August 11, 2020
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2021
(Three Months Ended June 30, 2020)
ROHTO Pharmaceutical Co., Ltd. | [Japanese GAAP] | |
Company name: | Stock Exchange listing: TSE, First Section | |
Stock code: | 4527 | URL: https://www.rohto.co.jp/ |
Representative: | Masashi Sugimoto, President and COO | |
Contact: | Masaya Saito, Vice President and Director | |
Telephone: | 81-(0)6-6758-8223 |
Scheduled date of filing of Quarterly Report: | August 12, 2020 |
Scheduled date of dividend payment: | - |
Supplementary materials for quarterly financial results: | Yes |
Quarterly financial results meeting: | Yes (for institutional investors and analysts) |
(All amounts are rounded down to the nearest million yen.) |
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2021 (April 1, 2020 - June 30, 2020)
(1) Consolidated results of operations | (Percentages represent year-on-year changes.) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
Three months ended Jun. 30, 2020 | 38,641 | (7.8) | 3,878 | 0.4 | 4,105 | 4.6 | 1,937 | (12.6) |
Three months ended Jun. 30, 2019 | 41,910 | 3.1 | 3,860 | (23.7) | 3,924 | (25.8) | 2,217 | (35.5) |
Note: Comprehensive income (Millions of yen): | Three months ended Jun. 30, 2020: | 721 (51.8%) | |||
Three months ended Jun. 30, 2019: | 1,498 (64.4%) | ||||
Basic net income | Diluted net income | ||||
per share | per share | ||||
Yen | Yen | ||||
Three months ended Jun. 30, 2020 | 16.99 | 16.94 | |||
Three months ended Jun. 30, 2019 | 19.46 | 19.38 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
As of Jun. 30, 2020 | 206,492 | 139,269 | 66.9 | ||
As of Mar. 31, 2020 | 215,301 | 140,032 | 64.5 | ||
Reference: Shareholders' equity (Millions of yen): | As of Jun. 30, 2020: 138,224 | As of Mar. 31, 2020: 138,899 |
2. Dividends
Dividend per share | |||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||
Yen | Yen | Yen | Yen | Yen | |||||||
Fiscal year ended Mar. 31, 2020 | - | 13.00 | - | 13.00 | 26.00 | ||||||
Fiscal year ending Mar. 31, 2021 | - | ||||||||||
Fiscal year ending Mar. 31, 2021 | 13.00 | - | 14.00 | 27.00 | |||||||
(forecast) | |||||||||||
Note: Revisions to the most recently announced dividend forecast: None |
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)
(Percentages represent year-on-year changes.)
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per share | ||||||
owners of parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 183,000 | (2.8) | 21,800 | (5.6) | 22,100 | (2.8) | 14,000 | (9.2) | 122.73 |
Note: Revisions to the most recently announced consolidated forecast: None
* Notes
- Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in change in scope of consolidation): None
- Application of special accounting methods for preparation of quarterly consolidated financial statements: Yes
Note: Please refer to page 8 of the attachments "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly Consolidated Financial Statements" for further information.
- Changes in accounting policies and accounting estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Restatements: None
Note: Please refer to page 8 of the attachments "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly Consolidated Financial Statements" for further information.
- Number of common shares issued
- Number of shares outstanding at the end of the period (including treasury shares):
As of Jun. 30, 2020: | 118,089,155 shares | As of Mar. 31, 2020: | 118,089,155 shares |
2) Number of shares of treasury shares at the end of the period: | |||
As of Jun. 30, 2020: | 4,018,988 shares | As of Mar. 31, 2020: | 4,018,988 shares |
3) Average number of shares outstanding during the period: | |||
Three months ended Jun. 30, 2020: | 114,070,167 shares | Three months ended Jun. 30, 2019: | 113,971,083 shares |
Note 1: This summary report is not subject to the quarterly review conducted by certified public accountants or audit firms.
Note 2: Cautionary statement with respect to forward-looking statements and other special items
Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual results of operations may differ significantly from the forecasts depending on various factors. For discussion of the assumptions and other factors considered by the Company in preparing the above projections, please refer to page 3 of the attachments "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements."
ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
Contents of Attachments | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Major Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheets | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 | |
Significant Changes in Shareholders' Equity | 8 | |
Additional Information | 8 | |
Segment Information | 8 |
1
ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the global spread of Covid-19 sharply highlighted the economic sluggishness in Japan. In foreign countries as well, uncertainty about the future grew rapidly due to restrictions on economic activity resulting from orders to stay at home, discontinued corporate activity, and free mobility restrictions.
Under these circumstances, the Rohto Group has created the slogan of "Connect for Well-being," suggesting people around the world living energetically and happily each day, both physically and mentally, throughout the various stages of their lives. We are endeavoring to further increase corporate value.
In total, net sales decreased 7.8% year-on-year to 38,641 million yen. In Japan, sales of sunscreens, lip balm and contact lens products decreased partially because people stayed at home. On the other hand, high value-added products sold well and sales of a new subsidiary Nitten Pharmaceutical Co., Ltd. contributed to an increase as well. Overseas sales decreased due to the impact of the global spread of Coronavirus pandemic.
Profits benefited from an efficient use of selling, general and administrative expenses despite lower sales. As a result, operating income increased by 0.4% year-on-year to 3,878 million yen, ordinary income increased by 4.6% to 4,105 million yen, and profit attributable to owners of parent decreased 12.6% to 1,937 million yen.
Results by reportable segment are as follows.
Japan
Sales to customers decreased 1.6% year-on-year to 25,943 million yen.
There was a decline in demand from foreign tourists visiting Japan and also sales dropped for sunscreens, lip balm and contact lens products because people stayed at home. On the other hand, the beauty serum "Obagi C25 Serum Neo" and "Deoco" sold well. In addition, Nitten Pharmaceutical Co., Ltd., which became a subsidiary in the previous fiscal year, and another group company for pharmaceutical drugs contract development and manufacturing performed strongly.
Segment profit (operating income) rose 60.1% year-on-year to 2,890 million yen. The significant increase despite sluggish sales came from efforts to reduce costs and make efficient use of selling, general, and administrative expenses. As other factors, the fees of structural reforms, which we have been working on since 2018, were all paid out. Additionally, Nitten Pharmaceutical Co., Ltd., a new subsidiary to the Group, also contributed to profits.
America
Sales to customers decreased slightly, 0.5% year-on-year, to 2,130 million yen.
Although sales of eye drops were sluggish because people refrained from going out due to Covid-19, "Mentholatum Ointment" and e-commerce sales increased.
Segment profit (operating income) slightly bounced back to 69 million yen (from 172 million yen loss in prior first quarter) due to steady sales and efficient use of selling, general, and administrative expenses.
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ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
Europe
Sales to customers decreased 21.0% year-on-year to 1,852 million yen.
Sales of the leading anti-inflammatory analgesic products and cosmetics significantly decreased due to lockdown for Covid-19.
Segment profit (operating income) was 58 million yen (compared with 21 million yen loss in prior first quarter) due to lower sales promotion and advertising expenses.
Asia
Sales to customers decreased 21.7% year-on-year to 8,295 million yen.
Although higher sales were achieved in ASEAN countries such as Indonesia and Vietnam, China market, our core revenue source, experienced a significant decline due to Covid-19. As a result, the total Asia segment ended up with a large fall in sales.
Segment profit (operating income) decreased 50.1% year-on-year to 1,054 million yen despite efforts to reduce sales promotion and advertising expenses in a difficult sales environment.
Others
In "Others," excluded from reportable segments, sales to customers decreased 7.7% year-on-year to 419 million yen. Segment profit (operating income) decreased 18.7% year-on-year to 29 million yen.
Note: The above amounts do not include consumption taxes.
(2) Explanation of Financial Position
Total assets at the end of the first quarter decreased 8,808 million yen from the end of the previous fiscal year to 206,492 million yen. This was mainly due to decreases of 889 million yen in cash and deposit, 4,818 million yen in notes and accounts receivable-trade, 6,088 million yen in electronically recorded monetary claims-operating, while there were increases of 1,836 million yen in merchandise and finished goods, 1,074 million yen in raw materials and supplies.
Total liabilities decreased 8,045 million yen from the end of the previous fiscal year to 67,223 million yen. This was mainly due to decreases of 3,267 million yen in accrued expenses, 2,773 million yen in income taxes payable, 1,427 million yen in provision for bonuses and 1,477 million yen in other current liabilities, while there was an increase of 1,189 million yen in notes and accounts payable-trade.
Net assets decreased 763 million yen from the end of the previous fiscal year to 139,269 million yen. This was mainly due to decreases of 199 million yen in foreign currency translation adjustment, while there was an increase of 454 million yen in retained earnings and 739 million yen in valuation difference on available-for-sale securities.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
There is no change in the full-year consolidated earnings forecast that was released on May 12, 2020. Results of operations for the first quarter trended generally in line with our plan.
Note: The forecasts are based on information available at the time this report was prepared. Actual results of operations may differ from the forecasts depending on various factors.
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ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
2. Quarterly Consolidated Financial Statements and Major Notes
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | ||||
Prior Fiscal Year End | Current First Quarter End | |||
(As of Mar. 31, 2020) | (As of Jun. 30, 2020) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 45,307 | 44,418 | ||
Notes and accounts receivable-trade | 32,900 | 28,082 | ||
Electronically recorded monetary claims- | 17,893 | 11,805 | ||
operating | ||||
Merchandise and finished goods | 16,504 | 18,340 | ||
Work in process | 3,218 | 2,895 | ||
Raw materials and supplies | 10,903 | 11,977 | ||
Other | 3,757 | 4,905 | ||
Allowance for doubtful accounts | (377) | (351) | ||
Total current assets | 130,108 | 122,074 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 20,048 | 20,259 | ||
Other, net | 28,412 | 27,722 | ||
Total property, plant and equipment | 48,460 | 47,982 | ||
Intangible assets | ||||
Goodwill | 3,373 | 3,162 | ||
Other | 1,945 | 1,860 | ||
Total intangible assets | 5,318 | 5,032 | ||
Investments and other assets | ||||
Investment securities | 23,880 | 24,155 | ||
Other | 10,258 | 10,046 | ||
Allowance for doubtful accounts | (2,725) | (2,788) | ||
Total investments and other assets | 31,413 | 31,412 | ||
Total non-current assets | 85,192 | 84,418 | ||
Total assets | 215,301 | 206,492 | ||
4
ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
(Millions of yen) | ||||
Prior Fiscal Year End | Current First Quarter End | |||
(As of Mar. 31, 2020) | (As of Jun. 30, 2020) | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 11,324 | 12,514 | ||
Electronically recorded obligations-operating | 2,919 | 2,791 | ||
Short-term loans payable | 2,105 | 2,463 | ||
Accrued expenses | 25,629 | 22,361 | ||
Income taxes payable | 4,555 | 1,782 | ||
Provision for bonuses | 2,643 | 1,216 | ||
Provision for directors' bonuses | 40 | 7 | ||
Provision for sales returns | 557 | 425 | ||
Provision for sales rebates | 2,178 | 1,802 | ||
Other | 10,161 | 8,684 | ||
Total current liabilities | 62,117 | 54,050 | ||
Non-current liabilities | ||||
Long-term loans payable | 5,190 | 5,224 | ||
Net defined benefit liability | 4,317 | 4,298 | ||
Provision for loss on guarantees | 1,957 | 1,926 | ||
Other | 1,685 | 1,723 | ||
Total non-current liabilities | 13,151 | 13,172 | ||
Total liabilities | ||||
75,269 | 67,223 | |||
Net assets | ||||
Shareholders' equity | ||||
Capital stock | 6,504 | 6,504 | ||
Capital surplus | 5,661 | 5,661 | ||
Retained earnings | 131,985 | 132,440 | ||
Treasury shares | (4,935) | (4,935) | ||
Total shareholders' equity | 139,215 | 139,670 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale | 4,144 | 4,883 | ||
securities | ||||
Foreign currency translation adjustment | (2,617) | (4,526) | ||
Remeasurements of defined benefit plans | (1,843) | (1,803) | ||
Total accumulated other comprehensive | ||||
(316) | (1,446) | |||
income | ||||
Subscription rights to shares | 382 | 382 | ||
Non-controlling interests | 749 | 661 | ||
Total net assets | 140,032 | 139,269 | ||
Total liabilities and net assets | ||||
215,301 | 206,492 | |||
5
ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
(For the Three-month Period)
(Millions of yen) | ||||
Prior First Quarter | Current First Quarter | |||
(Apr. 1, 2019 - Jun. 30, 2019) | (Apr. 1, 2020 - Jun. 30, 2020) | |||
Net sales | 41,910 | 38,641 | ||
Cost of sales | 17,551 | 16,412 | ||
Gross profit | 24,359 | 22,229 | ||
Provision for sales returns | 59 | - | ||
Reversal of provision for sales returns | - | 132 | ||
Gross profit-net | 24,299 | 22,361 | ||
Selling, general and administrative expenses | 20,438 | 18,483 | ||
Operating income | 3,860 | 3,878 | ||
Non-operating income | ||||
Interest income | 113 | 93 | ||
Dividend income | 211 | 186 | ||
Share of income of entities accounted for using equity | - | 29 | ||
method | ||||
Gain on investments in partnership | 2 | - | ||
Other | 133 | 164 | ||
Total non-operating income | ||||
459 | 473 | |||
Non-operating expenses | ||||
Interest expenses | 33 | 32 | ||
Share of loss of entities accounted for using equity | 205 | - | ||
method | ||||
Foreign exchange losses | 112 | 49 | ||
Provision for doubtful accounts | - | 62 | ||
Loss on investments in partnership | 2 | 71 | ||
Other | 42 | 30 | ||
Total non-operating expenses | 395 | 246 | ||
Ordinary income | 3,924 | 4,105 | ||
Extraordinary income | ||||
Gain on sales of fixed assets | 153 | - | ||
Total extraordinary income | ||||
153 | - | |||
Extraordinary losses | ||||
Impairment loss | 125 | |||
Loss on valuation of investment securities | 748 | 987 | ||
Loss on valuation of shares of subsidiaries and | 92 | - | ||
associates | ||||
Provision for doubtful accounts | 50 | - | ||
Provision for doubtful accounts for subsidiaries and | 3 | - | ||
associates | ||||
Total extraordinary losses | 894 | 1,112 | ||
Profit before income taxes | ||||
3,183 | 2,992 | |||
Income taxes | ||||
959 | 1,045 | |||
Profit | 2,224 | 1,947 | ||
Profit attributable to non-controlling interests | ||||
6 | 9 | |||
Profit attributable to owners of parent | ||||
2,217 | 1,937 | |||
6
ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
Quarterly Consolidated Statements of Comprehensive Income
(For the Three-month Period)
(Millions of yen) | |||
Prior First Quarter | Current First Quarter | ||
(Apr. 1, 2019 - Jun. 30, 2019) | (Apr. 1, 2020 - Jun. 30, 2020) | ||
Profit | 2,224 | 1,947 | |
Other comprehensive income |
Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income Comprehensive income (Comprehensive income attributable to)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
(414) | 738 |
(379) | (1,998) |
43 | 40 |
25 | (5) |
(725) | (1,225) |
1,498 | 721 |
1,484 | 807 |
14 | (85) |
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ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
(3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption
No reportable information.
Significant Changes in Shareholders' Equity
No reportable information.
Application of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements
Calculation of tax expense
Tax expense was calculated by first reasonably estimating the effective tax rate after the application of tax effect accounting with respect to income before income taxes for the fiscal year, and multiplying that rate by the quarterly income before income taxes.
Additional Information
Influence of Covid-19
There are no significant changes to the accounting estimates assumptions, including the future spread of Covid-19 and the timing of its convergence, described in (Additional information) in the annual securities report for the previous fiscal year.
Segment Information | ||||||||||||
I. Prior First Quarter (Apr. 1, 2019 - Jun. 30, 2019) | ||||||||||||
1. Information related to net sales and profit or loss for each reportable segment | (Millions of yen) | |||||||||||
Reportable segment (Note 1) | Reported in | |||||||||||
quarterly | ||||||||||||
Others | Total | Adjustment | consolidated | |||||||||
Japan | America | Europe | Asia | Subtotal | (Note 2) | (Note 3) | statement of | |||||
income | ||||||||||||
(Note 4) | ||||||||||||
Net sales | ||||||||||||
(1) Sales to customers | 26,377 | 2,140 | 2,346 | 10,591 | 41,456 | 453 | 41,910 | - | 41,910 | |||
(2) Inter-segment | 864 | 268 | 8 | 896 | 2,038 | 12 | 2,050 | (2,050) | - | |||
sales and transfers | ||||||||||||
Total | 27,242 | 2,408 | 2,354 | 11,488 | 43,494 | 466 | 43,960 | (2,050) | 41,910 | |||
Segment profit (loss) | 1,805 | (172) | (21) | 2,114 | 3,726 | 35 | 3,761 | 98 | 3,860 |
Notes: 1. "America" includes the business activities of overseas entities in the U.S. and Canada, and others; "Europe" those in the U.K., Poland and South Africa; and "Asia" those in China, Taiwan, Vietnam, and others.
- "Others" is the business that is excluded from reportable segments, and includes the business activities of entities in Australia.
- "Adjustment" to segment profit (loss) of 98 million yen indicates elimination for intersegment transactions.
- Segment profit (loss) is adjusted with operating income reported in the quarterly consolidated statement of income.
2. Information concerning impairment loss on non-current assets or goodwill by reportable segments
No reportable information.
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ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for the First Quarter of FY3/21
II. Current First Quarter (Apr. 1, 2020 - Jun. 30, 2020) | ||||||||||
1. Information related to net sales and profit or loss for each reportable segment | (Millions of yen) | |||||||||
Reportable segment (Note 1) | Reported in | |||||||||
quarterly | ||||||||||
Others | Total | Adjustment | consolidated | |||||||
Japan | America | Europe | Asia | Subtotal | (Note 2) | (Note 3) | statement of | |||
income | ||||||||||
(Note 4) | ||||||||||
Net sales | ||||||||||
(1) Sales to customers | 25,943 | 2,130 | 1,852 | 8,295 | 38,222 | 419 | 38,641 | - | 38,641 | |
(2) Inter-segment | 776 | 184 | 11 | 797 | 1,769 | 8 | 1,778 | (1,778) | - | |
sales and transfers | ||||||||||
Total | 26,720 | 2,315 | 1,863 | 9,092 | 39,992 | 427 | 40,419 | (1,778) | 38,641 | |
Segment profit (loss) | 2,890 | (69) | 58 | 1,054 | 3,933 | 29 | 3,963 | (85) | 3,878 |
Notes: 1. "America" includes the business activities of overseas entities in the U.S. and Brazil, and others; "Europe" those in the U.K., Poland and South Africa, and others; and "Asia" those in China, Taiwan, Vietnam, and others.
- "Others" is the business that is excluded from reportable segments, and includes the business activities of entities in Australia.
- "Adjustment" to segment profit (loss) of (85) million yen indicates elimination for intersegment transactions.
- Segment profit (loss) is adjusted with operating income reported in the quarterly consolidated statement of income.
2. Information concerning impairment loss on non-current assets or goodwill by reportable segments
Impairment loss on fixed assets was recognized in "Japan" segment. The amount of impairment loss was 125 million for the three months ended June 30, 2020.
- This financial report is solely a translation of "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.
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Rohto Pharmaceutical Co. Ltd. published this content on 12 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2020 08:02:14 UTC