Pharma Foods International : (Delayed) Summary of Consolidated Financial Results for the Nine Months Ended April 30, 2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Nine Months Ended April 30, 2022
		(Based on Japanese GAAP)
		June 3, 2022
Company name:	Pharma Foods International Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	2929	URL https://www.pharmafoods.co.jp
Representative:	President	Mujo Kim

Inquiries:	General Manager of Administration	Atsushi Yamatsu	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	June 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended April 30, 2022 (from August 1, 2021 to April 30, 2022)

(1) Consolidated operating results (cumulative)									Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%		Millions of yen		%	Millions of yen			%	Millions of yen		%
Nine months ended April 30, 2022	44,050		30.5		931		(64.6)		1,076		(60.4)		(284)		-
Nine months ended April 30, 2021	33,748	203.7		2,633		-		2,716			-		1,553		-
	Earnings per share			Diluted earnings per share
				Yen				Yen
Nine months ended April 30, 2022			(9.80)					-
Nine months ended April 30, 2021			53.49					53.46
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of April 30, 2022		30,273						7,097				23.4
As of July 31, 2021		20,944						8,465				40.4
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended July 31, 2021		-		5.00				-				20.00			25.00
Year ending July 31, 2022		-		10.00				-
Year ending July 31, 2022 (Forecast)														10.00			20.00

3. Forecast of consolidated financial results for the year ending July 31, 2022 (from August 1, 2021 to July 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	60,900	30.3	3	(99.9)	147	(97.5)	(1,500)		-	(51.71)

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4. Notes

1. Changes in significant subsidiaries during the nine months ended April 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of April 30, 2022 29,073,800 shares As of July 31, 2021 29,062,100 shares Number of treasury shares at the end of the period

	As of April 30, 2022	50,053	shares	As of July 31, 2021	-	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended April 30, 2022	29,002,044	shares	Nine months ended April 30, 2021	29,051,563	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of July 31, 2021	As of April 30, 2022
Assets
Current assets
Cash and deposits	9,794	9,545
Notes and accounts receivable - trade	4,920	5,946
Electronically recorded monetary claims - operating	-	567
Merchandise and finished goods	2,659	4,832
Work in process	54	472
Raw materials and supplies	35	628
Other	473	1,173
Allowance for doubtful accounts	(3)	(2)
Total current assets	17,933	23,165
Non-current assets
Property, plant and equipment
Buildings and structures, net	879	2,526
Machinery, equipment and vehicles, net	4	393
Tools, furniture and fixtures, net	178	176
Land	726	1,491
Leased assets, net	20	33
Construction in progress	-	76
Total property, plant and equipment	1,808	4,700
Intangible assets
Goodwill	140	222
Other	45	36
Total intangible assets	185	259
Investments and other assets
Investment securities	335	1,380
Other	680	768
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	1,016	2,149
Total non-current assets	3,010	7,108
Total assets		20,944	30,273

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			(Millions of yen)
		As of July 31, 2021	As of April 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	846	1,169
Short-term borrowings	2,500	13,000
Current portion of long-term borrowings	939	745
Accounts payable - other	3,283	5,677
Income taxes payable	2,000	105
Provision for bonuses	3	168
Other	1,404	808
Total current liabilities	10,978	21,674
Non-current liabilities
Long-term borrowings	1,458	913
Retirement benefit liability	16	435
Other	24	152
Total non-current liabilities	1,499	1,501
Total liabilities	12,478	23,176
Net assets
Shareholders' equity
Share capital	2,038	2,042
Capital surplus	1,817	1,820
Retained earnings	4,599	3,390
Treasury shares	-	(138)
Total shareholders' equity	8,455	7,114
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	8	(17)
Total accumulated other comprehensive income	8	(17)
Share acquisition rights	1	0
Total net assets	8,465	7,097
Total liabilities and net assets		20,944	30,273

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		April 30, 2021	April 30, 2022
Net sales	33,748	44,050
Cost of sales	5,062	8,828
Gross profit	28,685	35,222
Selling, general and administrative expenses
Research and development expenses	354	475
Advertising expenses	19,365	26,158
Commission expenses	1,973	2,465
Amortization of goodwill	32	34
Other	4,327	5,156
Total selling, general and administrative expenses	26,052	34,290
Operating profit	2,633	931
Non-operating income
Interest income	2	1
Dividend income	0	24
Foreign exchange gains	22	29
Subsidy income	34	74
Share of profit of entities accounted for using equity method	9	12
Outsourcing service income	12	12
Other	15	21
Total non-operating income	97	175
Non-operating expenses
Interest expenses	9	18
Commission expenses	5	12
Other	0	0
Total non-operating expenses	14	30
Ordinary profit	2,716	1,076
Extraordinary income
Gain on bargain purchase	-	82
Total extraordinary income	-	82
Extraordinary losses
Loss on retirement of non-current assets	0	0
Total extraordinary losses	0	0
Profit before income taxes	2,715	1,158
Income taxes	1,161	1,442
Profit (loss)	1,553	(284)
Profit (loss) attributable to owners of parent		1,553	(284)

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