February 3, 2022
Consolidated Financial Results
for the Nine Months Ended December 31, 2021 (Q1, Q2 and Q3 FY2021)
Sumitomo Seika Chemicals Company, Limited.
During the nine months ended December 31, 2021 (Q1, Q2 and Q3 fiscal 2021), the world's economies, including Japan, were still in difficult environment due to the coronavirus pandemic impact but began to show tangible signs of recovery.
Under these circumstances, the Sumitomo Seika Group's financial results for the nine months ended December 31, 2021 were as follows:
Net sales posted 84.234 billion yen, an 11.9% increase compared with the same period in the previous fiscal year;
Operating income was 6.556 billion yen, a 14.1% decrease from the same period in the previous fiscal year;
Ordinary income was 6.733 billion yen, a 10.2% decrease from the same period in the previous fiscal year;
Net income attributable to owners of the parent came to 4.723 billion yen, a 15.8% decrease from the previous fiscal year, reflecting the impairment loss of 0.318 billion yen registered at Sumitomo Seika Europe S.A./N.V., a consolidated subsidiary of the Company, mainly in view of the impact of a deterioration in the current business environment in Europe.
Net income per share was 342.75 yen and return on equity (ROE) was 6.3%.
Incidentally, effective the first quarter of fiscal 2021, the Company has applied the revised "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. As a result, for the first, second and third quarters of fiscal year 2021, net sales decreased by 0.865 billion yen, sales cost decreased by 0.655 billion yen, operating income, ordinary income and income before income taxes decreased by 0.210 billion yen respectively, compared with the previous standards.
Super Absorbent Polymers
Net sales increased by 13.6% from the same period of the previous fiscal year to 56.588 billion yen, while operating income decreased by 51.5% to 2.196 billion yen. The increase in net sales resulted mainly from higher selling prices reflecting a rise in raw material prices and changes in foreign exchange rates. The operating income decline was due chiefly to increased prices of raw materials and fuel used and logistics costs.
Functional Chemicals
Net sales increased by 6.9% over the same period of the previous fiscal year to 14.202 billion yen,
and operating income rose by 59.8% to 2.343 billion yen. This was attributable primarily to a rise in sales volume of pharmaceutical intermediates, functional products and powdered plastics.
Gases and Engineering
Net sales increased by 10.9% over the same period of the previous fiscal year to 13.082 billion yen, and operating income grew by 24.3% to 2.084 billion yen. This was due mainly to a rise in sales volume of electronics gases.
Others
In addition to the above businesses, the Sumitomo Seika Group is engaged in temporary staffing agency service and other businesses. In this segment, net sales decreased by 3.3% from the same period of the previous fiscal year to 0.360 billion yen with operating loss of 0.072 billion yen.
Consolidated financial forecast for the fiscal year ending March 31, 2022
As shown below, the Company has revised the fiscal 2021 full-year consolidated financial forecasts.
For details, please refer to "Notice of Revision to Full-Year Consolidated Financial Forecasts" released today concurrently.
(Millions of yen) | ||||
Net sales | Operating | Ordinary | Net income attributable | |
income | income | to owners of the parent | ||
Fiscal 2021 | 115,000 | 8,000 | 8,200 | 5,500 |
Cautionary Statement
The forward-looking statements such as the forecasts included in this document are based on information available at the time and estimates based on reasonable assumptions, and do not represent a commitment from the Company that they will be achieved. The actual results figures may differ from the forecasts due to various factors. If the forecasts come to be revised, the Company will disclose the revision without delay.
Outline of Consolidated Financial Statement
For the Nine Months Ended December 31, 2021 (Q1, Q2 and Q3 FY2021)
February3, 2022
Sumitomo Seika Chemicals Company, Limited
1. Consolidated Results
9 months ended December 31 | Y-o-y | FY 2021 ending | |||||||||
change | March 31, 2022 | ||||||||||
FY 2020 | FY 2021 | ||||||||||
Net Sales | Million ¥ | 75,264 | 84,234 | 8,970 | 115,000 | ||||||
Operating Income | Million ¥ | 7,632 | 6,556 | (1,075) | 8,000 | ||||||
Ordinary Income | Million ¥ | 7,499 | 6,733 | (765) | 8,200 | ||||||
Net Income attributable to owners of the | Million ¥ | 5,608 | 4,723 | (884) | 5,500 | ||||||
parent | |||||||||||
Net Income Per Share for the Term | ¥ | 406.61 | 342.75 | (63.86) | 399.51 | ||||||
Shareholder Return on Equity for the Term | % | 8.4 | 6.3 | (2.1) | 7.4 | ||||||
Average Exchange Rate | ¥/USD | 106.12 | 111.11 | - | 112.00 | ||||||
Average Exchange Rate | ¥/CNY | 15.44 | 17.25 | - | 17.50 | ||||||
Naphtha Price | ¥/KL | 28,800 | 54,000 | - | 56,300 | ||||||
- Effective the first quarter of fiscal 2021, the Company has applied the revised "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. As a result, for the first, second and third quarter of fiscal year 2021, net sales decreased by 0.865 billion yen, sales cost decreased by 0.655 billion yen, operating income, ordinary income and income before income taxes decreased by 0.210 billion yen respectively, compared with the previous standards.
2. Net Sales and Operating Income by Business Segment
9 months ended December 31 | Y-o-y | FY 2021 ending | ||||||||||||
change | March 31, 2022 | |||||||||||||
FY 2020 | FY 2021 | |||||||||||||
Super Absorbent Polymers | ||||||||||||||
Net Sales | Million ¥ | 49,811 | 56,588 | 6,777 | 79,000 | |||||||||
Operating Income | Million ¥ | 4,524 | 2,196 | (2,327) | 2,800 | |||||||||
Functional Chemicals | ||||||||||||||
Net Sales | Million ¥ | 13,280 | 14,202 | 922 | 18,500 | |||||||||
Operating Income | Million ¥ | 1,465 | 2,343 | 877 | 2,600 | |||||||||
Gases and Engineering | ||||||||||||||
Net Sales | Million ¥ | 11,800 | 13,082 | 1,282 | 17,000 | |||||||||
Operating Income | Million ¥ | 1,676 | 2,084 | 407 | 2,600 | |||||||||
Others | ||||||||||||||
Net Sales | Million ¥ | 372 | 360 | (12) | 500 | |||||||||
Operating Income | Million ¥ | (42) | (72) | (29) | 0 | |||||||||
(Elimination) Offsetting
Net Sales | Million ¥ | - | - | - | - | |||||
Operating Income | Million ¥ | 8 | 5 | (3) | - | |||||
Total | ||||||||||
Net Sales | Million ¥ | 75,264 | 84,234 | 8,970 | 115,000 | |||||
Operating Income | Million ¥ | 7,632 | 6,556 | (1,075) | 8,000 | |||||
- Effective the first quarter of fiscal 2021, the Company has applied the revised "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. As a result, for the first, second and third quarter of fiscal year 2021, net sales of Super Absorbent Polymer decreased by 0.748 billion yen, operating income of it decreased by 0.150 billion yen, net sales of Functional Chemicals decreased by 0.069 billion yen, operating income of it decreased by 0.044 billion yen, net sales of Gases and Engineering decreased by 0.047 billion yen and operating income decreased by 0.014 billion yen respectively, compared with the previous standards. Net sales and operating income of Others are no change.
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Sumitomo Seika Chemicals Co. Ltd. published this content on 04 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2022 08:35:09 UTC.