Daiki Aluminium Industry Co., Ltd. TSE:5702

Daiki Aluminium Industry : Consolidated Financial Results for the Nine Months Ended December 31, 2024 （186KB）

Published February 7, 2025 at 6:08 a.m. UTC

Source: MarketScreener

Consolidated Financial Results

for the Nine Months Ended December 31, 2024

[Japanese GAAP]

February 7, 2025

Company name: Daiki Aluminium Industry Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 5702

URL: https://www.dik-net.com/

Representative: Shigenori Hayashi, President, Representative Director, Executive Officer

Contact: Hiroto Kurosu, Managing Executive Officer, General Manager of Administration Department

Phone: +81-6-6444-2751

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on financial results: Available

Schedule of financial results briefing session: No

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 - December 31, 2024)

(1) Consolidated Operating Results (Cumulative)	(% indicates changes from the previous corresponding period.)
			Net sales			Operating profit		Ordinary profit		Profit attributable to
							owners of parent

	Nine months ended		Million yen	%		Million yen	%		Million yen	%		Million yen	%
	December 31, 2024		213,127	5.6		3,536	7.1		2,756	(9.2)	1,474	(39.5)
	December 31, 2023		201,886	(6.2)		3,301	(71.9)		3,037	(74.6)	2,439	(69.4)
	(Note) Comprehensive	income: Nine months	ended December 31, 2024: ¥3,066 million [(47.5)%]
			Nine months ended December 31, 2023: ¥5,843 million [(55.4)%]
			Basic earnings		Diluted earnings
			per share			per share
	Nine months ended			Yen			Yen
	December 31, 2024			36.75			36.19
	December 31, 2023			60.21			59.31
(2) Consolidated Financial Position
			Total assets	Net assets	Equity ratio
				Million yen		Million yen		%
	As of December 31, 2024	164,306		72,514		43.7
	As of March 31, 2024		138,679		72,062		51.4

(Reference) Equity: As of December 31, 2024: ¥71,770 million As of March 31, 2024: ¥71,247 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end

Fiscal year ended		Yen	Yen		Yen
	-	30.00		-
March 31, 2024

Fiscal year ending		-	25.00		-
March 31, 2025

Fiscal year ending
March 31, 2025
(Forecast)

(Note) Revisions from the most recently announced dividends forecast: No

Year-end

Yen

20.00

30.00

Total

Yen

50.00

55.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

					(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit		Ordinary profit	Profit attributable to	Basic earnings
			owners of parent	per share

	Million yen	%	Million yen	%		Million yen	%	Million yen	%	Yen
Full year	291,200	10.9	4,790	3.7		3,750	(10.0)	2,110	(35.0)	53.32

(Note) Revisions from the most recently announced financial results forecast: No

* Notes:

Significant changes in the scope of consolidation during the period under review: Yes
Newly included: 1 company (company name) Daiki Aluminium Vietnam Co., Ltd.
Excluded: -
Adoption of special accounting methods for the preparation of quarterly consolidated financial statements: No
Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: No
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

As of December 31, 2024:	43,629,235 shares
As of March 31, 2024:	43,629,235 shares
2) Total number of treasury shares at the end of the period:
As of December 31, 2024:	4,056,711 shares
As of March 31, 2024:	3,117,611 shares
3) Average number of shares during the period (cumulative total):
Nine months ended December 31, 2024:	40,135,984 shares
Nine months ended December 31, 2023:	40,511,678 shares

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary)
Explanation on the proper use of financial results forecast and other notes(Cautionary note regarding forward-looking statements, etc.)
The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may vary significantly due to various factors. For the assumptions used for the earnings forecasts and the notes regarding the use thereof, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached document.

(Reference)

1. Non-consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 - December 31, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit
Nine months ended	Million yen	%	Million yen	%		Million yen	%	Million yen	%
December 31, 2024	127,569	8.8	1,734	0.9		2,374	4.0	1,648	(34.4)
December 31, 2023	117,238	(4.1)	1,718	(60.7)		2,283	(56.8)	2,513	(32.7)

	Basic earnings	Diluted earnings
	per share		per share
Nine months ended		Yen		Yen
December 31, 2024		41.07		40.45
December 31, 2023		62.05		61.12

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

				(% indicates changes from the previous corresponding period.)
	Net sales	Operating profit	Ordinary profit	Profit		Basic earnings
		per share

	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	168,600	11.8	2,200	(2.7)	3,650	(4.7)	2,760	(25.9)	69.75

(Note) Revisions from the most recently announced financial results forecast: No

Daiki Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Nine Months Ended December 31, 2024

Table of Contents - Attachments

1. Overview of Operating Results, etc. .................................................................................................... 2
(1)	Overview of Operating Results for the Period under Review	2
(2)	Overview of Financial Position for the Period under Review	2
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 3
2. Quarterly Consolidated Financial Statements and Principal Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income	6
	Nine Months Ended December 31	6
	Quarterly Consolidated Statement of Comprehensive Income	7
	Nine Months Ended December 31	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Significant Matters Serving as the Basis for Quarterly Consolidated Financial Statement
	Preparation)	8
	(Changes in Scope of Consolidation or Scope of Application of the Equity Method)	8
	(Notes concerning Segment Information)	8
	(Revenue Recognition)	9
	(Notes in Case of Significant Changes in Shareholders' Equity)	10
	(Notes on Going Concern Assumption)	10
	(Notes on Consolidated Statements of Cash Flows)	10
Independent Auditor's Report on Interim Review of Quarterly Consolidated Financial Statements	.... 11

Daiki Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Nine Months Ended December 31, 2024

1. Overview of Operating Results, etc.

Overview of Operating Results for the Period under Review
During the nine months ended December 31, 2024, the Japanese economy recovered slowly although signs of faltering were still remaining partly. Going forward, we anticipate a gradual recovery will continue as the employment and income situations are improving in part thanks to various policies. However, downturns in overseas economies, affected by such factors as the impact associated with the continuation of high interest rates in Europe and the United States and a prolonged slump in China's property market, present risks of putting downward pressure on the Japanese economy. Close attention should be paid to these as well as the impacts of rising prices, future policy trends in the United States, the situation in the Middle East, and changes in the financial and capital markets.
Amid this economic environment, in the domestic automobile-related market, which is our main source of demand, production activities of some automakers were restarted in phases from stagnation due to certification irregularities and recall problems, helping the market return on a domestic demand-led growth trajectory. Overseas, on the other hand, automobile production and unit sales decreased significantly from the year-earlier levels as financial institutions tightened credit screening for auto loans in response to an increase in the household debt ratio in Thailand and Indonesia. In addition, moves signaling a structural change of the global automotive industry have been seen, including the announcement of a business integration plan between Honda Motor and Nissan Motor.
As a result, the Group's consolidated net sales for the nine months ended December 31, 2024 amounted to a combined total of ¥213,127 million (up 5.6% year on year), including ¥136,163 million in secondary aluminum alloy ingots (up 3.8% year on year) and ¥76,963 million in merchandise and raw materials (up 8.8% year on year).
Given the shrinkage in the price difference (spread) between raw material prices and product selling prices compared to the same period of the previous fiscal year, especially at overseas consolidated subsidiaries, and profit shrinkage due to lower output affected by slumping sales at automakers, which are our main source of demand, operating profit was ¥3,536 million (up 7.1% year on year), ordinary profit was ¥2,756 million (down 9.2% year on year), and profit attributable to owners of parent was ¥1,474 million (down 39.5% year on year).
Overview of Financial Position for the Period under Review 1) Current Assets

The balance of current assets as of December 31, 2024 was ¥129,354 million, up ¥23,835 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥3,790 million in cash and deposits, ¥13,108 million in notes and accounts receivable - trade, ¥3,924 million in merchandise and finished goods, and ¥3,992 million in raw materials and supplies, and a decrease of ¥1,014 million in other.

2) Non-current Assets

The balance of non-current assets as of December 31, 2024 was ¥34,952 million, up ¥1,791 million from the end of the previous fiscal year. This was mainly due to increases of ¥584 million in property, plant and equipment, ¥410 million in investment securities, and ¥731 million in other.

3) Current Liabilities

The balance of current liabilities as of December31, 2024 was ¥80,066 million, up ¥23,185 million from the end of the previous fiscal year. This was mainly due to increases of ¥1,472 million in notes and accounts payable - trade, and ¥22,128 million in short-term borrowings, and a decrease of ¥480 million in income taxes payable.

Daiki Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Nine Months Ended December 31, 2024

4) Non-current Liabilities

The balance of non-current liabilities as of December 31, 2024 was ¥11,725 million, up ¥1,990 million from the end of the previous fiscal year. This was mainly due to increases of ¥1,637 million in long-term borrowings and ¥260 million in deferred tax liabilities.

5) Net Assets

The balance of net assets as of December 31, 2024 was ¥72,514 million, up ¥451 million from the end of the previous fiscal year. This was mainly due to an increase of ¥1,542 million in foreign currency translation adjustment and a decrease of ¥1,049 million resulting from purchase of treasury shares.

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There are no changes to the financial results forecasts for the fiscal year ending March 31, 2025, which were disclosed on October 31, 2024 as part of the "Notice of Revision of Financial Results Forecast."

Daiki Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Nine Months Ended December 31, 2024

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheet

				(Million yen)

			As of March 31, 2024	As of December 31, 2024

Assets
Current assets
Cash and deposits	6,379	10,170
Notes and accounts receivable - trade	52,861	65,970
Merchandise and finished goods	18,639	22,564
Work in process	183	224
Raw materials and supplies	21,227	25,220
Other	6,231	5,217
Allowance for doubtful accounts	(3)	(12)
Total current assets			105,519	129,354
Non-current assets
Property, plant and equipment
Buildings and structures	20,434	21,055
Accumulated depreciation		(10,389)	(10,870)
Buildings and structures, net	10,045	10,185
Machinery, equipment and vehicles			36,248	38,251
Accumulated depreciation	(26,902)	(28,676)
Machinery, equipment and vehicles, net			9,345	9,574
Tools, furniture and fixtures	2,196	2,285
Accumulated depreciation		(1,680)	(1,811)
Tools, furniture and fixtures, net	515	474
Land			4,072	4,280
Leased assets	2,067	2,136
Accumulated depreciation		(407)	(394)
Leased assets, net	1,660	1,741
Construction in progress			375	343
Total property, plant and equipment	26,014	26,599
Intangible assets			151	172
Investments and other assets
Investment securities	5,070	5,481
Long-term loans receivable	1	1
Retirement benefit asset	1,028	1,033
Deferred tax assets	362	424
Other	841	1,573
Allowance for doubtful accounts	(310)	(333)
Total investments and other assets			6,994	8,180
Total non-current assets	33,160	34,952
Total assets			138,679	164,306

Daiki Aluminium Industry Co., Ltd. (5702) Consolidated Financial Results for the Nine Months Ended December 31, 2024

(Million yen)

As of March 31, 2024

As of December 31, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

Short-term borrowings

Accounts payable - other

Income taxes payable

Accrued consumption taxes

Accrued expenses

Provision for bonuses

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Provision for retirement benefits for directors (and other officers)

Retirement benefit liability

Lease liabilities

Asset retirement obligations

Deferred tax liabilities

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income

Share acquisition rights

Non-controlling interests

Total net assets

Total liabilities and net assets

10,256	11,728
41,684	63,812
1,851	1,970
586	105
89	219
1,359	1,361
283	362
769	506
56,881	80,066
6,435	8,072
10	11
367	409
132	180
298	301
2,342	2,603
148	146
9,735	11,725
66,616	91,792
6,346	6,346
8,863	8,861
49,179	49,109
(1,337)	(2,387)
63,052	61,930
1,917	1,984
(24)	92
5,889	7,431
412	331
8,194	9,840
142	142
672	600
72,062	72,514
138,679	164,306

Daiki Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Nine Months Ended December 31, 2024

Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
Nine Months Ended December 31

					(Million yen)

			For the nine months ended		For the nine months ended
			December 31, 2023		December 31, 2024
Net sales	201,886	213,127
Cost of sales		192,079	203,222
Gross profit	9,806	9,904
Selling, general and administrative expenses
Transportation costs	2,783	2,585
Provision of allowance for doubtful accounts	0	3
Provision for retirement benefits for directors (and			0		0
other officers)

Provision for bonuses	76	81
Other	3,645	3,697
Total selling, general and administrative expenses			6,505	6,367
Operating profit	3,301	3,536
Non-operating income
Interest income	76	88
Dividend income	163	194
Foreign exchange gains	245		-
Technical advisory fee income	7	4
Gain on sales of iron scrap	99	97
Other		180	272
Total non-operating income	773	657
Non-operating expenses
Interest expenses	938	1,142
Share of loss of entities accounted for using equity			-	85
method

Foreign exchange losses			-	149
Other		98	60
Total non-operating expenses	1,036	1,437
Ordinary profit			3,037	2,756
Extraordinary income
Gain on sale of non-current assets	6	9
Gain on sale of investment securities	1,261		-
Compensation income		66		-
Total extraordinary income	1,334	9
Extraordinary losses
Loss on sale and retirement of non-current assets	73	79
Total extraordinary losses			73	79
Profit before income taxes	4,298	2,686
Income taxes - current			1,355	1,110
Income taxes - deferred	586	152
Total income taxes			1,941	1,263
Profit	2,357	1,422
Loss attributable to non-controlling interests			(82)	(52)
Profit attributable to owners of parent		2,439	1,474