Business Results for the First Quarter of the Year Ending December 31, 2023
[Japan GAAP] (Consolidated)
May 9, 2023

Company:
Stock code:
Representative:
Contact:

The Pack Corporation

3950
Hideaki Yamashita, President & CEO
Michihisa Fujii, Managing Director, Corporate Division
TEL: +81-6-4967-1221
Expected filing date for quarterly securities report:
May 11, 2023
Expected starting date of dividend payment:
Quarterly supplementary financial documents:
None
Quarterly results briefing:
None

Listed on TSE, Prime Market
URL: https://www.thepack.co.jp(Rounded down to million yen)
1. Consolidated business results for the first quarter of the year ending December 31, 2023
(January 1, 2023 through March 31, 2023)(1)

Consolidated operational results (cumulative)(% change from same quarter of previous year)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

First quarter of year ending
December 31, 2023

21,424

12.2

1,422

56.6

1,493

43.5

1,001

39.5

First quarter of year ended
December 31, 2022

19,098

7.1

908

15.7

1,040

24.2

717

26.3

(Note) Comprehensive income

First quarter of year ending December 31, 2023:
First quarter of year ended December 31, 2022:
Quarterly basic
earnings per share

1,189 million yen (43.0%)
831 million yen (-15.2%)
Quarterly diluted
earnings per share

Yen

Yen

First quarter of year ending December 31, 2023

52.64

52.60

First quarter of year ended December 31, 2022

37.78

37.75

(2)

Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Million yen

Million yen%

First quarter of year ending December 31, 2023

91,69865,926

71.8

Year ended December 31, 2022

94,36565,371

69.2(Reference) Owner’s equity

First quarter of year ending December 31, 2023:
Year ended December 31, 2022:

65,881 million yen
65,324 million yen

2. Dividends
Dividend per share
End of 1Q

End of 2Q

End of 3Q

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2022

-

30 00

-

35.00

65.00

Year ending December 31, 2023

35 00

-

35.00

70.00

Year ending December 31, 2023 (forecast)(Note) Revision from most recently announced dividends forecast: None

Year-endTotal

3. Forecast of consolidated results for the year ending December 31, 2023
(January 1, 2023 through December 31, 2023)(% change from the previous corresponding period)
Net sales

Basic
Profit attributableearnings per
to owners of parent
share

Operating profit

Ordinary profit%

Million yen%

Million yen

43,000 8.5

2,300

12.5

2,500

8.8

1,700

19.5

89.42

Full year
94,000 5.5
6,400(Note) Revision from most recently announced forecast of results: None

7.2

6,800

7.0

4,400

8.4

231.46

Million yen
Second half (accumulated)% Million yen%

Yen*Notes(1)

Material changes in subsidiaries during this quarterly cumulative period (changes in scope of consolidations resulting
from change in subsidiaries): None

(2)

Application of special account processing in preparation of quarterly financial statements: None

(3)

Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of the accounting standard: None
2) Changes in accounting policies other than ones based on revisions of the accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(4)

Number of issued and outstanding shares (common stock)1)

Number of issued and outstanding
1Q, year ending
shares at the end of fiscal year
December 31, 2023
(including treasury shares)

19,900,000 sharesYear ended
December 31, 2022

19,900,000 shares

2)

Number of treasury shares at theend of fiscal year

1Q, year ending
December 31, 2023

876,472 sharesYear ended
December 31, 2022

890,661 shares

3)

Average number of shares(quarterly cumulative)

1Q, year ending
December 31, 2023

19,016,433 shares

1Q, year ended
December 31, 2022

18,996,533 shares* The quarterly financial summary is not subject to audits by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
Forward-looking statements regarding future performance are based on assumptions regarding various factors affecting
business performance and information available to the Company’s management as of the date the materials wereprepared. Actual results may differ significantly from forecasts.
Also see “Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements” on p. 3 of
the Attachments concerning forward-looking statements.

The Pack Corporation (3950) Financial Report for the First Quarter of 2023

Contents of Attachments
1.
(1)
(2)
(3)

Overview of Operational Results
Quarterly Operational Results
Quarterly Financial Position
Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

2
2
3
3

2.
(1)
(2)
(3)

Quarterly Consolidated Financial Statements and Notes
Quarterly Consolidated Balance Sheet
Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)(Significant Changes in Shareholders’ Equity)

4
4
6
8
8
8

- 1 -

The Pack Corporation (3950) Financial Report for the First Quarter of 2023

1. Overview of Operational Results(1)

Quarterly Operational Results

In the first quarter of the consolidated fiscal year under review, Japan’s economy showed signs of a modest recovery.
Economic activity continued to return to normal in response to the lifting of COVID-19 restrictions as well the as effects ofthe economic stimulus measures. Nevertheless, prospects remain uncertain for various reasons, including exchange rate
fluctuations and the soaring cost of raw materials and energy, attributable to international instability.
In the United States, despite signs of recovery in consumer spending, concerns emerged for the dampening effects on
consumer spending of continuing high inflation and sharp increases in interest rates adopted to counter inflation. In China,
with the easing of COVID-19 restrictions, consumer spending showed signs of recovery in food service, travel, and otherindustries. Recovery has been slower for sales at brick-and-mortar stores.
Under such conditions, in the period ending December 2025, the Group seeks to achieve net sales of 107,000 million yen
and operating profit of 7,000 million yen under the slogan of its Medium-Term Management Plan: “Evolution: Start of
Purpose-Based Management and Sustainable Management.” The entire Group is working as one to boost business results
through efforts including new market development, proactive capital investment, and improved quality control.
During the first quarter of the consolidated fiscal year under review, net sales grew by 12.2% year on year to 21,424 million
yen; operating profit rose 56.6% to 1,422 million yen; ordinary profit grew 43.5% to 1,493 million yen; and profit attributableto owners of parent improved 39.5% to 1,010 million yen.
The business performance for each segment is given below.
(Paper Products)
The paper products segment accounted for 70.3% of consolidated sales in the first quarter. Thanks in part to recovering
consumer spending and tourism demand in Japan, sales of paper bags, which accounted for 29.2% of consolidated sales,
grew by 16.4% year on year to 6,256 million yen.
Sales of folding paper cartons, which accounted for 24.4% of consolidated sales, grew by 13.4% to 5,228 million yen, thanks
to higher sales to the souvenirs market, chiefly in cartons for food products, and the positive effects of post-COVID demand
recovery. Sales of cartons for takeout/delivery food products and to the e-commerce sector remained firm.
Driven by ongoing robust sales to the e-commerce and manufacturing sectors, sales of corrugated boxes, which accounted
for 14.3% of consolidated sales, grew by 3.7% to 3,059 million yen.
Printing sales, which accounted for 2.4% of consolidated sales, rose 3.2% to 527 million yen based on strong sales at Keihin
Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment grew 12.1% to 15,072 million yen. Operating profit rose 44.4% to 1,265 million yen.
(Film Packaging)
The film packaging segment accounted for 15.7% of consolidated sales during the quarter under review. Segment sales wereup 24.8% to 3,357 million yen thanks to strong sales of products to the e-commerce segment for apparel and other products
and to specialty retail stores, in addition to positive trends in sales of disposable diaper products and flexible film packaging
for food product packages. Operating profit was up 77.5% to 148 million yen.
(Other Businesses)
Other businesses in the quarter under review accounted for 14.0% of consolidated sales. Despite declining sales of products
related to COVID-19 vaccines, strong sales of sewn products and nonwoven bags to specialty retail stores helped boost sales
in this segment by 1.2% to 2,994 million yen. Operating profit rose by 14.8% to 226 million yen.

- 2 -The Pack Corporation (3950) Financial Report for the First Quarter of 2023

(2)

Quarterly Financial Position

Assets totaled 91,698 million yen at the end of the quarter under review, down 2,667 million yen from the end of 2022.
Major factors included increases of 683 million yen in cash and deposits and 1,740 million yen in land, offset by a declineof 5,376 million yen in notes and accounts receivable-trade.
Liabilities fell 3,222 million yen to 25,771 million yen. The primary factors were declines of 2,359 million yen in notes andaccounts payable-trade and 689 million yen in income taxes payable.
Net assets grew by 555 million yen to 65,926 million yen. The key factors were increases of 335 million yen in retained
earnings and 153 million yen in valuation difference on available-for-sale securities.
(3)

Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

Consolidated business forecasts remain unchanged from the information announced February 6, 2023.

- 3 -The Pack Corporation (3950) Financial Report for the First Quarter of 2023

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheet(Million yen)Previous fiscal year
(as of December 31, 2022)

First quarter of current fiscal year
(as of March 31, 2023)

AssetsCurrent assets
Cash and deposits

16,163

16,847

Notes and accounts receivable-trade

23,886

18,510

Securities

12,50012,100

Merchandise and finished goods

6,015

6,513

Work in process

1,032

1,161

Raw materials and supplies

1,108

1,076

Other

792

653

Allowance for doubtful accounts

(14)

(14)

61,48456,848

Buildings and structures, net

6,132

6,026

Machinery, equipment, and vehicles, net

5,641

5,975

348

332

Land

8,539

10,279Construction in progress

3,068

2,886

Total property, plant and equipment

23,72925,500

1,044

1,152

Investment securities

6,746

6,859

Deferred tax assets

421

420

Other

992

970

Allowance for doubtful accounts

(53)

(53)

Total investments and other assets

8,106

8,197

32,881

34,84994,36591,698

Total current assets
Non-current assets
Property, plant, and equipment

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets

Total non-current assets
Total assets- 4 -The Pack Corporation (3950) Financial Report for the First Quarter of 2023

(Million yen)Previous fiscal year
(as of December 31, 2022)

First quarter of current fiscal year
(as of March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

14,37012,010Electronically recorded obligations-operating

6,689

6,710

Current portion of long-term loans payable

25

25

Income taxes payable

1,349

659

Provision for bonuses

291

757

Provision for bonuses for directors (and other officers)

45

19

Other

3,283

2,768

Total current liabilities

26,054

22,952Long-term loans payable

34

28

Deferred tax liabilities

431

416

2,294

2,270

178

103

2,939

2,819

28,99425,771

Capital stock

2,553

2,553

Capital surplus

3,166

3,156

Retained earnings

60,65460,990Treasury shares(2,661)(2,618)

Total shareholders’ equity

63,71364,081

1,391

1,544

Deferred gains or losses on hedges(3)0Foreign currency translation adjustment

89

122

Remeasurements of defined benefit plans

134

132

1,611

1,800

46

45

65,371

65,926

94,36591,698Non-current liabilities

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 5 -The Pack Corporation (3950) Financial Report for the First Quarter of 2023

(2)

Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Quarterly Consolidated Statement of Income
Cumulative period through first quarter
Cumulative period through firstquarter of previous fiscal year
(from January 1, 2022
to March 31, 2022)(Million yen)
Cumulative period through firstquarter of current fiscal year
(from January 1, 2023
to March 31, 2023)

Net sales
Cost of sales

19,098
14,541

21,424
16,055Gross profit

4,557

5,369

897
837
113
△0
208
7
58
90
664
771

975
894
113
0
232
9
57
118
735
809

Selling, general and administrative expenses
Freightage and packing expenses
Salaries and allowances
Directors' compensation
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Depreciation
Rent expenses
Other

3,649

3,946

Operating profit

Total selling, general and administrative expenses

908

1,422

Non-operating income
Interest income
Dividend income
Rent income
Compensation income
Foreign exchange gains
Other

22
3
12
65
6
25

39
7
10
13
9

137

80

0
2

0
1

Total non-operating income
Non-operating expenses
Interest expenses
Cost of lease revenue
Loss on investments in partnership
Other

-

6

2

1

Total non-operating expenses

4

9

1,040

1,493

0

-

0

-

5
21

3
-

Total extraordinary losses

27

3Profit before income taxes

1,013

1,489

Income taxes-current
Income taxes-deferred

375
(79)

558
(69)

Total income taxes

295

488

Profit717

1,001

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities

Profit (loss) attributable to non-controlling interests(0)-

Profit attributable to owners of parent

717

1,001

- 6 -

The Pack Corporation (3950) Financial Report for the First Quarter of 2023

Quarterly Consolidated Statement of Comprehensive Income
Cumulative period through first quarter
Cumulative period through firstquarter of previous fiscal year
(from January 1, 2022
to March 31, 2022)(Million yen)
Cumulative period through firstquarter of current fiscal year
(from January 1, 2023
to March 31, 2023)

717

1,001

(19)

153

3

4

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

133

32

Remeasurements of defined benefit plans, net of tax

(3)

(2)

Total other comprehensive income

114

188

831

1,189

Comprehensive income attributable to owners of parent

831

1,189

Comprehensive income attributable to non-controllinginterests0-Comprehensive income(Comprehensive income attributable to)- 7 -The Pack Corporation (3950) Financial Report for the First Quarter of 2023

(3)

Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.

- 8 -