Translation
Notice: This document is a 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 September 30, 2021
(Based on Japanese GAAP)
November 12, 2021 | |||||||||
Company name: | T. HASEGAWA CO., LTD. | ||||||||
Stock exchange listing: | Tokyo | ||||||||
Stock code: | 4958 | URL https://www.t-hasegawa.co.jp/ | |||||||
Representative: | President & COO | Takao Umino | |||||||
Inquiries: | Director & Senior Executive Vice President Minoru Nakamura | TEL 03-3241-1151 | |||||||
Scheduled date of ordinary general meeting of shareholders: | December 22, 2021 | ||||||||
Scheduled date to file Securities Report: | December 23, 2021 | ||||||||
Scheduled date to commence dividend payments: | December 6, 2021 | ||||||||
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 September 30, 2021 (from October 1, 2020 to September 30, 2021) | |||||||||
(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 September 30, 2021 | 55,755 | 11.1 | 6,859 | 28.1 | 7,466 | 27.4 | 6,763 | 32.9 | |
Year ended September 30, 2020 | 50,192 | (0.6) | 5,356 | 14.5 | 5,861 | 13.2 | 5,090 | 23.5 | |
Note: Comprehensive income Year ended September 30, 2021 | ¥8,688 | million | [163.5%] | ||||||
Year ended September 30, 2020 | ¥3,297 | million | [-%] | ||||||
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 September 30, 2021 | 163.63 | 163.00 | 7.1 | 6.4 | 12.3 | ||||
Year ended September 30, 2020 | 122.79 | 122.34 | 5.6 | 5.2 | 10.7 | ||||
Reference: Share of profit (loss) of entities accounted for using equity method | Year ended September 30, 2021 | ¥- million | |||||||
Year ended September 30, 2020 | ¥- million | ||||||||
(2) Consolidated financial position | |||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||
Millions of yen | Millions of yen | % | Yen | ||||||
As of September 30, 2021 | 120,945 | 98,301 | 81.1 | 2,385.69 | |||||
As of September 30, 2020 | 113,445 | 92,218 | 81.1 | 2,217.96 | |||||
Reference: Equity | As of September 30, 2021 | ¥98,051 | million | ||||||
As of September 30, 2020 | ¥91,990 | million | |||||||
(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 September 30, 2021 | 9,980 | (14,130) | (2,733) | 18,863 | |||||
Year ended September 30, 2020 | 6,387 | (431) | (1,511) | 25,360 |
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 September 30, 2020 | - | 18.00 | - | 22.00 | 40.00 | 1,658 | 32.6 | 1.8 | |||||||||||||
Year ended September 30, 2021 | - | 22.00 | - | 33.00 | 55.00 | 2,268 | 33.6 | 2.4 | |||||||||||||
Year ending September 30, 2022 | - | 29.00 | - | 30.00 | 59.00 | 33.3 | |||||||||||||||
(Forecast) | |||||||||||||||||||||
3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022) | |||||||||||||||||||||
Percentages indicate year-on-year changes | |||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | |||||||||||||||||
owners of parent | |||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||||||||||||
Full year | 59,200 | 6.2 | 7,630 | 11.2 | 8,090 | 8.4 | 7,290 | 7.8 | 177.37 | ||||||||||||
4. Notes | |||||||||||||||||||||
(1) Changes in significant subsidiaries during the year ended September 30, 2021 | No | ||||||||||||||||||||
(changes in specified subsidiaries resulting in the change in scope of consolidation): | |||||||||||||||||||||
(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: | No | ||||||||||||||||||||
Changes in accounting policies due to other reasons: | No | ||||||||||||||||||||
Changes in accounting estimates: | No | ||||||||||||||||||||
Restatement of prior period financial statements: | No | ||||||||||||||||||||
(3) Number of issued shares (common shares) | |||||||||||||||||||||
Total number of issued shares at the end of the period (including treasury shares) | |||||||||||||||||||||
As of September 30, 2021 | 42,708,154 | shares | As of September 30, 2020 | 42,708,154 | shares | ||||||||||||||||
Number of treasury shares at the end of the period | |||||||||||||||||||||
As of September 30, 2021 | 1,608,431 shares | As of September 30, 2020 | 1,233,044 shares | ||||||||||||||||||
Average number of shares during the period | |||||||||||||||||||||
Year ended September 30, 2021 | 41,335,042 shares | Year ended September 30, 2020 | 41,458,341 shares |
Note: For further details about the number of shares as a basis for calculation of earnings per share (consolidated), please refer to "Per share information" under "3. Consolidated financial statements and significant notes thereto, (5) Notes to consolidated financial statements" on page 19 of the Attached Material.
Reference: Summary of non-consolidated financial results | |||||||||||||
1. Non-consolidated financial results for the year ended September 30, 2021 (from October 1, 2020 to September 30, 2021) | |||||||||||||
(1) Non-consolidated operating results | Percentages indicate year-on-year changes | ||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
Year ended September 30, 2021 | 37,362 | 1.5 | 3,891 | 5.1 | 4,449 | (13.9) | 4,819 | (0.0) | |||||
Year ended September 30, 2020 | 36,821 | (2.2) | 3,704 | (3.4) | 5,168 | 19.6 | 4,821 | (4.6) | |||||
Earnings per share | Diluted earnings | ||||||||||||
per share | |||||||||||||
Yen | Yen | ||||||||||||
Year ended September 30, 2021 | 116.59 | 116.14 | |||||||||||
Year ended September 30, 2020 | 116.30 | 115.87 | |||||||||||
(2) Non-consolidated financial position | |||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||
As of September 30, 2021 | 106,168 | 86,968 | 81.7 | 2,109.95 | |||||||||
As of September 30, 2020 | 104,748 | 86,034 | 81.9 | 2,068.85 | |||||||||
Reference: Equity | As of September 30, 2021 | ¥86,718 | million | ||||||||||
As of September 30, 2020 | ¥85,805 | million |
2. Forecast of non-consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022) Percentages indicate year-on-year changes
Net sales | Operating profit | Ordinary profit | Profit | Earnings per share | ||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 38,100 | 2.0 | 4,100 | 5.4 | 4,550 | 2.3 | 4,920 | 2.1 | 119.71 |
- Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
-
Proper use of forecasts of financial results, and other special matters (Caution regarding forward-looking statements and others)
The forward-looking statements, including the earnings forecasts, shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual results may differ substantially due to various factors. For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof, please refer to "1. Overview of operating results and others, (4) Future outlook" on page 4 of the Attached Material.
(How to obtain supplementary material on financial results)
The Company plans to hold a financial results meeting for institutional investors and analysts through live streaming on Thursday, November 25, 2021.
Materials for the financial results meeting will be disclosed on TDnet on the same day and posted on the Company's website.
Attached Material Index | ||
1. Overview of operating results and others .................................................................................................................... | 2 | |
(1) | Overview of operating results for the fiscal year................................................................................................... | 2 |
(2) | Overview of financial position for the fiscal year ................................................................................................. | 2 |
(3) | Overview of cash flows for the fiscal year ............................................................................................................ | 3 |
(4) | Future outlook ....................................................................................................................................................... | 4 |
(5) | Basic policy on profit distribution and dividends for the fiscal year and next fiscal year..................................... | 4 |
2. Basic concept regarding selection of accounting standards ......................................................................................... | 6 | |
3. Consolidated financial statements and significant notes thereto.................................................................................. | 7 | |
(1) | Consolidated balance sheets .................................................................................................................................. | 7 |
(2) | Consolidated statements of income and consolidated statements of comprehensive income ............................... | 9 |
Consolidated statements of income ....................................................................................................................... | 9 | |
Consolidated statements of comprehensive income ............................................................................................ | 10 | |
(3) | Consolidated statements of changes in equity..................................................................................................... | 11 |
(4) | Consolidated statements of cash flows................................................................................................................ | 13 |
(5) | Notes to consolidated financial statements.......................................................................................................... | 15 |
(Uncertainties of entity's ability to continue as going concern).......................................................................... | 15 | |
(Changes in significant accounting policies for preparation of consolidated financial statements) .................... | 15 | |
(Notes when there is significant changes in amounts of equity) ......................................................................... | 15 | |
(Changes in accounting policies)......................................................................................................................... | 15 | |
(Segment information, etc.)................................................................................................................................. | 16 | |
(Per share information)........................................................................................................................................ | 19 | |
(Significant subsequent event)............................................................................................................................. | 20 |
1
1. Overview of operating results and others
(1) Overview of operating results for the fiscal year
The Japanese economy in the fiscal year ended September 30, 2021 was in a severe situation with weak corporate earnings and personal consumption due to the prolonged impact of the novel coronavirus disease (COVID-19). In addition, as there were concerns about the impact of the infection trend on economic activities in Japan and overseas, the future remained uncertain.
The flavor and fragrance industry remained in a severe situation due largely to maturation of the domestic market, fiercer competition among peers, and growing demand for quality assurance.
Under this environment, giving primary consideration to quality control of products and securing of safety, the Group worked to further improve research and technology development capabilities and focused on development of the Company's unique high quality and high value added products.
The Group's performance was steady due to contribution of new products in the Flavor Division and an increase in sales for toiletry products in the Fragrance Division, although earnings performance of the Group was affected by COVID-19 prompting outing restrictions, teleworking from home, and slump in personal consumption associated with closure and shortening hours of restaurants, etc. in Japan. On the other hand, performance of subsidiaries in China and the USA was strong as the overseas effect of COVID-19 was immaterial, and earnings performance of US-based MISSION FLAVORS & FRAGRANCES, INC. ("MISSION"), which newly became a consolidated subsidiary in December 2020, contributed to consolidated operating results of the Group (no record in the fiscal year ended September 30, 2020).
As a result, in the fiscal year ended September 30, 2021, net sales increased year on year, amounting to ¥55,755 million (up 11.1% year on year). The Company's non-consolidated net sales increased by 1.5% year on year. As for net sales of major overseas consolidated subsidiaries, net sales of subsidiaries in China increased by 26.6% year on year (up 17.8% on a local currency basis), those of subsidiaries in the USA (including MISSION) increased by 49.5% (up 50.0% on a local currency basis), and those of subsidiaries in Malaysia increased by 10.7% (up 8.7% on a local currency basis).
By division, net sales of the Flavor Division increased by 11.5% year on year, amounting to ¥48,115 million due mainly to the contribution of MISSION to sales and the increase in sales of subsidiaries in China.
Net sales of the Fragrance Division increased by 8.6% year on year, amounting to ¥7,640 million due mainly to an increase in non-consolidated sales of the Company.
As for profit, although selling, general and administrative expenses increased in line with recording of expenses related to the acquisition of shares of MISSION and amortization of goodwill of the said company, etc., operating profit increased by ¥1,503 million (28.1%) compared to the fiscal year ended September 30, 2020 to ¥6,859 million due largely to an increase in gross profit resulting from the increase in net sales and improvement in the ratio of cost to sales. Ordinary profit increased by ¥1,605 million (27.4%) compared to the fiscal year ended September 30, 2020 to ¥7,466 million. Profit attributable to owners of parent increased by ¥1,672 million (32.9%) compared to the fiscal year ended September 30, 2020 to ¥6,763 million due mainly to the increase in ordinary profit and recording of gain on sale of investment securities as extraordinary income.
-
Overview of financial position for the fiscal year (Current assets)
While cash and deposits and notes and accounts receivable - trade increased by ¥2,453 million and ¥1,591 million, respectively, compared to the fiscal year ended September 30, 2020, securities decreased by ¥8,000 million. Due largely to these factors, current assets decreased by ¥3,771 million compared to the fiscal year ended September 30, 2020 to ¥55,242 million.
(Non-current assets)
Property, plant and equipment increased by ¥749 million compared to the fiscal year ended September 30, 2020 to ¥30,094 million mainly because construction in progress increased by 627 million.
Intangible assets grew by ¥12,874 million compared to the fiscal year ended September 30, 2020 to ¥16,713 million due largely to the recording of goodwill and customer relationship in association with T. HASEGAWA
2
This is an excerpt of the original content. To continue reading it, access the original document here.