ZERIA 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.
August 4, 2022
Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2023
(Under Japanese GAAP)
Listed Company: Zeria Pharmaceutical Co., Ltd. | (Stock Exchange: Tokyo Stock Exchange) | ||
Code Number: 4559 | (URL: https://www.zeria.co.jp/) | ||
Representative: Mitsuhiro Ibe, Representative Director, President & COO | |||
Person in charge of reference: Tomoyuki Nishizawa, Director, Public Relations Division | TEL (03) 3661-1039 | ||
Scheduled date to submit the Quarterly Securities Report: August 8, 2022 | |||
Scheduled date to commence dividend payments: | - | ||
Preparation of supplementary documents to the quarterly financial results: | None | ||
Holding of quarterly financial results presentation: | None |
(Amounts under a million yen are truncated.)
1. Consolidated Financial Highlights (April 1, 2022 through June 30, 2022)
(1) Consolidated Financial Results (cumulative)
(Percentage figures indicate changes from the same period of the previous year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||
owners of parent | |||||||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||
June 30, 2022 | 16,305 | 20.3 | 2,977 | 137.8 | 2,974 | 42.9 | 2,601 | 84.6 | |||||||
June 30, 2021 | 13,548 | 6.4 | 1,251 | 18.3 | 2,081 | 229.1 | 1,408 | 44.8 | |||||||
Note: Comprehensive income: For the three months ended June 30, 2022: 3,262 million yen [-%] | |||||||||||||||
For the three months ended June 30, 2021: 211 million yen [(86.1)%] | |||||||||||||||
Basic earnings | Diluted earnings | ||||||||||||||
per share | per share | ||||||||||||||
Three months ended | Yen | Yen | |||||||||||||
June 30, 2022 | 58.71 | - | |||||||||||||
June 30, 2021 | 30.91 | - | |||||||||||||
(2) Consolidated Financial Position | |||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||
As of | Million yen | Million yen | % | Yen | |||||||||||
June 30, 2022 | 128,987 | 57,039 | 44.1 | 1,286.96 | |||||||||||
March 31, 2022 | 124,282 | 55,092 | 44.2 | 1,236.09 | |||||||||||
Reference: Equity: As of June 30, 2022: 56,825 million yen | As of March 31, 2022: 54,894 million yen |
2. Dividends
Annual dividends | |||||
First quarter | Second quarter | Third quarter | Year-end | Total | |
Year ended | Yen | Yen | Yen | Yen | Yen |
- | 17.00 | - | 18.00 | 35.00 | |
March 31, 2022 | |||||
Year ending | - | ||||
March 31, 2023 | |||||
Year ending | 18.00 | - | 18.00 | 36.00 | |
March 31, 2023 (Forecast) | |||||
Note: Revision of the forecast of dividends most recently announced: None
3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 through March 31, 2023) (Percentage figures indicate changes from the same period of the previous year.)
Profit attributable to | Basic | ||||||||
Net sales | Operating profit | Ordinary profit | earnings per | ||||||
owners of parent | |||||||||
share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First six months | 33,000 | 15.4 | 3,500 | 31.0 | 3,500 | 12.3 | 2,800 | 32.3 | 63.30 |
Full year | 66,000 | 10.9 | 7,000 | 10.0 | 7,000 | 17.9 | 5,600 | 41.4 | 126.72 |
Note: Revision of the financial forecast most recently announced: None
* Notes
- Significant changes of subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries resulting in changes in scope of consolidation): None
Inclusion: - (Company name: -) | Exclusion: - (Company name: -) |
(2) Application of special accounting for preparing the quarterly consolidated financial statements: Yes
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to quarterly consolidated financial statements" on page 8 of the Attached Material.
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement of prior period financial statements after error corrections: None
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to quarterly consolidated financial statements" on page 8 of the Attached Material.
- Number of shares issued (common shares)
- Number of shares issued as of the end of the term (including treasury shares):
As of June 30, 2022: | 53,119,190 shares | As of March 31, 2022: 53,119,190 shares |
2) Number of shares of treasury shares as of the end of the term: | ||
As of June 30, 2022: | 8,964,868 shares | As of March 31, 2022: 8,709,322 shares |
- Average number of shares during the period (cumulative from the beginning of the fiscal year): For the three months ended June 30, 2022: 44,310,896 shares
For the three months ended June 30, 2021: 45,583,769 shares
- Quarterly Results Reports Are Exempt from Quarterly Review Conducted by Certified Public Accountants or An Audit Corporation.
- Cautionary Statement with Respect to Appropriate Use of Financial Forecast and Other Special Matters
The description about the future including the projection in this document is based on information available to the Company at present and certain presumptions which the Company considers reasonable. Consequently, any descriptions herein do not constitute assurances regarding actual results by the Company. The actual results for future terms may differ from the information in this document due to various factors. For the assumptions made in financial forecasts and cautions concerning the use thereof, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of consolidated financial forecasts and other forward-looking statements" on page 3 of the Attached Material.
○Table of contents of attachments | ||
1. Qualitative Information on Quarterly Financial Results ...................................................................................... | 2 | |
(1) | Explanation of operating results .................................................................................................................... | 2 |
(2) | Explanation of financial position ................................................................................................................... | 2 |
(3) | Explanation of consolidated financial forecasts and other forward-looking statements................................ | 3 |
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ..................................................... | 4 | |
(1) | Quarterly consolidated balance sheet............................................................................................................. | 4 |
(2) | Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income.... | 6 |
Quarterly consolidated statement of income.................................................................................................. | 6 | |
Quarterly consolidated statement of comprehensive income......................................................................... | 7 | |
(3) | Notes to quarterly consolidated financial statements..................................................................................... | 8 |
(Notes on premise of a going concern) .......................................................................................................... | 8 | |
(Notes on significant changes in the amount of shareholders' equity) .......................................................... | 8 | |
(Adoption of special accounting methods for preparation of quarterly consolidated financial statements) | ..8 | |
(Change in accounting policy) ....................................................................................................................... | 8 | |
(Segment information, etc.) ........................................................................................................................... | 9 | |
3. Supplemental Information.................................................................................................................................. | 10 | |
(1) | Sales results ................................................................................................................................................. | 10 |
(2) | Status of pipeline of new drugs.................................................................................................................... | 11 |
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1. Qualitative Information on Quarterly Financial Results
(1) Explanation of operating results
Net sales for the first three months of the fiscal year ending March 31, 2023 were 16,305 million yen (up 20.3% from the same period of the previous fiscal year). As for profits, operating profit was 2,977 million yen (up 137.8% from the same period of the previous fiscal year), ordinary profit was 2,974 million yen (up 42.9% from the same period of the previous fiscal year), and profit attributable to owners of parent was 2,601 million yen (up 84.6% from the same period of the previous fiscal year). The large difference in the year-on-year growth rate between operating profit and ordinary profit is due to the large amount of foreign exchange gains recorded in the same period of the previous fiscal year.
Following are the results by business segment.
-
Ethical Pharmaceuticals Business
As for our mainstay product, Asacol, a therapeutic agent for ulcerative colitis, sales in the domestic market decreased from the same period of the previous fiscal year, affected by, among other things, the NHI drug price revision implemented in April 2022. However, in the overseas market, sales in Northern Europe, which had been weak in the first quarter of the previous fiscal year, turned around and sales of Asacol 1600mg also grew, resulting in strong overall sales. Sales of Entocort (domestic sales name: Zentacort), an inflammatory bowel disease (IBD) therapeutic agent, remained on the same level as that of the previous year in Japan. In the overseas market, on the other hand, its sales increased in such regions as Canada and Northern Europe, making overall sales grew significantly. In addition, sales of DIFICLIR, a therapeutic agent for Clostridium difficile infection, also achieved a significant sales growth as a result of aggressive investment of sales resources in response to its recommendation as a first-line drug in the European guidelines for the treatment of infectious diseases. With regard to Acofide and Ferinject, we are working to build the market, particularly in medical institutions performing endoscopy, the gastroenterology, and obstetrics and gynecology.
As a result, net sales in the business amounted to 10,280 million yen (up 24.5% from the same period of the previous fiscal year). - Consumer Healthcare Business
As for the Hepalyse range, although it is still affected by the spread of COVID-19 infection and a sharp decline in demand from inbound tourists, its sales significantly increased owing to the substantial increase in the sales of not only the pharmaceutical Hepalyse range but also the Hepalyse W range for convenience stores. Sales of the Chondroitin range also remained strong, due in part to aggressive advertising and promotional investments. On the other hand, sales of the WithOne range of botanical laxative products, and hygiene products such as disinfectants decreased due to the impact from competing products.
As a result, net sales in the business amounted to 5,988 million yen (up 14.0% from the same period of the previous fiscal year). - Other
Net sales in this segment amounted to 36 million yen (down 0.6% from the same period of the previous fiscal year), mainly due to insurance agency business and real estate lease revenue.
(2) Explanation of financial position
Total assets at the end of the first quarter of the fiscal year ending March 31, 2023 were 128,987 million yen, an increase of 4,705 million yen from the end of the previous fiscal year. Current assets increased 3,950 million yen to 45,614 million yen from the end of the previous fiscal year, and non-current assets increased
754 million yen to 83,373 million yen from the end of the previous fiscal year. Major changes in current assets included an increase of 2,461 million yen in cash and deposits, an increase of 813 million yen in notes and accounts receivable - trade, and an increase of 323 million yen in inventories such as merchandise and finished
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goods. Main changes in non-current assets were an increase of 1,020 million yen in intangible assets, and a decrease of 356 million yen in investments and other assets.
Total liabilities at the end of the quarter under review were 71,948 million yen, an increase of 2,758 million yen from the end of the previous fiscal year. Current liabilities increased 2,968 million yen to 47,161 million yen from the end of the previous fiscal year, and non-current liabilities decreased 209 million yen to 24,786 million yen from the end of the previous fiscal year. Main changes in current liabilities were an increase of 891 million yen in accounts payable - trade, increase of 1,523 million yen in short-term borrowings, and an increase of 595 million yen in other current liabilities including an increase in accrued expenses. Main changes in non-current liabilities were a decrease of 82 million yen in long-term borrowings and a decrease of 98 million yen in retirement benefit liability.
Net assets at the end of the quarter under review were 57,039 million yen, an increase of 1,947 million yen from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of 2,601 million yen, payment of 799 million yen as dividends declared at the end of the previous period, an increase of 515 million yen in treasury shares, a decrease of 412 million yen in valuation difference on available-for-sale securities, and an increase of 1,072 million yen in foreign currency translation adjustment.
As a result, equity ratio at the end of the quarter under review decreased by 0.1% from the end of the previous fiscal year to 44.1%.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
The business results for the first three months of the fiscal year ending March 31, 2023 slightly exceeded the initial forecasts owing to growth in overseas sales such as those of Asacol and DIFICLIR. Although net sales are expected to be almost in line with our business plan in the second quarter and beyond, the consolidated financial forecast announced on May 11, 2022 remains unchanged at this time, due to the impact of the resurgence of COVID-19 infection and the uncertainty of future trends in foreign exchange rates.
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ZERIA Pharmaceutical Co. Ltd. published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 02:23:01 UTC.
