January 6, 2017
[Japanese GAAP]Company name: | Freund Corporation | Listing: Tokyo (JASDAQ) |
Securities code: | 6312 | URL: http://www.freund.co.jp |
Representative: | Iwao Fusejima, President & CEO |
Contact: Yuji Takanami, General Manager, Corporate Administration Division Tel: +81-3-6890-0750
Scheduled date of filing of Quarterly Report: January 6, 2017
Scheduled date of payment of dividend: - Preparation of supplementary materials for quarterly financial results: None Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest million yen)
- Consolidated Financial Results for the Third Quarter (March 1, 2016 - November 30, 2016) of the Fiscal Year Ending February 28, 2017
Consolidated results of operations (Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
Nine months ended Nov. 30, 2016
Million yen
%
Million yen
%
Million yen
%
Million yen
%
14,767
12.9
1,441
98.2
1,486
89.6
815
93.1
Nine months ended Nov. 30, 2015
13,081
8.9
727
24.3
784
17.6
422
25.5
Net income per share
Diluted net income per share
Nine months ended Nov. 30, 2016
Nine months ended Nov. 30, 2015
Yen
47.30
24.49
Yen
-
-
Note: Comprehensive income
Nine months ended Nov. 30, 2016:
474 million yen (up 33.0%)
Nine months ended Nov. 30, 2015:
357 million yen (down 9.1%)
The Company conducted a 2-for-1 common stock split on March 1, 2016. The net income per share has been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As of Nov. 30, 2016
Million yen
Million yen
%
Yen
18,411
11,722
63.7
679.77
As of Feb. 29, 2016
17,206
11,529
67.0
668.57
Reference: Equity capital As of Nov. 30, 2016: 11,722 million yen As of Feb. 29, 2016: 11,529 million yen The Company conducted a 2-for-1 common stock split on March 1, 2016. The net assets per share have been calculated as if this
stock split had taken place at the beginning of the previous fiscal year.
-
Dividends
Dividend per share
1Q-end
2Q-end
3Q-end
Year-end
Total
Fiscal year ended Feb. 29, 2016
Yen
Yen
Yen
Yen
Yen
-
0.00
-
25.00
25.00
Fiscal year ending Feb. 28, 2017
-
0.00
-
Fiscal year ending Feb. 28, 2017 (forecast)
20.00
20.00
Note: Revision to the most recently announced dividend forecast: Yes
Breakdown of the year-end dividend for the fiscal year ending Feb. 28, 2017: Ordinary dividends: 15.00 yen
Commemorative dividends: 5.00 yen
The Company conducted a 2-for-1 common stock split on March 1, 2016. The dividend per share forecast for the fiscal year ending Feb. 28, 2017 has been adjusted to reflect the stock split. Prior to this adjustment, the dividend forecast was 40 yen per share, comprising an ordinary dividend of 30 yen and a commemorative dividend of 10 yen.
- Consolidated Forecast for the Fiscal Year Ending February 28, 2017 (March 1, 2016 - February 28, 2017)
(Percentages represent year-on-year changes)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
Net income per share
Full year
Million yen
20,000
%
5.1
Million yen
1,900
%
41.1
Million yen
1,900
%
36.2
Million yen
1,180
%
22.8
Yen
68.43
Note: Revision to the most recently announced consolidated forecast: None
* NotesChanges in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
Newly added: - Excluded: -
Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 3 "2. Matters Related to Summary Information (Notes), (2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements" for details.
Changes in accounting policies and accounting-based estimates, and restatements
Changes in accounting policies due to revisions in accounting standards, others: Yes
Changes in accounting policies other than 1) above: None
Changes in accounting-based estimates: None
Restatements: None
Number of outstanding shares (common stock)
Number of shares outstanding at the end of the period (including treasury shares)
As of Nov. 30, 2016: 18,400,000 shares As of Feb. 29, 2016: 18,400,000 shares
Number of treasury shares at the end of the period
As of Nov. 30, 2016: 1,155,478 shares As of Feb. 29, 2016: 1,155,444 shares
Average number of shares outstanding during the period
Nine months ended Nov. 30, 2016: 17,244,538 shares Nine months ended Nov. 30, 2015: 17,244,556 shares Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. The number of outstanding shares (common
stock) has been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
Indication of quarterly review procedure implementation status
The current quarterly financial report is not subject to the quarterly review procedures based on the Financial Instruments and Exchange Act. At the time of disclosure, the review procedures for the quarterly financial statements have been completed.
Cautionary statement with respect to forecasts of future performance and other special items
The Company conducted a 2-for-1 common stock split on March 1, 2016.
Forecasts regarding future performance in these materials are based on certain assumptions judged to be valid and information currently available to the Company. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to the section "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for forecasts shown above.
Contents of Attachments
Qualitative Information on Quarterly Consolidated Financial Performance 2
Explanation of Results of Operations 2
Explanation of Financial Position 2
Explanation of Consolidated Forecast and Other Forward-looking Statements 3
Matters Related to Summary Information (Notes) 3
Changes in Significant Subsidiaries during the Period 3
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 3
Changes in Accounting Policies and Accounting-based Estimates, and Restatements 3
Important Information about Going Concern Assumption 4
Quarterly Consolidated Financial Statements 5
Quarterly Consolidated Balance Sheet 5
Quarterly Consolidated Statements of Income and Comprehensive Income 7
Quarterly Consolidated Statement of Income
For the Nine-month Period 7
Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period 8
Notes to Quarterly Consolidated Financial Statements 9
Going Concern Assumption 9
Significant Changes in Shareholders' Equity 9
Segment and Other Information 9
Supplementary Information 11
Orders and Sales 11
1. Qualitative Information on Quarterly Consolidated Financial Performance-
Explanation of Results of Operations
Japan's economy continued to recover at a moderate pace during the first nine months of the current fiscal year. Growth in corporate earnings has stopped due to the yen's strength caused by uncertainties about overseas economies. However, after the November US presidential election, the yen has been weakening as the dollar appreciates because of the increasing difference between interest rates in Japan and the United States as US interest rates move up. This is a reflection of the outlook for higher US government spending by the Trump administration. As a result, the outlook is for corporate earnings in Japan to stop declining while remaining at a high level.
The pharmaceutical industry, which is the primary source of demand for Freund Group products, has been growing more slowly, mainly in industrialized countries. Causes include more Japanese government actions to hold down healthcare expenditures, such as national health insurance drug price revisions and measures to increase the use of generic drugs, as well as the rising cost of R&D and higher risks associated with the development of new drugs. Consequently, the focus of attention in the pharmaceutical industry is shifting to emerging countries and to the expansion of the market for generic drugs.
The Freund Group has developed innovative new products and worked on precisely targeting customers' needs. Group companies also aggressively pursued opportunities in new business fields.
Net sales increased 12.9% year-over-year to 14,767 million yen, operating income increased 98.2% to 1,441 million yen, ordinary income was up 89.6% to 1,486 million yen, and profit attributable to owners of parent increased 93.1% to 815 million yen.
Results by business segment were as follows.
Machinery Business SegmentIn the machinery sector, where granulating and coating devices are the main products, sales and operating income increased as orders remained strong because of the large volume of capital expenditures in the generic drug industry.
As a result, net sales rose 15.5% year-over-year to 10,003 million yen and operating income increased 99.6% to 1,154 million yen.
Chemicals Business SegmentAlthough sales and operating income of food preservative were down slightly because of heated competition, sales of functional excipients used in oral pharmaceuticals were strong primarily for use in generic drugs. Sales of dietary supplements that incorporate Freund's technologies were also strong.
As a result, net sales rose 7.8% year-over-year to 4,763 million yen and operating income increased 48.7% to 602 million yen.
Note: From the first quarter of the current fiscal year, the Company has modified the English term of the business segment formerly titled "Chemical and Food Business" to "Chemicals Business." The content and Japanese term of the business segment remain the same.
- Explanation of Financial Position
Total assets increased 1,205 million yen from the end of the previous fiscal year to 18,411 million yen at the end of the third quarter under review. This mainly reflected increases in cash and deposits of 1,365 million yen and work in process of 137 million yen, while there was a decrease in notes and accounts receivable-trade of 376 million yen.
Total liabilities increased 1,011 million yen from the end of the previous fiscal year to 6,689 million yen at the end of the third quarter under review. This mainly reflected an increase in advances received of 808 million yen.
Freund Corporation published this content on 06 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 January 2017 05:38:13 UTC.
Original documenthttp://www.freund.co.jp/english/docs/doc_tanshin_3Qfy201702_eng.pdf
Public permalinkhttp://www.publicnow.com/view/E28A7904BA7E0C60C4C81299F2633D3D8475ADA3