users. The firm took an extraordinary charge of 12.7 billion yen, or 83 million dollars, for the recall and to cover compensation.

Kobayashi Pharmaceutical President Yamane Satoshi said the company places top priority on compensation to customers who have suffered health problems and to business partners that have been inconvenienced.

The recall hurt sales of the company’s overall healthcare products, including other supplements.

However, it projects a 4.3 percent rise in net profit this year, citing demand from inbound tourists.