Consolidated Financial Results for the Six Months Ended September 30, 2022(JPGAAP)
November 11, 2022 | ||
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, Managing Associate Executive Officer and Head of Finance and Accounting Department | Tel. +81 3 4463 8401 | |
Scheduled submission date of quarterly report: November 14, 2022 | Scheduled dividend payment date: December 5, 2022 | |
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 Six Months Ended September 30, 2022 (From April 1, 2022 to September 30, 2022)
(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 | % | ||||
Six months ended September 30, 2022 | 109,531 | 19.3 | 28,159 | 32.1 | 31,986 | 43.7 | 23,684 | 45.4 | |||
Six months ended September 30, 2021 | 91,807 | (2.8) | 21,324 | 18.6 | 22,263 | 22.5 | 16,291 | 17.2 | |||
(Note) Comprehensive income: | Six months ended September 30, 2022 | : 25,721 million yen ,86.8% |
Six months ended September 30, 2021 | : 13,772 million yen ,(16.2%) |
Basic earnings | Diluted net income | ||||||
per share | per share | ||||||
Yen | Yen | ||||||
Six months ended September 30, 2022 | 167.74 | ||||||
Six months ended September 30, 2021 | 113.94 | ||||||
(2) Consolidated Financial Position | |||||||
Total assets | Net assets | Equity ratio | |||||
Million yen | Million yen | % | |||||
As of September 30, 2022 | 280,233 | 219,393 | 77.2 | ||||
As of March 31, 2022 | 279,687 | 208,009 | 73.6 |
(Reference) Shareholders' equity: | As of September 30, 2022 | : 216,246 million yen | |||||||
As of March 31, 2022 | : 205,912 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, 2022 | 50.00 | 72.00 | 122.00 | ||||||
Year ending March 31, 2023 | 70.00 | ||||||||
Year ending March 31, 2023 | 94.00 | 164.00 | |||||||
(Outlook) | |||||||||
(Note) Revision of the latest released dividend outlook: Yes |
Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment, and Revision of Dividend Outlook" for details.
3. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)
(% 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 | ||||
Year ending March 31, 2023 | 234,200 | 12.6 | 55,500 | 8.9 | 58,300 | 8.6 | 42,100 | 8.6 | 298.59 | |||
(Note) Revision of the latest released outlook of financial results: Yes | ||||||||||||
Please refer to " Revision of Financial Results Outlook, Interim Dividend Payment, and Revision of Dividend Outlook" for details. |
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: Nissan Bharat Rasayan Private Limited) | ||
(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 | : Yes |
2. | Changes of accounting policies other than the above | : None |
3. | Changes in accounting estimates | : None |
4. | Restatements | : None |
(Note) Please refer to [2. Consolidated Financial Statements (4) Notes to Consolidated Financial Statements "(Changes in Accounting Policies)"] on page 10 for further details.
(4) Number of shares outstanding (common shares)
1. | Number of shares outstanding (including treasury shares) | |
As of September 30, 2022 | : 141,300,000 shares | |
As of March 31, 2022 | : 143,000,000 shares | |
2. | Number of treasury shares | |
As of September 30, 2022 | : 355,600 shares | |
As of March 31, 2022 | : 1,383,611 shares | |
3. | Average number of shares outstanding | |
As of September 30, 2022 | : 141,194,352 shares | |
As of September 30, 2021 | : 142,982,238 shares |
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 152,500 shares. In addition, the average number of shares held by the Trust during the period was 156,858 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 | |
(Changes in Accounting Policies) ............................................................................................................ | 10 | |
(Additional Information) ........................................................................................................................ | 10 | |
(Segment Information) ......................................................................................................................... | 11 |
1
1 Qualitative Information on Quarterly Results
(1) Business Performance
During the second quarter of the current fiscal year (April 1, 2022 to September 30, 2022), although consumer spending showed a recovery trend due to the relaxation of behavioral restrictions, the domestic economy did not achieve a full-fledged recovery due to soaring raw material prices and inflation. Under these circumstances, in the Chemicals Segment, sales of both Basic Chemicals and Fine Chemicals increased, despite the impact of problems with nitric acid plant. In the Performance Materials Segment, sales of display materials declined, but Semiconductor Materials performed well. In the Agricultural Chemicals Segment, sales increased. In the Healthcare segment, sales of rmaceutical companies) decreased.
As a result, sales and each income exceeded the same period of the previous fiscal year and the outlooks announced in August. In addition, operating income, ordinary income, and net income attributable to owners of the parent reached record highs for the second consecutive year.
(Million yen, amount rounded down to the nearest million yen) | ||||||
2Q FY2021 | 2Q FY2022 | Change | 2Q FY2022 | Change from | ||
(Outlook) | Outlook | |||||
Sales | 91,807 | 109,531 | +17,723 | 105,400 | +4,131 | |
Operating income | 21,324 | 28,159 | +6,835 | 27,600 | +559 | |
Ordinary income | 22,263 | 31,986 | +9,723 | 29,500 | +2,486 | |
Net income attributable | 16,291 | 23,684 | +7,392 | 21,200 | +2,484 | |
to owners of parent | ||||||
Explanations by segments are as below.
We changed our reporting segments from the first quarter of the current fiscal year. For supplemental information, please refer to
[2.Consolidated Financial Statements .
The Chemicals Segment
In Basic chemicals, sales of melamine (adhesives agent for particle board), urea, AdBlue®* (high-grade urea solution) increased due to price revisions in response to higher raw material and fuel prices and freight rates. In Fine Chemicals, sales of "TEPIC" (powder coating agent for paint, sealants, etc.) and environmental chemicals (sterilizing and disinfecting agents for pools and septic tanks, etc.) also increase. However, the segment as a whole reported higher sales and lower profits.
As a result, sales of this segment were 19,753 million yen (an increase of 2,668 million) and operating income was 1,061 million yen (a decrease of 106 million yen). Compared to the outlook (Note), sales were above 0.3 billion yen and operating income was below 0.4 billion yen.
* AdBlue® is a registered trademark of the Verband der Automobilindustrie (VDA).
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
The Performance Materials Segment
In Display Materials, sales of "SUNEVER" (LCD alignment coating) declined. In Semiconductor Materials, sales of anti-reflective coating for semiconductors (ARC®*) and multilayer materials (OptiStack®*) increased due to favorable customer operations. In Inorganic materials, sales of "SNOWTEX" for polishing electronic materials and hard coating, Organo / Monomer sol (various kinds of coating materials, resin additive), and Oilfield materials (solvents to improve the efficiency of shale oil and gas extraction) were steady.
As a result, sales of this segment were 42,001 million yen (an increase of 2,446 million) and operating income was 13,867 million yen (an increase of 737 million yen). Compared to the outlook (Note), sales were below 0.4 billion yen and operating income was below 0.3 billion yen.
* ARC®, OptiStack® are registered trademarks of Brewer Science, Inc.
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
2
The Agricultural Chemicals Segment
Sales of Fluralaner (active ingredients for veterinary pharmaceuticals) increased due to the completion of customer inventory adjustments
in the previous fiscal year. In Japanese domestic ma-selective foliar application herbicide), "GRACIA" In the overseas market, sales increased significantly due to strong sales of "LEIMAY" (fungicide), "PERMIT" (herbicide), and "GRACIA", as well as the shift in the timing of some shipments.
As a result, sales of this segment were 35,688 million yen (an increase of 10,738 million yen) and operating income was 12,066 million yen (an increase of 5,178 million yen). Compared to the outlook (Note), sales were above 2.5 billion yen and operating income was above 1.5 billion yen.
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
The Healthcare Segment
Shipments of "LIVALO" (anti-cholesterol drug) to overseas were firm. In "Custom Chemicals", sales decreased due to the concentration of shipments in the second half of the year.
As a result, sales of this segment were 3,248 million yen (a decrease of 91 million) and operating income was 1,457 million yen (an increase of 69 million yen). Compared to the outlook (Note), sales were above 0.1 billion yen and operating income was above 0.2 billion yen.
(Note) The outlook is described on page 44 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
Trading
Sales of this segment were 47,650 million yen (an increase of 11,208 million yen) and operating income was 1,951 million yen (an increase of 695 million yen). Compared to the outlook (Note), sales were above 4.0 billion yen and operating income was above 0.3 billion yen.
(Note) The outlook is described on page 66 and 67 of the 1Q FY2022 Presentation Materials (announced on August 8, 2022).
Others
Sales of this segment were 12,445 million yen (an increase of 2,072 million yen) and operating income was 100 million yen (an increase of 104 million yen).
(2) Financial Position
(Position of Assets, Liabilities and Net Assets)
Total assets as of September 30, 2022 was 280,233 million yen (an increase of 545 million yen from March 31, 2022). It is mainly due to the increase of cash and deposits and construction in progress.
Also, total liabilities as of September 30, 2022 was 60,839 million yen (a decrease of 10,838 million yen). It is mainly due to the decrease of short-term loans payable.
Net assets as of September 30, 2022 was 219,393 million yen (an increase of 11,384 million yen). As a result of these factors, equity ratio was 77.2% (an increase of 3.6% from March 31, 2022).
(Position of Cash Flow)
Deducting income taxes paid from income before income taxes and non-controlling interests, depreciation and gain and loss on working capital, net cash provided by operating activities for the six months ended September 30, 2022 was 43,381 million yen (33,765 million yen for the same period of the previous year).
Due to the investment on plant and equipment, net cash used in investing activities for the six months ended September 30, 2022 was 9,633 million yen (6,091 million yen).
Due to the decrease in loans payable, payment for dividends and share repurchase, net cash used in financing activities for the six months ended September 30, 2022 was 29,218 million yen (31,560 million yen).
Cash and cash equivalents at the end of this period increased 6,134 million yen from March 31, 2022 after adjusting for the 1,605 million yen effect of exchange rate. Moreover, after adding the 3,116 million yen increase in cash and cash equivalents resulting from change in scope of consolidation, the balance stood at 43,909 million yen (28,371 million yen).
3
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Nissan Chemical Corporation published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 06:11:03 UTC.