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 Six Months Ended September 30, 2022
(under Japanese GAAP)
November 10, 2022
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: | November 11, 2022 |
Scheduled date to commence dividend payments: | December 2, 2022 |
Preparation of supplementary material on quarterly financial results: | Yes |
Holding of quarterly financial results presentation meeting: | Yes (for analysts) |
(Figures are rounded down to the nearest million yen)
1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2023 (from April 1, 2022 to September 30, 2022)
(1) Consolidated operating results (cumulative) | (% indicates year-on-year changes) | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||
September 30, 2022 | 88,439 | 14.1 | 3,932 | (33.6) | 7,368 | 7.4 | 4,719 | 6.8 | ||||||||
September 30, 2021 | 77,519 | 17.6 | 5,918 | 28.7 | 6,861 | 56.9 | 4,418 | 89.6 | ||||||||
Note: | Comprehensive income: Six months ended September 30, 2022 | ¥6,327 million [49.2%] | ||||||||||||||
Six months ended September 30, 2021 | ¥4,240 million [(7.0)%] | |||||||||||||||
Basic earnings per share | Diluted earnings per | |||||||||||||||
share | ||||||||||||||||
Six months ended | Yen | Yen | ||||||||||||||
September 30, 2022 | 213.90 | - | ||||||||||||||
September 30, 2021 | 200.37 | - | ||||||||||||||
(2) Consolidated financial position | ||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||||
As of | Millions of yen | Millions of yen | % | Yen | ||||||||||||
September 30, 2022 | 211,252 | 151,603 | 70.5 | 6,742.09 | ||||||||||||
March 31, 2022 | 200,194 | 147,032 | 72.2 | 6,549.60 | ||||||||||||
Reference: | Equity: | As of September 30, 2022 | ¥148,829 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 six months ended September 30, 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 |
(4) Number of shares issued (common stock)
a. Number of shares issued at the end of the period (including treasury shares)
As of September 30, 2022 | 23,534,752 shares |
As of March 31, 2022 | 23,534,752 shares |
b. Number of treasury shares at the end of the period
As of September 30, 2022 | 1,460,067 shares |
As of March 31, 2022 | 1,475,417 shares |
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2022 | 22,064,368 shares |
For the six months ended September 30, 2021 | 22,050,706 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 six months ended September 30, 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 six months ended September 30, 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 six months ended September 30, 2022
-
Information regarding operating results
During the first six months (April 1, 2022 to September 30, 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, we are seeing a track of recovery in the US and Europe, and China is also experiencing a recovery from the economic downturn caused by restrictions on activities. However, persistently high resource and energy prices caused by the prolonged conflict between Russia and Ukraine and concern over the global economic slowdown caused by fiscal tightening mean that the future remains unclear.
In the chemical industry, the forex market is experiencing a trend of rapid yen depreciation mainly due to interest rate hikes in the US and Europe. Oil prices are 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 14.1% year on year to
¥88,439 million as sales prices were revised in response to rising raw materials prices. In terms of profit, operating profit was ¥3,932 million (a decrease of 33.6% year on year) due to reduced sales quantities, diminished spreads between sales and purchase from rising raw materials prices, and increased selling, general and administrative expenses. Ordinary profit was ¥7,368 million (an increase of 7.4% year on year) due to an increase in foreign exchange gains, and profit attributable to owners of parent was ¥4,719 million (an increase of 6.8% year on year).
- Business performance
(Millions of yen) | ||||||
Six months | Six months | |||||
ended | ended | Change | FY2021 | |||
September 30, | September 30, | |||||
2021 | 2022 | |||||
(Amount) | (Change) | |||||
Net sales | 77,519 | 88,439 | 10,920 | 14.1% | 162,526 | |
Operating profit | 5,918 | 3,932 | (1,985) | (33.6)% | 11,868 | |
Ordinary profit | 6,861 | 7,368 | 506 | 7.4% | 12,771 | |
Profit attributable to owners | 4,418 | 4,719 | 301 | 6.8% | 6,699 | |
of parent | ||||||
Basic earnings per share | ¥200.37 | ¥213.90 | ¥13.53 | 6.8% | ¥303.76 | |
ROA (Return on assets*) | 7.0% | 7.2% | - | 0.2 percentage | 6.5% | |
point | ||||||
ROE (Return on equity) | 6.2% | 6.4% | - | 0.2 percentage | 4.7% | |
point | ||||||
Currency exchange (US$, | US$=¥109.82 | US$=¥134.05 | ¥24.23 | US$=¥112.40 | ||
CNY) | CNY=¥16.99 | CNY=¥19.89 | ¥2.90 | CNY=¥17.52 | ||
Naphtha price in Japan | ¥50,600/kl | ¥83,400/kl | ¥32,800/kl | ¥56,600/kl | ||
*ROA (Return on assets) is calculated based on ordinary profit.
Note: ROA and ROE for the six months ended September 30, 2021 and 2022 are annualized.
- 2 -
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Sanyo Chemical Industries Ltd. published this content on 02 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2022 07:53:00 UTC.