We would like to present the Group’s business results for the six months ended September 30, 2021 and full-year forecasts for Fiscal 2022.
As for the business environment surrounding the Group in the six months ended September 30, 2021, the economic recovery remained moderate despite the continuation of monetary easing policies and the spread of vaccinations, primarily in developed countries, supporting the recovery of economic activities amid the resurgence of COVID-19. Recently, uncertainties concerning economic outlook have been increasing due to factors such as the sudden rise of raw material and fuel prices, the production curtailment of automobiles due to the semiconductor shortage, the disparity of vaccination rates between developed countries and emerging countries, and concerns regarding procurement of some raw materials and components due to power shortages in China.
In this business environment, in “Films and Functional Materials,” sales grew due to operation of the new lines amid continuing strong market conditions for polarizer protective films for LCDs “COSMOSHINE SRF” and mold releasing film for MLCC “COSMOPEEL.” In “Mobility,” sales of engineering plastics and airbag fabrics performed strongly due to the recovery of automobile demand globally. In “Lifestyle and Environment,” demand for high-performance fibers recovered in various regions globally, but polyester staple fibers and spunbond were affected by rising raw material prices. In “Life Science,” sales of raw materials and reagents for PCR testing grew as the Group worked to meet the societal demand for PCR testing.
As a result, consolidated net sales in the six months ended September 30, 2021 increased ¥26.4 billion (16.7%) over the same period of the previous fiscal year, to ¥183.9 billion. Operating profit increased ¥6.7 billion (64.2%), to ¥17.1 billion, ordinary profit increased ¥7.4 billion (127.0%) to ¥13.3 billion, and profit attributable to owners of parent increased ¥7.1 billion (267.3%), to ¥9.7 billion.
For consolidated business performance for the fiscal year ending March 31, 2022, the Group expects to be affected by factors such as the rise of raw material and fuel prices, the prolongation of the semiconductor shortage, and the spread as well as the end of COVID-19. Accordingly, the Group has left the forecasts unchanged from those announced in the first quarter of this fiscal year, with net sales of ¥365.0 billion (an increase of ¥27.6 billion year on year), operating profit of ¥29.0 billion (an increase of ¥2.3 billion), ordinary profit of ¥24.0 billion (an increase of ¥3.3 billion), and profit attributable to owners of parent of ¥13.0 billion (an increase of ¥8.8 billion) being forecasted.
In terms of dividends, its basic policy is to continually provide a stable dividend, in a comprehensive consideration of such factors as sustainable profit levels, retention of earnings for future investment, and improving the financial position to provide shareholders returns. Regarding the year-end dividend for the fiscal year ending March 31, 2022, we currently expect to pay \40 per share as well as the previous fiscal year.
We will make company-wide efforts on the prevention of recurrence to recover the trust lost because of the fire accident and quality issue.
TOYOBO CO., LTD.
President & Representative Director