Consolidated Financial Results for the Six Months Ended September 30, 2024 (Under Japanese GAAP) [PDF:468KB]

Published November 13, 2024 at 6:34 a.m. UTC

Source: MarketScreener

Consolidated Financial Results

for the Six Months Ended September 30, 2024

(Under Japanese GAAP)

November 13, 2024

Company name:	Nippon Soda Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	4041
URL:	https://www.nippon-soda.co.jp
Representative:	President	Eiji Aga
Inquiries:	Manager, General Affairs Dept.	Nobuki Minabe
Telephone:	+81-3-6366-1920
Scheduled date to commence dividend payments:	December 4, 2024
Scheduled date to file semi-annual securities report:	November 14, 2024
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024)

(1) Consolidated operating results (cumulative)				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent

Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%

	September 30, 2024	67,079	(2.6)	7,077	9.6	8,364	(10.0)	6,346	(15.8)
	September 30, 2023	68,902	(14.7)	6,458	(28.0)	9,292	(33.5)	7,540	(15.2)

Note:	Comprehensive income	For the six months ended September 30, 2024:	¥4,337 million [	(72.1%) ]
			For the six months ended September 30, 2023:	¥15,545 million [	19.7%	]

			Basic earnings per share	Diluted earnings
			per share

Six months ended			Yen		Yen
	September 30, 2024			115.24		―
	September 30, 2023			135.20		―

Note:	The Company conducted a 2-for-1 share split for every share of common shares with the effective date of October 1, 2024.
	Basic earnings per share have been calculated assuming that the aforementioned share split was conducted at the beginning of the
	previous consolidated fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio

As of	Millions of yen	Millions of yen	%
September 30, 2024	282,596	190,439	66.9
March 31, 2024	290,492	189,474	64.7

Reference:	Equity
	As of September 30, 2024	¥189,150	million
	As of March 31, 2024:	¥188,048	million

2. Cash dividends

					Annual dividends per share
		First quarter-end		Second quarter-end		Third quarter-end		Fiscal year-end		Total


Fiscal year ended	Yen		Yen		Yen		Yen		Yen
	March 31, 2024	―		120		―		120		240

Fiscal year ending
	March 31, 2025	―		120

Fiscal year ending
March 31, 2025 (Forecast)					―		60		―

Note:	Revision to the forecast of cash dividends most recently announced: None

The Company conducted a 2-for-1 share split for every share of common shares with the effective date of October 1, 2024.

The year-end dividend for the fiscal year ending March 2025 takes into account the impact of the aforementioned share split, and the total annual dividend is shown as "―".

If the share split is not considered, year-end dividend would be 120 yen and the total annual dividend for the fiscal year ending March 2025 would be 240 yen.

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

(Percentages indicate year-on-year changes)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per share
			owners of parent


		Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year ending	153,000		(0.9)	13,500	(2.7)	17,700	(24.0)	12,600	(24.2)	228.77
March 31, 2025


Note:	Revision to the forecast of financial results most recently announced: Yes

The Company conducted a 2-for-1 share split for every share of common shares with the effective date of October 1, 2024.

The forecasted basic earnings per share for the full year of the fiscal year ending March 31, 2025 takes into account the impact of the aforementioned share split.

If the share split is not considered, the forecasted basic earnings per share for the full year of the fiscal year ending March 31, 2025 would be 457.54 yen.

Notes

Significant changes in scope of consolidation during the period: None
Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None
Number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2024	56,787,734	shares

	As of March 31, 2024	57,495,334	shares

(ii) Number of treasury shares at the end of the period

	As of September 30, 2024	1,707,392	shares

	As of March 31, 2024	2,426,282	shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

	Six months ended September 30, 2024	55,073,844	shares

	Six months ended September 30, 2023	55,771,543	shares

Note:	The Company conducted a 2-for-1 share split for every share of common shares with the effective date of October 1, 2024.
	Total number of issued shares at the end of the period (including treasury shares), Number of treasury shares at the end of the
	period, and Average number of shares outsanding during the period have been calculated assuming that the aforementioned share
	split was conducted at the beginning of the previous consolidated fiscal year.

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
The descriptions regarding future performance and outlook contained in this document are based on certain assumptions that our company currently possesses and deems reasonable. However, they do not constitute a promise by our company to achieve those outcomes. Actual performance may vary significantly due to various factors.

Consolidated Financial Statements

・Consolidated Balance Sheets

		(Millions of yen)

	As of March 31, 2024	As of September 30, 2024

Assets
Current assets

Cash and deposits	22,215	24,254
Notes and accounts receivable - trade,	50,755	31,661
and contract assets


Electronically recorded monetary claims -	4,268	4,207
operating

Inventories	51,729	58,953

Other	5,162	4,966
Allowance for doubtful accounts	△8	△4

Total current assets	134,123	124,038
Non-current assets

Property, plant and equipment
Buildings and structures, net	23,400	23,302

Machinery, equipment and vehicles, net	19,051	17,992
Tools, furniture and fixtures, net	2,522	2,421

Land	15,024	15,024
Construction in progress	3,379	8,234

Other, net	81	64
Total property, plant and equipment	63,460	67,039

Intangible assets
Goodwill	100	84

Other	3,606	3,124
Total intangible assets	3,706	3,208

Investments and other assets
Investment securities	70,084	68,643

Retirement benefit asset	15,233	15,663
Deferred tax assets	1,797	1,705

Other	2,087	2,298
Allowance for doubtful accounts	△1	△1

Total investments and other assets	89,201	88,308
Total non-current assets	156,369	158,557

Total assets	290,492	282,596

		(Millions of yen)

	As of March 31, 2024	As of September 30, 2024

Liabilities
Current liabilities

Notes and accounts payable - trade	18,658	15,883
Electronically recorded obligations -	3,891	3,712
operating


Short-term borrowings	23,795	22,505
Income taxes payable	914	1,144

Provision for bonuses	6,151	1,734
Other	6,818	5,840

Total current liabilities	60,228	50,820
Non-current liabilities

Long-term borrowings	25,118	24,896
Deferred tax liabilities	11,076	12,086

Retirement benefit liability	1,283	1,265
Provision for environmental measures	422	183

Other	2,888	2,904
Total non-current liabilities	40,789	41,336

Total liabilities	101,018	92,156
Net assets

Shareholders' equity
Share capital	29,166	29,166

Capital surplus	26,099	24,823
Retained earnings	116,174	119,211

Treasury shares	△4,497	△3,191
Total shareholders' equity	166,942	170,011

Accumulated other comprehensive income
Valuation difference on available-for-	14,968	13,543
sale securities


Deferred gains or losses on hedges	30	△17
Foreign currency translation adjustment	3,559	3,244

Remeasurements of defined benefit plans	2,547	2,368
Total accumulated other comprehensive	21,105	19,139
income


Non-controlling interests	1,425	1,289
Total net assets	189,474	190,439

Total liabilities and net assets	290,492	282,596

・Consolidated Statements of Income

			(Millions of yen)

		Six months ended	Six months ended
		September 30, 2023	September 30, 2024

Net sales	68,902	67,079
Cost of sales	49,827	47,618

Gross profit	19,074	19,460
Selling, general and administrative expenses	12,616	12,382

Operating profit	6,458	7,077
Non-operating income

Interest income	31	87
Dividend income	873	1,025

Share of profit of entities accounted for	612	868
using equity method

Foreign exchange gains	1,117	－

Other	608	365
Total non-operating income	3,244	2,347

Non-operating expenses
Interest expenses	131	202

Foreign exchange losses	－	610
Other	278	248

Total non-operating expenses	409	1,060
Ordinary profit	9,292	8,364

Extraordinary income
Gain on sale of investment securities	1,344	1,158

Other	0	－
Total extraordinary income	1,345	1,158

Extraordinary losses
Impairment losses	－	25

Disaster losses	－	93
Loss on sale of investment securities	2	9

Loss on abandonment of non-current assets	264	301
Other	2	5

Total extraordinary losses	269	435
Profit before income taxes	10,368	9,087

Income taxes - current	1,418	932
Income taxes - deferred	1,376	1,813

Total income taxes	2,795	2,745
Profit	7,573	6,341

Profit (loss) attributable to non-controlling	33	△5
interests

Profit attributable to owners of parent	7,540	6,346

・Consolidated Statements of Comprehensive Income

		(Millions of yen)

	Six months ended	Six months ended
	September 30, 2023	September 30, 2024

Profit	7,573	6,341
Other comprehensive income

Valuation difference on available-for-sale	2,465	△1,425
securities

Deferred gains or losses on hedges	△7	4

Foreign currency translation adjustment	1,073	△419
Remeasurements of defined benefit plans, net	△73	△180
of tax


Share of other comprehensive income of	4,512	15
entities accounted for using equity method

Total other comprehensive income	7,971	△2,004

Comprehensive income	15,545	4,337
Comprehensive income attributable to

Comprehensive income attributable to owners	15,410	4,380
of parent

Comprehensive income attributable to non-	134	△42
controlling interests

・Consolidated Statements of Cash Flows

			(Millions of yen)

		Six months ended	Six months ended
		September 30, 2023	September 30, 2024

Cash flows from operating activities
Profit before income taxes	10,368	9,087

Depreciation	3,850	3,888
Amortization of goodwill	15	15

Impairment losses	－	25
Share of	loss (profit) of entities accounted	△612	△868
for using equity method


Increase	(decrease) in provision for bonuses	△4,697	△4,414
Increase	(decrease) in allowance for	△2	△4
doubtful	accounts


Decrease	(increase) in retirement benefit	△241	△429
asset

Increase	(decrease) in retirement benefit	△82	△16
liability


Increase	(decrease) in provision for	△528	△238
environmental measures

Interest	and dividend income	△905	△1,113

Interest	expenses	131	202
Loss on abandonment of non-current assets	265	301

Loss (gain) on sale of investment securities	△1,342	△1,149
Decrease	(increase) in trade receivables	9,591	18,862

Decrease	(increase) in inventories	△8,051	△7,409
Increase	(decrease) in trade payables	201	△2,667

Other, net	△120	△902
Subtotal		7,838	13,169

Interest	and dividends received	905	1,087
Interest	paid	△129	△200

Income taxes paid	△4,222	△228
Net cash	provided by (used in) operating	4,391	13,827
activities


Cash flows from investing activities
Purchase	of property, plant and equipment	△4,087	△7,405

Proceeds	from sale of property, plant and	3	1
equipment

Purchase	of intangible assets	△198	△9

Purchase	of investment securities	△34	△63
Proceeds	from sale of investment securities	2,063	1,455

Purchase	of shares of subsidiaries and	△10	△6
associates

Loan advances	－	△50

Proceeds	from collection of loans receivable	－	2
Payments	for retirement of property, plant	△146	△274
and equipment


Other, net	△119	△796
Net cash	provided by (used in) investing	△2,528	△7,147
activities


Cash flows from financing activities
Net increase (decrease) in short-term	△1,100	△4,000
borrowings


Proceeds	from long-term borrowings	7,000	4,800
Repayments of long-term borrowings	△962	△2,312

Dividends paid	△4,168	△3,296
Purchase	of treasury shares	△2	△1

Dividends paid to non-controlling interests	△130	△93
Other, net	△12	△8

Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

623	△4,911

704	△388


3,191	1,379

18,484	22,187

21,676	23,566

(Notes to Segment Information)

Information Regarding Net Sales, Profit or Loss of Reportable Segments

For the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(Millions of yen)

		Reportable Segment
						Total	Adjustments	Consolidated
	Chemical	Agri	Trading &	Engineer-	Eco
	*1	*2

	Materials	Business	Logistics	ing	Solutions

Net Sales
External sales	17,462	20,076	20,198	7,204	3,960	68,902	－	68,902

Intersegment sales or	6,337	27	5,026	1,895	379	13,666	(13,666)	－
reclassifications

Total	23,799	20,103	25,224	9,100	4,340	82,569	(13,666)	68,902

Segment Profit or Loss	2,324	2,616	1,112	357	(88)	6,322	135	6,458

*1 The adjustment amount for Segment Profit or Loss is due to the elimination of intersegment transactions

*2 Segment Profit or Loss is adjusted to operating income of consolidated statement of income

For the six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024)

(Millions of yen)

		Reportable Segment
						Total	Adjustments	Consolidated
	Chemical	Agri	Trading &	Engineer-	Eco
	*1	*2

	Materials	Business	Logistics	ing	Solutions

Net Sales
External sales	17,747	16,732	20,884	7,062	4,653	67,079	－	67,079

Intersegment sales or	7,070	30	4,790	1,572	435	13,898	(13,898)	－
reclassifications

Total	24,817	16,762	25,674	8,634	5,088	80,977	(13,898)	67,079

Segment Profit	3,441	1,042	1,288	933	99	6,805	272	7,077

*1 The adjustment amount for Segment Profit is due to the elimination of intersegment transactions *2 Segment Profit is adjusted to operating income of consolidated statement of income