Flash Report for the First Half Period Ended September 30, 2022
(based on Japan GAAP) (on a consolidated basis)
November 10, 2022 | ||||||||||||||||||
Name of the listed company: Fuji Seal International, Inc. | ||||||||||||||||||
Code No.: 7864 Stock exchange: Tokyo | ||||||||||||||||||
URL: http://www.fujiseal.com | ||||||||||||||||||
Representative: Masayuki Shirokawa, President and COO | ||||||||||||||||||
Contact: Shojiro Ueda, IR Manager | TEL 06-6350-1080 | |||||||||||||||||
Scheduled date for submission of Quarterly Report: November 11, 2022 | ||||||||||||||||||
Date for initiation of dividend payments (subject to change): December 1, 2022 | ||||||||||||||||||
Prepared supplementary presentation material on quarterly results: Yes | ||||||||||||||||||
Held quarterly results briefing: Yes | (For securities analysts and institutional investors) | |||||||||||||||||
* All amounts are rounded down to the nearest million yen. | ||||||||||||||||||
1. Results for the First Half Period (April 1 to September 30, 2022) | ||||||||||||||||||
(1) Operating results | (¥ million) | |||||||||||||||||
Net income | ||||||||||||||||||
Net sales | Operating income | Ordinary income | attributable | |||||||||||||||
to owners of the parent | ||||||||||||||||||
1st half ended September 30, 2022 | ¥90,909 | 2.9% | ¥4,729 | (40.9)% | ¥5,106 | (37.9)% | ¥3,486 | (37.6)% | ||||||||||
1st half ended September 30, 2021 | 88,339 | 7.6 | 7,996 | 18.3 | 8,223 | 33.4 | 5,587 | 62.7 | ||||||||||
Note: Comprehensive income | ||||||||||||||||||
1st half ended September 30, 2022: ¥11,970 million [45.6%] | ||||||||||||||||||
1st half ended September 30, 2021: ¥8,221 million [197.7%] | ||||||||||||||||||
Earnings per share (¥) | Diluted EPS (¥) | |||||||||||||||||
1st half ended September 30, 2022 | ¥63.68 | - | ||||||||||||||||
1st half ended September 30, 2021 | 102.01 | - | ||||||||||||||||
(2) Financial position | (¥ million) | |||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share (¥) | |||||||||||||||
As of September 30, 2022 | ¥182,031 | ¥120,506 | 66.2% | ¥2,200.19 | ||||||||||||||
As of March 31, 2022 | 164,646 | 109,492 | 66.5 | 1,999.85 | ||||||||||||||
Note: Owners' equity | ||||||||||||||||||
As of September 30, 2022: ¥120,506 million | ||||||||||||||||||
As of March 31, 2022: ¥109,492 million | ||||||||||||||||||
2. Dividends | ||||||||||||||||||
Cash dividends per share () | ||||||||||||||||||
Quarter-end | Year-end | Annual | ||||||||||||||||
1st | 2nd | 3rd | ||||||||||||||||
Year ended March 31, 2022 | - | ¥17.00 | ¥- | ¥18.00 | ¥35.00 | |||||||||||||
Year ending March 31, 2023 | - | ¥17.00 | ||||||||||||||||
Year ending March 31, 2023 (forecast) | - | 18.00 | 35.00 | |||||||||||||||
Note: Revisions to dividend payment forecasts during the reporting quarter: Not applicable | ||||||||||||||||||
3. Business Performance Forecasts for the Year Ending March 31, 2023 | ||||||||||||||||||
(April 1, 2022 to March 31, 2023) | ||||||||||||||||||
(¥ million) | ||||||||||||||||||
Net income | Earnings | |||||||||||||||||
Net sales | Operating income | Ordinary income | attributable to | |||||||||||||||
per share () | ||||||||||||||||||
owners of the parent | ||||||||||||||||||
Full term | ¥179,000 | 5.1% | ¥11,100 | 5.0% | ¥11,000 | 3.8% | ¥6,300 | 3.0% | ¥115.07 | |||||||||
Note: Revisions to performance forecasts during the reporting quarter: Not applicable |
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4. Others
(1) Changes in the scope of consolidation
Inclusion: None
Exclusion: None
- Significant methods applied for accounting: Not applicable
- Changes in significant accounting policies
Changes in accounting policies resulting from revision to accounting standards: Not applicable
Changes to accounting policies other than revisions from the above: Yes
Changes in accounting assessments: Yes
Accounting restatements: Not applicable
Note: For details, please refer to page 12 "2. Consolidated financial statements and notes (4) Notes to Consolidated Financial Statements, Changes in Accounting Policies."
(4) Number of ordinary shares issued at the end of the period | |
As of September 30, 2022: 60,161,956 shares | As of March 31, 2022: 60,161,956 shares |
Number of shares in treasury at the end of the period | |
As of September 30, 2022: 5,390,891 shares | As of March 31, 2022: 5,411,891 shares |
Average number of shares during the period | |
1st half ended September 30, 2022: 54,758,511 shares | 1st half ended September 30, 2021: 54,777,557 shares |
- Flash Reports (quarterly financial reports) are not audited by certified public accountants or auditing companies.
-
The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain factors, which might have a material effect on the Company's performance in the future.
Please refer to page 6 "(3) Information regarding business performance forecasts" under "1. Qualitative information for the first half ended September 30, 2022 (consolidated basis)" for details.
(How to Obtain Supplementary Earnings Results Briefing Materials)
The Company plans to hold a briefing for institutional investors and analysts on November 11, 2022.
The supplementary earnings results briefing materials that will be used on that day are scheduled to be posted on the Company's website today.
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1. Qualitative information for the first half ended September 30, 2022 (consolidated basis)
(1) Qualitative information regarding consolidated operating results
For the first half of fiscal 2022(ending March 31, 2023), net sales at Fuji Seal International, Inc. came to 90,909 million (up 2.9% year on year), operating income was ¥4,729 million (down 40.9%), and ordinary income totaled ¥5,106million (down 37.9%). Net income attributable to owners of the parent was ¥3,486 million (down 37.6%).
(¥ million) | |||
1st half ended | 1st half ended | Change | |
September 30, 2021 | September 30, 2022 | ||
Net sales | 88,339 | 90,909 | 2.9% |
Operating income | 7,996 | 4,729 | (40.9)% |
Ordinary income | 8,223 | 5,106 | (37.9)% |
Net income attributable to owners | 5,587 | 3,486 | (37.6)% |
of the parent | |||
Average exchange rate vs US | 107.82 | 123.14 | 14.2 % |
dollar (yen) | |||
Average exchange rate vs euro | 129.89 | 134.39 | 3.5% |
(yen) | |||
The following is a breakdown of business performance by segment.
(¥ million) | ||||||||||||
1st half ended | 1st half ended | Change | Change in local | |||||||||
September 30, 2021 | September 30, 2022 | currency terms | ||||||||||
Japan | ||||||||||||
Shrink label | 24,831 | 25,387 | 2.2% | - | ||||||||
Self-adhesive label | 5,177 | 4,998 | (3.5) % | - | ||||||||
Soft pouch | 8,791 | 10,348 | 17.7% | - | ||||||||
Machinery | 2,759 | 2,343 | (15.1) % | - | ||||||||
Other | 6,893 | 6,094 | (11.6) % | - | ||||||||
Total sales | 48,453 | 49,172 | 1.5% | - | ||||||||
Operating income | 5,351 | 4,398 | (17.8) % | - | ||||||||
Americas | ||||||||||||
Shrink label | 16,538 | 19,733 | 19.3% | 4.5% | ||||||||
Self-adhesive label | 570 | 943 | 65.5% | 44.9% | ||||||||
Soft pouch | 252 | 142 | (43.7) % | (50.7) % | ||||||||
Machinery | 2,743 | 2,265 | (17.4) % | (27.7) % | ||||||||
Other | 660 | 829 | 25.6% | 10.0% | ||||||||
Total sales | 20,765 | 23,914 | 15.2% | 0.8% | ||||||||
Operating income | 2,113 | 1,414 | (33.1) % | (41.4) % | ||||||||
Europe | ||||||||||||
Shrink label | 6,958 | 7,544 | 8.4% | 4.8% | ||||||||
Self-adhesive label | 3,893 | 2,672 | (31.4) % | (33.7) % | ||||||||
Soft pouch | 88 | 66 | (24.7) % | (27.2) % | ||||||||
Machinery | 3,856 | 3,575 | (7.3) % | (10.4) % | ||||||||
Total sales | 14,797 | 13,858 | (6.3) % | (9.5) % | ||||||||
Operating income | 296 | (749) | - | - | ||||||||
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1st half ended | 1st half ended | Change | Change in local | ||||||
September 30, 2021 | September 30, 2022 | currency terms | |||||||
ASEAN | |||||||||
Shrink label | 3,669 | 4,001 | 9.0% | (4.5) % | |||||
Self-adhesive label | 98 | 67 | (31.6) % | (40.1) % | |||||
Soft pouch | 4,033 | 4,036 | 0.1% | (12.4) % | |||||
Machinery | 189 | 96 | (48.8) % | (55.2) % | |||||
Other | 115 | 115 | 0.6% | (12.0) % | |||||
Total sales | 8,105 | 8,317 | 2.6% | (10.2) % | |||||
Operating income | 291 | (137) | - | - | |||||
Japan
Sales of shrink labels increased 2.2% year on year to ¥25,387 million. Sales of self-adhesive labels declined 3.5% to ¥4,998 million. Sales of soft pouches increased 17.7% to ¥10,348 million. Machinery sales declined 15.1% to ¥2,343 million. Sales of other products declined 11.6% to ¥6,094 million.
As a result, total sales in Japan came to ¥49,172 million (up 1.5% year on year). On the earnings front, operating income declined 17.8% to ¥4,398 million.
Americas
Sales of shrink labels increased 19.3% (up 4.5% on a local currency basis) year on year to ¥19,733 million. Sales of self-adhesive labels increased 65.5% (up 44.9% on a local currency basis) to ¥943 million. Sales of soft pouches declined 43.7% (down 50.7% on a local currency basis) to ¥142 million. Machinery sales declined 17.4% (down 27.7% on a local currency basis) to ¥2,265million. Sales of other products increased 25.6% (up 10.0% on a local currency basis) to ¥829 million.
As a result, total sales in the Americas increased 15.2% (up 0.8% on a local currency basis) to ¥23,914 million. On the earnings front, operating income declined 33.1% (down 41.4% on a local currency basis) to ¥1,414 million.
Europe
Sales of shrink labels increased 8.4% (up 4.8% on a local currency basis) to ¥7,544 million. Sales of self-adhesive labels declined 31.4% (down 33.7% on a local currency basis) to ¥2,672 million. Sales of soft pouches declined 24.7% (down 27.2% on a local currency basis) to ¥66 million. Machinery sales declined 7.3% (down 10.4% on a local currency basis) to ¥3,575 million.
As a result, total sales in Europe declined 6.3% (down 9.5% on a local currency basis) to ¥13,858 million. On the earnings front, an operating loss of ¥749 million was recorded (compared to an operating income of ¥296 million in the corresponding period of the previous fiscal year).
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ASEAN
Sales of shrink labels increased 9.0% (down 4.5% on a local currency basis) to ¥4,001 million. Sales of self-adhesive labels declined 31.6% (down 40.1% on a local currency basis) to ¥67 million. Sales of soft pouches increased 0.1% (down 12.4% on a local currency basis) to ¥4,036 million. Machinery sales declined 48.8% (down 55.2% on a local currency basis) to ¥96 million. Sales of other products increased 0.6% (down 12.0% on a local currency basis) to ¥115 million.
As a result, total sales in ASEAN increased 2.6% (down 10.2% on a local currency basis) to ¥8,317 million. On the earnings front, an operating loss of ¥137 million was recorded (compared to an operating income of ¥291 million in the corresponding period of the previous fiscal year).
- Qualitative information on financial condition Assets, Liabilities and Net Assets
At the end of the first half of fiscal 2022, total assets had increased ¥17,385 million compared with the previous fiscal
year-end, to ¥182,031 million.
The main factors were a ¥9,311 million increase in notes and accounts receivable (including electronically recorded monetary claims), a ¥4,619 million increase in inventories, a ¥5,892 million increase in tangible fixed assets and a ¥4,547 million decrease in cash and deposits..
Total liabilities were up ¥6,370 million compared to the previous fiscal year-end to ¥61,524 million. The main changes were included a ¥4,928 million increase in notes and accounts payable (including electronically recorded monetary obligations).
Total net assets were up ¥11,014 million compared to the previous fiscal year-end to ¥120,506 million. This mainly reflected a ¥2,501 million increase in retained earnings and ¥8,136 million increase in foreign currency translation adjustments.
Cash Flows
Net cash provided by operating activities for the first half ended September 30, 2022 was ¥2,966million (compared with net cash of ¥7,548 million provided in the corresponding period of the previous fiscal year). The main items increasing cash were the posting of income before income taxes of ¥5,051 million and depreciation and amortization of ¥3,745 million, along with a ¥4,087 million increase in notes and accounts payable, while the main items decreasing cash were a ¥6,423 million increase in notes and accounts receivable-trade,a ¥2,756 million increase in inventories, and ¥1,759 million in income taxes paid.
Net cash used in investing activities amounted to ¥6,247 million (compared with net cash of ¥5,796 million used in the corresponding period of the previous fiscal year). This was due primarily to ¥6,082 million in cash used for the purchase of tangible fixed assets.
Net cash used in financing activities was ¥6,154 million (compared with net cash of ¥5,687 million provided in the corresponding period of the previous fiscal year). This was due mainly to a repayment of borrowings of ¥5,021
million, and cash dividends paid of ¥985 million.
As a result, cash and cash equivalents at the end of the first half of fiscal 2022 decreased ¥7,851 million from the
previous fiscal year-end to ¥16,253 million.
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Fuji Seal International Inc. published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 05:58:01 UTC.