Pharma Foods International Co., Ltd.TSE: 2929

September 27, 2024 Investor (Delayed) Summary of Consolidated Financial Results for the Year Ended July 31, 2024 (Based on Japanese GAAP)

Sep 27, 2024 at 6:32 AM UTC · Issued by Pharma Foods International Co., Ltd.

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

	Summary of Consolidated Financial Results
		for the Year Ended July 31, 2024
		(Based on Japanese GAAP)
				September 12, 2024
Company name:	Pharma Foods International Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	2929	URL https://www.pharmafoods.co.jp/
Representative:	President		Mujo Kim
Inquiries:	General Manager od Corporate Planning	Toshihiro Kawanaka	TEL 075-394-8600
Department

Scheduled date of ordinary general meeting of shareholders:	October 24, 2024
Scheduled date to file Securities Report:	October 24, 2024
Scheduled date to commence dividend payments:	October 28, 2024
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended July 31, 2024 (from August 1, 2023 to July 31, 2024)

(1) Consolidated operating results												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		%
Year ended July 31, 2024	62,147		(9.4)	5,113		41.6		5,249	48.2	3,205		4.0
Year ended July 31, 2023	68,572		13.9	3,610		234.1		3,540	179.9	3,081		-

	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity

		Yen			Yen			%					%		%
Year ended July 31, 2024		112.71			-			30.2					14.4		8.2
Year ended July 31, 2023		106.70			-			36.9					10.5		5.3
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%					Yen
As of July 31, 2024		36,573					11,585					31.7			412.71
As of July 31, 2023		36,232					9,630					26.6			333.88
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended July 31, 2024				5,486					(1,390)					(4,842)		15,566
Year ended July 31, 2023				6,125					(1,013)					2,341		16,306
2. Cash dividends
					Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
														to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)


	Yen				Yen	Yen		Yen	Yen	Millions of yen	%			%
Year ended July 31, 2023	-			10.00	-		12.00	22.00		634	20.6			7.6
Year ended July 31, 2024	-			10.00	-		15.00	25.00		701	22.2			6.7
Year ending July 31, 2025	-			12.50	-				12.50	25.00			43.9
(Forecast)

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

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Millions of yen

Yen

Full year

65,000

4.6

2,000

(60.9)

2,300

(56.2)

1,600

(50.1)

57.00

4. Notes

(1) Significant changes in the scope of consolidation during the year ended July 31, 2024:

(2) 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:

Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Yes

Restatement of prior period financial statements:

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of July 31, 2024

29,079,000

As of July 31, 2023

29,079,000

Number of treasury shares at the end of the period

As of July 31, 2024

1,006,767

As of July 31, 2023

233,994

Average number of shares during the period

Year ended July 31, 2024

28,441,034

Year ended July 31, 2023

28,876,505

Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of July 31, 2023	As of July 31, 2024
Assets
Current assets
Cash and deposits	16,306	15,666
Notes and accounts receivable - trade	4,058	4,038
Electronically recorded monetary claims - operating	526	258
Merchandise and finished goods	4,594	5,292
Work in process	676	619
Raw materials and supplies	783	806
Other	588	596
Allowance for doubtful accounts	(2)	(2)
Total current assets	27,530	27,275
Non-current assets
Property, plant and equipment
Buildings and structures, net	2,449	2,157
Machinery, equipment and vehicles, net	541	725
Tools, furniture and fixtures, net	154	509
Land	1,190	1,190
Leased assets, net	21	11
Construction in progress	47	16
Total property, plant and equipment	4,404	4,609
Intangible assets
Goodwill	197	124
Other	41	52
Total intangible assets	238	177
Investments and other assets
Investment securities	2,514	3,037
Deferred tax assets	395	351
Other	1,149	1,122
Allowance for doubtful accounts	(0)	-
Total investments and other assets	4,058	4,510
Total non-current assets	8,701	9,298
Total assets	36,232	36,573

		(Millions of yen)
	As of July 31, 2023	As of July 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	937	1,250
Short-term borrowings	17,400	14,900
Current portion of long-term borrowings	955	760
Accounts payable - other	3,728	4,039
Income taxes payable	264	1,384
Provision for bonuses	72	72
Other	1,016	755
Total current liabilities	24,374	23,163
Non-current liabilities
Long-term borrowings	1,741	1,231
Retirement benefit liability	320	384
Other	165	208
Total non-current liabilities	2,227	1,824
Total liabilities	26,601	24,987
Net assets
Shareholders' equity
Share capital	2,043	2,043
Capital surplus	1,814	1,814
Retained earnings	5,792	8,356
Treasury shares	(343)	(1,194)
Total shareholders' equity	9,306	11,019
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	324	566
Total accumulated other comprehensive income	324	566
Total net assets	9,630	11,585
Total liabilities and net assets	36,232	36,573

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	July 31, 2023	July 31, 2024
Net sales	68,572	62,147
Cost of sales	13,293	13,395
Gross profit	55,279	48,751
Selling, general and administrative expenses
Research and development expenses	840	978
Advertising expenses	38,865	30,787
Commission expenses	4,096	4,203
Amortization of goodwill	72	99
Other	7,794	7,568
Total selling, general and administrative expenses	51,669	43,638
Operating profit	3,610	5,113
Non-operating income
Interest income	1	1
Dividend income	26	28
Foreign exchange gains	8	4
Subsidy income	54	171
Outsourcing service income	16	16
Compensation income	25	-
Other	35	62
Total non-operating income	169	285
Non-operating expenses
Interest expenses	48	62
Loss on investments in investment partnerships	14	9
Loss on valuation of investment securities	50	-
Share of loss of entities accounted for using equity method	82	35
Commission expenses	30	27
Expenses related to product collection, etc.	5	-
Other	6	14
Total non-operating expenses	239	150
Ordinary profit	3,540	5,249
Extraordinary income
Gain on sale of investment securities	-	10
Gain on receipt of donated non-current assets	8	-
Total extraordinary income	8	10
Extraordinary losses
Loss on valuation of investment securities	-	123
Loss on sale of non-current assets	6	-
Loss on retirement of non-current assets	-	101
Total extraordinary losses	6	225
Profit before income taxes	3,542	5,034
Income taxes - current	922	1,786
Income taxes - deferred	(460)	42
Total income taxes	462	1,828
Profit	3,080	3,205
Loss attributable to non-controlling interests	(0)	-
Profit attributable to owners of parent	3,081	3,205

Consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	July 31, 2023	July 31, 2024
Profit	3,080	3,205
Other comprehensive income
Valuation difference on available-for-sale securities	278	241
Total other comprehensive income	278	241
Comprehensive income	3,358	3,447
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	3,359	3,447
Comprehensive income attributable to non-controlling	(0)	-
interests

Consolidated statements of changes in equity

Fiscal year ended July 31, 2023

(Millions of yen)

			Shareholders' equity

	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders'
	equity

Balance at beginning of	2,042	1,820	3,300	(138)	7,024
period

Changes during period

Dividends of surplus			(578)		(578)

Profit (loss) attributable			3,081		3,081
to owners of parent

Purchase of treasury				(300)	(300)
shares

Disposal of treasury		(10)		94	84
shares

Transfer from retained
earnings to capital		10	(10)		-
surplus
Additional purchase of
shares of consolidated		(8)			(8)
subsidiaries
Exercise of share	1	1			2
acquisition rights

Net changes in items
other than shareholders'
equity
Total changes during	1	(6)	2,491	(205)	2,281
period

Balance at end of period	2,043	1,814	5,792	(343)	9,306

	Accumulated other
	comprehensive income
	Valuation	Total	Share	Non-	Total net
	accumulated	acquisition	controlling
	difference on	assets
	other	rights	interests
	available-for-
	comprehensive
	sale securities
		income
Balance at beginning of	46	46	0	2	7,074
period

Changes during period

Dividends of surplus					(578)

Profit (loss) attributable					3,081
to owners of parent

Purchase of treasury					(300)
shares

Disposal of treasury					84
shares

Transfer from retained
earnings to capital					-
surplus
Additional purchase of
shares of consolidated					(8)
subsidiaries
Exercise of share			(0)		2
acquisition rights

Net changes in items
other than shareholders'	278	278		(2)	275
equity
Total changes during period	278	278	(0)	(2)	2,556

Balance at end of period	324	324	-	-	9,630

Fiscal year ended July 31, 2024

(Millions of yen)

							Shareholders' equity

	Share capital		Capital surplus	Retained earnings	Treasury shares	Total shareholders'
		equity

Balance at beginning of		2,043			1,814		5,792	(343)	9,306
period

Changes during period

Dividends of surplus							(626)		(626)

Profit (loss) attributable							3,205		3,205
to owners of parent

Purchase of treasury								(999)	(999)
shares

Disposal of treasury					(14)		148	134
shares

Transfer from retained
earnings to capital					14		(14)		-
surplus
Net changes in items
other than shareholders'
equity
Total changes during		-			-	2,564	(851)	1,713
period

Balance at end of period		2,043			1,814		8,356	(1,194)	11,019


	Accumulated other
	comprehensive income
	Valuation	Total		Total net
	accumulated
	difference on	assets
	other
	available-for-
	comprehensive
	sale securities	income

Balance at beginning of	324			324	9,630
period

Changes during period

Dividends of surplus					(626)

Profit (loss) attributable					3,205
to owners of parent

Purchase of treasury					(999)
shares

Disposal of treasury					134
shares

Transfer from retained
earnings to capital					-
surplus
Net changes in items
other than shareholders'	241			241	241
equity
Total changes during period	241			241	1,955

Balance at end of period	566			566	11,585

Consolidated statements of cash flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		July 31, 2023	July 31, 2024
Cash flows from operating activities
Profit before income taxes	3,542	5,034
Depreciation	474	808
Amortization of goodwill	72	99
Increase (decrease) in allowance for doubtful accounts	(7)	(0)
Increase (decrease) in retirement benefit liability	(106)	63
Increase (decrease) in provision for bonuses	1	0
Interest and dividend income	(28)	(30)
Subsidy income	(54)	(171)
Interest expenses	48	62
Loss (gain) on investments in investment partnerships	14	9
Foreign exchange losses (gains)	(5)	(5)
Share of loss (profit) of entities accounted for using equity	82	35
method

Loss on valuation of investment securities	50	123
Loss (gain) on sale of investment securities	-	(10)
Loss on retirement of non-current assets	-	101
Decrease (increase) in trade receivables	2,850	287
Decrease (increase) in inventories	12	(649)
Decrease (increase) in consumption taxes refund receivable	642	-
Increase (decrease) in trade payables	(238)	313
Increase (decrease) in accounts payable - other	(371)	114
Increase (decrease) in accrued consumption taxes	191	(7)
Other, net	(18)	(221)
Subtotal	7,153	5,959
Interest and dividends received	28	30
Interest paid	(48)	(62)
Subsidies received	59	244
Income taxes paid	(1,107)	(747)
Income taxes refund	39	62
Net cash provided by (used in) operating activities	6,125	5,486
Cash flows from investing activities
Payments into time deposits	-	(100)
Purchase of property, plant and equipment	(386)	(841)
Proceeds from sale of property, plant and equipment	3	-
Payments for retirement of property, plant and equipment	-	(101)
Purchase of intangible assets	(19)	(31)
Purchase of investment securities	(700)	(363)
Proceeds from sale of investment securities	5	53
Proceeds from redemption of investment securities	100	-
Other, net	(16)	(5)
Net cash provided by (used in) investing activities		(1,013)	(1,390)

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