Pharma Foods International : (Delayed) Summary of Consolidated Financial Results for the Six Months Ended January 31, 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 Six Months Ended January 31, 2022
		(Based on Japanese GAAP)
		March 7, 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	Yoshinobu Shintani	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	March 17, 2022
Scheduled date to commence dividend payments:	April 4, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended January 31, 2022 (from August 1, 2021 to January 31, 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		%
Six months ended January 31, 2022	28,821		41.3		2,032		-		2,105			-		1,561		-
Six months ended January 31, 2021	20,393	216.1		(81)		-		(49)			-		(446)		-
	Earnings per share	Diluted earnings per share
			Yen					Yen
Six months ended January 31, 2022			53.86					53.85
Six months ended January 31, 2021			(15.39)					-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen					%
As of January 31, 2022		26,774					9,199				34.4
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	60,631	29.7	5,773		1.8	5,788		0.4	4,021		4.7	138.36

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4. Notes

1. Changes in significant subsidiaries during the six months ended January 31, 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 January 31, 2022 29,071,500 shares As of July 31, 2021 29,062,100 shares Number of treasury shares at the end of the period

	As of January 31, 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)
	Six months ended January 31, 2022	28,996,582	shares	Six months ended January 31, 2021	29,045,016	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of July 31, 2021	As of January 31, 2022
Assets
Current assets
Cash and deposits	9,794	8,097
Notes and accounts receivable - trade	4,920	5,049
Electronically recorded monetary claims - operating	-	372
Merchandise and finished goods	2,659	4,270
Work in process	54	427
Raw materials and supplies	35	594
Other	473	641
Allowance for doubtful accounts	(3)	(2)
Total current assets	17,933	19,450
Non-current assets
Property, plant and equipment
Buildings and structures, net	879	2,561
Machinery, equipment and vehicles, net	4	377
Tools, furniture and fixtures, net	178	180
Land	726	1,491
Leased assets, net	20	34
Construction in progress	-	68
Total property, plant and equipment	1,808	4,714
Intangible assets
Goodwill	140	118
Other	45	40
Total intangible assets	185	158
Investments and other assets
Investment securities	335	1,344
Other	680	1,106
Allowance for doubtful accounts	(0)	(0)
Total investments and other assets	1,016	2,450
Total non-current assets	3,010	7,323
Total assets		20,944	26,774

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			(Millions of yen)
		As of July 31, 2021	As of January 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	846	1,231
Short-term borrowings	2,500	7,500
Current portion of long-term borrowings	939	767
Accounts payable - other	3,283	5,172
Income taxes payable	2,000	541
Provision for bonuses	3	88
Other	1,404	682
Total current liabilities	10,978	15,983
Non-current liabilities
Long-term borrowings	1,458	1,038
Retirement benefit liability	16	439
Other	24	113
Total non-current liabilities	1,499	1,591
Total liabilities	12,478	17,574
Net assets
Shareholders' equity
Share capital	2,038	2,041
Capital surplus	1,817	1,820
Retained earnings	4,599	5,526
Treasury shares	-	(138)
Total shareholders' equity	8,455	9,249
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	8	(50)
Total accumulated other comprehensive income	8	(50)
Share acquisition rights	1	0
Total net assets	8,465	9,199
Total liabilities and net assets		20,944	26,774

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		January 31, 2021	January 31, 2022
Net sales	20,393	28,821
Cost of sales	3,101	5,786
Gross profit	17,291	23,035
Selling, general and administrative expenses
Research and development expenses	210	310
Advertising expenses	13,157	15,614
Commission expenses	1,213	1,613
Amortization of goodwill	21	21
Other	2,769	3,442
Total selling, general and administrative expenses	17,373	21,002
Operating profit (loss)	(81)	2,032
Non-operating income
Foreign exchange gains	5	12
Subsidy income	10	40
Share of profit of entities accounted for using equity method	2	6
Outsourcing service income	8	8
Other	13	26
Total non-operating income	40	94
Non-operating expenses
Interest expenses	5	13
Commission expenses	1	8
Other	0	0
Total non-operating expenses	7	21
Ordinary profit (loss)	(49)	2,105
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 (loss) before income taxes	(50)	2,186
Income taxes	396	625
Profit (loss)	(446)	1,561
Profit (loss) attributable to owners of parent		(446)	1,561

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