Freund : Results of Operations for the Fiscal Year Ended February 28, 2023
May 16, 2023
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FREUND CORPORATION
(Securities code: 6312)
Results of Operations for the Fiscal Year Ended February 28, 2023
May 17, 2023
Copyright(C) 2023 Freund Corp. All rights reserved.
Contents
Consolidated Financial Summary for FY2/23
・・・ P.02
Review of the 8th Medium‐Term Management Plan ・・・ P.16
Consolidated Earnings and Dividend Forecasts for FY2/24
P.20
Supplementary Materials
・・・ P.24
Copyright (C) 2023 Freund Corp. All rights reserved.
1
Consolidated Financial Summary for FY2/23
Copyright(C) 2023 Freund Corp. All rights reserved.
Consolidated Financial Summary
Net sales
Net sales increased compared to the previous year. The machinery business experienced significant revenue growth, supported in part by higher yen translations of sales at overseas subsidiaries resulting from the depreciation of yen. The chemicals business maintained a strong performance both in pharmaceutical excipients and food preservatives.
Profit
Profit was lower than in the previous year, mainly in the U.S. subsidiary. The decline can be attributed to factors such as the long time needed to procure parts/materials, shipment delays , and high raw material prices in the machinery business.
Impairment losses of about 900 million yen as extraordinary losses for goodwill associated with consolidated subsidiary Cos. Mec S.r.l.
(Millions of yen)
FY2/22
FY2/23
YoY change
Compared to
Initial plan
Revised plan
Actual
Actual
Amount
％
initial plan
（4/13/22）
（1/12/23)
Net sales
17,632
18,500
19,500
19,658
2,026
11.5%
1,158
Operating profit
981
700
150
451
(530)
(54.0)%
(249)
Ordinary profit
1,032
720
200
559
(473)
(45.9)%
(161)
Profit
543
450
100
(538)
(1,081)
‐
(988)
Earnings per
32.46
26.87
5.97
(32)
(65)
‐
(59)
share (yen)
ROA
2.5%
‐
‐
(2.4)%
(4.9)%
‐
‐
ROE
3.9%
‐
‐
(3.8)%
(7.7)%
‐
‐
Copyright (C) 2023 Freund Corp. All rights reserved.
3
Machinery Business: Overview
Net sales
In Japan, net sales were negatively affected by shipment delays resulting from factors such as prolonged procurement of components.
In other countries, particularly at the U.S. subsidiary, net sales exceeded the previous year. This growth, combined with the depreciation of yen offset the decline in sales in Japan.
Operating profit
Operating profit decreased significantly as the U.S. subsidiary incurred losses, which were influenced by the following factors.
Long time needed to procure components due to a labor shortage and supply chain disruptions in the U.S.; and
Decrease in profit margin due to higher cost of raw materials caused by rapid inflation.
Orders received and order backlog
Orders received were strong, driven by the substantial investments in large‐scale equipment by generic drug manufacturers in Japan.
The order backlog reached a record high during the fiscal year and remains high.
(Millions of yen)
FY2/22
FY2/23
YoY change
Amount
％
Net sales
11,836
13,448
1,612
13.6%
Operating profit
623
59
(563)
(90.5)%
Orders received
15,621
14,630
(990)
(6.3)%
Order backlog
10,574
12,826
2,252
21.3%
Copyright (C) 2023 Freund Corp. All rights reserved.
4
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Disclaimer
Freund Corporation published this content on 17 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2023 05:33:05 UTC.
Freund Corporation is a Japan-based company primarily engaged in the manufacture and sale of machinery and chemical products. The Company operates through two business segments. The Machinery segment is engaged in the manufacture and sale of powder and granular machinery, measuring instrument and components, the construction of granular machinery plants, as well as the contracted manufacture of fine grinding of synthetic resin. The Chemical Product segment is involved in the manufacture and sale of pharmaceutical excipients and nutritious supplements, the manufacture of food preservatives, the development and research of pharmaceuticals, food and chemicals, the review of prescriptions, the contacted manufacture and brokerage of study drugs, as well as the development and technology licensing of new dosage forms.
FREUND CORPORATION 
