SAKATA INX—In 3Q, sales increased in all segments, but profits decreased due to the impact of high raw material costs | Reuters

*13: 33 JST SAKATA INX—In 3Q, sales increased in all segments, but profits decreased due to the impact of high raw material prices.
sakata inks4633announced the consolidated financial results for the third quarter of the fiscal year ending December 2022 (January-September 2022) on the 11th. Sales increased 19.6% year-on-year to 159.849 billion yen, operating income decreased 47.7% year-on-year to 3.27 billion yen, ordinary income decreased 48.2% year-on-year to 3.696 billion yen, and net income attributable to owners of parent decreased 35.5% year-on-year. decreased to 3.09 billion yen.

Sales of printing inks and materials (Japan) increased by 3.0% year-on-year to 37.909 billion yen. In the packaging industry, demand for gravure ink for eating at home remained strong, and demand for leisure consumption, convenience stores, and beverages increased, resulting in favorable sales. Sales of flexographic inks for daily necessities, processed foods, and fruits and vegetables were strong, and demand for paper bags continued to recover, resulting in solid performance overall. In the area of ​​printing information, in addition to the impact of digitalization, advertising demand has been sluggish due to the impact of infectious diseases, and both newspaper inks and offset inks have been sluggish. Sales of printing inks as a whole surpassed those of the same period of the previous year. As for equipment, sales of printing plate-making materials and machine sales were sluggish, resulting in a year-on-year decline. In terms of profit, the effect of the sales price revision contributed, but in addition to the impact of high raw material prices, sales of printing ink and equipment related to printing information remained sluggish, and operating income decreased 70.3% year on year to 342 million yen. .

Sales of printing inks (Asia) increased by 27.7% year-on-year to 35.233 billion yen due to an increase in sales volume, a revision in sales prices, and the impact of foreign exchange conversion due to the weaker yen. Sales of gravure ink for packaging, the main product, expanded in Indonesia and Vietnam. In the printing information business, India continued to recover from the decline in demand due to the impact of the infectious disease. On the other hand, in China, which was affected by the lockdown, sales were generally sluggish due to the continuation of the zero-coronavirus policy. In terms of profits, the increase in sales volume and the effect of revisions in sales prices contributed, but operating income decreased 42.6% year on year to 987 million yen, largely affected by the high cost of raw materials.

Sales of printing inks (Americas) increased by 38.3% year-on-year to 55.433 billion yen due to an increase in sales volume, revision of sales prices, and the impact of foreign exchange conversion caused by the weaker yen. In the mainstay packaging-related business, sales of flexo ink and gravure ink were strong until the second quarter due to strong demand, but sales were somewhat sluggish in the third quarter. Metal ink performed well due to rising demand for aluminum cans from the standpoint of environmental impact. Sales of offset inks, which are related to printing information, were strong for UV inks and other products. In terms of profits, the increase in sales volume and the effect of revisions to sales prices contributed, but operating income decreased 44.9% year-on-year due to the impact of high raw material costs and an increase in expenses, mainly logistics costs and personnel costs. 807 million yen.

Sales of printing inks (Europe) remained strong as a result of efforts to expand sales centered on packaging-related products. Sales increased by 21.3% year-on-year to 14.403 billion yen, due to the increase in sales volume and revision of sales prices, as well as the impact of currency translation due to the weaker yen. In terms of profits, the increase in sales volume and the effect of revisions to sales prices contributed, but in addition to the impact of high raw material prices, utility costs increased significantly, and expenses such as logistics and personnel expenses also increased. The loss was 341 million yen (loss of 020 million yen in the same period last year).

Sales of functional materials increased by 11.8% year-on-year to 11.437 billion yen. Sales of inkjet inks were strong and exceeded the same period last year, while sales of pigment dispersion liquids for color filters were sluggish and fell below the results of the same period last year, partly due to the impact of declining demand for panel displays. Sales of toner increased from the same period of the previous year due to strong overseas sales. In addition to these results, the impact of foreign exchange conversion due to the depreciation of the yen had a significant impact, resulting in an increase in sales. In terms of profits, although sales of digital printing materials generally increased, operating income decreased 18.5% year on year to 1,169 million yen due to the impact of high raw material prices.

For the full year ending December 2022, net sales will increase 21.8% year on year to ¥221.000 billion, operating income will decrease 32.6% year on year to ¥5.000 billion, and ordinary income will decrease 31.8% year on year to ¥5.800 billion. The consolidated earnings forecast, which was revised on August 10, remains unchanged, with net income of 4.7 billion yen, down 4.7% year-on-year.

《SI》