Daito Pharmaceutical : Summary of Consolidated Financial Results for the Three Months Ended August 31, 2023 (Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended August 31, 2023 (Based on Japanese GAAP)

				October 12, 2023
Company name:	Daito Pharmaceutical Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	4577	URL https://www.daitonet.co.jp/
Representative:	President and CEO	Yasunobu Otsuga
Inquiries:	Director of Corporate Planning	Koichi Takabatake	TEL [phone]
Scheduled date to file Quarterly Securities Report:	October 13, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended August 31, 2023 (from June 1, 2023 to August 31, 2023)

(1) Consolidated operating results (cumulative)				Percentages indicate 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 August 31, 2023	12,178	1.1	1,080	(28.0)	1,092	(26.0)	683	(27.7)
Three months ended August 31, 2022	12,041	2.5	1,501	(36.4)	1,475	(39.0)	946	(48.2)

	Earnings per share	Diluted earnings per share
		Yen				Yen
Three months ended August 31, 2023		43.27				-
Three months ended August 31, 2022		59.74				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of August 31, 2023	71,516		51,332		71.4
As of May 31, 2023	70,552		50,971		71.8
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end
	Yen			Yen			Yen	Yen
Year ended May 31, 2023	-			30.00			-	30.00
Year ending May 31, 2024	-
Year ending May 31, 2024 (Forecast)				30.00			-	30.00

Total

Yen 60.00

60.00

3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Full year	47,500	5.3	4,800	(7.8)	4,800		(7.1)	3,300	(8.3)	208.82

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4. Notes

1. Changes in significant subsidiaries during the three months ended August 31, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of August 31, 2023	15,858,440	shares	As of May 31, 2023	15,858,440	shares
Number of treasury shares at the end of the period
	As of August 31, 2023	55,457	shares	As of May 31, 2023	55,413	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended August 31, 2023	15,802,994	shares	Three months ended August 31, 2022	15,836,376	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of May 31, 2023	As of August 31, 2023
Assets
Current assets
Cash and deposits	3,607	4,002
Notes and accounts receivable - trade	10,671	11,136
Electronically recorded monetary claims - operating	6,974	5,932
Merchandise and finished goods	5,626	5,214
Work in process	5,577	6,340
Raw materials and supplies	7,035	7,465
Other	1,172	1,070
Allowance for doubtful accounts	(2)	(1)
Total current assets	40,663	41,162
Non-current assets
Property, plant and equipment
Buildings and structures, net	11,727	11,602
Machinery, equipment and vehicles, net	6,352	6,462
Other, net	7,757	8,297
Total property, plant and equipment	25,837	26,362
Intangible assets
Other	377	376
Total intangible assets	377	376
Investments and other assets
Investment securities	2,964	3,128
Other	720	497
Allowance for doubtful accounts	(10)	(9)
Total investments and other assets	3,673	3,615
Total non-current assets	29,888	30,354
Total assets	70,552	71,516
Liabilities
Current liabilities
Notes and accounts payable - trade	4,435	5,520
Electronically recorded obligations - operating	3,461	3,915
Current portion of long-term borrowings	1,429	1,379
Income taxes payable	559	250
Provisions	54	359
Other	5,488	4,952
Total current liabilities	15,428	16,378
Non-current liabilities
Long-term borrowings	3,368	3,043
Retirement benefit liability	497	474
Other	285	286
Total non-current liabilities	4,151	3,804
Total liabilities	19,580	20,183

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		(Millions of yen)
	As of May 31, 2023	As of August 31, 2023
Net assets
Shareholders' equity
Share capital	7,186	7,186
Capital surplus	7,072	7,072
Retained earnings	35,006	35,257
Treasury shares	(124)	(124)
Total shareholders' equity	49,140	49,391
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,159	1,277
Foreign currency translation adjustment	324	351
Remeasurements of defined benefit plans	48	23
Total accumulated other comprehensive income	1,532	1,652
Non-controlling interests	299	288
Total net assets	50,971	51,332
Total liabilities and net assets	70,552	71,516

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	August 31, 2022	August 31, 2023
Net sales	12,041	12,178
Cost of sales	9,263	9,703
Gross profit	2,777	2,474
Selling, general and administrative expenses	1,275	1,393
Operating profit	1,501	1,080
Non-operating income
Interest income	0	0
Dividend income	30	32
Other	6	9
Total non-operating income	36	42
Non-operating expenses
Interest expenses	3	3
Foreign exchange losses	53	22
Commission expenses	4	4
Other	0	0
Total non-operating expenses	62	30
Ordinary profit	1,475	1,092
Extraordinary losses
Loss on retirement of non-current assets	4	0
Total extraordinary losses	4	0
Profit before income taxes	1,470	1,092
Income taxes	544	429
Profit	926	663
Loss attributable to non-controlling interests	(19)	(20)
Profit attributable to owners of parent	946	683

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