Regarding the Differences between the Consolidated Financial Results Forecast and the Actual Results for the First Half of the FY2022
November 11, 2021 at 11:17 pm EST
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ENGLISH TRANSLATION FOR REFERENCE PURPOSE ONLY
This notice is an English translation of the original Japanese text of the timely disclosure statement dated November 12, 2021 issued by Daio Paper Corporation, and is for reference purpose only. In the event of any discrepancy between the original Japanese text and this English translation, the Japanese text shall prevail.
November 12, 2021
To whom it may concern:
Name of Company:
Daio Paper Corporation
Name of Representative:
Yorifusa Wakabayashi
President and Representative Director
Chief Executive Officer
Securities Code:
3880
(First Section, Tokyo Stock Exchange)
Contact Person:
Junichi Ikawa
Executive Officer and General Manager
Accounting Department
+81 3 6856 7513
Regarding the Differences between the Consolidated Financial Results Forecast and the Actual Results for the First Half of the Fiscal Year Ending March 31, 2022
Daio Paper Corporation (hereinafter, the "Company") hereby announces that the actual financial results for the first half of the fiscal year ending March 31, 2022 (hereinafter "FY2022/3 H1") released today differed from the forecast that was released on May 14, 2021.
1. Differences between the Consolidated Financial Results Forecast and the Actual Results for FY2022/3 H1 (April 1, 2021-September 30, 2021)
Profit
Basic
Operating
Ordinary
attributable to
Net sales
earnings per
profit
profit
owners of
share
parent
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Yen
Previous forecast (A)
290,000
15,000
13,000
8,000
48.17
Actual results (B)
296,873
19,235
17,688
11,456
69.02
Change (B-A)
6,873
4,235
4,688
3,456
Change (%)
2.4%
28.2%
36.1%
43.2%
(Reference) Consolidated
results for the first half of
261,585
14,130
12,250
9,361
61.14
the fiscal year ended March
31, 2021
2.Reasons for the Differences
Net sales for FY2022/3 H1 were in line with the initial financial results forecast. Meanwhile, profits for FY2022/3 H1 exceeded the initial forecast, especially in the Paper and Paperboard Business (hereinafter the "P&P Business") as a result of a production shift to higher value-added products using pulps produced at Mishima Mill and steady progress in cross-divisional structural reforms, despite being affected by rises in raw material and fuel prices. Profits in the Home and Personal Care Business (hereinafter, the "H&PC Business") fell substantially below the initial forecast mainly due to movement restrictions affecting overseas subsidiaries in Southeast Asia and Brazil amid the COVID-19 pandemic
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and a hike in shipping material prices. However, the profit decline in overseas business was partially offset by strong sales of COVID-19-related products and updated products in domestic business.
The Company has decided to leave the full-year financial results forecast for FY2022/3 unchanged as announced in May 14, 2021 because an additional impact of rising resource prices is expected in the second half of FY2022/3 and uncertainty still remains around the rebound of COVID-19 cases. If it is deemed necessary to revise the forecast in light of business performance trends or any other factor in the future, we will make an announcement immediately.
In addition, in order to reflect the progress in the actual results of the P&P Business for FY2022/3 H1 and the recent profit decline in the H&PC overseas business amid the COVID-19 pandemic, we have revised segment operating profit as follows:
Paper and Paperboard
Home and
Other*
Total
Personal Care
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Net sales
Operating
Net sales
Operating
Net sales
Operating
Net sales
Operating
profit
profit
profit
profit
Previous forecast (A)
305,000
20,000
265,000
15,000
30,000
3,000
600,000
38,000
Revised forecast (B)
305,000
21,000
265,000
13,500
30,000
3,500
600,000
38,000
Change (B-A)
-
1,000
-
-1,500
-
500
-
-
The "Other" category includes adjustments.
Please note that the above forecasts have been prepared based on the information available as of the date of this release. As such, actual results may differ from the forecast figures depending on various factors.
End
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Daio Paper Corporation published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 04:16:12 UTC.
Daio Paper Corporation is a Japan-based company primarily engaged in the manufacture and sale of paper products. The Company operates in two business segments. The Paper and Paper Board segment is engaged in the manufacture and sale of papers, paper boards, newsprint paper, printing paper and related materials. The Home and Personal Care segment is engaged in the manufacture and sale of sanitary paper products, disposable diapers, feminine care products, wet wipes.