Freund : Results of Operations for the Third Quarter of the Fiscal Year Ending February 28, 2023
January 17, 2023
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FREUND CORPORATION
(Securities code: 6312)
Results of Operations for the Third Quarter of the Fiscal Year Ending February 28, 2023
January 18, 2023
Copyright(C) 2023 Freund Corp. All rights reserved.
Consolidated Financial Summary for Q3 of FY2/23
Copyright(C) 2023 Freund Corp. All rights reserved.
Consolidated Financial Summary
Sales increased while earnings decreased YoY. Turned into profit from deficit in Q2.
Net sales increased YoY, mainly driven by the chemicals business where both pharmaceutical excipients and food preservatives sales were favorable; sales of the machinery business grew slightly too.
Operating profit decreased YoY, mainly affected by a decline in the machinery business; at the U.S. subsidiary, significant delays in shipments of machinery continued due to the prolonged procurement of parts/materials and the increasing cost of raw materials caused by rapid inflation. The ordinary profit and profit dropped as well, but by a smaller margin than that of operating profit due to a foreign exchange gain.
(Millions of yen)
FY2/22
Q3
Actual
FY2/23
Q3
Actual
YoY Change
Amount %
Net sales
11,988
12,504
+516
+4.3
Operating profit
459
45
(413)
(90.1)
Ordinary profit
492
132
(360)
(73.1)
Profit
270
1
(269)
(99.6)
Earnings per share (yen)
16.13
0.06
(16.07)
(99.6)
Depreciation
436
410
(25)
(5.8)
R&D expenses
455
463
+8
+1.8
Copyright (C) 2023 Freund Corp. All rights reserved.
2
Machinery Business: Overview
Net sales
Basically no change in net sales YoY.
Net sales in Japan decreased YoY because shipments of products continued to be delayed by the prolonged lead times for procurement of parts/materials including semiconductors.
Net sales at the U.S. subsidiary increased YoY partly due to the yen's depreciation, offsetting the sales decline in Japan.
Operating profit
The U.S. subsidiary remained to be in deficit because of:
Continuing delays in the procurement of parts/materials caused by tight labor supply and supply chain disruptions; and
Decrease in profit margin due to higher cost of raw materials caused by rapid inflation.
Orders received and order backlog
Orders remained strong, mainly in Japan, and the order backlog increased to an all‐time high.
(Millions of yen)
FY2/22
Q3
FY2/23
Q3
YoY change
%
Net sales
7,740
7,783
+43
+0.6
Operating profit
262
(263)
(526)
－
Orders received
10,612
11,655
＋1,043
+9.8
Order backlog
9,626
15,365
＋5,738
＋59.6
Copyright (C) 2023 Freund Corp. All rights reserved.
3
Machinery Business: Group Company Performance (Sales/Operating Profit)
Freund Corporation: Sales and earnings in Japan were down as a result of delays in shipments and sluggish overseas sales.
Freund‐Vector:
Despite the year‐on‐year increase in sales, big operating loss
was recorded due to a decline in profit margin caused mainly
by delayed shipments and soaring raw material prices.
Freund‐Turbo:
Big increase in sales but only a small change in operating profit
because of lower sales of products with high profit margins.
Cos.Mec:
Sales and earnings increased significantly as this company
continues to grow.
(Millions of yen)
FY2/22
Q3
FY2/23
Q3
YoY change
%
Net sales
7,740
7,783
+43
+0.6
FREUND CORPORATION
4,431
3,354
(1,077)
(24.3)
FREUND‐VECTOR
2,021
2,843
+821
+40.6
FREUND‐TURBO
1,066
1,229
+163
+15.3
Cos.Mec
561
791
+230
+41.0
Operating profit
262
(263)
(526)
－
FREUND CORPORATION
459
66
(392)
(85.5)
FREUND‐VECTOR
(113)
(343)
(229)
－
FREUND‐TURBO
50
49
(1)
(2.7)
Cos.Mec
(70)
9
+79
－
* Machinery sales and operating profit by group companies are before elimination of intracompany transactions.
Copyright (C) 2023 Freund Corp. All rights reserved.
4
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Freund Corporation published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 01:36:03 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 
