Consolidated Financial Results for the First Quarter of Fiscal 2024 (Three-Month Period Ended June 30, 2024)

Aug 7, 2024 at 6:23 AM UTC · Issued by Kaken Pharmaceutical Co., Ltd.

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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.

August 7, 2024

Consolidated Financial Results for the First Quarter of Fiscal 2024

(Three-Month Period Ended June 30, 2024) [JGAAP]

Company name:	KAKEN PHARMACEUTICAL CO., LTD.
Stock exchange listing:	Tokyo Stock Exchange
Securities code number:	4521
URL:	https://www.kaken.co.jp/english/
Representative:	Hiroyuki Horiuchi, President and Representative Director
Contact:	Yasuhiko Kondo, General Manager of Corporate Communications Department
Telephone:	+81-3-5977-5002

Scheduled date of dividend payment commencement:

Supplementary materials for quarterly financial results:

Quarterly financial results briefing:

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three-Month Period of Fiscal 2024 (April 1, 2024 to June 30, 2024)

(1) Consolidated Operating Results (cumulative)				(Percentage indicates year-on-year change)
	Net sales	Operating profit	Ordinary profit	Profit attributable to
	owners of the parent

	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)
Three-Month period of Fiscal	18,254	0.6	2,750	(16.5)	3,011	(13.7)	1,754	(30.1)
2024

Three-Month period of Fiscal	18,150	(0.3)	3,293	(18.8)	3,488	(19.5)	2,510	(13.7)
2023

Note:
Comprehensive income:
Three-Month period of Fiscal 2024:	¥ 1,607 million [(57.8)%]
Three-Month period of Fiscal 2023:	¥ 3,810 million [26.4%]
	Basic earnings	Diluted earnings
	per share	per share
	(Yen)	(Yen)
Three-Month period of Fiscal		46.32	-
2024

Three-Month period of Fiscal		66.99	-
2023

(2) Consolidated Financial Position
	Total assets	Net assets		Equity-to-asset ratio
	(Million yen)	(Million yen)		(%)
As of June 30, 2024		174,777	142,520		81.5
As of March 31, 2024		171,623	143,755		83.8

Reference:

Equity:

As of June 30, 2024: ¥ 142,520 million

As of March 31, 2024: ¥ 143,755 million

2. Cash Dividends

		Annual dividends per share

	1st quarter	2nd quarter		3rd quarter		Year-end	Total

	(Yen)	(Yen)		(Yen)		(Yen)	(Yen)
Year ended March 31,
-	75.00		-		75.00	150.00
2024

Year ending March 31,	-

2025

Year ending March 31,		115.00		-		75.00	190.00
2025 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: Yes

The forecast dividends per share for the 2nd quarter of the year ending March 31, 2025 consist of an ordinary dividend of ¥75.00 and a bonus dividend of ¥40.00.

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)

(Percentage indicates year-on-year change)

								Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit	earnings
		owners of the parent
								per share
	(Million yen)		(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Yen)

Year ending	88,500		22.8	20,800	118.6	21,200	113.0	14,200	76.9	374.97
March 31, 2025

Note: Revisions to the financial forecast most recently announced: Yes

* Notes

Significant changes in the scope of consolidation during the period: None
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
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 other than 1): None
3. Changes in accounting estimates: None
4. Restatement: None
Number of issued shares (common stock)

Number of issued shares at the end of the period (including treasury stock)
Number of treasury shares at the end of the period
Average number of shares during the period

As of June 30, 2024	45,939,730 shares	As of March 31,	45,939,730 shares
2024


As of June 30, 2024	8,070,053 shares	As of March 31,	8,070,003 shares
2024


Three-Month period	37,869,727 shares	Three-Month period	37,472,900 shares
of Fiscal 2024	of Fiscal 2023

Note: The number of treasury shares at the end of the period includes the Company's shares held by the "Board Benefit Trust (BBT)" (28,200 shares as of June 30, 2024 and 28,200 shares as of March 31, 2024). The Company's shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (28,200 shares as of June 30, 2024 and 33,400 shares as of June 30, 2023).

Review of the Japanese-language originals of the attached quarterly consolidated financial results by certified public accountants or an audit corporation: None
Explanation of proper use of earnings forecasts, and other special matters:

(Caution regarding forward-looking statements)

The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts.

How to review the supplementary material to the quarterly financial results reports:

It has been posted on the Company's web site, along with the quarterly financial results reports.

2. Consolidated Financial Results for Three-Month Period of Fiscal 2024

(1) Consolidated balance sheets

(Millions of yen)

				Fiscal 2023		Three-Month period of
					Fiscal 2024
				(As of March 31, 2024)
					(As of June 30, 2024)

Assets
Current assets
	Cash and deposits			50,625			51,863
Notes and accounts receivable - trade, and	23,744		24,556
	contract assets

	Marketable securities			14,699			14,698
Merchandise and finished goods	8,062		7,989
	Work in process			2,786			2,284
Raw materials and supplies	6,319		6,815
	Other			736			866
Allowance for doubtful accounts	(0)	(0)
	Total current assets			106,974			109,073
Non-current assets
	Property, plant and equipment
	Buildings and structures, net	15,734		15,744
	Other, net			9,620			11,047
	Total property, plant and equipment	25,355		26,792
	Intangible assets
	In-process research and development	5,800		5,800
	Other			1,662			1,597
	Total intangible assets	7,462		7,397
	Investments and other assets
	Investment securities	20,532		20,255
	Other			11,298			11,258
	Total investments and other assets	31,831		31,514
	Total non-current assets			64,648			65,704
Total assets	171,623		174,777

(Millions of yen)

						Fiscal 2023		Three-Month period of
							Fiscal 2024
						(As of March 31, 2024)
							(As of June 30, 2024)

	Liabilities
	Current liabilities
			Notes and accounts payable - trade				6,976		7,274
		Electronically recorded obligations -	123	121
			operating

			Short-term bank loans				3,850		3,850
		Income taxes payable	76	724
			Provision for bonuses				946		441
		Other	7,050	10,690
			Total current liabilities				19,024		23,101
	Non-current liabilities
			Provision for share-based remuneration				137		109
		Net defined benefit liability	6,393	6,373
			Deferred tax liabilities				1,947		1,947
		Other	365	724
			Total non-current liabilities				8,843		9,155
	Total liabilities	27,868	32,257
	Net assets
	Shareholders' equity
			Common stock				23,853		23,853
		Capital surplus	11,462	11,462
			Retained earnings				128,506		127,418
		Treasury stock	(28,613)	(28,614)
			Total shareholders' equity				135,207		134,119
	Accumulated other comprehensive income
			Net unrealized holding gain on securities				7,184		7,279
		Deferred gains or losses on hedges			-	(221)
			Remeasurements of defined benefit plans				1,363		1,342
		Total accumulated other comprehensive	8,547	8,400
			income

		Total net assets				143,755		142,520
Total liabilities and net assets	171,623	174,777

Consolidated statements of income and comprehensive income (Consolidated statements of income)
(Three-month period of fiscal 2023 and 2024)

				(Millions of yen)
			Three-Month period of	Three-Month period of
			Fiscal 2023	Fiscal 2024
			(April 1, 2023 - June 30, 2023)	(April 1, 2024 - June 30, 2024)
	Net sales		18,150	18,254
Cost of sales	8,094	8,202
	Gross profit		10,056	10,052
Selling, general and administrative expenses
	Salaries		1,417	1,411
	Bonuses and provision for bonuses	297	277
	Retirement benefit expenses		68	41
	Research and development expenses	2,600	2,998
	Other		2,379	2,573
	Total selling, general and administrative expenses	6,762	7,301
	Operating profit		3,293	2,750
Other income
	Interest income		2	4
	Dividends income	247	284
	Other		7	16
	Total other income	256	306
	Other expenses
	Interest expenses	4	5
	Foreign exchange losses		52	19
	Other	5	20
	Total other expenses		61	45
Ordinary profit	3,488	3,011
	Extraordinary income
	Other	0	-
	Total extraordinary income		0	-
Extraordinary losses
	Loss on retirement of non-current assets		37	33
	Loss on valuation of investment securities	-	605
	Other		0	-
	Total extraordinary losses	38	639
	Profit before income taxes		3,451	2,371
Income taxes	940	617
	Profit		2,510	1,754
Profit attributable to owners of the parent	2,510	1,754

(Consolidated statements of comprehensive income) (Three-month period of fiscal 2023 and 2024)

		(Millions of yen)
	Three-Month period of	Three-Month period of
	Fiscal 2023	Fiscal 2024
	(April 1, 2023 - June 30, 2023)	(April 1, 2024 - June 30, 2024)
Profit	2,510	1,754
Other comprehensive income
Net unrealized holding gain on securities	1,301	94
Deferred gains or losses on hedges	-	(221)
Remeasurements of defined benefit plans	(1)	(20)
Total other comprehensive income	1,300	(146)
Comprehensive income	3,810	1,607
Total comprehensive income attributable to
Owners of the parent	3,810	1,607

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