Towa Pharmaceutical : FY2023(1st quarter) Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023(Based on Japanese GAAP) (375K/7P)

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023 (Based on Japanese GAAP)

August 10, 2023

Company name:

TOWA PHARMACEUTICAL CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

4553

URL

https://www.towayakuhin.co.jp/

Representative:

President and Representative Director

Itsuro Yoshida

Inquiries:

Director

Masao Tanaka

TEL [phone]

Scheduled date to file Quarterly Securities Report:

August 10, 2023

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(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

%

Three months ended June 30, 2023

54,548

20.2

4,096

123.1

6,959

181.8

4,750

245.8

Three months ended June 30, 2022

45,372

5.7

1,836

(69.8)

2,469

(68.0)

1,373

(74.1)

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2023

96.51

-

Three months ended June 30, 2022

27.91

27.28

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2023

394,170

143,997

36.5

As of March 31, 2023

371,347

136,894

36.9

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 March 31, 2023	-	30.00	-	30.00	60.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)		30.00	-	30.00	60.00

3. Forecast of consolidated financial results for the 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	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Six months ending	104,600	-	5,800		-	5,600		-	3,400		-	69.08
September 30, 2023
Full year	216,300	-	11,800		-	11,500		-	6,900		-	140.18

Notes: 1. Changes on the latest forecast: No

2. The fiscal period ended March 31, 2023 represents a transitional period for the change in the fiscal period for nine consolidated subsidiaries, scoped 15-month period from January 1, 2022-March 31, 2023. Due to this method of presentation, year-on-year percentage change data is not provided.

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4. Notes
(1)	Changes in significant subsidiaries during the three months ended June 30, 2023	No
	(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
(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:	No
	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 June 30, 2023	51,516,000	shares	As of March 31, 2023		51,516,000	shares
	Number of treasury shares at the end of the period
		As of June 30, 2023	2,294,167	shares	As of March 31, 2023		2,294,167	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2023	49,221,833	shares	Three months ended June 30, 2022	49,221,899	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	24,257	30,817
Notes and accounts receivable - trade	46,795	51,254
Electronically recorded monetary claims - operating	7,777	8,513
Merchandise and finished goods	44,457	47,043
Work in process	13,906	14,712
Raw materials and supplies	34,564	35,778
Other	11,413	13,506
Allowance for doubtful accounts	(180)	(53)
Total current assets	182,990	201,571
Non-current assets
Property, plant and equipment
Buildings and structures, net	56,190	55,783
Machinery, equipment and vehicles, net	18,966	18,160
Land	17,039	17,213
Construction in progress	31,155	37,078
Other, net	3,652	3,804
Total property, plant and equipment	127,004	132,040
Intangible assets
Goodwill	34,613	34,049
Other	18,332	18,380
Total intangible assets	52,945	52,430
Investments and other assets
Investment securities	676	704
Other	8,542	8,242
Allowance for doubtful accounts	(812)	(819)
Total investments and other assets	8,407	8,127
Total non-current assets	188,357	192,598
Total assets	371,347	394,170

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			(Millions of yen)
		As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	17,272	18,272
Electronically recorded obligations - operating	18,798	10,410
Short-term borrowings	3,677	3,921
Current portion of long-term borrowings	7,527	9,302
Income taxes payable	1,190	2,136
Provisions	117	82
Other	29,944	32,622
Total current liabilities	78,529	76,747
Non-current liabilities
Long-term borrowings	150,314	167,829
Retirement benefit liability	322	303
Other	5,287	5,291
Total non-current liabilities	155,923	173,424
Total liabilities	234,453	250,172
Net assets
Shareholders' equity
Share capital	4,717	4,717
Capital surplus	7,837	7,837
Retained earnings	121,232	124,506
Treasury shares	(5,608)	(5,608)
Total shareholders' equity	128,179	131,453
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	106	123
Foreign currency translation adjustment	8,608	12,420
Total accumulated other comprehensive income	8,715	12,543
Total net assets	136,894	143,997
Total liabilities and net assets	371,347	394,170

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2022	June 30, 2023
Net sales	45,372	54,548
Cost of sales	28,885	34,539
Gross profit	16,486	20,008
Selling, general and administrative expenses	14,650	15,912
Operating profit	1,836	4,096
Non-operating income
Interest income	2	7
Dividend income	2	2
Foreign exchange gains	31	104
Subsidy income	24	29
Gain on valuation of derivatives	621	2,705
Other	92	223
Total non-operating income	774	3,073
Non-operating expenses
Interest expenses	97	192
Other	44	16
Total non-operating expenses	141	209
Ordinary profit	2,469	6,959
Extraordinary income
Gain on sale of non-current assets	-	189
Other	0	2
Total extraordinary income	0	192
Extraordinary losses
Loss on disposal of non-current assets	0	11
Total extraordinary losses	0	11
Profit before income taxes	2,469	7,140
Income taxes	1,095	2,390
Profit	1,373	4,750
Profit attributable to owners of parent	1,373	4,750

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