(English Translation)
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 First Quarter of the
Fiscal Year Ending November 30, 2024 (FY11/24)
(Three Months Ended February 29, 2024)
Company name:
Listing Stock code Representative
Contact
[Japanese GAAP]
April 12, 2024
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Tokyo Stock Exchange, Prime Market
4187 | URL https://www.ooc.co.jp/ |
Masayuki Ando, Representative Director and CEO
Soichi Honda, Director, Corporate Officer, General Manager of Administration Division TEL: +81-6-6264-5071
Scheduled date of filing of Quarterly Report | April 12, 2024 | Scheduled date of dividend payment | - | |
Preparation of supplementary materials for quarterly financial results | : | Yes | ||
Holding of quarterly financial results meeting | : | None |
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter of FY11/24 (December 1, 2023 to February 29, 2024)
(1)Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Three months ended Feb. 29, 2024 | 7,066 | 2.8 | 580 | (42.3) | 640 | (38.4) | 603 | (17.0) | |
Three months ended Feb. 28, 2023 | 6,870 | (15.4) | 1,005 | (39.6) | 1,040 | (40.0) | 726 | (40.0) |
(NOTE) Comprehensive income (millions of yen) | Three months ended Feb. 29, 2024: | 1,164 | (up 24.4) | ||||||||||||||
Three months ended Feb. 28, 2023: | 935 | (down 21.3) | |||||||||||||||
Net income per share | Diluted net income per share | ||||||||||||||||
Yen | Yen | ||||||||||||||||
Three months ended Feb. 29, 2024 | 28.47 | - | |||||||||||||||
Three months ended Feb. 28, 2023 | 33.71 | - | |||||||||||||||
(2)Consolidated financial position | |||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||
Millions of yen | Millions of yen | % | |||||||||||||||
As of Feb. 29, 2024 | 54,951 | 43,751 | 78.4 | ||||||||||||||
As of Nov. 30, 2023 | 54,636 | 43,629 | 78.7 | ||||||||||||||
Reference Shareholders' equity (millions of yen) | As of Feb. 29, 2024 | 43,106 | As of Feb. 28, 2023 | 42,984 | |||||||||||||
2. Dividends | |||||||||||||||||
Dividend per share | |||||||||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||
Fiscal year ending Nov. 30, 2023 | - | 28.00 | - | 28.00 | 56.00 | ||||||||||||
Fiscal year ending Nov. 30, 2024 | - | ||||||||||||||||
Fiscal year ending Nov. 30, 2024 | 29.00 | - | 29.00 | 58.00 | |||||||||||||
(Forecast) | |||||||||||||||||
(NOTE) Revisions to the most recently | announced | dividend forecast | : None |
3. Consolidated Forecasts for the FY11/24 (December 1, 2023 to November 30, 2024)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Per share | ||||||
owners of parent | Profit | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
First half | 14,500 | 1.7 | 1,400 | (27.8) | 1,500 | (27.7) | 1,000 | (37.7) | 47.02 | |
Full year | 31,000 | 7.2 | 3,700 | 3.4 | 3,900 | 0.6 | 2,700 | (17.5) | 126.95 |
(NOTE) Revisions to the most recently announced consolidated forecast : None
※ Notes | |||||||||
(1) Changes of important subsidiaries during the period | : | None | |||||||
(change in scope of consolidation) | |||||||||
Newly added | - Company (Company name) | 、 Excluded | - | Company | (Company name) | ||||
(2) Application of special accounting methods for presenting quarterly consolidated financial statements | : None | ||||||||
(3) Changes in accounting policies and accounting-based estimates, and restatements | |||||||||
① Changes in accounting policies due to revisions in accounting standards, others | : None | ||||||||
② Changes in accounting policies other than 1) above | : None | ||||||||
③ Changes in accounting-based estimates | : None | ||||||||
④ Restatements | : None | ||||||||
(4) Number of shares issued (common shares) | |||||||||
① Number of shares issued at the end of the period | 1Q for | the Fiscal | Fiscal year ending | ||||||
(including treasury shares) | Year | Ended | 22,410,038Shares | Nov. 30, 2023 | 22,410,038Shares | ||||
November 2024 | |||||||||
② Number of treasury shares at the end of the period | 1Q for | the Fiscal | Fiscal year ending | ||||||
Year | Ended | 1,286,185Shares | 1,142,585Shares | ||||||
November 2024 | Nov. 30, 2023 | ||||||||
③ Average number of shares during the period | 1Q for | the Fiscal | As of Feb. | 28, | |||||
Year | Ended | 21,195,658Shares | 21,562,560Shares | ||||||
November 2024 | 2023 | ||||||||
※ The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms. | |||||||||
※ Cautionary statement with respect to forward-looking statements and other special items |
The forward-looking statements contained in this material are based on information available to the Company's management at the time the materials were prepared and include a variety of uncertainties. Actual results may differ from the forecasts due to changes in the business environment and other factors. Please refer to "Explanation of Consolidated Forecast and Other Forward- looking Statements" on page 2 for items pertaining to the forecasts stated above.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
〇Contents of Attachments | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 2 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 2 |
2. Quarterly Consolidated Financial Statements and Notes | 3 | |
(1) | Quarterly Consolidated Balance Sheet | 3 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 5 |
(3) | Notes to Quarterly Consolidated Financial Statements | 7 |
Going Concern Assumption | 7 | |
Significant Changes in Shareholders' Equity | 7 | |
Segment and Other Information | 7 | |
Significant Subsequent Events | 8 |
1
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
1.Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
During the first quarter of the fiscal year under review, the Period economy continued to recover moderately due to improvement in the employment and income environment and various government policies. However, the outlook remains uncertain due to the uncertainty in overseas economies and the impact of global monetary tightening, as well as other risks that could exert downward pressure on the domestic economy.
Under these circumstances, we launched a new medium-term management planning Progress & Development 2030 (P&D 2030) for the period from the fiscal year ended November 2024 to the fiscal year ended November 2030. Based on our Group management philosophy, P&D 2030 has set a management vision of "providing value to the global market as a leading company in specialty acrylic acid esters." Under this vision, we will promote sustainable management that takes ESG into account, aiming to increase corporate value and achieve sustainable growth.
In the Chemicals Business, we worked to improve profitability by integrating and closing products, and focused on expanding sales of environmentally friendly products, such as those derived from biomass. In the electronic materials business, the Group worked to accelerate the development of cutting-edge semiconductor materials and to develop new applications for photoresist materials. In the functional chemicals business, the Group worked to strengthen overseas expansion of cosmetic raw materials and expand sales of high-purity special solvents.
As a result, for the first quarter, net sales were 7,066 million yen (up 2.8% year on year), operating profit was 580 million yen (down 42.3% year on year), ordinary profit was 640 million yen (down 38.4% year on year), and profit attributable to owners of parent was 603 million yen (down 17.0% year on year).
Business results by segment are explained below (excluding inter-segment transactions).
① Chemical products
In the chemicals business, sales of the acrylic acid ester group for automotive coatings and adhesives for displays were strong. Sales for UV inkjet inks increased significantly. Methacrylic acid esters recorded strong sales. As a result, net sales were 2,702 million yen (up 27.6% from the same quarter of the previous year) and segment profit was 260 million yen (up 93.2% from the same quarter of the previous year).
②Electronics materials
In the electronic materials business, sales of raw materials for cutting-edge EUV resists increased significantly. However, sales of raw materials for ArF resists, which are the Company's mainstay, declined despite signs of recovery from sluggish demand due to prolonged inventory adjustments. As a result, the Group-wide net sales declined. In the Labeling Materials Group, sales for insulating films for touch panels increased, and the Group's overall sales remained firm. As a result, net sales decreased 4.3% from the same quarter of the previous year to 3,099 million yen and segment profit decreased 69.9% to 175 million yen.
③Specialty chemicals
Raw materials for cosmetics recorded strong sales abroad. As for functional materials, sales of products made for other companies remained weak. Sales of high-purity specialty solvents at subsidiaries decreased. As a result, net sales decreased 16.5% from the same quarter of the previous year to 1,264 million yen and segment profit decreased 56.1% to 132 million yen.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the current fiscal year increased by 314 million yen from the end of the previous fiscal year to 54,951 million yen. This was mainly attributable to an increase of 1,677 million yen in cash and deposits, a decrease of 428 million yen in notes receivable, accounts receivable and contract assets, a decrease of 377 million yen in products, a decrease of 277 million yen in raw materials and supplies, a decrease of 670 million yen in other current assets due to refunds of consumption taxes receivable, and an increase of 683 million yen in investment securities.
Liabilities at the end of the first quarter of the current fiscal year increased by 192 million yen from the end of the previous fiscal year to 11,200 million yen. This was mainly due to a decrease of 341 million yen in current portion of
2
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
long-term loans payable, an increase of 196 million yen in income taxes payable, an increase of 223 million yen in provision for bonuses, and an increase of 116 million yen in deferred tax liabilities.
Net assets at the end of the first quarter of the current fiscal year increased by 122 million yen from the end of the previous fiscal year to 43,751 million yen. This was mainly due to an increase of 7 million yen in retained earnings, an increase of 426 million yen in treasury stock, and an increase of 525 million yen in net unrealized holding gains on securities.
- Explanation of Consolidated Forecast and Other Forward-looking Statements The consolidated forecasts announced on January 11, 2024, remain unchanged.
3
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
2.Quarterly Consolidated Financial Statements and Notes (1)Quarterly Consolidated Balance Sheet
(Thousands of yen) | ||||
FY11/23 | First quarter of FY11/24 | |||
(As of Nov. 30, 2023) | (As of Feb. 29, 2024) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 7,890,809 | 9,568,135 | ||
Notes, accounts receivable-trade and contract assets | 8,634,668 | 8,206,289 | ||
Electronically recorded monetary claims-operating | 335,183 | 321,615 | ||
Finished goods | 4,558,239 | 4,180,510 | ||
Work in process | 1,979,792 | 2,167,236 | ||
Raw materials and supplies | 2,175,488 | 1,897,616 | ||
Other | 1,540,540 | 870,371 | ||
Allowance for doubtful accounts | (12,736) | (11,966) | ||
Total current assets | 27,101,985 | 27,199,808 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 8,720,743 | 8,567,203 | ||
Machinery, equipment and vehicles, net | 8,673,751 | 8,200,240 | ||
Land | 2,172,476 | 2,172,476 | ||
Construction in progress | 520,490 | 705,956 | ||
Other, net | 356,003 | 342,949 | ||
Total property, plant and equipment | 20,443,464 | 19,988,826 | ||
Intangible assets | ||||
Goodwill | 43,333 | 38,333 | ||
Other | 59,379 | 52,873 | ||
Total intangible assets | 102,713 | 91,206 | ||
Investments and other assets | ||||
Investment securities | 6,500,840 | 7,183,908 | ||
Retirement benefit asset | 357,945 | 365,338 | ||
Deferred tax assets | 209 | 156 | ||
Other | 129,806 | 122,622 | ||
Total investments and other assets | 6,988,802 | 7,672,025 | ||
Total non-current assets | 27,534,980 | 27,752,059 | ||
Total assets | 54,636,965 | 54,951,867 | ||
4
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
(Thousands of yen) | ||||
FY11/23 | First quarter of FY11/24 | |||
(As of Nov. 30, 2023) | (As of Feb. 29, 2024) | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 3,802,732 | 3,862,947 | ||
Current portion of bonds payable | 25,000 | 25,000 | ||
Current portion of long-term borrowings | 1,728,157 | 1,386,632 | ||
Accounts payable-other | 814,077 | 882,231 | ||
Income taxes payable | 234,679 | 431,305 | ||
Provision for bonuses | - | 223,316 | ||
Provision for bonuses for directors (and other | 15,590 | 9,611 | ||
officers) | ||||
Other | 477,814 | 545,357 | ||
Total current liabilities | 7,098,050 | 7,366,402 | ||
Non-current liabilities | ||||
Long-term borrowings | 3,169,849 | 2,969,886 | ||
Deferred tax liabilities | 628,650 | 744,706 | ||
Provision for share awards for directors (and other | 21,107 | 29,736 | ||
officers) | ||||
Other | 90,085 | 89,563 | ||
Total non-current liabilities | 3,909,693 | 3,833,891 | ||
Total liabilities | 11,007,743 | 11,200,294 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 3,600,295 | 3,600,295 | ||
Capital surplus | 3,511,017 | 3,511,017 | ||
Retained earnings | 35,954,913 | 35,962,835 | ||
Treasury shares | (2,709,700) | (3,136,467) | ||
Total shareholders' equity | 40,356,525 | 39,937,681 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 2,514,638 | 3,039,852 | ||
Foreign currency translation adjustment | 125,461 | 139,877 | ||
Remeasurements of defined benefit plans | (12,589) | (10,416) | ||
Total accumulated other comprehensive income | 2,627,510 | 3,169,312 | ||
Non-controlling interests | 645,186 | 644,579 | ||
Total net assets | 43,629,221 | 43,751,573 | ||
Total liabilities and net assets | 54,636,965 | 54,951,867 | ||
5
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
(2)Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
For the Three-month Period
(Thousands of yen)
First three months of FY11/23 (Dec. 1, 2022-Feb. 28, 2023)
First three months of FY11/24 (Dec. 1, 2023-Feb. 29, 2024)
Net sales | 6,870,471 | 7,066,021 |
Cost of sales | 4,802,990 | 5,282,984 |
Gross profit | 2,067,481 | 1,783,036 |
Selling, general and administrative expenses | 1,061,997 | 1,202,420 |
Operating profit | 1,005,483 | 580,615 |
Non-operating income | ||
Interest income | 485 | 601 |
Dividend income | 44,247 | 33,947 |
Foreign exchange gains | - | 17,549 |
Other | 6,559 | 11,105 |
Total non-operating income | 51,292 | 63,203 |
Non-operating expenses | ||
Interest expenses | 1,478 | 2,314 |
Foreign exchange losses | 13,070 | - |
Commission for purchase of treasury stock | - | 602 |
Loss on investments in partnership | 1,966 | 591 |
Total non-operating expenses | 16,516 | 3,508 |
Ordinary profit | 1,040,259 | 640,311 |
Extraordinary income | ||
Gain on sales of investment securities | - | 273,751 |
Total extraordinary income | - | 273,751 |
Extraordinary losses | ||
Loss on retirement of non-current assets | 676 | 102 |
Total extraordinary losses | 676 | 102 |
Profit before income taxes | 1,039,582 | 913,960 |
Income taxes-current | 368,518 | 409,192 |
Income taxes-deferred | (80,366) | (116,318) |
Total income taxes | 288,152 | 292,873 |
Profit | 751,429 | 621,086 |
Profit attributable to non-controlling interests | 24,588 | 17,675 |
Profit attributable to owners of parent | 726,841 | 603,410 |
6
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period
(Thousands of yen) | |||
First three months of FY11/23 | First three months of FY11/24 | ||
(Dec. 1, 2022-Feb. 28, 2023) | (Dec. 1, 2023-Feb. 29, 2024) | ||
Profit | 751,429 | 621,086 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 172,887 | 526,368 | |
Foreign currency translation adjustment | 5,746 | 14,415 | |
Remeasurements of defined benefit plans, net of tax | 5,800 | 2,224 | |
Total other comprehensive income | 184,434 | 543,008 | |
Comprehensive income | 935,864 | 1,164,094 | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of parent | 909,724 | 1,145,212 | |
Comprehensive income attributable to non-controlling | 26,139 | 18,881 | |
interests | |||
7
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/24
(3)Notes to Quarterly Consolidated Financial Statements Going Concern Assumption
Not applicable.
Significant Changes in Shareholders' Equity
In accordance with the resolution of the Board of Directors' meeting held on January 26, 2024, the Company repurchased its own shares. As a result of this acquisition and other factors, treasury stock increased by 426,766 thousand yen in the first quarter under review to 3,136,467 thousand yen at the end of the first quarter under review.
Segment and Other Information 【Segment information】
I. First three months of FY11/23 (Dec. 1, 2022 - Feb. 28, 2023)
1.Information on the amounts of sales, profits or losses by reportable segment and information on disaggregation of revenue
(Thousands of yen) | ||||||
Reportable segment | Amounts shown on | |||||
Adjustment | quarterly consolidated | |||||
(NOTE 1) | statement of income | |||||
Chemical | Electronics | Specialty | Total | |||
products | materials | chemicals | (NOTE 2) | |||
Net sales | ||||||
Japan | 1,472,373 | 2,857,157 | 1,249,580 | 5,579,112 | - | 5,579,112 |
Asia and Australia | 466,415 | 346,338 | 224,921 | 1,037,674 | - | 1,037,674 |
Americas | 95,844 | 34,572 | 40,226 | 170,642 | - | 170,642 |
Europe | 82,981 | 60 | - | 83,041 | - | 83,041 |
Revenue from Contracts | 2,117,615 | 3,238,128 | 1,514,727 | 6,870,471 | - | 6,870,471 |
with Customers | ||||||
Other revenues | - | - | - | - | - | - |
Sales to external customers | 2,117,615 | 3,238,128 | 1,514,727 | 6,870,471 | - | 6,870,471 |
Intra-segment sales or | - | - | 126,419 | 126,419 | (126,419) | - |
reallocations | ||||||
Total | 2,117,615 | 3,238,128 | 1,641,147 | 6,996,891 | (126,419) | 6,870,471 |
Segment profit | 134,944 | 581,060 | 301,447 | 1,017,453 | (11,969) | 1,005,483 |
(NOTE)1 Segment profit in the above adjustment represents eliminations for inter-segment transactions.
2 Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement of income.
2.Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Not applicable.
8
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Osaka Organic Chemical Industry Ltd. published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 07:19:03 UTC.