Consolidated Financial Results for the Six Months Period of Fiscal 2024 (Six Month Period Ended September 30, 2024)

Nov 8, 2024 at 6:43 AM UTC · Issued by Kaken Pharmaceutical Co., Ltd.

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.

November 8, 2024

Consolidated Financial Results for the Six-Months Period of Fiscal 2024

(Six-Month Period Ended September 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 General Affairs Department
Telephone:	+81-3-5977-5002

Scheduled date of semi-annual securities report submission:	November 13, 2024
Scheduled date of dividend payment commencement:	November 29, 2024
Supplementary materials for financial results:	Yes
Quarterly financial results briefing:	Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six-Month Period of Fiscal 2024 (April 1, 2024 to September 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)	(%)

Six-Month period of Fiscal		51,372		42.0	19,579		255.2	19,823	246.4		14,286	251.2
2024

Six-Month period of Fiscal		36,171		(1.8)	5,512		(32.8)	5,722	(33.1)	4,068	(31.8)
2023

Note:
Comprehensive income:
Six-Month period of Fiscal 2024:		¥ 13,469 million [131.7%]
Six-Month period of Fiscal 2023:		¥ 5,814 million [(6.4)%]

		Basic earnings	Diluted earnings
		per share	per share

		(Yen)	(Yen)

Six-Month period of Fiscal			377.23	-
2024

Six-Month period of Fiscal			108.18	-
2023

(2) Consolidated Financial Position
		Total assets	Net assets		Equity-to-asset ratio

		(Million yen)	(Million yen)		(%)

As of September 30, 2024			187,123	154,405		82.5
As of March 31, 2024			171,623	143,755		83.8

Reference:

Equity:

As of September 30, 2024: ¥ 154,405 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,	-	115.00

2025

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

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

The 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	374.93
March 31, 2025

Note: Revisions to the financial forecast most recently announced: None

* Notes

Significant changes in the scope of consolidation during the period: None
Adoption of accounting treatment specific to the preparation of semi-annual 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 September 30,	45,939,730 shares	As of March 31,	45,939,730 shares
2024	2024


As of September 30,	8,065,646 shares	As of March 31,	8,070,003 shares
2024	2024


Six-Month period of	37,871,082 shares	Six-Month period of	37,605,220 shares
Fiscal 2024	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)" (93,600 shares as of September 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 (34,671 shares as of September 30, 2024 and 31,594 shares as of September 30, 2023).

Semi-annualfinancial results reports are exempt from review conducted by certified public accountants or an audit corporation.
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 financial results reports:

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

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

(1) Semi-annual consolidated balance sheets

(Millions of yen)

				Fiscal 2023		Six-Month period of
					Fiscal 2024
				(As of March 31, 2024)
					(As of September 30, 2024)

Assets
Current assets
	Cash and deposits			50,625			67,289
Notes and accounts receivable - trade, and	23,744		21,024
	contract assets

	Marketable securities			14,699			16,697
Merchandise and finished goods	8,062		7,317
	Work in process			2,786			2,572
Raw materials and supplies	6,319		6,972
	Other			736			806
Allowance for doubtful accounts	(0)	(0)
	Total current assets			106,974			122,681
Non-current assets
	Property, plant and equipment
	Buildings and structures, net	15,734		15,597
	Other, net			9,620			10,919
	Total property, plant and equipment	25,355		26,517
	Intangible assets
	In-process research and development	5,800		5,800
	Other			1,662			1,576
	Total intangible assets	7,462		7,376
	Investments and other assets
	Investment securities	20,532		19,051
	Other			11,298			11,497
	Total investments and other assets	31,831		30,548
	Total non-current assets			64,648			64,442
Total assets	171,623		187,123

(Millions of yen)

			Fiscal 2023		Six-Month period of
				Fiscal 2024
			(As of March 31, 2024)
				(As of September 30, 2024)

Liabilities
Current liabilities
	Notes and accounts payable - trade				6,976		5,944
Electronically recorded obligations -	123	72
	operating

	Short-term bank loans				3,850		3,850
Income taxes payable	76	5,290
	Provision for bonuses				946		884
Other	7,050	7,640
	Total current liabilities				19,024		23,683
Non-current liabilities
	Provision for share-based remuneration				137		89
Net defined benefit liability	6,393	6,277
	Deferred tax liabilities				1,947		1,947
Other	365	720
	Total non-current liabilities				8,843		9,034
Total liabilities	27,868	32,718
Net assets
Shareholders' equity
	Common stock				23,853		23,853
Capital surplus	11,462	11,500
	Retained earnings				128,506		139,949
Treasury stock	(28,613)	(28,629)
	Total shareholders' equity				135,207		146,674
Accumulated other comprehensive income
	Net unrealized holding gain on securities				7,184		6,408
Remeasurements of defined benefit plans	1,363	1,322
	Total accumulated other comprehensive				8,547		7,731
	income

Total net assets	143,755	154,405
Total liabilities and net assets				171,623		187,123

Semi-annualconsolidated statements of income and comprehensive income (Semi-annual consolidated statements of income)

				(Millions of yen)
			Six-Month period of	Six-Month period of
			Fiscal 2023	Fiscal 2024
			(April 1, 2023 - September 30, 2023)	(April 1, 2024 - September 30, 2024)
	Net sales		36,171	51,372
Cost of sales	16,450	17,269
	Gross profit		19,720	34,103
Selling, general and administrative expenses
	Salaries		2,821	2,804
	Bonuses and provision for bonuses	553	539
	Retirement benefit expenses		136	82
	Research and development expenses	5,738	5,973
	Other		4,957	5,123
	Total selling, general and administrative expenses	14,207	14,523
	Operating profit		5,512	19,579
Other income
	Interest income		4	15
	Dividends income	251	288
	Other		22	37
	Total other income	277	341
	Other expenses
	Interest expenses	8	12
	Foreign exchange losses		54	54
	Other	5	31
	Total other expenses		67	97
Ordinary profit	5,722	19,823
	Extraordinary income
	Gain on sales of investment securities	4	-
	Other		0	0
	Total extraordinary income	5	0
	Extraordinary losses
	Loss on retirement of non-current assets	69	41
	Loss on valuation of investment securities		-	546
	Other	0	0
	Total extraordinary losses		69	588
Profit before income taxes	5,658	19,235
	Income taxes		1,590	4,949
Profit	4,068	14,286
	Profit attributable to owners of the parent		4,068	14,286

(Semi-annual consolidated statements of comprehensive income)

				(Millions of yen)
			Six-Month period of	Six-Month period of
			Fiscal 2023	Fiscal 2024
			(April 1, 2023 - September 30, 2023)	(April 1, 2024 - September 30, 2024)
Profit		4,068	14,286
Other comprehensive income
	Net unrealized holding gain on securities		1,748	(775)
Remeasurements of defined benefit plans	(2)	(40)
	Total other comprehensive income		1,745	(816)
Comprehensive income	5,814	13,469
	Total comprehensive income attributable to
	Owners of the parent	5,814	13,469

(3) Semi-annual consolidated statements of cash flows

					(Millions of yen)
				Six-Month period of	Six-Month period of
				Fiscal 2023	Fiscal 2024
				(April 1, 2023 - September 30, 2023)	(April 1, 2024 - September 30, 2024)
Cash flows from operating activities
Profit before income taxes	5,658	19,235
Depreciation				1,291	1,265
Amortization of goodwill	117	39
Increase (decrease) in net defined benefit asset and				(87)	(279)
liability

Interest and dividends income	(255)	(303)
Interest expenses				8	12
Loss (gain) on investments in investment	2	16
partnerships

Loss (gain) on sale of investment securities				(4)	-
Loss (gain) on valuation of investment securities	-	546
Loss on retirement of non-current assets				69	41
Decrease (increase) in notes and accounts	(4,870)	2,692
receivable-trade

Decrease (increase) in inventories				(2,293)	304
Increase (decrease) in trade payables	2,034	(1,082)
Other, net				(392)	1,110
Subtotal	1,278	23,600
Interest and dividends income received				255	301
Interest expenses paid	(8)	(12)
Income taxes (paid) refund				(1,769)	43
Net cash provided by (used in) operating activities		(245)	23,932
Cash flows from investing activities
Purchase of property, plant and equipment	(734)	(1,961)
Purchase of intangible assets				(186)	(61)
Purchase of investment securities	-	(200)
Proceeds from sales of investment securities				8	-
Other, net	(228)	(209)
Net cash provided by (used in) investing activities				(1,141)	(2,432)
Cash flows from financing activities
Net decrease (increase) in treasury stock				0	1
Cash dividends paid	(2,813)	(2,840)
Net cash provided by (used in) financing activities				(2,813)	(2,839)
Effect of exchange rate change on cash and cash		-		-
equivalents

Net increase (decrease) in cash and cash equivalents				(4,199)	18,661
Cash and cash equivalents at beginning of period	74,260	65,325
Cash and cash equivalents at end of period				70,060	83,987

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