Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(under Japanese GAAP)
February 9, 2023
Company name: | Sanyo Chemical Industries, Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 4471 |
URL: | https://www.sanyo-chemical.co.jp/ |
Representative: | Akinori Higuchi, President & CEO |
Inquiries: | Kenichi Nishimura, Director & Executive Officer, General Manager of Administrative |
Affairs Division | |
TEL: | +81-75-541-4312 |
Scheduled date to file quarterly securities report: | February 13, 2023 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on quarterly financial results: | None |
Holding of quarterly financial results presentation meeting: | None |
(Figures are rounded down to the nearest million yen)
1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2023 (from April 1, 2022 to December 31, 2022)
(1) Consolidated operating results (cumulative) | (% indicates year-on-year changes) | ||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||
December 31, 2022 | 134,183 | 11.0 | 6,656 | (30.7) | 8,899 | (21.8) | 6,284 | (16.2) | |||||||
December 31, 2021 | 120,846 | 13.6 | 9,600 | 8.5 | 11,373 | 29.0 | 7,502 | 71.4 | |||||||
Note: | Comprehensive income: Nine months ended December 31, 2022 | ¥6,557 million [(17.3)%] | |||||||||||||
Nine months ended December 31, 2021 | ¥7,929 million [(12.2)%] | ||||||||||||||
Basic earnings per share | Diluted earnings per | ||||||||||||||
share | |||||||||||||||
Nine months ended | Yen | Yen | |||||||||||||
December 31, 2022 | 284.77 | - | |||||||||||||
December 31, 2021 | 340.18 | - | |||||||||||||
(2) Consolidated financial position | |||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||
As of | Millions of yen | Millions of yen | % | Yen | |||||||||||
December 31, 2022 | 215,401 | 149,828 | 68.3 | 6,661.74 | |||||||||||
March 31, 2022 | 200,194 | 147,032 | 72.2 | 6,549.60 | |||||||||||
Reference: | Equity: | As of December 31, 2022 | ¥147,053 million | ||||||||||||
As of March 31, 2022 | ¥144,479 million |
2. Cash dividends
Cash dividends per share | |||||
1Q (as of June 30) | 2Q (as of Sept. 30) | 3Q (as of Dec. 31) | 4Q (as of Mar. 31) | Total | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended | - | 85.00 | - | 85.00 | 170.00 |
March 31, 2022 | |||||
Fiscal year ending | - | 85.00 | - | ||
March 31, 2023 | |||||
Fiscal year ending | 85.00 | 170.00 | |||
March 31, 2023 | |||||
(Forecast) | |||||
Note: Revisions of the latest forecasts for cash dividends announced: None |
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
(% indicates year-on-year changes) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic | ||||||
earnings | ||||||||||
owners of parent | ||||||||||
per share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Fiscal year ending | 184,000 | 13.2 | 11,000 | (7.3) | 13,500 | 5.7 | 9,000 | 34.3 | 407.81 | |
March 31, 2023 | ||||||||||
Note: Revisions of the latest forecasts for earnings announced: None |
* Notes
- Significant changes in subsidiaries during the nine months ended December 31, 2022 (changes in specific subsidiaries resulting in the change in scope of consolidation): None
-
Application of special accounting methods for the preparation of quarterly consolidated financial statements: Yes
Note: See page 11, "2. Quarterly consolidated financial statements and significant notes thereto, (4) Notes to quarterly consolidated financial statements, Application of special accounting methods for the preparation of quarterly consolidated financial statements" for more information. - Changes in accounting policies, accounting estimates, and restatements
a. | Changes in accounting policies associated with revised accounting standards, etc.: | None |
b. | Changes in accounting policies other than a. above: | None |
c. | Changes in accounting estimates: | None |
d. | Restatements: | None |
- Number of shares issued (common stock)
a. Number of shares issued at the end of the period (including treasury shares)
As of December 31, 2022
As of March 31, 2022
23,534,752 shares
23,534,752 shares
b. Number of treasury shares at the end of the period
As of December 31, 2022
As of March 31, 2022
1,460,365 shares
1,475,417 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2022
For the nine months ended December 31, 2021
22,067,412 shares
22,053,375 shares
Note: Shares of Sanyo Chemical Industries, Ltd. (the "Company") owned by the trust whose beneficiaries are directors, etc. of the Company are included in the treasury shares that are excluded in calculating the number of treasury shares at the end of the period and the average number of shares outstanding during the period.
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
-
Appropriate use of earnings forecasts and other special items
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual earnings may differ significantly due to various factors. See page 5, "1. Qualitative information regarding financial results for the nine months ended December 31, 2022, (3) Information concerning future forecast such as consolidated earnings forecasts" for more information regarding the circumstances behind the assumptions used in earnings forecasts and matters to be noted when relying on earnings forecasts.
Attached Material Index | ||
1. Qualitative information regarding financial results for the nine months ended December 31, 2022 | .... 2 | |
(1) | Information regarding operating results | 2 |
(2) | Analysis of financial position | 4 |
(3) | Information concerning future forecast such as consolidated earnings forecasts | 5 |
2. Quarterly consolidated financial statements and significant notes thereto | 6 | |
(1) | Consolidated balance sheets | 6 |
(2) | Consolidated statements of income and consolidated statements of comprehensive income | 8 |
Consolidated statements of income (cumulative) | 8 | |
Consolidated statements of comprehensive income (cumulative) | 9 | |
(3) | Consolidated statements of cash flows | 10 |
(4) | Notes to quarterly consolidated financial statements | 11 |
Notes to going concern assumptions | 11 | |
Notes on significant changes in the amount of shareholders' equity | 11 | |
Application of special accounting methods for the preparation of quarterly consolidated financial | ||
statements | 11 | |
Segment information | 12 | |
3. Supplementary information | 14 |
- 1 -
1. Qualitative information regarding financial results for the nine months ended December 31, 2022
-
Information regarding operating results
During the first nine months (April 1, 2022 to December 31, 2022) of the fiscal year ending March 31, 2023, the Japanese economy saw a recovery in individual consumption and exports as restrictions on economic activities due to the impact of COVID-19 were eased. However, overall conditions remained challenging amid continuing supply chain disruptions and supply restrictions on raw materials and parts. In the global economy, while we are seeing concern over the economic slowdown caused by fiscal tightening in the US and Europe and the absence of a strong recovery from the economic downturn caused by restrictions on activities in China, persistently high resource and energy prices and rising prices caused by the prolonged conflict between Russia and Ukraine mean that the future remains unclear.
In the chemical industry, after rapid yen depreciation mainly due to interest rate hikes in the US and Europe in the forex market, a shift was seen toward yen appreciation due to concern over the economic slowdown in the US and revisions to the BOJ's monetary easing policy. Oil prices have been unstable amid mixed speculation over rising and falling prices from concerns over the global economic slowdown as well as supply concerns, meaning that the business environment remains unpredictable.
Under these circumstances, net sales for the period under review increased by 11.0% year on year to
¥134,183 million as sales prices were revised in response to rising raw materials prices. In terms of profit, operating profit was ¥6,656 million (a decrease of 30.7% year on year) due to reduced sales quantities and increased selling, general and administrative expenses. Ordinary profit was ¥8,899 million (a decrease of 21.8% year on year), and profit attributable to owners of parent was ¥6,284 million (a decrease of 16.2% year on year).
- Business performance
(Millions of yen) | ||||||
Nine months | Nine months | |||||
ended | ended | Change | FY2021 | |||
December 31, | December 31, | |||||
2021 | 2022 | |||||
(Amount) | (Change) | |||||
Net sales | 120,846 | 134,183 | 13,337 | 11.0% | 162,526 | |
Operating profit | 9,600 | 6,656 | (2,943) | (30.7)% | 11,868 | |
Ordinary profit | 11,373 | 8,899 | (2,474) | (21.8)% | 12,771 | |
Profit attributable to owners | 7,502 | 6,284 | (1,218) | (16.2)% | 6,699 | |
of parent | ||||||
Basic earnings per share | ¥340.18 | ¥284.77 | ¥(55.41) | (16.3)% | ¥303.76 | |
ROA (Return on assets*) | 7.6% | 5.7% | - | (1.9) percentage | 6.5% | |
point | ||||||
ROE (Return on equity) | 7.0% | 5.7% | - | (1.3) percentage | 4.7% | |
point | ||||||
Currency exchange (US$, | US$=¥111.14 | US$=¥136.52 | ¥25.38 | US$=¥112.40 | ||
CNY) | CNY=¥17.26 | CNY=¥19.88 | ¥2.62 | CNY=¥17.52 | ||
Naphtha price in Japan | ¥54,000/kl | ¥79,800/kl | ¥25,800/kl | ¥56,600/kl |
*ROA (Return on assets) is calculated based on ordinary profit.
Note: ROA and ROE for the nine months ended December 31, 2021 and 2022 are annualized.
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Sanyo Chemical Industries Ltd. published this content on 01 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2023 08:25:35 UTC.