ARE : Consolidated Financial Results for the Six Months Ended September 30, 2024 ARE Holdings, Inc.

Published October 30, 2024 at 6:48 a.m. UTC

Source: MarketScreener

Consolidated Financial Results for the Six Months Ended September 30, 2024
ARE Holdings, Inc. [IFRS]
	October 30, 2024
Stock code:	5857
Shares listed:	Tokyo Stock Exchange - Prime Market
URL:	https://www.asahiholdings.com/english
Representative:	Tomoya Higashiura, Representative Director, President & CEO
For further information please contact:	Jiro Saito, General Manager, Corporate Planning &
	Communications Department
	(Phone) +81-3-6270-1833
Filing date of semi-annual securities report:	November 13, 2024
Start of dividend payment:	November 15, 2024
Supplementary materials for the financial results:	Yes
Investor conference for the financial results:	Yes (for institutional investors, analysts)

		(Rounded down to the nearest million yen)
1. Results of the six months ended September 30, 2024 (From April 1,	2024 to September 30, 2024)
(1) Results of operations (cumulative)	(Percentage:	Changes relative to corresponding previous period)

	Revenue	Operating	Profit before	Profit
	profit		tax


The six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen %
September 30, 2024	240,357	66.7	8,317	45.9	8,392	42.3	6,604	25.6
September 30, 2023	144,226	-	5,700		-	5,898		-	5,259	(27.9)

Profit	Total
attributable to	comprehensive
owners of parent	income
Millions of yen %	Millions of yen %
6,604	25.6	7,047	(55.0)
5,259	(27.9)	15,670	48.9

	Basic earnings per share	Diluted earnings per share

The six months ended	Yen	Yen
September 30, 2024	86.41	78.46
September 30, 2023	68.62	62.56

(Note) During the fiscal year ended March 31, 2024, a share exchange was conducted between Japan Waste Corporation, which was a consolidated subsidiary of the Company, and Renatus Co., Ltd., whereby Renatus Co., Ltd. became the wholly owning parent company, and Japan Waste Corporation became the wholly owned subsidiary company, resulting in the Japan Waste Corporation business being classified as discontinued operations. Consequently, revenue, operating profit and profit before tax for the six months ended September 30, 2023, are presented in amounts from continuing operations from which discontinued operations have been excluded.

(2) Financial Position

	Total assets	Total equity

As of	Millions of yen	Millions of yen
September 30, 2024	371,458	129,777
March 31, 2024	317,998	126,476

2. Dividend payments

Equity attributable to

owners of parent

Millions of yen

129,777

126,476

Equity attributable to owners of parent ratio

34.9

39.8

			Dividends per share
	First quarter	Second quarter	Third quarter	Year-end	Annual
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2024	-	45.00	-	45.00	90.00
Year ending March 31, 2025	-	40.00
Year ending March 31, 2025			-	40.00	80.00
(Forecast)

(Note) Revisions in dividend forecast in the current period: No

3. Forecast (From April 1, 2024 to March 31, 2025)	(Percentage: Changes relative to corresponding previous period)
				Operating	Profit before	Profit		Basic earnings
	Revenue		attributable to
		profit		tax		per share
						owners of parent

	Millions of yen	%	Millions of yen	%	Millions of yen %	Millions of yen	%	Yen
Year ending March 31, 2025	480,000	49.0	18,000	45.5	17,600	41.6	13,148	(46.3)	172.53
(Note) Revisions in forecast in the current period: Yes

Notes
1. Significant changes in the scope of consolidation during the period: No
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies required by IFRS: No
  2. Changes other than (i) above: No
  3. Changes in accounting estimates: No
4. Number of issued shares (common stock)
5. 1. Number of issued shares at the semi-annual end (including treasury stock)

	As of September 30, 2024	79,708,688 shares
	As of March 31, 2024	79,708,688 shares
(ii) Number of treasury stock at the semi-annual end
	As of September 30, 2024	3,095,284 shares
	As of March 31, 2024	3,065,554 shares

(iii) Averaged number of shares during the period (semi-annual period)

Six months ended September 30, 2024	76,426,800 shares
Six months ended September 30, 2023	76,643,173 shares

Semi-annualfinancial results reports are exempt from review conducted by certified public accountants or an audit firm.
Statement regarding the proper use of financial forecasts and other special remarks (Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the Company's management and certain assumptions judged rational. Accordingly, there might be cases in which actual results materially differ from forecasts of this report. Please refer to page 3 "1. Overview of Consolidated Operating Results (3) Consolidated Performance Forecasts" for the assumptions used and other notes.

【Appendix】
	Table of contents of the appendix
1. Overview of Consolidated Operating Results	2
(1)	Overview of Consolidated Operating Results for the Six Months Ended September 30, 2024	2
(2)	Overview of Consolidated Financial Position and Cash Flows for the Six Months Ended September 30, 2024 ...	2
(3)	Consolidated Performance Forecasts	3
2. Condensed Semi-annual Consolidated Financial Statements	4
(1)	Condensed Semi-annual Consolidated Statements of Financial Position	4
(2)	Condensed Semi-annual Consolidated Statements of Income	6
(3)	Condensed Semi-annual Consolidated Statements of Comprehensive Income	7
(4)	Condensed Semi-annual Consolidated Statements of Changes in Equity	8
(5)	Condensed Semi-annual Consolidated Statements of Cash Flows	10
(6)	Notes on Condensed Semi-annual Consolidated Financial Statements	11
Segment information	11
Notes on assumptions for going concern	12
Significant subsequent events	12

－ 1 －

1. Overview of Consolidated Operating Results

Overview of Consolidated Operating Results for the Six Months Ended September 30, 2024

The financial results for the six months ended September 30, 2024 were as follows.

Revenue	240,357 million yen	(a year-on-year increase of 96,130 million yen,
		or +66.7 percent)
Operating profit	8,317 million yen	(a year-on-year increase of 2,616 million yen,
		or +45.9 percent)
Profit before tax	8,392 million yen	(a year-on-year increase of 2,494 million yen,
		or +42.3 percent)
Profit attributable to owners of parent 6,604 million yen	(a year-on-year increase of 1,344 million yen,
		or +25.6 percent)

As for the precious metals recycling business, the volume collected in the jewelry sector increased significantly year on year, while the volume collected in the dental, electronics, and catalyst-related sectors remained almost flat year on year. As a result, the volume of gold collected increased year on year, the volumes of palladium and platinum collected were almost flat year on year, and the volume of rhodium collected decreased year on year. The gold and silver refining business in the North American region remained strong. Sales volume in the product business declined year on year, but the trading business and others performed well. As a result, revenue and operating profit in Precious Metals business segment increased from the same period of the previous fiscal year.

In the Environmental Preservation business, while the revenue and operating profit of Japan Waste Corporation, which was classified as discontinued operations, are not included in the financial results for the six months ended September 30, 2023, the share of profit (loss) of investments accounted for using equity method of Renatus Co., Ltd. is included in operating profit in the financial results for the six months ended September 30, 2024.

Overview of Consolidated Financial Position and Cash Flows for the Six Months Ended September 30, 2024

As of September 30, 2024, total assets amounted to 371,458 million yen, up 53,459 million yen from the previous fiscal year end. This was mainly due to increases of 12,496 million yen in cash and cash equivalents and 42,371 million yen in trade and other receivables.

Total liabilities amounted to 241,680 million yen, up 50,158 million yen from the previous fiscal year end. This was due mainly to an increase of 55,042 million yen in bonds and loans payable.

Total equity amounted to 129,777 million yen, up 3,301 million yen from the previous fiscal year end. This was due mainly to an increase of 7,047 million yen in comprehensive income and a decrease of 3,448 million yen used for dividends.

As a result, the equity attributable to owners of parent ratio changed to 34.9%, from 39.8% at the end of the previous fiscal year.

Net cash provided by operating activities amounted to 11,175 million yen due mainly to 8,392 million yen of profit before tax, 1,373 million yen of depreciation and amortization, 3,408 million yen of increase in inventories, 70,555 million yen of increase in trade and other receivables, 68,295 million yen of increase in trade, loans and other payables, 17,292 million yen of interest and dividend income received and 2,663 million yen of income taxes paid.

Net cash provided by investing activities amounted to 4,603 million yen due mainly to 11,098 million yen of collection of loans receivable, despite 3,246 million yen of purchase of property, plant and equipment, and 3,049 million yen of payments for loans receivable.

Net cash used in financing activities amounted to 4,201 million yen due mainly to 1,000 million yen of purchase of treasury stock and 3,445 million yen of cash dividends paid.

As a result, cash and cash equivalents as of September 30, 2024 increased by 12,496 million yen from March 31, 2024, to 19,377 million yen.

－ 2 －

(3) Consolidated Performance Forecasts

The consolidated financial forecast for the year ending March 31, 2025, as announced on April 25, 2024, has been revised as follows. For details, please refer to the "Notice of Difference between Financial Forecast and Actual Financial Results for the Six Months Ended September 30, 2024 and Revision to Financial Forecast for the Year Ending March 31, 2025" released today (October 30, 2024).

Revisions of the consolidated financial forecast for the year ending March 31, 2025 (April 1, 2024 to March 31, 2025)

				Profit	Basic earnings
	Revenue	Operating profit	Profit before tax	attributable to
	per share
				owners of parent

	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
Previous forecast (A)	370,000	18,000	17,600	13,148	172.53
Revised forecast (B)	480,000	18,000	17,600	13,148	172.53
Change (B-A)	110,000	-	-	-	-
Change (%)	29.7	-	-	-	-
(Ref.)	322,253	12,367	12,426	24,490	319.54
Results for the previous FY
(FY ended March 31, 2024)

－ 3 －

2. Condensed Semi-annual Consolidated Financial Statements

Condensed Semi-annual Consolidated Statements of Financial Position

	As of	As of
	March 31,	September 30,
	2024		2024

	Millions of yen	Millions of yen

ASSETS
Current assets
Cash and cash equivalents	6,881		19,377
Trade and other receivables	155,268		197,639
Inventories	33,879		37,327
Income tax receivables	77		293
Other financial assets	17,763		12,399
Other current assets	39,903		38,746
Total current assets	253,773		305,784
Non-current assets
Property, plant and equipment	33,192		34,507
Goodwill	19		19
Intangible assets	1,580		1,535
Investments accounted for using equity method	27,665		28,636
Deferred tax assets	5		248
Net defined benefit asset	186		152
Financial assets	1,506		472
Other non-current assets	68		101
Total non-current assets	64,224		65,673
Total assets	317,998		371,458

－ 4 －

	As of	As of
	March 31,	September 30,
	2024		2024

	Millions of yen	Millions of yen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables	27,180		30,462
Bonds and loans payable	69,970		131,985
Income tax payable	2,387		1,167
Other financial liabilities	6,465		2,839
Provisions	1,302		1,164
Other current liabilities	5,694		1,363
Total current liabilities	113,001		168,984
Non-current liabilities
Bonds and loans payable	71,190		64,217
Deferred tax liabilities	4,432		6,063
Net defined benefit liability	99		123
Other financial liabilities	2,798		2,292
Total non-current liabilities	78,521		72,696
Total liabilities	191,522		241,680
Equity
Capital stock	7,790		7,790
Capital surplus	12,245		12,089
Treasury stock	(5,925)		(6,066)
Retained earnings	113,837		116,971
Other components of equity	(1,471)		(1,007)
Total equity attributable to owners of parent	126,476		129,777
Total equity	126,476		129,777
Total liabilities and equity	317,998		371,458

－ 5 －

(2) Condensed Semi-annual Consolidated Statements of Income

		The six months		The six months
		ended September 30,		ended September 30,
		2023	2024

		Millions of yen		Millions of yen

Continuing operations
Revenue	144,226	240,357
Cost of sales	(134,494)		(228,707)
Gross profit	9,732	11,650
Selling, general and administrative expenses	(4,105)	(4,254)
Other operating income	83	88
Other operating expenses	(9)	(137)
Share of profit (loss) of investments accounted for	-	970
using equity method

Operating profit	5,700	8,317
Finance income	1,111	666
Finance costs	(913)		(591)
Profit before tax	5,898	8,392
Income tax expenses	(1,647)		(1,788)
Profit from continuing operations	4,251	6,604
Discontinued operations
Profit from discontinued operations	1,008		-
Profit	5,259	6,604
Profit attributable to:

Owners of parent	5,259	6,604
Non-controlling interests	-		-
Profit	5,259	6,604
Earnings per share

Basic earnings per share (Yen)
Continuing operations	55.47	86.41
Discontinued operations	13.16		-
Total	68.62	86.41
Diluted earnings per share (Yen)
Continuing operations	50.88	78.46
Discontinued operations	11.68		-
Total		62.56	78.46

－ 6 －

(3) Condensed Semi-annual Consolidated Statements of Comprehensive Income

		The six months		The six months
		ended September 30,		ended September 30,
		2023	2024

		Millions of yen		Millions of yen

Profit	5,259	6,604
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans	19		(21)
Total items that will not be reclassified to profit	19	(21)
or loss

Items that may be reclassified to profit or loss
Cash flow hedges	7,493	1,926
Translation adjustments of foreign operations	2,897		(1,461)
Total items that may be reclassified to profit or	10,390	464
loss

Other comprehensive income, net of tax	10,410		443
Comprehensive income	15,670	7,047
Comprehensive income attributable to:
Owners of parent	15,670	7,047
Non-controlling interests	-		-
Comprehensive income		15,670	7,047

－ 7 －

(4) Condensed Semi-annual Consolidated Statements of Changes in Equity

													(Millions of yen)
					Equity attributable to owners of parent
													Other components of
		Capital	Capital				Treasury			Retained	equity
							Translation		Cash flow
		stock	surplus				stock			earnings	adjustments
													of foreign	hedges
													operations
Balance at April 1, 2023	7,790			12,103	(5,925)	96,319			(886)	(2,443)
Profit	-	-				-	5,259			-		-
Other comprehensive	-	-				-			-	2,897	7,493
income

Total comprehensive	-	-				-	5,259			2,897	7,493
income

Purchase of treasury stock	-	-	(0)			-	-		-
Dividends	-	-				-	(3,448)			-		-
Reclassified from other
components of equity to	-	-				-	19			-		-
retained earnings
Share-based payment	-	131				-			-	-		-
transactions

Total transactions with	-	131	(0)	(3,429)			-		-
owners

Balance at September 30,	7,790			12,235	(5,925)	98,149			2,010	5,049
2023


									(Millions of yen)
		Equity attributable to owners of parent

		Other components of
		equity
		Remeasure-
		ments of	Total				Total			Total equity
		defined

		benefit plans

Balance at April 1, 2023	-	(3,330)	106,957	106,957
Profit	-	-	5,259	5,259
Other comprehensive	19			10,410	10,410	10,410
income

Total comprehensive
19			10,410	15,670	15,670
income
-	-	(0)	(0)
Purchase of treasury stock
Dividends	-	-	(3,448)	(3,448)
Reclassified from other	(19)			(19)				-			-
components of equity to
retained earnings
Share-based payment	-	-	131	131
transactions

Total transactions with
(19)			(19)	(3,317)	(3,317)
owners

Balance at September 30,
-	7,060	119,309	119,309
2023

－ 8 －