Business Results for the First Quarter of the Year Ending December 31, 2024
[Japan GAAP] (Consolidated)
May 8, 2024

Company:
Stock code:
Representative:
Contact:

The Pack Corporation

3950
Hideaki Yamashita, President & CEO
Ikuo Shimomura , Director, Corporate General Manager
TEL: +81-6-4967-1221
Expected filing date for quarterly securities report:
May 13, 2024
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, 2024
(January 1, 2024 through March 31, 2024)(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, 2024

22,694

5.9

1,613

13.5

1,670

11.9

1,479

47.8

First quarter of year ended
December 31, 2023

21,424

12.2

1,422

56.6

1,493

43.5

1,001

39.5

(Note) Comprehensive income

First quarter of year ending December 31, 2024:
First quarter of year ended December 31, 2023:
Quarterly basic
earnings per share

1,880 million yen (58.1%)
1,189 million yen (43.0%)
Quarterly diluted
earnings per share

Yen

Yen

First quarter of year ending December 31, 2024

77.70

77.64

First quarter of year ended December 31, 2023

52.64

52.60

(2)

Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Million yen

Million yen%

First quarter of year ending December 31, 2024

97,12272,01074.1

Year ended December 31, 2023

98,847

71,156

71.9(Reference) Owner’s equity

First quarter of year ending December 31, 2024:
Year ended December 31, 2023:

71,969 million yen
71,111 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, 2023

–

35 00

–

55.00

90.00

Year ending December 31, 2024

–
52 00

–

66.00

118.00Year ending December 31, 2025 (forecast)(Note) Revision from most recently announced dividends forecast: None

Year-endTotal

3. Forecast of consolidated results for the year ending December 31, 2024
(January 1, 2024 through December 31, 2024)(% 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

46,300 3.2

3,100

4.1

3,300

4.8

2,800

31.2

147.12

Full year
101,000 3.4
8,100(Note) Revision from most recently announced forecast of results: None

4.6

8,400

4.2

6,400

13.2

336.27

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, 2024
(including treasury shares)

19,900,000 sharesYear ended
December 31, 2023

19,900,000 shares

2)

Number of treasury shares at theend of fiscal year

1Q, year ending
December 31, 2024

860,349 sharesYear ended
December 31, 2023

868,136 shares

3)

Average number of shares(quarterly cumulative)

1Q, year ending
December 31, 2024

19,036,057 shares

1Q, year ended
December 31, 2023

19,016,433 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. 2 of
the Attachments concerning forward-looking statements.

The Pack Corporation (3950) Financial Report for the First Quarter of 2024

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 2024

1. Overview of Operational Results(1)

Quarterly Operational Results

In the first quarter of the consolidated fiscal year under review, Japan’s economy was supported by a recovery inconsumption due to factors including rising wages and fiscal policies, robust capital investment, strong inbound consumption,
and was on the brink of steering away from deflation due to progress in passing on increased costs to consumers throughprice increases. Nevertheless, prospects remain uncertain for various reasons, including soaring energy costs, the rising costof imports driven by the devalued yen, and the effects on consumption of slower corporate capital investment due to financial
normalization of Bank of Japan monetary policies.
The United States economy remained firm, centered on consumer spending, and employment conditions remained favorable,
but there are concerns about a gradual slowdown in personal consumption as the inflation rate shows signs of slowing down
against a backdrop of overheated domestic demand.
Amid growing uncertainties related to its economic policies, China continues to experience slow consumer spending. No
policies have emerged to date to halt the vicious circle of the sustained slump in the real estate market.
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 8,300 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 5.9% year on year to 22,694 million
yen; operating profit rose 13.5% to 1,613 million yen; ordinary profit grew 11.9% to 1,670 million yen; and profit attributableto owners of parent improved 47.8% to 1,479 million yen.
The business performance for each segment is given below.
(Paper Products)
In the first quarter, the paper products segment accounted for 71.8% of consolidated sales. Thanks in part to recovering
consumer spending and booming tourism demand, including inbound tourism, sales of paper bags, which accounted for
30.9% of consolidated sales, grew by 12.0% year on year to 7,005 million yen.
Sales of folding paper cartons, which accounted for 26.1% of consolidated sales, grew by 13.1% to 5,913 million yen.
Contributing factors included strong sales to the souvenirs market, chiefly in cartons for food products, as well as sales ofcartons for takeout/delivery food products.
Despite robust sales to the manufacturing sector, following on from last year, sales of corrugated boxes, which accounted
for 12.7% of consolidated sales, fell by 5.8% to 2,881 million yen due to revised package specifications for the e-commerce
sector.
Printing sales, which accounted for 2.1% of consolidated sales, fell by 7.5% to 487 million yen owing to a drop in operation
hours since productivity was improved following introduction of efficient facilities.
Overall, sales in this segment grew 8.1% to 16,289 million yen. Operating profit rose 14.0% to 1,442 million yen.
(Film Packaging)
The film packaging segment accounted for 13.7% of consolidated sales during the first quarter under review. Segment sales
were down 7.3% year on year to 3,113 million yen due to lower sales of products to the e-commerce segment and to specialty
retail stores, as a result of the migration to paper packaging. Improvements in production efficiency helped to restrain thisdecrease, and operating profit was up 8.5% to 161 million yen.

- 2 -The Pack Corporation (3950) Financial Report for the First Quarter of 2024

(Other Businesses)
Other businesses accounted for 14.5% of consolidated sales in the first quarter. Strong sales of sewn products and nonwovenbags to specialty retail stores helped boost sales in this segment by 9.9% to 3,292 million yen. Operating profit rose by 5.7%
to 239 million yen.
(2)

Quarterly Financial Position

Assets totaled 97,122 million yen at the end of the quarter under review, down 1,725 million yen from the end of 2023.
Major factors included a decline of 4,693 million yen in notes and accounts receivable-trade, offset by an increase of 3,293
million yen in cash and deposits.
Liabilities fell 2,578 million yen to 25,112 million yen. The primary factors were declines of 2,194 million yen in notes andaccounts payable-trade and 476 million yen in income taxes payable.
Net assets grew by 853 million yen to 72,010 million yen. The key factors were increases of 432 million yen in retained
earnings and 230 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 9, 2024.

- 3 -The Pack Corporation (3950) Financial Report for the First Quarter of 2024

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheet(Million yen)Previous fiscal year
(as of December 31, 2023)

First quarter of current fiscal year
(as of March 31, 2024)

AssetsCurrent assets
Cash and deposits

16,322

19,616

Notes and accounts receivable-trade24,654

19,960

Securities

8,100

6,000

Merchandise and finished goods

7,038

7,237

Work in process

1,058

1,205

Raw materials and supplies

981

966

Other

936

719

Allowance for doubtful accounts

(11)

(13)

59,08055,692

Buildings and structures, net

8,154

8,084

Machinery, equipment, and vehicles, net

6,443

6,632

347

344

Land

10,823

10,823

Construction in progress

1,632

1,847

Total property, plant and equipment

27,401

27,733

2,679

3,190

8,127

8,895

Net defined benefit asset

385

409

Deferred tax assets

106

113

Other

1,116

1,232

Allowance for doubtful accounts

(51)

(145)

Total investments and other assets

9,685

10,50539,766

41,42998,847

97,122

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

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities

Total non-current assets
Total assets- 4 -The Pack Corporation (3950) Financial Report for the First Quarter of 2024

(Million yen)Previous fiscal year
(as of December 31, 2023)

First quarter of current fiscal year
(as of March 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade

13,89011,696

Electronically recorded obligations-operating

7,264

7,173

Current portion of long-term loans payable

25

25

Income taxes payable

1,397

921

Provision for bonuses

322

815

Provision for bonuses for directors (and other officers)

52

20

Other

3,652

3,356

Total current liabilities

26,60524,009Long-term loans payable

93Retirement benefit liability

343

333

Deferred tax liabilities

664

710

Other

67

55

1,085

1,102

27,691

25,112

Capital stock

2,553

2,553

Capital surplus

3,156

3,157

Retained earnings

64,97565,408Treasury shares(2,593)(2,569)Total shareholders’ equity

68,092

68,549

2,417

2,647

Deferred gains or losses on hedges(2)0Foreign currency translation adjustment

235

409

Remeasurements of defined benefit plans

369

362

3,018

3,420

45

40

71,15672,01098,847

97,122

Non-current liabilities

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 2024

(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, 2023
to March 31, 2023)(Million yen)
Cumulative period through firstquarter of current fiscal year
(from January 1, 2024
to March 31, 2024)

Net sales
Cost of sales

21,424
16,055

22,694
16,928Gross profit

5,369

5,766

975
894
113
0
232
9
57
118
735
809

942
929
127
96
255
12
45
99
733
908

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
Total selling, general and administrative expenses

3,946

4,152

1,422

1,613

39
7
10
13
9

30
10
9
3
5

80

59

0
1

0
1

Loss on investments in partnership
Other

6

-

1

0

Total non-operating expenses

9

2

1,493

1,670

Gain on sales of investment securities–

510

Total extraordinary income

–

510

3

6

Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of lease revenue

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

3

6Profit before income taxes

1,489

2,175

Income taxes-current
Income taxes-deferred

558
(69)

771
(75)

Total income taxes

488

695

1,001

1,479

–

0

1,001

1,479

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 6 -The Pack Corporation (3950) Financial Report for the First Quarter of 2024

Quarterly Consolidated Statement of Comprehensive Income
Cumulative period through first quarter
Cumulative period through firstquarter of previous fiscal year
(from January 1, 2023
to March 31, 2023)(Million yen)
Cumulative period through firstquarter of current fiscal year
(from January 1, 2024
to March 31, 2024)

1,001

1,479

153

230

4

3

Foreign currency translation adjustment

32

174

Remeasurements of defined benefit plans, net of tax

(2)

(6)

Total other comprehensive income

188

401

1,189

1,880

Comprehensive income attributable to owners of parent

1,189

1,880

Comprehensive income attributable to non-controllinginterests––

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

Comprehensive income(Comprehensive income attributable to)- 7 -The Pack Corporation (3950) Financial Report for the First Quarter of 2024

(3)

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

- 8 -