Risk of fluctuations in raw-material and procurement prices

「Cost of sales for the current consolidated fiscal year was ¥40,753 million. This reflected higher depreciation and amortisation, soaring raw material costs due to escalating tensions in the Middle East and the weaker yen, and investment in human capital, despite the elimination of inventory valuation losses through reductions in long-outstanding inventory and the thorough implementation of smart spending.」

「Cost of sales for the current consolidated fiscal year was ¥42,005 million, affected by changes in the product mix, higher depreciation and amortisation, inventory write-downs, and soaring raw material costs due to the weaker yen.」

「Although revenue increased, operating profit was ¥1,471 million, down 35.7% year on year, ordinary profit was ¥1,470 million, down 36.5%, and interim profit attributable to owners of the parent was ¥908 million, down 41.5%, mainly due to higher depreciation and amortisation, the impact of inventory valuation, and higher raw material costs resulting from higher raw material prices driven by the weaker yen.」

「Although profit increased in line with the rise in revenue, operating profit was ¥3,894 million, down 25.2% year on year, ordinary profit was ¥3,923 million, down 24.1%, and profit attributable to owners of the parent was ¥3,295 million, down 8.5%, mainly due to higher raw material costs resulting from the weaker yen and increased research and development expenses.」

「As a result, revenue for the six months ended the second quarter of the current consolidated fiscal year was ¥24,110 million, up 3.2% year on year. Although revenue increased, operating profit was ¥2,289 million, down 19.0% year on year, ordinary profit was ¥2,314 million, down 15.9%, and profit attributable to owners of the parent was ¥1,552 million, down 11.9%, mainly due to higher raw material costs and increased research and development expenses.」

「Although revenue increased, operating profit was ¥1,080 million, down 28.0% year on year, ordinary profit was ¥1,092 million, down 26.0%, and profit attributable to owners of the parent was ¥683 million, down 27.7%, mainly due to higher raw material costs resulting from higher raw material prices, primarily because of the weaker yen, as well as increased research and development expenses.」

「Although higher revenue led to higher profit, operating profit fell 20.5% year on year to ¥5,207 million, ordinary profit fell 23.2% to ¥5,169 million, and profit attributable to owners of the parent fell 22.9% to ¥3,600 million, mainly due to increases in raw-material costs and electricity charges resulting from the weaker yen and higher energy prices, as well as increases in depreciation expense and research and development expenses.」

「Although higher revenue led to higher profit, operating profit fell 27.3% year on year to ¥5,207 million, ordinary profit fell 23.2% to ¥5,169 million, and profit attributable to owners of the parent fell 22.9% to ¥3,600 million, mainly due to increases in raw-material costs and electricity charges resulting from the weaker yen and higher energy prices, as well as increases in depreciation expense and research and development expenses.」

「During the cumulative second quarter of the current consolidated fiscal year, the Japanese economy remained uncertain, as the impact of the COVID-19 pandemic continued and rising energy and raw-material prices due to the prolonged situation in Ukraine and the rapid depreciation of the yen continued to weigh on the outlook. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥23,367 million, up 4.0% year on year. Although higher revenue led to higher profit, operating profit fell 27.1% year on year to ¥2,826 million, mainly due to increases in raw-material costs and electricity charges resulting from the weaker yen and higher energy prices, as well as increases in depreciation expense and research and development expenses.」

「During the cumulative first quarter of the current consolidated fiscal year, the Japanese economy remained uncertain, as the impact of the COVID-19 pandemic continued and concerns arose over rising energy and raw-material prices due to escalating tensions surrounding Ukraine and the rapid depreciation of the yen. Although higher revenue led to higher profit, operating profit fell 36.4% year on year to ¥1,501 million, mainly due to higher raw-material costs resulting from the weaker yen, as well as increases in depreciation expense and research and development expenses.」

「At the same time, concerns remain about the impact of rising energy and raw-material prices due to escalating tensions surrounding Ukraine, and the outlook remains uncertain.」

「To address these risks, the Group hedges to a certain extent the foreign-exchange risk associated with foreign-currency transactions through forward foreign-exchange contracts and other instruments.」

「If the prices of raw materials used in the manufacture and sale of the Group's APIs and formulations, or of APIs and other products procured for resale, fluctuate sharply due to exchange rates or other factors, the Group's business performance and financial position may be affected.」

「If the prices of raw materials used in the manufacture and sale of the Group's APIs and formulations, or of APIs and other products procured for resale, fluctuate sharply due to exchange rates or other factors, the Group's business performance and financial position may be affected.」

「If the prices of raw materials used in the manufacture and sale of the Group's APIs and formulations, or of APIs and other products procured for resale, fluctuate sharply due to exchange rates or other factors」