(English Translation)
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.
Company name:
Listing Securities code Representative
Inquiries
Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending November 30, 2024 (FY11/24)
(Nine Months Ended August 31, 2024)
[Japanese GAAP]
October 11, 2024
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Tokyo Stock Exchange, Prime Market | |
4187 | URL https://www.ooc.co.jp/ |
Masayuki Ando, Representative Director and CEO
Soichi Honda, Director, Corporate Officer, General Manager of Administration Division TEL: +81-6-6264-5071
Scheduled date of dividend payment :-
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting : | None |
(All amounts are rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Third Quarter of the FY11/24 (December 1, 2023 to August 31, 2024)
(1) Consolidated results of operations | (Percentages represent 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 | % | |
Nine months ended Aug. 31, 2024 | 23,784 | 9.3 | 2,997 | (1.9) | 3,067 | (7.0) | 2,813 | 4.9 |
Nine months ended Aug. 31, 2023 | 21,754 | (10.5) | 3,056 | (32.5) | 3,298 | (33.0) | 2,682 | (21.5) |
NOTE: Comprehensive income (millions of yen) | Nine months ended Aug. 31, 2024 | 2,916 | (down 13.9) | ||
Nine months ended Aug. 31, 2023 | 3,387 | (up 0.1) | |||
Basic earnings per share | Diluted earnings per share | ||||
Yen | Yen | ||||
Nine months ended Aug. 31, 2024 | 133.00 | - | |||
Nine months ended Aug. 31, 2023 | 125.22 | - |
(2) Consolidated financial position
Total assets | Net assets | Capital adequacy ratio | |||||||
% | |||||||||
Millions of yen | Millions of yen | ||||||||
As of Aug. 31, 2024 | 57,847 | 44,837 | 76.4 | ||||||
As of Nov. 30, 2023 | 54,636 | 43,629 | 78.7 | ||||||
Reference: Owner's equity (millions | of yen) | As of Aug. 31, 2024 44,170 As of Nov. 30, 2023 | 42,984 | ||||||
2.Dividends | |||||||||
Dividend per share | |||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||
Yen | Yen | Yen | Yen | Yen | |||||
Fiscal year ending Nov. 30, 2023 | - | 28.00 | - | 28.00 | 56.00 | ||||
Fiscal year ending Nov. 30, 2024 | - | 32.00 | - | ||||||
Fiscal year ending Nov. 30, 2024(Forecast) | 32.00 | 64.00 | |||||||
NOTE: Revisions to the most recently announced dividend forecast: | None |
3. Consolidated Forecasts for the FY11/24 (December 1, 2023 to November 30, 2024)
(Percentages represent year-on-year changes) | ||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings per | ||||||||
owners of parent | share | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Full year | 32,000 | 10.7 | 4,200 | 17.4 | 4,400 | 13.5 | 3,700 | 13.1 | 175.00 | |||
NOTE: Revisions to the most recently announced consolidated forecast: None |
- Notes
(1) Changes of important subsidiaries during the period (change in scope of consolidation) : None
Newly added: --Excluded: --
(2) Application of special accounting methods for presenting quarterly consolidated financial statements : None
(3) Changes in accounting policies and accounting-based estimates, and restatements
① Changes in accounting policies due to revisions in accounting standards, others | : None |
② Changes in accounting policies other than 1) above | : None |
③ Changes in accounting-based estimates | : None |
④ Restatements | : None |
(4) Number of shares issued (common shares)
① Number of shares issued at the end of | As of Aug. 31, 2024: | 22,410,038Shares | As of Nov. 30, 2023: | 22,410,038Shares |
the period (including treasury shares) | ||||
② Number of treasury shares at the end of | As of Aug. 31, 2024: | 1,283,283Shares | As of Nov. 30, 2023: | 1,142,585Shares |
the period | ||||
③ Average number of shares during the | Nine months ended | 21,154,320Shares | Nine months ended | 21,422,861Shares |
period | Aug. 31, 2024: | Aug. 31, 2023: |
- Review of the accompanying quarterly consolidated financial statements : None by a certified public accountant or an auditing firm
- Cautionary statement with respect to forward-looking statements and other special items
The forward-looking statements contained in this material are based on information available to the Company's management at the time the materials were prepared and include a variety of uncertainties. Actual results may differ from the forecasts due to changes in the business environment and other factors. Please refer to "Explanation of Consolidated Forecast and Other Forward- looking Statements" on page 3 for items pertaining to the forecasts stated above.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
- Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 2 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
Quarterly Consolidated Statement of Income | 6 | |
For the Nine-month Period | 6 | |
Quarterly Consolidated Statement of Comprehensive Income | 7 | |
For the Nine-month Period | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 | |
Notes to Quarterly Consolidated Statements of Cash Flows | 8 | |
Significant Changes in Shareholders' Equity | 8 | |
Segment and Other Information | 8 | |
Significant Subsequent Events | 9 |
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
During the first three quarters of the fiscal year under review, the Japanese economy continued to recover moderately due to the improvement in the employment and income situation and the effects of various policies. On the other hand, high interest rates in Europe and the United States and the stagnation of the real estate market in China pose a risk that the downturn in overseas economies could exert downward pressure on the Japanese economy. In addition, the outlook remains uncertain due to price increases, conditions surrounding the Middle East region, changes in the financial and capital markets, and other factors.
Under these circumstances, we launched a new medium-term management planning Progress & Development 2030 (P&D 2030) for the period from the fiscal year ended November 2024 to the fiscal year ended November 2030. Based on our Group management philosophy, P&D 2030 has set a management vision of "providing value to the global market as a leading company in specialty acrylic acid esters." Under this vision, we will promote sustainable management that takes ESG into account, aiming to increase corporate value and achieve sustainable growth.
In the Chemicals Business, we worked to improve profitability by integrating and closing products, and focused on expanding sales of environmentally friendly products, such as those derived from biomass. In the electronic materials business, the Group worked to accelerate the development of cutting-edge semiconductor materials and to develop new applications for photoresist materials. In the functional chemicals business, the Group worked to strengthen overseas expansion of cosmetic raw materials and expand sales of high-purity special solvents. In July 2024, we established a subsidiary in South Korea. Going forward, we will work to strengthen our overseas sales system by acquiring new customers and cultivating new markets.
As a result, for the first three quarters under review, the Group recorded net sales of 23,784 million yen (up 9.3% year on year), operating profit of 2,997 million yen (down 1.9% year on year), ordinary profit of 3,067 million yen
(down 7.0% year on year), and profit attributable to owners of parent of 2,813 million yen (up 4.9% year on year). Business results by segment are explained below (excluding inter-segment transactions).
- Chemical products
In the Chemicals Business, sales of acrylic acid ester group for automotive coatings decreased, but sales for display adhesives and UV inkjet inks increased significantly. In the methacrylate group, sales were strong. As a result, net sales were 9,367 million yen (up 28.5% year on year) and segment profit was 1,473 million yen (up 129.6% year on year).
- Electronics materials
In the electronic materials business, sales of raw materials for cutting-edge EUV resists increased significantly. However, sales of raw materials for ArF resists, which are the Company's mainstay, declined despite signs of recovery from sluggish demand due to prolonged inventory adjustments. As a result, Group-wide sales were flat. In the Display Materials Group, despite an increase in sales for insulating films for touch panels, sales for the Group as a whole decreased slightly. In addition, sales of other group new Display materials increased significantly. As a result, net sales were 10,334 million yen (up 3.5% year on year) and segment profit was 1,080 million yen (down 33.9% year on year).
- Specialty chemicals
Raw materials for cosmetics recorded strong sales abroad. As for functional materials, sales of products made for other companies remained weak. Sales of high-purity specialty solvents and other products at subsidiaries remained flat. As a result, net sales were 4,082 million yen (down 8.9% year on year) and segment profit was 455 million yen (down 41.4% year on year).
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the current fiscal year increased by 3,210 million yen from the end of the previous fiscal year to 57,847 million yen. This was mainly attributable to an increase of 3,909 million yen in cash and deposits, an increase of 2,215 million yen in notes and accounts receivable-trade and contract assets due to the last
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
day of the third quarter under review being a holiday for financial institutions, a decrease of 860 million yen in other current assets due to refunds of consumption tax receivable, and a decrease of 1,652 million yen in property, plant and equipment.
Liabilities at the end of the third quarter of the current fiscal year increased by 2,002 million yen from the end of the previous fiscal year to 13,010 million yen. This was mainly due to an increase of 1,846 million yen in notes and accounts payable-trade, mainly due to the last day of the third quarter of the current fiscal year being a holiday for financial institutions, an increase of 532 million yen in current portion of long-term borrowings, an increase of 403 million yen in income taxes payable, an increase of 265 million yen in provision for bonuses, and a decrease of 1,686 million yen in long-term borrowings.
Net assets at the end of the third quarter of the current fiscal year increased by 1,208 million yen from the end of the previous fiscal year to 44,837 million yen. This was mainly due to an increase of 1,542 million yen in retained earnings, an increase of 419 million yen in treasury shares, and an increase of 67 million yen in valuation difference on available- for-sale securities.
- Explanation of Consolidated Forecast and Other Forward-looking Statements The consolidated forecasts announced on June 26, 2024, remain unchanged.
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
2.Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheet
(Thousands of yen) | |||
FY11/23 | Third quarter of FY11/24 | ||
(As of Nov. 30, 2023) | (As of Aug.31, 2024) | ||
Assets | |||
Current assets | |||
Cash and deposits | 7,890,809 | 11,800,674 | |
Notes, accounts receivable-trade and contract assets | 8,634,668 | 10,850,532 | |
Electronically recorded monetary claims-operating | 335,183 | 285,342 | |
Finished goods | 4,558,239 | 4,227,569 | |
Work in process | 1,979,792 | 2,100,945 | |
Raw materials and supplies | 2,175,488 | 2,102,404 | |
Other | 1,540,540 | 679,998 | |
Allowance for doubtful accounts | (12,736) | (16,894) | |
Total current assets | 27,101,985 | 32,030,572 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 8,720,743 | 8,436,019 | |
Machinery, equipment and vehicles, net | 8,673,751 | 7,807,015 | |
Land | 2,172,476 | 2,172,476 | |
Construction in progress | 520,490 | 83,461 | |
Other, net | 356,003 | 292,011 | |
Total property, plant and equipment | 20,443,464 | 18,790,984 | |
Intangible assets | |||
Goodwill | 43,333 | 28,333 | |
Other | 59,379 | 40,034 | |
Total intangible assets | 102,713 | 68,367 | |
Investments and other assets | |||
Investment securities | 6,500,840 | 6,455,772 | |
Retirement benefit asset | 357,945 | 381,857 | |
Deferred tax assets | 209 | 9,225 | |
Other | 129,806 | 110,956 | |
Total investments and other assets | 6,988,802 | 6,957,810 | |
Total non-current assets | 27,534,980 | 25,817,162 | |
Total assets | 54,636,965 | 57,847,734 | |
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
(Thousands of yen) | ||||
FY11/23 | Third quarter of FY11/24 | |||
(As of Nov. 30, 2023) | (As of Aug.31, 2024) | |||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable-trade | 3,802,732 | 5,649,197 | ||
Current portion of bonds payable | 25,000 | 12,500 | ||
Current portion of long-term borrowings | 1,728,157 | 2,261,093 | ||
Accounts payable-other | 814,077 | 1,114,368 | ||
Income taxes payable | 234,679 | 638,357 | ||
Provision for bonuses | - | 265,359 | ||
Provision for bonuses for directors (and other | 15,590 | 30,930 | ||
officers) | ||||
Other | 477,814 | 949,542 | ||
Total current liabilities | 7,098,050 | 10,921,348 | ||
Non-current liabilities | ||||
Long-term borrowings | 3,169,849 | 1,482,881 | ||
Deferred tax liabilities | 628,650 | 477,671 | ||
Provision for share awards for directors (and other | 21,107 | 39,600 | ||
officers) | ||||
Other | 90,085 | 88,519 | ||
Total non-current liabilities | 3,909,693 | 2,088,671 | ||
Total liabilities | 11,007,743 | 13,010,020 | ||
Net assets | ||||
Shareholders' equity | ||||
Share capital | 3,600,295 | 3,600,295 | ||
Capital surplus | 3,511,017 | 3,513,436 | ||
Retained earnings | 35,954,913 | 37,496,960 | ||
Treasury shares | (2,709,700) | (3,129,471) | ||
Total shareholders' equity | 40,356,525 | 41,481,220 | ||
Accumulated other comprehensive income | ||||
Valuation difference on available-for-sale securities | 2,514,638 | 2,582,136 | ||
Foreign currency translation adjustment | 125,461 | 112,956 | ||
Remeasurements of defined benefit plans | (12,589) | (6,071) | ||
Total accumulated other comprehensive income | 2,627,510 | 2,689,020 | ||
Non-controlling interests | 645,186 | 667,473 | ||
Total net assets | 43,629,221 | 44,837,714 | ||
Total liabilities and net assets | 54,636,965 | 57,847,734 | ||
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
-
Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
For the Nine-month Period
(Thousands of yen)
First nine months of FY11/23 (Dec. 1, 2022-Aug. 31, 2023)
First nine months of FY11/24 (Dec. 1, 2023- Aug. 31, 2024)
Net sales | 21,754,906 | 23,784,596 |
Cost of sales | 15,522,212 | 17,054,506 |
Gross profit | 6,232,693 | 6,730,089 |
Selling, general and administrative expenses | 3,176,215 | 3,732,526 |
Operating profit | 3,056,478 | 2,997,563 |
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission for purchase of treasury stock Loss on investments in partnership Donations
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
1,290 | 3,066 |
130,716 | 108,437 |
19,307 | - |
72,590 | - |
28,645 | 26,988 |
252,549 | 138,492 |
4,826 | 6,896 |
- | 36,437 |
3,241 | 602 |
2,521 | 2,191 |
- | 22,000 |
28 | 43 |
10,617 | 68,170 |
3,298,410 | 3,067,884 |
873 | - |
500,376 | 815,207 |
501,249 | 815,207 |
2,006 | 1,080 |
2,006 | 1,080 |
3,797,654 | 3,882,011 |
1,172,273 | 1,221,534 |
(129,592) | (193,540) |
Total income taxes | 1,042,681 | 1,027,994 |
Profit | 2,754,972 | 2,854,016 |
Profit attributable to non-controlling interests | 72,395 | 40,425 |
Profit attributable to owners of parent | 2,682,577 | 2,813,591 |
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period
(Thousands of yen)
First nine months of FY11/23 (Dec. 1, 2022-Aug. 31, 2023)
First nine months of FY11/24 (Dec. 1, 2023- Aug. 31, 2024)
Profit
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
2,754,9722,854,016
591,82068,692
22,940(12,505)
17,4016,672
632,16362,859
3,387,1352,916,876
3,308,5172,875,102
78,61841,774
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OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the Third Quarter of FY11/24
-
Notes to Quarterly Consolidated Financial Statements Going Concern Assumption
Not applicable.
Notes to Quarterly Consolidated Statements of Cash Flows
The quarterly consolidated statements of cash flows for the third quarter of the current fiscal year have not been prepared.
Depreciation and amortization related to the third quarter cumulative period (including amortization related to intangible assets excluding goodwill) and amortization of goodwill are as follows.
(Thousands of yen)
First nine months of FY11/23 (Dec. 1, 2022-Aug. 31, 2023)
First nine months of FY11/24 (Dec. 1, 2023- Aug. 31, 2024)
Depreciation | 1,587,582 | 2,424,963 |
Amortization of goodwill | 14,999 | 14,999 |
Significant Changes in Shareholders' Equity
In accordance with the resolution of the Board of Directors' meeting held on January 26, 2024, the Company repurchased its own shares. As a result of this acquisition and other factors, treasury stock increased by 419,770 thousand yen in the third quarter of the current fiscal year to 3,129,471 thousand yen at the end of the third quarter of the current fiscal year.
Segment and Other Information 【Segment information】
I. First nine months of FY11/23 (Dec. 1, 2022 - Aug. 31, 2023)
1 Information on the amounts of sales, profits or losses by reportable segment and information on disaggregation of revenue
(Thousands of yen) | ||||||
Reportable segment | Amounts shown on | |||||
Adjustment | quarterly consolidated | |||||
Chemical | Electronics | Specialty | Total | (NOTE)1 | statement of income | |
products | materials | chemicals | (Note 2) | |||
Net sales | ||||||
Japan | 4,790,869 | 8,658,827 | 3,710,644 | 17,160,341 | - | 17,160,341 |
Asia and Australia | 1,704,144 | 1,278,274 | 703,071 | 3,685,490 | - | 3,685,490 |
Americas | 430,334 | 50,533 | 66,108 | 546,976 | - | 546,976 |
Europe | 361,982 | 60 | 55 | 362,097 | - | 362,097 |
Revenue from Contracts | 7,287,330 | 9,987,694 | 4,479,881 | 21,754,906 | - | 21,754,906 |
with Customers | ||||||
Other revenues | - | - | - | - | - | - |
Sales to external customers | 7,287,330 | 9,987,694 | 4,479,881 | 21,754,906 | - | 21,754,906 |
Inter-segment sales and | - | - | 309,910 | 309,910 | (309,910) | - |
transfers | ||||||
Total | 7,287,330 | 9,987,694 | 4,789,791 | 22,064,816 | (309,910) | 21,754,906 |
Segment profit | 641,715 | 1,633,188 | 777,271 | 3,052,174 | 4,303 | 3,056,478 |
(NOTE)1 Segment profit in the above adjustment represents eliminations for inter-segment transactions.
2 Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement of income.
2 Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Not applicable.
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