Earth Corporation · TSE:4985
Earth — Q3 2023 Earnings Presentation
28 slides from Earth's earnings presentation, Nov 9, 2023
Slide 1: Earnings briefing materials for 3Q of the fiscal year ending December 2023
Earnings briefing materials for 3Q of the fiscal year ending December 2023 11/09/2023
Slide 2: Executive Summary
Executive Summary Sales : 126.7 billion yen (vs. the forecast: -2.5%; -3.23 billion yen) Operating Income : 9.22 billion yen (vs. the forecast: -17.7%; -1.98 billion yen) • The 3Q missed plan for the insecticides and repellents was smaller than the 2Q plan, the General Environment and Sanitation bus
Slide 3: Financial Result Highlights of 3Q FY 12/2023
Financial Result Highlights of 3Q FY 12/2023
Slide 4: Financial Result Highlights
Financial Result Highlights (Unit: 0.1 billion JPY) Increased sales and profit were lower. Also, both sales and profits fell short of the plan. Decrease in gross profit margin due to higher-than-expected raw material prices, change in sales mix, etc. Vs. Realized Forecast YoY Key Points of Plan
Slide 5: Progress Toward The Operating Income Target
Progress Toward The Operating Income Target (Quarterly / Cumulative) (Unit: 0.1 billion JPY) In Q2 and Q3, operating income fell short of the plan by a wider margin. Q1 Q2 Q3 Q4 (After revision) Quarterly 55.3 63.0 45.0 43.9 53.2 66.2 0.7 4.0 ▲ 7.0 ▲ 45.8 ▲ 32.0 ▲ 42.2 Quarterly 108.0 112.0 99.2 C
Slide 6: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) (Unit: 0.1 billion JPY) Although the cost pass-throughs showed some positive results, they were not enough to offset the impact of soaring raw material prices and the decline in gross profit due to changes in the sales mix. In addition to distribution expens
Slide 7: Operating Income Change Factors (Vs. Forecast)
Operating Income Change Factors (Vs. Forecast) (Unit: 0.1 billion JPY) The impact of price hikes in raw materials and other items exceeded initial expectations. The effect of the price revision measures was less than planned, and the profit margin deteriorated due to lower- than-expected sales a
Slide 8: Sales By Segment
Sales By Segment *To outside customers (excludes internal eliminations) (Unit: 0.1 billion JPY) Insecticides & Repellents：Due to the upward revision of the plan in Q3, the extent of sales underachievement narrowed compared to the 2Q cumulative total. Household products：Oral hygiene products, bat
Slide 9: Status Of The Insecticides & Repellents Segment
Status Of The Insecticides & Repellents Segment (Domestic) Market overview & Earth Corporation’s Weekly Trends in the Domestic Insect Care Products Market market share as of 09/30/2023 Early season sales were below the previous year's level, but 【 Market YoY 】 【 Market share 】 recovered at the beg
Slide 10: Status Of Bath Salts (Domestic)
Status Of Bath Salts (Domestic) *To outside customers (excludes internal eliminations) Market overview & Earth Corporation’s market share as of 09/30/2023 Trends in core products 【 Market YoY 】 【 Market share 】 • Japan’s Famous Hot Spring product line 94.9% 44.1% ▲2.3pt vs. forecast 86% Demand tha
Slide 11: COGS - Status Overview
COGS - Status Overview (Unit: 0.1 billion JPY) The annual impact of 2.5 billion yen was 2.75 billion yen, which was more than expected in the cumulative 3Q. Energy cost increases and semi-finished product purchase price increases exceeded initial expectations. Rising COGS 60 Ingredients ■Ingredi
Slide 12: SG&A Expenses - Status Overview
SG&A Expenses - Status Overview (Unit: 0.1 billion JPY) SG&A operated within plan. However, some of the unused portion will be used later in Q4. 3Q FY12/2022 3Q FY 12/2023 3Q FY 12/2023 Realized Forecast Realized Vs. Forecast Topics Personnel expenses 155.0 163.3 162.5 ▲ 0.8 Transportation costs 3
Slide 13: Overseas Results
Overseas Results (Unit: 0.1 billion JPY) Growth was led by Thailand (105% y-o-y in local currency terms) and Vietnam (112% y- o-y in local currency terms). China (65% y-o-y in local currency terms) was affected by poor sales in EC. Overseas sales (Includes cross-border EC) Overseas OI (Simple su
Slide 14: Revision of Full-Year Financial Results Forecasts
Revision of Full-Year Financial Results Forecasts
Slide 15: Revision of Full-Year Financial Results Forecasts
Revision of Full-Year Financial Results Forecasts (Unit: 0.1 billion JPY) Considering the current situation, the company announced a downward revision to its consolidated full-year forecasts on 11/9. The downward revision was mainly due to lower-than-planned sales and gross profit in the househo
Slide 16: Main factors in the revision of the full-year earnings forecast
Main factors in the revision of the full-year earnings forecast (Unit: 0.1 billion JPY) Contents Diff. Point • Bath Salts：-20 Market falls short of expectations（Expected to be 95% of YOY）, Share down (-2.3 pt YoY) Unachieved sales plan and raw material price hikes are expected to have a greater-than
Slide 17: Difference from what was expected at the time of 2Q results presentation
Difference from what was expected at the time of 2Q results presentation (Unit: 0.1 billion JPY) Diff. from Revised Contents plan estimate Diff. Point As of 2Q cumulative total, amount of operating income not yet achieved -8.8 -8.8 － • recovery plan1; Insect Care Products Profit Up • Increase in shi
Slide 18: Future measures
Future measures • Measures for IR communication: Enhancement of content explanation regarding risk factors ‣ Improved probability through performance estimates that include risk scenarios • Measures to be taken in the business: to be explained in detail in the next mid-term management plan. ‣ To be
Slide 19: Supplementary Materials; FY12/2023 Q3 Results
Supplementary Materials; FY12/2023 Q3 Results
Slide 20: Consolidated: Statement of Income
Consolidated: Statement of Income （Unit：million JPY） Q3 FY12/22 Q3 FY12/23 Q3 FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Original forecast YoY Sales 124,445 130,000 126,769 101.9% 97.5% 160,000 79.2% Cost of sales 71,362 74,603 74,505 104.4% 99.9% 93,500 79.7% Gross profit 53,083 55,396 5
Slide 21: Consolidated: Sales by Segment
Consolidated: Sales by Segment （Unit：million JPY） Q3 FY12/22 Q3 FY12/23 Q3 FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Original forecast Progress rate Insecticides & Repellents 56,517 57,810 57,248 101.3% 99.0% 61,713 92.8% Oral hygene products 5,910 6,091 5,799 98.1% 95.2% 8,442 68.7% Bat
Slide 22: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) （Unit：million JPY） 12,013 FY12/22.Q3 (Realized) ＜Breakdown＞ Decrease in • Effect of revenue increase (excluding the -452 gross profit effect of price pass-through) -820 • Price shifting effect +3,381 • Change in sales mix -998 • Impact of raw material prices and
Slide 23: Operating Income Change Factors (vs. Forecast)
Operating Income Change Factors (vs. Forecast) （Unit：million JPY） 11,200 FY12/23.Q3 (Forecast) ＜Breakdown＞ Gross profit below • Sales plan achieved (excluding the impact -974 the forecast of price pass-through) -3,133 • Price shift effect -234 • Change in sales mix -1,429 • Impact of raw material pr
Slide 24: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses （Unit：million JPY） Q3 FY12/22 Q3 FY12/23 Q3 FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Original forecast Progress rate Personal expenses 15,507 16,332 16,251 104.8% 99.5% 21,795 74.6% Shipping expenses 3,476 3,723 3,520 101.3% 94.5% 4,821 73.0% Strage expenses
Slide 25: Consolidated: Balance Sheet
Consolidated: Balance Sheet （Unit：million JPY） End of End of Q3 Final comparison End of Q3 vs.FY22 Q3 FY2022 FY2023 +/- FY2022 +/- Current Cash & deposits 14,772 18,969 4,196 25,322 ▲ 6,352 assets Trade receivable 24,163 30,124 5,960 27,414 2,709 Inventories 32,253 30,077 ▲ 2,175 29,351 725 Others 2
Slide 26: Consolidated: Capital expenditure, Depreciation expenses
Consolidated: Capital expenditure, Depreciation expenses （Unit：million JPY） FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 Realized Realized Realized Realized Forecast Realized Realized Realized Realized Forecast Depreciation CAPEX 1,953 3,548 2,928 5,878 7,100 3,334 3,334 3,5
Slide 27: Overview of Group Companies' Business Performance
Overview of Group Companies' Business Performance （Unit：million JPY） Earth Corporation BATHCLIN Corporation Hakugen Earth Co., Ltd. Earth Pet Co., Ltd. FY22.Q3 FY23.Q3 FY23.Q3 FY22.Q3 FY23.Q3 FY23.Q3 FY22.Q3 FY23.Q3 FY23.Q3 FY22.Q3 FY23.Q3 FY23.Q3 Realized Forecast Realized Realized Forecast Realize
Slide 28: This presentation contains forward-looking statements and financial results forecasts. These forward-looking statemen…
This presentation contains forward-looking statements and financial results forecasts. These forward-looking statements and financial results forecasts were formulated on the basis of company assumptions based on the information available. These statements and forecasts are subject to risks and unce