ADVANEX INC.
Flash Report (Consolidated Basis)
Results for FY2025 First quarter(three months ended June 30, 2024)
August 9, 2024 | ||
Company name: | ADVANEX INC. | Stock listings: Tokyo Stock Exchange |
Code number: | 5998 | URLhttps://www.advanex.co.jp |
Representative: | Eitaro Asada, Chairman & President | |
Inquiries: | Tetsuya Yoshihara, Executive Director & CFO | Telephone: +81-3-3822-5865 |
Supplementary explanation material for quarterly financial results | Yes | |
Holding of presentation meeting for quarterly financial results | No |
1. Performance (April 1, 2024 through June 30, 2024) (Figures less than ¥1 million have been omitted.)
(1) Consolidated operating results (For the three months ended June 30.).
Percentages indicate year-on-year increase (decrease)
Net sales | Operating | Ordinary | Net income | |||||||||||
income | income | |||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||
Three months ended | 6,834 | 8.3 | 110 | (20.9) | (32) | - | 66 | (84.2) | ||||||
June 30, 2024 | ||||||||||||||
Three months ended | 6,311 | 11.8 | 139 | - | 571 | 215.3 | 423 | - | ||||||
June 30, 2023 | ||||||||||||||
[Note] Comprehensive income: Three months ended June 30,2024 | 664 million yen | |||||||||||||
Three months ended June 30,2023 | 938 million yen | |||||||||||||
Net income | Net income per share | |||||||||||||
per share | after dilution | |||||||||||||
Yen | Yen | |||||||||||||
Three months ended | 16.26 | 16.24 | ||||||||||||
June 30, 2024 | ||||||||||||||
Three months ended | 103.03 | 102.89 | ||||||||||||
June 30, 2023 | ||||||||||||||
(2) Consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||
Millions of | yen | Millions of yen | % | |||||||||||
As of June 30, 2024 | 30,654 | 8,872 | 28.9 | |||||||||||
As of March 31,2024 | 28,457 | 8,289 | 29.1 | |||||||||||
[Reference] Total shareholder's equity: 8,863 million yen at June 30, 2024 8,281 million yen at March 31, 2024
2. Dividends
Dividends per share | |||||
Record date | First quarter | Second quarter | Third quarter | Year-end | Total |
-end dividends | -end dividends | -end dividends | dividends | ||
Yen | Yen | Yen | Yen | Yen | |
Year ended | -- | -- | -- | 20.00 | 20.00 |
March 31, 2024 | |||||
Year ended | -- | -- | -- | -- | -- |
March 31, 2025 | |||||
Year ended | |||||
March 31, 2025 | -- | -- | -- | 20.00 | 20.00 |
(forecast) |
[[Note] Revisions to the latest forecast of cash dividends: No
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3. Forecast of consolidated results for FY2025 (April 1, 2024 through March 31, 2025)
Percentages indicate year-on-year increase (decrease)
Net sales | Operating | Ordinary | Net income | Net income | |||||||
income | income | (loss) | (loss) per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Year ended March | 26,000 | (2.1) | 300 | (18.0) | 200 | (76.0) | 300 | 11.6 | 73.05 | ||
31, 2025 | |||||||||||
[Note] Revisions to the latest forecasts of consolidated results: No |
4. Others
- Significant changes in subsidiaries during the subject fiscal year: No
Additions: 0 | Deletions: 0 |
- Application of simplified accounting and specific accounting: No
- Changes in accounting principles, procedures, presentations, etc.
- Changes associated with revision of accounting standards, etc: Yes
- Changes other than a.: No
- Change in accounting estimate: No
- Restatement: No
- Number of shares outstanding (Common stock)
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Number of shares outstanding at end of period (Including treasury stock) 4,153,370 shares at June 30, 2024
4,153,370 shares at March 31, 2024 - Number of shares of treasury stock at end of period
-
Number of shares outstanding at end of period (Including treasury stock) 4,153,370 shares at June 30, 2024
46,867 shares at June 30, 2024
46,761 shares at March 31, 2024
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Average number of shares issued and outstanding in each period: 4,106,543 shares at June 30, 2024
4,107,736 shares at June 30, 2023
[Notes]
1. Explanation for related to implementation of the quarterly review procedures
When disclosing this Brief Report of Financial Results, the review procedures for quarterly financial statements under the Financial Instruments and Exchange Law have not been brought to completion.
2. Explanation for appropriate use of financial forecasts and other special remarks
The above-mentioned forecasts are based on the information available as of the date when this information is disclosed, as well as on the assumptions as of the disclosing date of this information related with unpredictable parameters that are probable to affect our future business performances. Our actual performance is likely to differ greatly from these estimates depending on various factors in the future.
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(Attachment)
Index
1. Qualitative Information and Financial Statements
(1) Explanation of Business Results ……………………………………………………………………… 4
- Explanation of Financial Position……………………………………………………………………………………4,5
- Explanation of Consolidated Business Forecast and other Forecasts……………………. ………… 5
.
2. Quarterly Consolidated Financial Statements
- Quarterly Consolidated Balance Sheets………………………….……………………………………….6, 7
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income …………………………………………………………………………………… 8, 9
- Notes Concerning Quarterly Consolidated Financial Statements………………………………………10
- Segment Information, etc………………………….………………………………………………………. 11,12
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1．Qualitative Information on Financial Results For This Quarter
(1)Explanation of Business Results
In the first quarter of the fiscal year under review, the global economy remained on a moderate recovery trend, but the outlook remained uncertain as policy interest rates remained high in each region and concerns over geopolitical risks remained high. In addition, the Japanese economy also faced a burden of increased costs due to the depreciation of the yen and increased labor costs, and the economy continued to face severe conditions, coupled with stagnant consumer spending.
Against this backdrop, our business for automotive applications in major markets struggled due to the emergence of Chinese manufacturers and the impact of certification fraud issues. However, sales for OA and industrial equipment were favorable, and the medical business continued to expand steadily, particularly in Europe and the United States.
Under these circumstances, net sales for the first quarter of the current fiscal year increased 8.3% from the same quarter of the previous fiscal year to ¥6,834 million, but operating income decreased 20.9% to ¥110 million due to a decrease in sales on a local currency basis. Ordinary income was 571 million yen in the first quarter of the previous fiscal year, mainly due to foreign exchange gains (472 million yen). However, in the first quarter of the fiscal year under review, ordinary income was 32 million yen, mainly due to foreign exchange losses (115 million yen) between the U.S. dollar and the Mexican peso, and quarterly net income attributable to owners of the parent was 66 million yen, partly due to an increase in deferred tax assets.
Results by business segment are as follows.
[Japan]
Net sales increased 4.5% compared with the same quarter of the previous fiscal year to ¥2,240 million due mainly to favorable sales for OA and industrial equipment and the effects of price increases. Segment income decreased 72.3% to ¥20 million due mainly to increases in personnel expenses and energy-related costs.
[Americas]
Net sales increased 22.8% from the same quarter of the previous year to 1,236 million yen due to a significant increase in production for medical use at the U.S. factory. The segment loss was 75 million yen (compared with a loss of 84 million yen in the same quarter of the previous year) due to the increase in the U.S. plant, although the improvement in profitability at the Mexico plant was sluggish, and the extent of the loss was slightly reduced.
[Europe]
Net sales increased 13.0% year on year to ¥854 million due to the effect of the depreciation of the yen. However, segment income decreased 57.9% year on year to ¥22 million due to a decrease in sales on a local currency basis and increases in personnel and energy costs.
[Asia]
Net sales increased 4.1% compared with the same quarter of the previous fiscal year to ¥2.503 billion due mainly to strong sales for OA and industrial equipment. Segment income increased 42.3% to ¥135 million.
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Explanation of Financial Position (Assets)
Total assets at the end of the first quarter of the current fiscal year increased by 2,196 million yen
from the end of the previous fiscal year to 30,654 million yen.
In the Assets section, total current assets increased ¥1,895 million to ¥16,872 million. The main factors were increases of 1,083 million yen in cash and deposits, 599 million yen in notes and accounts receivable-trade, and 192 million yen in inventories. Total non-current assets increased 300 million to 13,781 million. This was mainly due to an increase in investments and other assets.
(Liabilities)
In the Liabilities section, total liabilities were 21,781 million yen, up 1,613 million yen from the end of the previous fiscal year. This was mainly due to an increase of 1,569 million yen in borrowings.
(Net assets)
Net assets totaled 8,872 million yen, an increase of 582 million yen from the end of the previous fiscal year. This was mainly due to an increase of 618 million yen in foreign currency translation adjustments.
As a result, the equity ratio was 28.9% (29.1% at the end of the previous fiscal year).
(3) Explanation of Consolidated Business Forecast and other Forecasts
We have not changed the forecast for the fiscal year ending March 2025 from the forecast released on May 10, 2024.
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3．QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
(1) QUARTERLY CONSOLIDATED BALANCE SHEETS
(Amount: thousands of yen) | ||
FY2025 first quarter | FY2024 | |
(As of June 30,2024) | (As of March 31,2024) | |
ASSETS | ||
Current assets: | ||
Cash and time deposits | 6,309,490 | 5,225,710 |
Trade notes and accounts receivable | 5,405,992 | 4,806,095 |
Finished goods | 2,035,380 | 1,960,173 |
Work in process | 885,539 | 833,902 |
Raw materials and stored items | 1,570,656 | 1,504,821 |
Other current assets | 698,140 | 677,945 |
Allowance for doubtful accounts | (33,118) | (32,023) |
Total current assets | 16,872,081 | 14,976,625 |
Noncurrent assets: | ||
Tangible noncurrent assets | ||
Buildings and structures | 4,348,398 | 4,307,638 |
Machinery and equipment | 4,673,502 | 4,726,518 |
Land | 1,753,984 | 1,715,825 |
Others | 1,727,598 | 1,749,459 |
Total tangible noncurrent assets | 12,503,484 | 12,499,441 |
Intangible noncurrent assets | 208,105 | 183,957 |
Investments and other assets | 1,070,353 | 797,921 |
Total noncurrent assets | 13,781,943 | 13,481,321 |
Total assets | 30,654,025 | 28,457,946 |
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(Amount: thousands of yen) | ||
FY2025 first quarter | FY2024 | |
(As of June 30,2024) | (As of March 31,2024) | |
LIABILITIES | ||
Current liabilities: | ||
Trade notes and accounts payable | 1,953,090 | 1,921,021 |
Electronically Recorded Monetary Claims | 1,575,411 | 1,578,728 |
Short-term borrowings | 6,789,531 | 4,739,303 |
Long-term borrowings due within one year | 2,622,254 | 2,480,699 |
Lease obligations | 214,442 | 229,441 |
Income taxes payable | 144,704 | 109,730 |
contract liability | 113,708 | 99,674 |
Allowance for bonus | 383,067 | 285,753 |
Other current liabilities | 1,476,823 | 1,527,495 |
Total current liabilities | 15,273,034 | 12,971,847 |
Noncurrent liabilities | ||
Long-term borrowings | 3,922,490 | 4,544,507 |
Lease obligations | 976,200 | 1,021,551 |
Deferred tax liabilities | 292,260 | 364,396 |
Asset retirement obligations | 57,382 | 56,445 |
Liabilities for retirement benefits | 1,161,559 | 1,121,267 |
Other noncurrent liabilities | 98,701 | 88,226 |
Total noncurrent liabilities | 6,508,594 | 7,196,395 |
Total liabilities | 21,781,629 | 20,168,243 |
NET ASSETS | ||
Shareholder's equity | ||
Common stock | 100,000 | 100,000 |
Capital surplus | 1,067,815 | 1,150,000 |
Retained earnings | 5,369,770 | 5,302,982 |
Treasury stock | (79,845) | (79,773) |
Total shareholder' equity | 6,457,740 | 6,473,208 |
Accumulated other comprehensive income | ||
Valuation gain (loss) on other securities | (29,940) | (21,050) |
Foreign exchange adjustment | 2,342,892 | 1,724,740 |
Cumulative amount for retirement benefits | 93,108 | 104,210 |
Total accumulated other comprehensive income | 2,406,061 | 1,807,900 |
Subscription rights to shares | 8,594 | 8,594 |
Total net assets | 8,872,396 | 8,289,703 |
Total liabilities and net assets | 30,654,025 | 28,457,946 |
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(2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(Amount: thousands of yen) | ||
FY2025 first quarter | FY2024 first quarter | |
(April 1, 2024 through June 30, | (April 1, 2023 through June 30, | |
2024) | 2023) | |
NET sales | 6,834,690 | 6,311,297 |
Cost of sales | 5,242,420 | 4,846,438 |
Gross profit | 1,592,270 | 1,464,859 |
Selling, general and administrative expenses | 1,481,559 | 1,324,937 |
Operating income | 110,710 | 139,922 |
Non-operating revenues | ||
Interest income | 17,104 | 13,269 |
Dividends income | - | 513 |
Rent income | 31,253 | 28,016 |
Foreign exchange gains | - | 472,806 |
Subsidy income | 1,202 | 2,947 |
Others | 33,623 | 6,989 |
Total non-operating revenues | 83,182 | 524,541 |
Non-operating expenses | ||
Interest expenses | 89,178 | 82,673 |
Foreign exchange loss | 115,962 | |
Other | 21,527 | 10,343 |
Total non-operating expenses | 226,668 | 93,017 |
Ordinary income(loss) | (32,775) | 571,446 |
Extraordinary gain | ||
Gain on sales of noncurrent assets | 694 | 22 |
Total extraordinary gain | 694 | 22 |
Extraordinary loss | ||
Loss on sales of noncurrent assets | 13 | 30 |
Loss on disposal of noncurrent assets | 1,069 | 764 |
Loss on litigation | - | 18,589 |
Total extraordinary loss | 1,083 | 19,384 |
Net Income (or loss) before income taxes | (33,164) | 552,083 |
Corporate, inhabitant and enterprise taxes | 71,709 | 134,712 |
Corporate tax adjustments | (171,662) | (5,862) |
Total income taxes | (99,952) | 128,850 |
Net income(loss) | 66,788 | 423,233 |
Net income (loss) Attributable to Owners of the Parent | 66,788 | 423,233 |
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QUARTERLY CONSOLIDAED STATEMENTS OF COMPREHENSIVE INCOME
(Amount: thousands of yen) | ||
FY2025 first quarter | FY2024 first quarter | |
(April 1, 2024 through June 30, | (April 1, 2023 through June 30, | |
2024) | 2023) | |
Income (or loss) before minority interests | 66,788 | 423,233 |
Other comprehensive income | ||
Valuation gain(loss) on other securities | (8,889) | (2,064) |
Foreign currency translation adjustment | 618,151 | 507,566 |
Remeasurements of defined benefit plans | (11,102) | 9,609 |
Accumulated other comprehensive income | 598,160 | 515,111 |
Comprehensive income | 664,948 | 938,345 |
(Comprehensive income attributable to) | ||
Comprehensive income attributable to owners of | 664,948 | 938,345 |
the parent | ||
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Notes Concerning Quarterly Consolidated Financial Statements (Notes on Going Concern Assumptions)
Not applicable
(Notes Concerning Significant Changes in the Amount of Shareholders' Equity) Not applicable
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