Consolidated Financial Results for the Three Months Ended June 30, 2023(JPGAAP)
August 10, 2023 | |
Name of listed company: Nissan Chemical Corporation | Stock Exchange: Tokyo |
Code number: 4021 | URL: https://www.nissanchem.co.jp/ |
Representative: YAGI Shinsuke, President
Inquiry to: ARITA Nobuhiro, Senior Managing Associate Executive Officer and Head of Finance and Accounting Department Tel. +81 3 4463 8401
Scheduled submission date of quarterly report: August 10, 2023 | Scheduled dividend payment date: ― |
Supplemental information: Yes | |
Financial results meeting : Yes (For institutional investors and analysts) | |
(Amounts rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
(1) Consolidated Operating Results | (% indicates the rate of increase/decrease against the same period of the previous year) | |||||||||
Net sales | Operating | Ordinary | Net income attributable | |||||||
income | income | to owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Three months ended June 30, 2023 | 54,939 | (5.7) | 14,998 | (13.1) | 17,046 | (12.5) | 12,236 | (11.8) | ||
Three months ended June 30, 2022 | 58,290 | 25.4 | 17,266 | 45.4 | 19,492 | 58.2 | 13,869 | 56.7 | ||
(Note) Comprehensive income: Three months ended June 30, 2023 | : 14,729 million yen, (8.2%) | |||
Three months ended June 30, 2022 | : 16,045 million yen, 99.2% | |||
Basic earnings | Diluted net income | |||
per share | per share | |||
Yen | Yen | |||
Three months ended June 30, 2023 | 87.40 | - | ||
Three months ended June 30, 2022 | 98.13 | - | ||
(2) Consolidated Financial Position | ||||
Total assets | Net assets | Equity ratio | ||
Million yen | Million yen | % | ||
As of June 30, 2023 | 301,382 | 218,066 | 71.2 | |
As of March 31, 2023 | 298,715 | 221,526 | 73.1 |
(Reference) Shareholders' equity: | As of June 30, 2023 | : 214,583 million yen | |||||||
As of March 31, 2023 | : 218,419 million yen | ||||||||
2. Cash Dividends | |||||||||
Cash dividends per share | |||||||||
First | Second | Third | Year-end | Annual | |||||
quarter | quarter | quarter | |||||||
Yen | Yen | Yen | Yen | Yen | |||||
Year ended March 31, 2023 | - | 70.00 | - | 94.00 | 164.00 | ||||
Year ending March 31, 2024 | - | ||||||||
Year ending March 31, 2024(Outlook) | 70.00 | - | 94.00 | 164.00 | |||||
(Note) Revision of the latest released dividend outlook: None |
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2023 to March 31, 2024)
(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales | Operating | Ordinary | Net income attributable | Basic earnings | ||||||||
income | income | to owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||
Six months | 108,600 | (0.9) | 26,100 | (7.3) | 26,400 | (17.5) | 19,700 | (16.8) | 140.74 | |||
ending September 30, 2023 | ||||||||||||
Year ending March 31, 2024 | 237,300 | 4.0 | 54,700 | 4.6 | 55,500 | (0.5) | 41,500 | 1.0 | 297.61 | |||
(Note) Revision of the latest released outlook of financial results: None
4. Notes | ||
(1) Changes in significant consolidated subsidiaries | ||
(Changes in specified subsidiaries involving changes in scope of consolidation) | : Yes | |
Newly Included: 1 company (Company name: Nippon Phosphoric Acid Corporation Limited) | ||
Nippon Phosphoric Acid Corporation Limited changed the trade name into NC Tokyo Bay Corporation on July 3, 2023. | ||
(2) Application of special accounting treatment to preparation of quarterly financial statements | : None | |
(3) Changes of accounting policies and accounting estimates, and restatement | ||
1. | Changes of accounting policies due to revisions of accounting standards | : None |
2. | Changes of accounting policies other than the above | : None |
3. | Changes in accounting estimates | : None |
4. | Restatements | : None |
- Number of shares outstanding (common shares)
1. Number of shares outstanding (including treasury shares)
As of June 30, 2023 | : 140,600,000 shares |
As of March 31, 2023 | : 141,300,000 shares |
2. Number of treasury shares | |
As of June 30, 2023 | : 1,126,141 shares |
As of March 31, 2023 | : 1,029,072 shares |
3. Average number of shares outstanding | |
As of June 30, 2023 | : 140,009,075 shares |
As of June 30, 2022 | : 141,334,912 shares |
(Note) The Company has introduced "Board Benefit Trust (BBT)" based on the resolution of Board of Directors' meeting held on July 30,2019. The shares held by the Trust are included in the number of treasury shares at the end of the period, and they are included in the number of treasury shares deducted in calculating the average number of shares outstanding over the period. The number of shares held by the Trust (included in treasury shares) at the end of the period was 144,000 shares.
In addition, the average number of shares held by the Trust during the period was 145,417 shares. This is not included in the average number of shares outstanding.
- Presentation regarding implementation status of quarterly review procedures The financial release is not subject to quarterly review.
-
Explanations regarding appropriate use of business outlook and other special notes
The business outlook contained in this report is based on information available at the time of disclosure. Actual operating results may differ materially from the outlook due to various factors.
For supplemental information, please refer to our website.
The transcript of financial results briefing will be released on our website as well.
Table of Contents for Attached Materials | ||
1. Qualitative Information on Quarterly Results | 2 | |
(1) | Business Performance | 2 |
(2) | Financial Position | 3 |
(3) | Outlook of Consolidated Financial Results and Other Forward-looking Information | 4 |
(4) | Basic Policy on Distribution of Earnings | 4 |
2. Consolidated Financial Statements | 5 | |
(1) | Consolidated Balance Sheets | 5 |
(2) | Consolidated Statements of Income / Consolidated Statements of Comprehensive Income | 7 |
(3) | Consolidated Statements of Cash Flows | 9 |
(4) | Notes to Consolidated Financial Statements | 10 |
(Notes on Assumption of Going Concern) | 10 | |
(Notes on Significant Changes in Shareholders' Equity) | 10 | |
(Additional information) | 10 | |
(Segment Information) | 11 | |
(Significant Subsequent Events) | 12 |
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1. Qualitative Information on Quarterly Results
(1) Business Performance
During the first quarter of the current fiscal year (April 1, 2023 to June 30, 2023), although consumer spending showed a recovery trend owing to the relaxation of behavioral restrictions with the shift of COVID-19 to Category V Infectious Diseases, the domestic economy did not achieve a full-fledged recovery due to sluggish exports and other factors caused by weak overseas economies. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals decreased. In the Performance Materials Segment, sales of Display Materials were firm, but sales of Semiconductor Materials declined. In the Agricultural Chemicals Segment, sales decreased. In the Healthcare Segment, sales of "Custom Chemicals"(custom manufacturing and solution proposal business for pharmaceutical companies) were firm.
As a result, net sales and each income decreased compared to the same period of the previous fiscal year. However, sales and each income exceeded the outlooks announced in May.
(Million yen, amount rounded down to the nearest million yen) | ||||||
1Q FY2022 | Year-on-year | 1Q FY2023 | Change from | |||
1Q FY2023 | (Outlook) | |||||
Change | Outlook | |||||
(Note) | ||||||
Sales | 58,290 | 54,939 | (3,350) | 54,800 | +139 | |
Operating income | 17,266 | 14,998 | (2,267) | 14,500 | +498 | |
Ordinary income | 19,492 | 17,046 | (2,445) | 15,200 | +1,846 | |
Net income attributable | 13,869 | 12,236 | (1,633) | 10,900 | +1,336 | |
to owners of parent | ||||||
(Note) The outlook is described on page 10 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Explanations by segments are as below.
The Chemicals Segment
In Basic Chemicals, sales of urea, AdBlue®* (high-grade urea solution) and nitric acid products (metal dissolution, surface treatment, etc.) increased. Sales of melamine (adhesives agent) declined as a result of the termination of sales in the third quarter of the previous fiscal year under the structural reforms. In Fine Chemicals, sales of environmental chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) were strong, and sales of "TEPIC" (powder coating agent for paint, sealants, etc.) decreased.
As a result, sales of this segment were 9,094 million yen (a decrease of 1,321 million yen) and operating income was 924 million yen (a decrease of 792 million yen). Compared to the outlook (Note), sales were below 0.3 billion yen and operating income was in line with the target.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) increased. In Semiconductor Materials, sales of anti- reflective coating for semiconductors (ARC®*) and multi-layer process materials (OptiStack®*) decreased due to a decline in customer utilization. In Inorganic Materials, sales of "SNOWTEX" for polishing electronic materials and hard coating were on a par with the previous year, but Oilfield materials (solvents to improve the efficiency of shale oil and gas extraction) were steady.
As a result, sales of this segment were 20,803 million yen (a decrease of 970 million yen) and operating income was 6,451 million yen (a decrease of 1,437 million yen). Compared to the outlook (Note), sales were above 0.3 billion yen and operating income was below 0.1 billion yen.
* ARC® and OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
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The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) decreased. In Japanese domestic market, sales of "ROUNDUP" (non-selective foliar application herbicide) and "ALTAIR" (paddy rice herbicide) decreased. In the overseas market, sales of "GRACIA"(insecticide) grew, although sales of "LEIMAY" (fungicide) decreased.
As a result, sales of this segment were 18,795 million yen (a decrease of 933 million yen) and operating income was 6,571 million yen (a decrease of 254 million yen). Compared to the outlook (Note), sales were below 0.4 billion yen and operating income was in line with the target.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
The Healthcare Segment
Sales of "LIVALO" (anti-cholesterol drug) declined both in Japan and overseas. In "Custom Chemicals", sales increased. As a result, sales of this segment were 1,951 million yen (an increase of 297 million yen) and operating income was 1,089 million yen (an increase of 331 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen and operating income was above 0.1 billion yen.
(Note) The outlook is described on page 21 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Trading
Sales of this segment were 24,345 million yen (an increase of 688 million yen) and operating income was 906 million yen (a decrease of 127 million yen). Compared to the outlook (Note), sales were above 0.6 billion yen and operating income was above 0.2 billion yen.
(Note) The outlook is described on page 72 and 73 of the FY2022 Presentation Materials (announced on May 15, 2023) Part2.
Others
Sales of this segment were 6,397 million yen (a decrease of 139 million yen) and operating income was 204 million yen (an increase of 70 million yen).
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Nissan Chemical Corporation published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 06:24:05 UTC.