Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended July 31, 2022
(Based on Japanese GAAP)
September 6, 2022
Company name:

Pharma Foods International Co.,Ltd.

Stock exchange listing: Tokyo
Stock code:
2929
Representative:
Inquiries:

URL

https://www.pharmafoods.co.jp/President
General Manager of Administration

Mujo Kim
Toshihiro Kawanaka

DepartmentScheduled date of ordinary general meeting of shareholders:TEL

075-394-8600

October 20, 2022

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

October 20, 2022
October 21, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended July 31, 2022 (from August 1, 2021 to July 31, 2022)(1) Consolidated operating resultsNet sales
Year ended July 31, 2022
Year ended July 31, 2021

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
1,080(81.0)
1,264(78.1)(374)–
5,673 666.6
5,767 631.0
3,841 455.9

Millions of yen
60,18546,752

%
28.7
204.5

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%––4.9
1.8
132.1457.537.2
12.1

Yen(12.89)132.21

Year ended July 31, 2022
Year ended July 31, 2021
(2) Consolidated financial position

Total assets
As of July 31, 2022
As of July 31, 2021

Net assets

Equity ratio

Millions of yen
31,15920,944

Millions of yen
7,074
8,465

Cash flows fromoperating activities
Millions of yen(6,065)
5,938

Cash flows frominvesting activities
Millions of yen(2,539)(442)

Net assets per share%
22.7
40.4

Yen
243.65291.25(3) Consolidated cash flows

Year ended July 31, 2022
Year ended July 31, 2021

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
7,679
8,845
1,030
9,794

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended July 31, 2021
Year ended July 31, 2022
Year ending July 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

5.00
10.00

––

20.00
10.00

25.0020.00

726
580

18.9
–

10.9
7.5

–

10.00

–

10.00

20.00

165.6

3. Forecast of consolidated financial results for the year ending July 31, 2023 (from August 1, 2022 to July 31, 2023)
Net sales
Full year

Millions of yen
71,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
18.0
1,191
10.3
1,268
0.3
886
–
30.47

4. Notes(1) Changes in significant subsidiaries during the year ended July 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2022

29,073,800 shares As of July 31, 2021

29,062,100 shares

Number of treasury shares at the end of the period
As of July 31, 2022

52,483 shares As of July 31, 2021

– sharesAverage number of shares during the period
Year ended July 31, 2022

29,013,832 shares Year ended July 31, 2021

229,053,368 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of July 31, 2021

As of July 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,7944,916

8,845
6,702

Electronically recorded monetary claims - operating
Merchandise and finished goods

42,659732
4,704

Work in process
Raw materials and supplies

5435

478
884

Other
Allowance for doubtful accounts

473
(3)

1,175
(9)

17,93323,513

Buildings and structures, net
Machinery, equipment and vehicles, net

879
4

2,549
457

Tools, furniture and fixtures, net
Land

178
726

176
1,193

Leased assets, net
Construction in progress

20–

3150

1,808

4,458

140

270

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

Total property, plant and equipment
Intangible assets
Goodwill
Other45

34

Total intangible assets

185

305

335
680

1,572
1,309

Investments and other assets
Investment securities
OtherAllowance for doubtful accounts

(0)

(0)

Total investments and other assets

1,016

2,881

Total non-current assets
Total assets

3

3,010

7,645

20,944

31,159(Millions of yen)
As of July 31, 2021

As of July 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

846

1,176

Short-term borrowings
Current portion of long-term borrowings

2,500
93915,400
760

Accounts payable - other
Income taxes payable

3,283
2,000

4,077
434

Provision for bonuses
Other

3
1,404

70876

Total current liabilities

10,97822,795

Non-current liabilities
Long-term borrowings

1,458

697

Retirement benefit liability
Other

16
24

427
164

Total non-current liabilities

1,499

1,288

12,47824,084

Shareholders' equity
Share capital

2,038

2,042

Capital surplus
Retained earnings

1,817
4,599

1,820
3,300

–(138)

8,455

7,024

Valuation difference on available-for-sale securities

846

Total accumulated other comprehensive income

846

Share acquisition rights

10

Non-controlling interests–2

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

48,465

7,074

20,944

31,159

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
July 31, 2021

Fiscal year ended
July 31, 2022

Net sales

46,75260,185

Cost of sales

7,027

12,077Gross profit

39,72448,108

Research and development expenses
Advertising expenses

522
24,860766
35,748Commission expenses
Amortization of goodwill

2,754
43

3,412
51

Other

5,870

7,049

Total selling, general and administrative expenses

34,05147,028

5,673

1,080

32

Dividend income
Foreign exchange gains

31636
37

Subsidy income
Share of profit of entities accounted for using equity method

38
1694
5

Outsourcing service income
Other

1620

1635

Total non-operating income

114

228

Non-operating expenses
Interest expenses

1226

Commission expenses
Other6114
2

Total non-operating expenses

2043

5,767

1,264

Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income

Ordinary profit
Extraordinary income
Gain on sale of non-current assets–77

Gain on bargain purchase–82

Total extraordinary income

–160

–
1

10

Extraordinary losses
Loss on valuation of investment securities
Loss on retirement of non-current assets

11

Profit before income taxes

Total extraordinary losses

5,765

1,423

Income taxes - current

1,987

1,400

Income taxes - deferred(63)397

Total income taxes

1,9241,797

Profit (loss)

3,841(374)Profit (loss) attributable to owners of parent

3,841(374)5Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

July 31, 2021

July 31, 2022
3,841(374)Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(1)
037–

Total other comprehensive income

(0)

37

3,840(336)

3,840(336)Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of changes in equity
Fiscal year ended July 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

2,033

Retained earnings

1,812

Total shareholders'equity

1,048

4,895

Dividends of surplus

(290)

(290)

Profit (loss) attributableto owners of parent

3,841

3,841

Changes during period

Exercise of shareacquisition rights

5510

5

5

3,550

3,560

2,038

1,817

4,599

8,455

Net changes in items
other than shareholders'equityTotal changes duringperiodBalance at end of period

Accumulated other comprehensive
incomeValuationdifference on
availablefor-salesecurities
Balance at beginning of
period9

Total

Deferred
gains orlosses onhedgesaccumulated
otherShareacquisitionrightsTotal net
assets3

4,907

comprehensive
income(0)9Changes during period
Dividends of surplus(290)

Profit (loss) attributableto owners of parent

3,841

Exercise of shareacquisition rights
Net changes in items
other than shareholders'equity

10(1)

0(0)

(1)

(2)

Total changes during
period

(1)

0(0)

(1)

3,558Balance at end of period

8–818,4657

Fiscal year ended July 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

2,038

Retained earnings

1,817

Cumulative effects ofchanges in accounting
policies
Restated balance

4,599

Total shareholders'equity

Treasury shares
–

(37)
2,038

1,817

4,561

8,455

(37)
–

8,417

Changes during period
Dividends of surplus

(871)

(871)

Profit (loss) attributableto owners of parent

(374)

(374)

Purchase of treasury
shares
Disposal of treasury
shares(15)

Transfer from retained
earnings to capitalsurplus

15

Exercise of shareacquisition rights

(299)

(299)

161

146(15)

–

33

633

(1,260)(138)(1,392)

2,042

1,820

3,300

(138)

7,024

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period8

Accumulated othercomprehensive income
TotalValuationdifference on accumulated
otheravailablecomprehensive
for-saleincomesecurities

Balance at beginning ofperiod

8

8

Share
acquisitionrights

Noncontrollinginterests

Total net
assets1–

8,465

Cumulative effects ofchanges in accounting
policies
Restated balance

(37)
881–

8,428

Changes during period
Dividends of surplus(871)

Profit (loss) attributableto owners of parent(374)

Purchase of treasury
shares(299)

Disposal of treasury
shares146

Transfer from retained
earnings to capitalsurplus–

Exercise of shareacquisition rights

6

Net changes in items
other than shareholders'equity3737(1)

239

Total changes during
period3737(1)2(1,353)

Balance at end of period464602

7,074

9Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

July 31, 2021

July 31, 2022
5,765

1,423

Depreciation
Amortization of goodwill

138
43469
51

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability

0(4)

6(15)

Increase (decrease) in provision for bonuses
Interest and dividend income

1(6)

(10)
(38)

Subsidy income
Interest expenses(38)
12(94)
26

Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity

1422(16)

(5)

–(82)

––

(77)
1

Decrease (increase) in trade receivables
Decrease (increase) in consumption taxes refund receivable(2,676)(8)(1,020)(507)

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,071)396(2,247)(615)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

2,561
554

584
(645)

methodGain on bargain purchase
Gain on sale of non-current assets
Loss on valuation of investment securitiesOther, net

456

(350)

Subtotal

6,121(3,127)

Interest and dividends received

639

Interest paid
Subsidies received

(11)
47

(29)
80

Income taxes paid
Income taxes refund

(224)
–

(3,125)97

Net cash provided by (used in) operating activities

5,938(6,065)

Cash flows from investing activities
Purchase of property, plant and equipment

(154)

(467)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

–
(19)

306
(5)

Purchase of investment securities
Payments for merger

(200)
(30)

(1,021)–kari
Proceeds from withdrawal of time deposits

––

(135)
300

Purchase of shares of subsidiaries resulting in change in scopeof consolidation–(1,099)

Purchase of shares of subsidiaries and associates
Other, net

–
(37)

(500)
81

Net cash provided by (used in) investing activities(442)(2,539)10

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

July 31, 2021

July 31, 2022
2,500

12,100(1,180)(3,243)85(290)

(871)

–(6)

(299)
(10)

Net cash provided by (used in) financing activities

1,030

7,679

Effect of exchange rate change on cash and cash equivalents

(14)

(22)

Repayments of long-term borrowings
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Dividends paid
Purchase of treasury shares
Other, net

Net increase (decrease) in cash and cash equivalents

6,511

(948)

Cash and cash equivalents at beginning of period

3,282

9,794

Cash and cash equivalents at end of period

9,794

8,845

11