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.
May 11, 2023
Consolidated Financial Results | |
for the Fiscal Year Ended March 31, 2023 | |
(Under Japanese GAAP) | |
Company name: | OSAKA SODA Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 4046 |
URL: | http://www.osaka-soda.co.jp |
Representative: | Kenshi Terada, Representative Director, President and Chief Executive Officer |
Inquiries: | Toru Imamura, Executive Officer, General Manager, Administration Division |
Telephone: | +81-6-6110-1560 |
Scheduled date of annual general meeting of shareholders: | June 29, 2023 |
Scheduled date to commence dividend payments: | June 12, 2023 |
Scheduled date to file annual securities report: | June 30, 2023-- |
Preparation of supplementary material on financial results: | Yes |
Holding of financial results briefing: | Yes |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
(1) Consolidated operating results | (Percentages indicate year-on-year changes.) | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||
Mar 31,2023 | 104,208 | 18.3 | 15,557 | 25.4 | 17,164 | 27.8 | 10,570 | 12.0 | ||||||||
Mar 31,2022 | 88,084 | - | 12,401 | 48.7 | 13,435 | 52.0 | 9,442 | 56.1 | ||||||||
Note: Comprehensive income | For the fiscal year ended Mar 31,2023: | ¥11,267 million | 37.3 % | |||||||||||||
For the fiscal year ended Mar 31,2022: | ¥8,208 million | (22.7) % | ||||||||||||||
Basic earnings | Diluted earnings | Return on equity | Ratio of ordinary | Ratio of operating | ||||||||||||
per share | per share | profit to total assets | profit to net sales | |||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||||||
Mar 31,2023 | 428.43 | - | 11.5 | 12.8 | 14.9 | |||||||||||
Mar 31,2022 | 404.73 | 363.53 | 11.7 | 10.8 | 14.1 | |||||||||||
Reference: Share of profit (loss) of entities accounted for using equity method | |
For the fiscal year ended Mar 31,2023: | ¥(12) million |
For the fiscal year ended Mar 31,2022: | ¥48 million |
Note1: The Company has applied ASBJ Statement No. 29 "Accounting Standard for Revenue Recognition", etc. from the beginning of the previous fiscal year. Therefore, the figures for the fiscal year ended Mar 31, 2023 represent amounts after the application of the said accounting standard, etc. and year over year increases/decreases (%) are not provided.
Note2: The amount of diluted earnings per share for the nine months ended Mar 31, 2023, is not provided because there are no dilutive shares.
(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 | |
Mar 31,2023 | 138,029 | 99,543 | 72.1 | 3,912.48 | |
Mar 31,2022 | 129,159 | 83,896 | 64.9 | 3,594.69 | |
Reference: Equity | |||||
As of Mar 31,2023: | ¥99,535 million | ||||
As of Mar 31,2022: | ¥83,872 million |
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(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents at end of | ||||
operating activities | investing activities | financing activities | ||
period | ||||
Fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen |
Mar 31,2023 | 9,354 | (5,380) | (4,596) | 36,843 |
Mar 31,2022 | 13,378 | (6,961) | (1,646) | 37,016 |
2. Cash dividends
Annual dividends per share | Total cash | Ratio of | ||||||
Payout ratio | dividends to | |||||||
First | Second | Third | Fiscal | dividends | ||||
Total | (Consolidated) | net assets | ||||||
quarter-end | quarter-end | quarter-end | year-end | (Total) | ||||
(Consolidated) | ||||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | |
Fiscal year ended | - | 35.00 | - | 45.00 | 80.00 | 1,866 | 19.8 | 2.3 |
Mar 31,2022 | ||||||||
Fiscal year ended | - | 45.00 | - | 45.00 | 90.00 | 2,311 | 21.0 | 2.4 |
Mar 31,2023 | ||||||||
Fiscal year ending | ||||||||
Mar 31,2024 | - | 45.00 | - | 45.00 | 90.00 | 30.5 | ||
(Forecast) | ||||||||
3. Consolidated Earnings Forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
First half year | 51,000 | (1.8) | 3,600 | (63.0) | 4,100 | (62.2) | 2,800 | (62.7) | 110.06 | |
(cumulative) | ||||||||||
Full year | 105,000 | 0.8 | 10,000 | (35.7) | 11,100 | (35.3) | 7,500 | (29.1) | 294.81 | |
*Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
Included: Elite Advanced Polymers Inc.
- 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 Mar 31,2023 | 26,732,017 shares |
As of Mar 31,2022 | 26,732,017 shares |
(ii) Number of treasury shares at the end of the period
As of Mar 31,2023 | 1,291,509 shares |
As of Mar 31,2022 | 3,399,626 shares |
(iii) Average number of shares outstanding during the period
Fiscal year ended Mar 31,2023 | 24,673,479 shares |
Fiscal year ended Mar 31,2022 | 23,329,992 shares |
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[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended Mar 31, 2023 (from Apr 1, 2022 to Mar 31, 2023)
(1) Non-consolidated operating results | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit | |||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Mar 31,2023 | 74,222 | 16.2 | 12,756 | 24.1 | 14,344 | 27.9 | 8,612 | (2.0) | ||
Mar 31,2022 | 63,881 | - | 10,277 | 46.2 | 11,216 | 51.6 | 8,790 | 85.5 | ||
Basic earnings | Diluted earnings | |||||||||
per share | per share | |||||||||
Fiscal year ended | Yen | Yen | ||||||||
Mar 31,2023 | 349.05 | - | ||||||||
Mar 31,2022 | 376.79 | 338.43 | ||||||||
Note1: The Company has applied ASBJ Statement No. 29 "Accounting Standard for Revenue Recognition", etc. from the beginning of the previous fiscal year. Therefore, the figures for the fiscal year ended Mar 31, 2022 represent amounts after the application of the said accounting standard, etc. and year over year increases/decreases (%) are not provided.
Note2: The amount of diluted earnings per share for the nine months ended Mar 31, 2023, is not provided because there are no dilutive shares.
(2) Non-consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | ||
As of | Millions of yen | Millions of yen | % | Yen | |
Mar 31,2023 | 116,390 | 83,994 | 72.1 | 3,301.60 | |
Mar 31,2022 | 110,864 | 70,454 | 63.5 | 3,019.59 | |
Reference: Equity | |||||
As of Mar 31,2023: | ¥83,994 million | ||||
As of Mar 31,2022: | ¥70,454 million |
- Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
-
Proper use of earnings forecasts, and other special matters
In this document, statements other than historical facts are forward-looking statements that reflect the Company's plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. Please refer to "1. Overview of Operating Results, etc. (4) Future Outlook" on page 6 of the attached materials for the assumptions used in business forecasts.
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(Attached Documents) | ||
INDEX | ||
1. Information Concerning Results for the fiscal year ended Mar 31, 2023 | 5 | |
(1) | Overview of Operating Results | 5 |
(2) | Overview of Financial Position | 6 |
(3) | Overview of Cash Flows | 6 |
(4) | Future outlook of Forward-looking Statement, Including Consolidated financial results Forecasts | 6 |
2. Basic Approach to the Selection of Accounting Standards | 7 | |
3. Consolidated Financial Statements and Notes to Consolidated Financial Statements | 8 | |
(1) | Consolidated Balance Sheets | 8 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 10 |
(3) | Consolidated Statements of Changes in Net Assets | 12 |
(4) | Consolidated Statements of Cash Flows | 14 |
(5) | Notes to Consolidated Financial Statements | 16 |
(Notes on Premise of Going Concern) | 16 | |
(Segment Information and Other Items) | 16 | |
(Per Share Information) | 19 | |
(Significant event after the reporting period) | 19 |
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1. Information Concerning Results for the Nine months ended Mar 31, 2023
(1) Overview of Operating Results
During the fiscal year ended March 31, 2023, the Japanese economy continued to show signs of recovery as social and economic activities moved toward normalization in line with the easing of restrictions on activities imposed as a result of COVID-19. Circumstances remained difficult, however, owing to the impact of factors such as supply constraints and rising raw material and fuel prices, as well as the prolonging of the situation in Ukraine, the stagnation in economic activities caused by the spread of COVID-19 in China, rapid fluctuations in foreign exchange rates, and the global progression of inflation.
Under these circumstances, the Osaka Soda Group entered the final fiscal year of its seventh medium-term management plan, "EMPOWER THE NEXT-22," and worked together as a company to implement specific measures based on the four basic policies of "building a resilient business foundation," "promotion of market-in-type development," "efforts to achieve the SDGs," and "reforming corporate culture and organizational culture."
In "building a resilient business foundation," we positioned the Basic chemicals business, Functional chemicals business, and Healthcare Business as our three core businesses and pursued strategies to make these businesses more resilient. In the Basic chemicals business, we focused on implementing price revisions in response to rising raw material and fuel prices, while also engaging in replacement investment aimed at enhancing production efficiency, and cost reductions. In the Functional chemicals business, we further promoted the expansion of sales of Allyl Ethers, for which we strengthened our production systems in the previous fiscal year, enabling us to respond to global demand growth. In the Healthcare business, we expanded our production capacity by making capital investments to respond to strong demand for pharmaceutical purification materials, as well as active pharmaceutical ingredients (APIs) and their intermediates. In relation to the "promotion of market-in-type development," the development of ultra-high ionic conductive polymers for all-solid batteries, which the Company is focusing on, was selected as a Green Innovation Fund Project by NEDO, and we are promoting this project in anticipation of its implementation in society in the future. In terms of our "efforts to achieve the SDGs," the Sustainability Committee began its activities in October 2022, and we promoted efforts to achieve the KPIs we have set, particularly in the areas of the environment, human resources, and governance. In terms of "reforming corporate culture and organizational culture," under our new Group Mission Statement, we promoted reforms to our personnel systems through business reform activities, as well as the further enhancement of productivity, including activities to overhaul our core systems aimed at improving operational efficiency.
As a result of the above, net sales for the fiscal year ended March 31, 2023, increased 18.3% year on year to ¥104,208 million. In terms of income, operating income increased 25.4% year on year to ¥15,557 million, ordinary income increased 27.8% to ¥17,164 million, and net income attributable to owners of the parent increased 12.0% to ¥10,570 million, meaning that the Company recorded its highest ever results at each level of profit in the fiscal year ended March 31, 2023.
An overview of conditions in each segment is as follows.
< Basic chemicals >
In Chlor-Alkali, the Company made price revisions in line with rising raw material and fuel prices, particularly in relation to Caustic Soda and Caustic Potash, resulting in an increase in net sales.
In Epichlorohydrin, net sales increased thanks partly to good market conditions overseas in the first half of the fiscal year, as well as price revisions associated with rising raw material and fuel prices and the impact of foreign exchange.
As a result of the above, net sales in the Basic chemicals business increased 19.4% year on year to ¥44,122 million.
< Functional chemicals >
In the synthetic rubber business, net sales of Epichlorohydrin Rubber increased as demand related to addressing environmental regulations grew in India. Net sales of Acrylic Rubber increased as it was adopted for new applications in Japan and overseas, and sales grew, particularly to customers in Asia.
Despite an increase in sales, particularly for insulating varnish applications in China, net sales of DAP resin decreased as a result of the impact of inventory adjustments in the US, where logistics disruption receded going into the second half of the fiscal year.
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Osaka Soda Co. Ltd. published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 06:36:03 UTC.