Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
November 10, 2022
Consolidated Financial Results | ||
for the Six Months Ended September 30, 2022 | ||
(Under Japanese GAAP) | ||
Company name: | Takara Bio Inc. | |
Listing: | Tokyo Stock Exchange | |
Securities code: | 4974 | |
URL: | https://www.takara-bio.co.jp | |
Representative: | Koichi Nakao, President & CEO | |
Inquiries: | Takuya Kakemi, Executive Officer, in charge of PR & IR Department | |
Telephone: | +81-77-565-6970 | |
Scheduled date to file quarterly securities report: | November 11, 2022 | |
Scheduled date to commence dividend payments: | - | |
Preparation of supplementary material on quarterly financial results: Yes | ||
Holding of quarterly financial results briefing: | Yes |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Net income attributable | |||||||
to owners of the parent | ||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Sep. 30, 2022 | 32,587 | 3.3 | 10,870 | (22.9) | 10,955 | (23.1) | 8,538 | (14.7) | ||
Sep. 30, 2021 | 31,551 | 81.4 | 14,105 | 277.5 | 14,241 | 272.8 | 10,009 | 340.1 | ||
Note: Comprehensive income | For the six months ended Sep. 30, 2022: | ¥14,858 million; 19.9% | ||||||
For the six months ended Sep. 30, 2021: | ¥12,390 million; 670.4% | |||||||
Net income per share | Fully diluted net income | |||||||
per share | ||||||||
Six months ended | Yen | Yen | ||||||
Sep. 30, 2022 | 70.91 | - | ||||||
Sep. 30, 2021 | 83.12 | - | ||||||
(2) Consolidated financial position | ||||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |||||
As of | Millions of yen | Millions of yen | % | yen | ||||
Sep. 30, 2022 | 120,023 | 106,949 | 88.9 | 886.08 | ||||
Mar. 31, 2022 | 115,712 | 96,064 | 82.9 | 796.18 | ||||
Reference: Equity | ||||||||
As of Sep. 30, 2022: | ¥106,697 million | |||||||
As of Mar. 31, 2022: | ¥95,873 million |
2. Cash dividends
Annual dividends per share | ||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended | - | 0.00 | - | 33.00 | 33.00 | |
Mar. 31, 2022 | ||||||
Fiscal year ending | - | 0.00 | ||||
Mar. 31, 2023 | ||||||
Fiscal year ending | ||||||
Mar. 31, 2023 | - | 40.00 | 40.00 | |||
(Forecast) | ||||||
Note: Revisions to the forecast of cash dividends most recently announced: Yes
3. Consolidated financial forecasts for the fiscal year ending March 31, 2023 (April. 1, 2022 - March. 31, 2023)
(Percentages indicate year-on-year changes.) | ||||||||||||
Net income | Net income per | |||||||||||
Net sales | Operating profit | Ordinary profit | attributable to | |||||||||
share | ||||||||||||
owners of the parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of | % | Millions of | % | yen | ||||
yen | yen | |||||||||||
Full year | 77,800 | 14.9 | 19,000 | (34.3) | 19,100 | (32.9) | 13,800 | (30.5) | 114.60 | |||
Note: Revisions to the financial forecast since the most recent announced: Yes
- Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: | - companies (Company name) |
Excluded: | - companies (Company name) |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of Sep. 30, 2022 | 120,415,600 shares |
As of Mar. 31, 2022 | 120,415,600 shares |
(ii) Number of treasury shares at the end of the period
As of Sep. 30, 2022 | - | shares |
As of Mar. 31, 2022 | - | shares |
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended Sep. 30, 2022 | 120,415,600 shares |
Six months ended Sep. 30, 2021 | 120,415,600 shares |
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Proper use of financial forecasts, and other special matters
(Special note regarding forward-looking statements)
The forward-looking statements, including financial forecasts, contained in this document are determined by the Takara
Bio Inc. (the "Company") based on information currently available to the Company and include a number of uncertainties. Actual results could differ from these forecasts due to changes in conditions that occur in the future. For information regarding the above, please refer to "1. Overview of Financial Results for the six months ended September 30, 2022 (4) Future Outlook on page 2 of the attached document.
Contents of the attached document | ||
1. Overview of Financial Results for the six months ended September 30, 2022........................................................................ | 2 | |
(1) | Overview of Financial Results............................................................................................................................................ | 2 |
(2) | Overview of Financial Position........................................................................................................................................... | 2 |
(3) Overview of Cash Flows…………………………………………………………….…………………………….……... | 2 | |
(4) | Future Outlook.................................................................................................................................................................... | 3 |
2. Consolidated Quarterly Financial Statements and Primary Notes........................................................................................... | 4 | |
(1) | Consolidated Quarterly Balance Sheets.............................................................................................................................. | 4 |
(2) Consolidated Quarterly Statements of Profit or Loss and Comprehensive Income.................................................................. | 6 | |
(Consolidated Quarterly Statements of Profit or Loss).................................................................................................. | 6 | |
(Consolidated Quarterly Statements of Comprehensive Income).................................................................................. | 7 | |
(3) | Consolidated Quarterly Statements of Cash Flows............................................................................................................. | 8 |
(4) | Notes to Consolidated Quarterly Financial Statements....................................................................................................... | 9 |
(Notes on Premise of Going Concern).............................................................................................................................. | 9 | |
(Notes in case of Changes in Marked Amount of Shareholders' Equity)......................................................................... | 9 | |
(Additional Information)................................................................................................................................................... | 9 | |
(Significant Subsequent Events)....................................................................................................................................... | 9 | |
3. Supplementary Information...................................................................................................................................................... | 10 | |
(1) Trends in Key Indicators for Business Management........................................................................................................... | 10 | |
(2) | Comparative Consolidated Statement of Income................................................................................................................ | 11 |
(3) | Comparative Statement of Income Relating to Consolidated Financial Forecasts............................................................. | 12 |
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1. Overview of Financial Results for the six months ended September 30, 2022
(1) Overview of Financial Results
The outlook for the global economy in the fiscal year under review is uncertain due to the impact of the new Coronavirus disease (COVID-19), the prolonged trade friction between the U.S. and China, and Russia's invasion of Ukraine.
Under these circumstances, Takara Bio Group is promoting initiatives to advance the development of fundamental biologics development technologies and become a biologics development company that continuously creates new modalities through Reagents and Instruments and CDMO business under the six-yearLong-Term Management Plan FY2026, which ends in fiscal 2026, and the three-yearMedium-Term Management Plan FY2023, which ends in fiscal 20231. In addition, the Group worked aggressively to ensure a stable supply of testing-related products for the new Coronavirus and to establish a manufacturing system for regenerative medicine and other products.
In the fiscal year under review, although sales of Instruments and CDMO decreased year on year, sales of Reagents and Gene Therapy increased year on year. In particular, Reagents for general research increased, while Reagents related to the new Coronavirus test increased due to the impact of the 7th wave of COVID-19 in Japan. As a result, net sales increased to ¥32,587 million (up 3.3% year on year). Cost of sales increased to ¥10,562 million (up 31.1% year on year) due to changes in the sales mix, gross profit decreased to ¥22,025 million (down 6.3% year on year). Selling, general and administrative (SG&A) expenses were ¥11,154 million (up 18.8% year on year), mainly due to an increase in personnel expenses and R&D expenses. Operating profit was ¥10,870 million (down 22.9% year on year).
As a result of the decrease in operating profit, ordinary profit decreased to ¥10,955 million (down 23.1% year on year), income before income taxes and others decreased to ¥11,831 million (down 16.7% year on year), and net income attributable to owners of the parent decreased to ¥8,538 million (down 14.7% year on year).
From the first quarter of the fiscal year under review, due to a review of management classifications, sales of reagents and other products of GMP grade (for the manufacture of regenerative medicine products), which were previously included in Reagents, are included in Gene Therapy. As a result, net sales for the second quarter of the previous fiscal year have been reclassified based on the new classification. In the second quarter of the previous fiscal year, ¥977 million, which was included in Reagents, has been reclassified as Gene Therapy.
Since our group is a single segment, the disclosure by segment is omitted.
(2) Overview of Financial Position
Total assets at the end of the second quarter under review were ¥120,023 million, it was a increase of ¥4,310 million from the end of the previous fiscal year. This was mainly due to increases of ¥3,332 million in cash and deposits and ¥2.573 million in property, plant and equipment mainly owing to the acquisition of our manufacturing facilities, despite a decrease of ¥1,453 million in note and accounts receivable-trade.
Total liabilities at the end of the second quarter under review were ¥13,073 million, it was a decrease of ¥6,574 million from the end of the previous fiscal year. This was mainly due to decreases of ¥3,341 million in accrued income taxes and ¥3,326 million in other current liabilities.
Total net assets at the end of the second quarter under review were ¥106,949 million, an increase of ¥10,884 million from the end of the previous fiscal year. This was mainly due to increases of ¥4,564 million in retained earnings and ¥6,238 million in foreign currency translation adjustment due to the yen's depreciation.
-
Overview of Cash Flows
Net cash provided by operating activities amounted to ¥8,672 million, a decrease of ¥1,242 million from the previous fiscal year. This was mainly due to balance between cash inflow from profit before income taxes and others of ¥11,831 million, decrease in trade receivables-trade of ¥2,055 million, depreciation and amortization of ¥1,962 million and cash outflow from income taxes paid of ¥6,093 million.
Net cash used in investing activities was minus ¥7,518 million, a decrease of ¥3,168 million from the previous fiscal year. This was mainly due to payments into time deposits of ¥5,527 million, purchase of property, plant and equipment and intangible assets of ¥3,076 million, and proceeds from withdrawal of time deposits of ¥792 million.
Net cash used in financing activities amounted to ¥4,034 million, an increase of ¥2,042 million from the previous fiscal year, mainly due to cash dividends paid of ¥3,965 million.
As a result of the above, the balance of cash and cash equivalents at the end of the second quarter under review, including the effect of exchange rate changes on cash and cash equivalents, decreased by ¥1,554 million from the end of the previous fiscal year to ¥20,606 million
1 FY2026 and FY2023 refer to the fiscal year ending March 31, 2026 and 2023, respectively.
- 2 -
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Takara Bio Inc. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 06:46:05 UTC.