Recovery in Consolidated Results and Return to Profitability

「Net sales increased 14.0% year on year to ¥9,155 million. This was despite delays in the launches of new products by domestic cosmetics manufacturers in response to the heightened tensions in the Middle East and the postponement of some large orders from overseas cosmetics manufacturers. Orders for pharmaceuticals and cosmetics at the French consolidated subsidiary remained firm, and the weaker yen also contributed. In terms of earnings, while domestic order growth has recently slowed, raw material costs, including petroleum-derived products, labor costs and various expenses increased due to inflation. Although the French consolidated subsidiary's performance recovered as orders for pharmaceuticals and cosmetics recovered, operating profit fell 54.4% year on year to ¥50 million, resulting in an ordinary loss of ¥14 million (ordinary profit of ¥90 million in the same period of the previous year) and an interim net loss attributable to owners of the parent of ¥21 million (interim net profit attributable to owners of the parent of ¥49 million in the same period of the previous year).」

「日本色材工業研究所 [<4920>](/stocks/4920/) [東証Ｓ] が10月13日大引け後(17:00)に決算を発表。」

「利益面では、国内において受注の伸びが足元減速している中で、原油由来製品を始めとする原材料費や人件費、各種経費等がインフレで上昇、フランス連結子会社において医薬品・化粧品受注の回復による業績回復はあったものの、営業利益は前年同期比54.4％減の50百万円、14百万円の経常損失（前年同期は90百万円の経常利益）、21百万円の親会社株主に帰属する中間純損失（前年同期は49百万円の親会社株主に帰属する中間純利益）となりました。」

「For the fiscal year under review, the Group reported revenue of ¥16,643 million, down 5.6% from the previous fiscal year; operating income of ¥180 million, down 63.2%; ordinary income of ¥151 million, down 58.6%; and net income attributable to owners of the parent of ¥335 million, up 55.1%.」

「Revenue declined 15.5% year on year to ¥8,031 million, due in part to the fading of the wave of orders for new products and the settling of large-lot orders in Japan following the end of the COVID-19 pandemic in the previous fiscal year, as well as sluggish growth in pharmaceutical and cosmetics orders at the consolidated subsidiary in France. In terms of earnings, production equipment utilization was lower than in the first half of the previous fiscal year, when orders in Japan were strong, while raw material, labor and other costs rose amid inflation. In addition, weak performance continued at the consolidated subsidiary in France due to sluggish pharmaceutical and cosmetics orders, resulting in operating income of ¥110 million, down 77.4% year on year; ordinary income of ¥90 million, down 78.7%; and interim net income attributable to owners of the parent of ¥49 million, down 80.6%.」

「Revenue rose 29.2% year on year to ¥9,505 million, reflecting increased orders from domestic and overseas manufacturers, including large-lot orders, as demand for cosmetics recovered following the end of the COVID-19 pandemic from the previous fiscal year, as well as the weaker yen. In terms of earnings, although expenses remained elevated due mainly to the Phase III expansion of the Tsukuba Plant and raw material, labor and other costs continued to rise amid inflation, the increase in production equipment utilization resulting from a substantial increase in orders and efforts to reduce various costs resulted in operating income of ¥489 million, up 70.9% year on year; ordinary income of ¥424 million, up 56.0%; and interim net income attributable to owners of the parent of ¥252 million, up 16.4%.」

「Revenue rose 34.1% year on year to ¥4,931 million, reflecting the recovery in domestic and overseas orders, including large-lot orders, as demand for cosmetics recovered following a significant easing of the impact of COVID-19 from the previous fiscal year, as well as the weaker yen. In terms of earnings, although expenses remained elevated due mainly to the Phase III expansion of the Tsukuba Plant and raw material, labor and other costs continued to rise amid inflation, the increase in production equipment utilization resulting from higher orders and efforts to reduce various costs resulted in operating income of ¥276 million, up 62.2% year on year; ordinary income of ¥262 million, up 64.3%; and net income attributable to owners of the parent of ¥146 million, up 4.8%.」

「In response to improving domestic and overseas demand for cosmetics, orders for cosmetics and pharmaceuticals in both Japan and overseas were recovering and increasing, resulting in revenue of ¥11,055 million, up 30.6% year on year. In terms of earnings, … operating income rose 270.3% year on year to ¥306 million, ordinary income rose 290.8% to ¥280 million, and net income attributable to owners of the parent rose 166.1% to ¥256 million.」

「Revenue rose 31.1% year on year to ¥7,355 million. In terms of earnings, … operating income rose 718.3% year on year to ¥286 million, ordinary income rose 934.9% to ¥272 million, and net income attributable to owners of the parent rose 189.3% to ¥217 million.」

「Although order levels remained below those before the spread of COVID-19, they were recovering in line with trends in domestic and overseas demand for cosmetics, and revenue rose 48.3% year on year to ¥3,679 million. In terms of earnings, although the Company continued to be affected by rising expenses associated mainly with the Phase III expansion of the Tsukuba Plant, as well as higher prices for raw materials, utilities and various other expenses, the increase in revenue and efforts to reduce various costs resulted in operating income of ¥170 million, compared with an operating loss of ¥83 million in the same period of the previous year; ordinary income of ¥159 million, compared with an ordinary loss of ¥82 million; and net income attributable to owners of the parent of ¥139 million, compared with a net loss attributable to owners of the parent of ¥27 million.」

「For the fiscal year under review, the Group reported revenue of ¥11,760 million, up 35.1% from the previous fiscal year; operating income of ¥161 million, compared with an operating loss of ¥267 million in the previous fiscal year; ordinary income of ¥148 million, compared with an ordinary loss of ¥171 million; and net income attributable to owners of the parent of ¥246 million, compared with a net loss attributable to owners of the parent of ¥122 million.」

「Although revenue continued to be significantly affected by the COVID-19 pandemic, the recovery in orders from domestic and overseas customers, reflecting the recovery in domestic and overseas demand for cosmetics, together with the addition of subsidiary Nippon Shikizai France S.A.S. to the scope of consolidation from the first quarter, resulted in revenue of ¥8,468 million, up 32.5% year on year.」

「Although revenue continued to be significantly affected by the COVID-19 pandemic, the recovery in orders from domestic and overseas customers, reflecting the recovery in domestic and overseas demand for cosmetics, together with the addition of subsidiary Nippon Shikizai France S.A.S. to the scope of consolidation from the first quarter, resulted in revenue of ¥5,612 million, up 28.9% year on year. In terms of earnings, although expenses continued to rise due mainly to the Phase III expansion of the Tsukuba Plant, the increase in revenue and efforts to reduce various costs resulted in operating income of ¥35 million, compared with an operating loss of ¥190 million in the same period of the previous year; ordinary income of ¥26 million, compared with an ordinary loss of ¥121 million; and net income attributable to owners of the parent of ¥75 million, helped by a ¥40 million gain on the sale of investment securities, compared with a net loss attributable to owners of the parent of ¥116 million.」

「Although revenue continued to be significantly affected by the COVID-19 pandemic, the recovery in orders from domestic and overseas customers, reflecting signs of a recovery in domestic and overseas demand for cosmetics, together with the addition of subsidiary Nippon Shikizai France S.A.S. to the scope of consolidation beginning in the first quarter of the current fiscal year (hereinafter, “Nippon Shikizai France”), resulted in revenue of ¥2,481 million, up 18.8% year on year. In terms of earnings, although expenses continued to rise due mainly to the Phase III expansion of the Tsukuba Plant, the increase in revenue and efforts to reduce various costs resulted in an operating loss of ¥83 million, compared with an operating loss of ¥218 million in the same period of the previous year; an ordinary loss of ¥82 million, compared with an ordinary loss of ¥168 million; and a net loss attributable to owners of the parent of ¥27 million, helped by a ¥40 million gain on the sale of investment securities, compared with a net loss attributable to owners of the parent of ¥156 million.」

「For the fiscal year under review, the Group reported revenue of ¥8,702 million, down 4.8% from the previous fiscal year; an operating loss of ¥267 million, compared with an operating loss of ¥831 million in the previous fiscal year; an ordinary loss of ¥171 million, compared with an ordinary loss of ¥588 million; and a net loss attributable to owners of the parent of ¥122 million, compared with a net loss attributable to owners of the parent of ¥848 million.」

「Net sales were ¥6,389 million, down 11.3% year on year. Although some recovery in repeat orders was seen amid weak domestic demand for makeup products due to voluntary restrictions on going out and the normalization of mask wearing, the evaporation of inbound demand and weak orders for products destined for overseas markets due to the global spread of COVID-19, the impact of postponed new product planning remained substantial. In addition, the consolidated subsidiary in France recorded lower sales in the nine months ended the third quarter of the current consolidated fiscal year due to COVID-19. Along with the decline in sales and higher costs following completion of Phase 3 of the Tsukuba Plant expansion, the temporary shutdown of the Zama Plant following a COVID-19 cluster in September 2021 reduced plant operations. As a result, the operating loss was ¥267 million, compared with ¥414 million in the same period of the previous year. An ordinary loss of ¥194 million was recorded after recognizing ¥122 million in subsidy income and other items, compared with an ordinary loss of ¥350 million. Net loss attributable to owners of the parent was ¥126 million, compared with ¥248 million, partly because of a ¥83 million gain on the sale of fixed assets at the closed Suita Plant.」

「Net sales were ¥4,354 million, down 14.3% year on year, as the effects of (1) lower demand for makeup products due to voluntary restrictions on going out and the normalization of mask wearing as measures against COVID-19, (2) a sharp decline in inbound demand from overseas visitors to Japan, (3) lower orders for products destined for overseas markets due to the global spread of COVID-19, and (4) the postponement of new product planning continued to be substantial in Japan. In addition, the consolidated subsidiary in France recorded lower sales in the six months ended the second quarter of the current consolidated fiscal year due to COVID-19. With costs increasing following completion of Phase 3 of the Tsukuba Plant expansion, the decline in sales resulted in an operating loss of ¥190 million, compared with an operating loss of ¥181 million in the same period of the previous year. An ordinary loss of ¥121 million was recorded after recognizing ¥107 million in subsidy income and other items, compared with an ordinary loss of ¥189 million in the same period of the previous year. Net loss attributable to owners of the parent was ¥116 million, compared with a net loss of ¥135 million.」

「Net sales were ¥2,088 million, down 14.5% year on year, as the effects of (1) lower demand for makeup products due to voluntary restrictions on going out and the normalization of mask wearing as measures against COVID-19, (2) a sharp decline in inbound demand from overseas visitors to Japan, (3) lower orders for products destined for overseas markets due to the global spread of COVID-19, and (4) the postponement of new product planning continued to be substantial in Japan. In addition, the consolidated subsidiary in France recorded lower sales in the first quarter of the current consolidated fiscal year due to COVID-19. With costs increasing following completion of Phase 3 of the Tsukuba Plant expansion, the decline in sales resulted in an operating loss of ¥218 million, compared with an operating loss of ¥96 million in the same period of the previous year. An ordinary loss of ¥168 million was recorded after recognizing ¥58 million in subsidy income and other items, compared with an ordinary loss of ¥116 million in the same period of the previous year. Net loss attributable to owners of the parent was ¥156 million, compared with a net loss of ¥84 million.」

「For the current consolidated fiscal year, net sales were ¥9,143 million, down 25.1% from the previous consolidated fiscal year, operating loss was ¥831 million, compared with operating income of ¥449 million, ordinary loss was ¥588 million, compared with ordinary income of ¥405 million, and net loss attributable to owners of the parent was ¥848 million, compared with net income attributable to owners of the parent of ¥283 million.」

「Net sales were ¥7,205 million, down 21.2% year on year, mainly because of (1) lower demand for makeup products due to voluntary restrictions on going out and the normalization of mask wearing as measures against COVID-19, (2) lower inbound demand from overseas visitors to Japan, (3) lower orders for products destined for overseas markets due to the global spread of COVID-19, and (4) the postponement of new product planning. Although the consolidated subsidiary in France recorded higher sales, the sharp decline in sales and higher costs associated with completion of Phase 3 of the Tsukuba Plant expansion resulted in an operating loss of ¥414 million. An ordinary loss of ¥350 million was recorded after recognizing ¥112 million in subsidy income and other items, and net loss attributable to owners of the parent was ¥248 million.」

「Net sales were ¥5,081 million, down 16.7% year on year, mainly because of (1) lower orders from domestic cosmetics manufacturers amid reduced domestic demand caused by the state of emergency, voluntary restrictions on going out and the sharp decline in inbound travelers, as well as reduced outbound demand due to the global spread of COVID-19, and (2) lower orders from major overseas cosmetics manufacturers due to the global spread of COVID-19. Although the consolidated subsidiary in France recorded higher sales, the sharp decline in sales, together with higher costs associated with completion of Phase 3 of the Tsukuba Plant expansion, resulted in an operating loss of ¥181 million, an ordinary loss of ¥189 million and a net loss attributable to owners of the parent of ¥135 million.」

「Net sales were ¥2,442 million, down 22.2% year on year, mainly because of (1) lower orders from domestic cosmetics manufacturers amid reduced domestic demand caused by the state of emergency, voluntary restrictions on going out and the sharp decline in tourists, as well as reduced outbound demand due to the global spread of COVID-19, and (2) lower orders from major overseas cosmetics manufacturers due to the global spread of COVID-19. Although the consolidated subsidiary in France recorded higher sales, the sharp decline in sales, together with higher costs associated with completion of Phase 3 of the Tsukuba Plant expansion, resulted in an operating loss of ¥96 million, an ordinary loss of ¥116 million and a net loss attributable to owners of the parent of ¥84 million.」

「For the current consolidated fiscal year, net sales were ¥12,207 million, up 6.2% from the previous consolidated fiscal year, operating income was ¥449 million, down 51.8%, ordinary income was ¥405 million, down 54.4%, and net income attributable to owners of the parent was ¥283 million, down 53.9%.」

「Net sales were ¥9,142 million, up 6.7% year on year, mainly due to (1) steady orders associated with outsourcing by domestic cosmetics manufacturers amid inbound and outbound demand in Japan, (2) increased orders from major overseas cosmetics manufacturers for “Made in Japan” products, and (3) steady sales at the consolidated subsidiary in France. Operating income declined 38.7% to ¥409 million, ordinary income declined 40.4% to ¥380 million, and net income attributable to owners of the parent declined 43.2% to ¥278 million, partly because of higher costs associated with the start of production in some processes following completion of Phase 3 of the Tsukuba Plant expansion.」

「Net sales were ¥6,101 million, up 10.5% year on year, mainly due to (1) increased orders accompanying the expansion of outsourcing by domestic cosmetics manufacturers amid inbound and outbound demand in Japan, (2) increased orders from major overseas cosmetics manufacturers for “Made in Japan” products, and (3) steady sales at the consolidated subsidiary in France. Operating income declined 16.0% to ¥324 million, ordinary income declined 22.7% to ¥284 million, and net income attributable to owners of the parent declined 18.4% to ¥206 million, partly because of higher upfront costs for expanding production after completion of Phase 3 of the Tsukuba Plant expansion.」

「Net sales were ¥3,141 million, up 19.5% year on year, mainly due to (1) increased orders accompanying the expansion of outsourcing by domestic cosmetics manufacturers amid inbound and outbound demand in Japan, (2) increased orders from major overseas cosmetics manufacturers for “Made in Japan” products, and (3) steady sales at the consolidated subsidiary in France. Operating income declined 8.2% to ¥175 million and ordinary income declined 13.4% to ¥154 million, partly because of higher upfront costs for expanding production after Phase 3 of the Tsukuba Plant expansion. Net income attributable to owners of the parent increased 12.7% to ¥106 million because no large loss on disposal of fixed assets was recorded, unlike in the same period of the previous year, when a loss was recorded in connection with the partial demolition of an existing building at the Tsukuba Plant.」

「Net sales were ¥8,565 million, up 8.0% year on year, mainly due to increased orders associated with the expansion of outsourcing by domestic cosmetics manufacturers and steady sales at the consolidated subsidiary in France. Supported by strong sales, operating income increased 31.5% to ¥667 million and ordinary income increased 26.0% to ¥637 million. Although a loss on disposal of fixed assets was recorded in connection with the partial demolition of an existing building at the Tsukuba Plant, net income attributable to owners of the parent increased 21.7% to ¥490 million.」

「Net sales were ¥5,521 million, up 3.3% year on year, mainly due to increased orders associated with the expansion of outsourcing by domestic cosmetics manufacturers. Operating income declined 6.3% to ¥386 million and ordinary income declined 11.8% to ¥368 million, mainly because operating income declined year on year due to the postponement of some sales to major customers at a consolidated subsidiary. Net income attributable to owners of the parent declined 24.8% to ¥252 million, partly because a loss on disposal of fixed assets was recorded in connection with the partial demolition of an existing building at the Tsukuba Plant.」

「Net sales were ¥2,628 million, up 0.3% year on year, supported by capturing inbound and outbound demand in Japan and the expansion of outsourcing by domestic cosmetics manufacturers. Operating income declined 13.4% to ¥190 million and ordinary income declined 18.5% to ¥178 million, mainly because pharmaceutical sales at a consolidated subsidiary were deferred from the second quarter onward at the customer’s request. Net income attributable to owners of the parent declined 44.9% to ¥94 million because a loss on disposal of fixed assets was recorded in connection with the partial demolition of an existing building at the Tsukuba Plant.」

「Net sales were ¥10,395 million, up 3.9% from the previous fiscal year, reflecting increased orders from cosmetics manufacturers in Japan amid strong outsourcing demand, as well as steady performance in the principal pharmaceutical contract manufacturing business in France. On the earnings side, higher personnel and other costs, mainly due to tight labor supply and demand in Japan, as well as increased depreciation and expenses following completion of Phase 2 of the Tsukuba Plant expansion, resulted in operating income of ¥646 million, down 19.2%, and ordinary income of ¥634 million, down 12.1%.」

「For the nine months ended the third quarter of the current consolidated fiscal year, net sales were ¥7,933 million, up 2.3% year on year. Operating income declined 29.5% to ¥507 million, affected by higher depreciation following completion of Phase 2 of the Tsukuba Plant expansion and increased outsourcing due to tight labor supply and demand. Ordinary income declined 22.7% to ¥506 million. As a result, net income attributable to owners of the parent declined 13.6% to ¥402 million.」

「For the six months ended the second quarter of the current consolidated fiscal year, sales exceeded the initial plan, supported by capturing inbound and outbound demand in Japan, a recovery in makeup products in the market, and strong orders for the principal pharmaceutical products in France. However, sales were ¥5,343 million, down 0.6% from the same period of the previous year. Profit also exceeded plan because sales remained strong, but operating income declined 27.6% year on year to ¥412 million, due mainly to higher depreciation and related expenses following completion of Phase 2 of the Tsukuba Plant expansion. Ordinary income similarly declined 17.5% to ¥418 million, and net income attributable to owners of the parent declined 15.2% to ¥335 million.」

「In the first quarter of the current consolidated fiscal year, although net sales and profit figures were both below the levels of the same period of the previous year, when inbound-related demand was at its peak, overall progress exceeded the initial outlook. As a result, net sales were ¥2,621 million, down 0.9% year on year, as domestic sales remained slightly below the initial outlook while the French subsidiary substantially exceeded it. Operating income was ¥220 million, down 19.9% year on year, ordinary income was ¥218 million, down 8.9%, and net income attributable to owners of the parent was ¥171 million, down 7.6%.」

「Net sales were ¥10,007 million, up 14.9% year on year; operating income was ¥799 million, up 60.0%; ordinary income was ¥721 million, up 73.1%; and net income attributable to owners of the parent was ¥532 million, up 119.0%.」

「As a result, during the cumulative third-quarter consolidated period, net sales were ¥7,756 million, up 26.9% year on year; operating income was ¥719 million, up 221.1%; ordinary income was ¥654 million, up 302.3%; and net income attributable to owners of the parent was ¥465 million, up 650.3%.」

「As a result, during the cumulative second-quarter consolidated period, net sales were ¥5,374 million, up 40.2% year on year; operating income was ¥569 million, up 915.8%; ordinary income was ¥506 million, compared with ordinary income of ¥23 million in the same period of the previous year; and net income attributable to owners of the parent was ¥395 million, compared with a net loss attributable to owners of the parent of ¥24 million in the same period of the previous year.」

「During the cumulative first-quarter consolidated period, net sales were ¥2,645 million, up 43.7% year on year; operating income was ¥274 million, up 836.9%; ordinary income was ¥240 million, compared with ordinary income of ¥11 million in the same period of the previous year; and net income attributable to owners of the parent was ¥185 million, compared with a net loss attributable to owners of the parent of ¥5 million in the same period of the previous year.」