Daiki Aluminium Industry Co., Ltd. TSE:5702

Daiki Aluminium Industry : Consolidated Financial Results for the Three Months Ended June 30, 2024 （176KB）

Published August 19, 2024 at 4:08 a.m. UTC

Source: MarketScreener

Consolidated Financial Results

for the Three Months Ended June 30, 2024

[Japanese GAAP]

August 9, 2024

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 and Representative Director and Executive Officer

Contact: Hiroto Kurosu, Managing Executive Officer, General Manager, 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 Three Months Ended June 30, 2024 (April 1, 2024 - June 30, 2024)

(1) Consolidated Operating Results (Cumulative)	(% indicates changes from the previouscorresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
						Million yen
Three months ended	Million yen	%	Million yen	%	%		Million yen	%
June 30, 2024	62,551	(0.7)		816	(55.0)	834		(55.9)	524	(57.5)
June 30, 2023	63,021	(13.0)		1,816	(69.0)	1,892		(69.2)	1,233	(69.7)
(Note) Comprehensive	income: Three months ended June 30, 2024: ¥1,982 million [(31.1)%]
	Three months ended June 30, 2023: ¥2,878 million [(52.8)%]
	Basic earnings	Diluted earnings
	per share			per share
Three months ended		Yen			Yen
June 30, 2024		12.96			12.76
June 30, 2023		30.46			30.00

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of June 30, 2024	144,936	73,489	50.1
As of March 31, 2024	138,679	72,062	51.4

(Reference) Equity: As of June 30, 2024: ¥72,631 million As of March 31, 2024: ¥71,247 million

2. Dividends

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

Fiscal year ended		Yen	Yen		Yen	Yen	Yen
	-	30.00		-	20.00	50.00
March 31, 2024

Fiscal year ending		-

March 31, 2025

Fiscal year ending
March 31, 2025			25.00		-	30.00	55.00
(Forecast)

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

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.)


							Profit		Basic earnings
	Net sales		Operating profit	Ordinary profit	attributable to
		per share
							owners of parent

Six months	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen

ending	136,800	3.5	2,340	(14.8)	2,080	(22.3)	1,430	(44.7)	35.30
September 30

(Cumulative)
Full year	290,600	10.6	6,720	45.5	6,050	45.2	4,240	30.7	104.66

(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 June 30, 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 June 30, 2024:	3,117,611 shares
As of March 31, 2024:	3,117,611 shares
3) Average number of shares during the period (cumulative total):
Three months ended June 30, 2024:	40,511,624 shares
Three months ended June 30, 2023:	40,511,684 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 Three Months Ended June 30, 2024 (April 1, 2024 - June 30, 2024)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit
Three months ended	Million yen	%	Million yen	%		Million yen	%	Million yen	%
June 30, 2024	37,457	(3.6)	(59)	(109.7)		138	(81.5)	74	(84.7)
June 30, 2023	38,844	(7.4)	615	(63.2)		748	(60.2)	486	(62.0)

	Basic earnings	Diluted earnings
	per share		per share
Three months ended		Yen		Yen
June 30, 2024		1.83		1.80
June 30, 2023		12.00		11.82

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

Six months ending	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
82,300	7.2	370	(70.0)	930	(44.1)	740	(64.8)	18.27
September 30
(Cumulative)
Full year	168,300	11.6	1,500	(33.6)	3,340	(12.8)	2,730	(26.7)	67.39

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

	DAIKI Aluminium Industry Co., Ltd. (5702)
	Consolidated Financial Results for the Three Months Ended June 30, 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	3
(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
	Three Months Ended June 30	6
	Quarterly Consolidated Statement of Comprehensive Income	7
	Three Months Ended June 30	7
(3)	Notes to Quarterly Consolidated Financial Statements	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)	9
	(Notes on Going Concern Assumption)	9
	(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 Three Months Ended June 30, 2024

1. Overview of Operating Results, etc.

Overview of Operating Results for the Period under Review
During the three months ended June 30, 2024, the Japanese economy recovered slowly although it has recently shown signs of faltering. Going forward, we anticipate a gradual recovery will continue as the employment and income situations are improving in part thanks to various policies. We expect the global economy will avoid a significant slowdown and maintain growth, if gradual. 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 concerns about the Chinese economic outlook resulting from a property market slump, are risks of putting downward pressure on the Japanese economy. Close attention should be paid to these as well as the impacts of rising prices, 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 slowed due to certification irregularities and a recall problem. But as production and shipment have been restarted in phases recently, we expect the market will return on a domestic demand-driven growth track going forward. On the other hand, in the Southeast Asian market, recovery in automobile sales slowed, affected by such factors as interest rates on auto loans that remained at elevated levels.
As a result, the Group's consolidated net sales for the three months ended June 30, 2024 amounted to a combined total of ¥62,551 million (down 0.7% year on year), including ¥42,109 million in secondary aluminium alloy ingots (down 5.1% year on year) and ¥20,441 million in merchandise and raw materials (up 9.7% year on year).
As a result of failing to maintain sufficient spreads due to a failure to revise pricing in time to address cost increases in the face of significant year-on-year rises in production costs, including labor costs and raw material and energy prices, and a slumping demand for aluminum alloy, operating profit was ¥816 million (down 55.0% year on year), ordinary profit was ¥834 million (down 55.9% year on year), and profit attributable to owners of parent was ¥524 million (down 57.5% year on year).
With regard to a potential impact on our consolidated financial results due to the certification irregularities involving five automakers that came to light in early June, we currently consider that the impact on the financial results will be limited. If any matter arises that should be disclosed in the future, we will announce it immediately.
Situations of respective business segments are as follows.
As a result of failing to maintain sufficient spreads due to a failure to revise pricing in time to address cost increases in the face of significant year-on-year rises in production costs, including labor costs and raw material and energy prices, and a slumping demand for aluminum alloy, the secondary aluminium alloy business posted net sales of ¥61,779 million (down 0.9% year on year), operating profit of ¥747 million (down 59.5% year on year). As the die-cast products business remained on a gradual recovery track, the others segment posted net sales of ¥1,144 million (up 16.2% year on year) and operating profit of ¥69 million (vs. loss of ¥45 million a year earlier).

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Three Months Ended June 30, 2024

Overview of Financial Position for the Period under Review 1) Current Assets

The balance of current assets as of June 30, 2024 was ¥110,691 million, up ¥5,172 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥2,457 million in cash and deposits, ¥1,135 million in merchandise and finished goods, and ¥2,029 million in raw materials and supplies.

2) Non-current Assets

The balance of non-current assets as of June 30, 2024 was ¥34,244 million, up ¥1,084 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥869 million in property, plant and equipment and ¥182 million in investment securities.

3) Current Liabilities

The balance of current liabilities as of June 30, 2024 was ¥61,660 million, up ¥4,779 million from the end of the previous fiscal year. This was mainly due to an increase of ¥5,056 million in short-term borrowings and a decrease of ¥493 million in notes and accounts payable - trade.

4) Non-current Liabilities

The balance of non-current liabilities as of June 30, 2024 was ¥9,785 million, up ¥50 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥10 million in retirement benefit liability and ¥122 million in deferred tax liabilities and a decrease of ¥85 million in long-term borrowings.

5) Net Assets

The balance of net assets as of June 30, 2024 was ¥73,489 million, up ¥1,427 million from the end of the previous fiscal year. This was mainly due to respective increases of ¥58 million in valuation difference on available-for-sale securities, ¥99 million in deferred gains or losses on hedges and ¥1,284 million in foreign currency translation adjustment and a decrease of ¥30 million in retained earnings.

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There are no changes to the consolidated financial results forecasts for the six months ending September 30, 2024 and the fiscal year ending March 31, 2025, which were disclosed on May 14, 2024 as part of the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 [Japanese GAAP]."

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Three Months Ended June 30, 2024

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheet

				(Million yen)

			As of March 31, 2024	As of June 30, 2024

Assets
Current assets
Cash and deposits	6,379	8,837
Notes and accounts receivable - trade	52,861	53,570
Merchandise and finished goods	18,639	19,774
Work in process	183	183
Raw materials and supplies	21,227	23,256
Other	6,231	5,080
Allowance for doubtful accounts	(3)	(12)
Total current assets			105,519	110,691
Non-current assets
Property, plant and equipment
Buildings and structures	20,434	20,968
Accumulated depreciation		(10,389)	(10,565)
Buildings and structures, net	10,045	10,403
Machinery, equipment and vehicles			36,248	37,351
Accumulated depreciation	(26,902)	(27,491)
Machinery, equipment and vehicles, net			9,345	9,860
Tools, furniture and fixtures	2,196	2,247
Accumulated depreciation		(1,680)	(1,736)
Tools, furniture and fixtures, net	515	511
Land			4,072	4,076
Leased assets	2,067	2,163
Accumulated depreciation		(407)	(448)
Leased assets, net	1,660	1,714
Construction in progress			375	319
Total property, plant and equipment	26,014	26,884
Intangible assets			151	161
Investments and other assets
Investment securities	5,070	5,252
Long-term loans receivable	1	1
Retirement benefit asset	1,028	1,029
Deferred tax assets	362	383
Other	841	844
Allowance for doubtful accounts	(310)	(313)
Total investments and other assets			6,994	7,198
Total non-current assets	33,160	34,244
Total assets			138,679	144,936

DAIKI Aluminium Industry Co., Ltd. (5702) Consolidated Financial Results for the Three Months Ended June 30, 2024

(Million yen)

As of March 31, 2024

As of June 30, 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	9,762
41,684	46,740
1,851	1,559
586	198
89	100
1,359	1,757
283	195
769	1,346
56,881	61,660
6,435	6,349
10	10
367	378
132	133
298	299
2,342	2,465
148	148
9,735	9,785
66,616	71,446
6,346	6,346
8,863	8,863
49,179	49,148
(1,337)	(1,337)
63,052	63,022
1,917	1,975
(24)	75
5,889	7,173
412	385
8,194	9,609
142	142
672	715
72,062	73,489
138,679	144,936

DAIKI Aluminium Industry Co., Ltd. (5702)

Consolidated Financial Results for the Three Months Ended June 30, 2024

Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
Three Months Ended June 30

					(Million yen)

			For the three months ended		For the three months ended
			June 30, 2023		June 30, 2024
Net sales	63,021	62,551
Cost of sales		59,053	59,734
Gross profit	3,968	2,817
Selling, general and administrative expenses
Transportation costs	947	760
Provision of allowance for doubtful accounts			-	1
Provision for retirement benefits for directors (and			0		0
other officers)

Provision for bonuses	43	37
Other	1,160	1,201
Total selling, general and administrative expenses			2,152	2,000
Operating profit	1,816	816
Non-operating income
Interest income	17	22
Dividend income	71	57
Foreign exchange gains	144	90
Technical advisory fee income	1	1
Gain on sales of iron scrap	31	34
Compensation income			-	88
Other	82	66
Total non-operating income			348	362
Non-operating expenses
Interest expenses	259	305
Share of loss of entities accounted for using equity			-		24
method

Other		13	14
Total non-operating expenses	272	344
Ordinary profit			1,892	834
Extraordinary income
Gain on sale of non-current assets		0	3
Total extraordinary income	0	3
Extraordinary losses
Loss on sale and retirement of non-current assets	35	23
Total extraordinary losses			35	23
Profit before income taxes	1,857	814
Income taxes - current			589	258
Income taxes - deferred	29	31
Total income taxes			618	290
Profit	1,238	523
Profit (loss) attributable to non-controlling interests			5	(1)
Profit attributable to owners of parent		1,233	524