Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Consolidated Financial Results for the Six Months Ended August 31, 2024 (Based on Japanese GAAP)
October 15, 2024
Company name: | IDOM Inc. | ||||
Stock exchange listing: | Tokyo | ||||
Stock code: | 7599 | URL https://221616.com | |||
Representative: | President | Yusuke Hatori | |||
Inquiries: | Director CFO | Ryo Nishihata | TEL 050-1749-8962 | ||
Scheduled date to file Quarterly Securities Report: | October 15, 2024 | ||||
Scheduled date to commence dividend payments: | November 13, 2024 | ||||
Preparation of supplementary material on quarterly financial results: | Yes | ||||
Holding of quarterly financial results meeting: | Yes | (for analysts and institutional investors) |
(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2024 (from March 1, 2024, to August 31, 2024)
(1) Consolidated operating results (cumulative) | Percentages indicate year-on-year changes | |||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||
owners of parent | ||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||
Six months ended August 31, 2024 | 249,651 | 22.6 | 10,083 | 42.1 | 9,603 | 38.8 | 6,485 | 34.5 | ||||||||
Six months ended August 31, 2023 | 203,696 | (9.7) | 7,098 | (17.6) | 6,918 | (16.5) | 4,823 | (35.8) | ||||||||
Earnings per share | Diluted earnings per share | |||||||||||||||
Yen | Yen | |||||||||||||||
Six months ended August 31, 2024 | 64.59 | - | ||||||||||||||
Six months ended August 31, 2023 | 48.04 | - | ||||||||||||||
(2) Consolidated financial position | ||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||||
As of August 31, 2024 | 192,911 | 75,268 | 38.5 | 738.76 | ||||||||||||
As of February 29, 2024 | 184,031 | 69,930 | 37.5 | 687.34 | ||||||||||||
2. Cash dividends | ||||||||||||||||
Annual dividends per share | ||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | ||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||
Year ended February 29, 2024 | - | 14.41 | - | 19.78 | 34.19 | |||||||||||
Year ending February 28, 2025 | - | 19.38 | ||||||||||||||
Year ending February 28, 2025 (Forecast) | - | 21.25 | 40.63 | |||||||||||||
3. Forecast of consolidated financial results for the year ending February 28, 2025 (from March 1, 2024, to February 28, 2025)
Percentages indicate year-on-year changes
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | |||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 500,000 | 19.1 | 20,300 | 26.0 | 19,800 | 25.1 | 13,600 | 18.9 | 135.45 |
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4. Notes | ||||||
(1) | Changes in significant subsidiaries during the six months ended August 31, 2024 | No | ||||
(changes in specified subsidiaries resulting in the change in scope of consolidation): | ||||||
(2) | Application of special accounting methods for preparing quarterly consolidated financial statements: | No | ||||
(3) | Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements | |||||
Changes in accounting policies due to revisions to accounting standards and other regulations: | No | |||||
Changes in accounting policies due to other reasons: | No | |||||
Changes in accounting estimates: | No | |||||
Restatement of prior period financial statements: | No | |||||
(4) | Number of issued shares (common shares) | |||||
Total number of issued shares at the end of the period (including treasury shares) | ||||||
As of August 31, 2024 | 106,888,000 shares | As of February 29, 2024 | 106,888,000 shares | |||
Number of treasury shares at the end of the period | ||||||
As of August 31, 2024 | 6,480,721 shares | As of February 29, 2024 | 6,480,691 shares | |||
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||||
Six months ended August 31, 2024 | 100,407,304 shares | Six months ended August 31, 2023 | 100,407,349 shares |
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1. Qualitative Information on Quarterly Financial Results
(1) Analysis of operating results
In the first half of the fiscal year under review (March 1 to August 31, 2024), retail unit sales at directly managed stores in Japan were 75,917 (up 2.9% year on year), a record high for first half sales. This mainly owed to the commencement of operation of large stores opened in the previous fiscal year and robust retail unit sales at existing large stores. Gross profit per unit on a retail basis increased approximately 60,000 yen from a year ago, to 440,000 yen, attributable to the curbing of discounts on vehicle prices.
Consolidated selling, general and administrative expenses increased, chiefly reflecting higher advertising expenses and rent expenses on land and buildings linked to the opening of large stores and higher personnel expenses due to a rise in the number of employees as the result of increased new hiring for the implementation of growth strategies.
As a result of the above, the consolidated business results for the first six months under review were net sales of 249,651 million yen (up 22.6% year on year), operating profit of 10,083 million yen (up 42.1%), ordinary profit of 9,603million yen (up 38.8%), and profit attributable to owners of parent of 6,485million yen (up 34.5%).
Regional segment-specific earnings are as indicated below:
I. Japan
The results of the Japan segment were net sales of 247,720million yen (up 22.5% year on year) and segment profit (operating profit) of 10,039million yen (up 42.9% year on year). The Japan segment recorded higher revenue and profits, primarily due to increases in retail and wholesale unit prices and gross profit per retail unit from higher auto auction market prices.
II. Others
The results of the Other (Differences) segment were net sales of 1,931million yen (up 38.4% year on year) and segment profit (operating profit) of 23million yen (down 53.0% year on year).
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Analysis of financial position Assets
Total assets as of the end of the first six months ended August 31, 2024 were 192,911 million yen (up 4.8% compared to the end of the previous fiscal year).
Current assets were 140,990 million yen (up 5.0% compared to the end of the previous fiscal year), due primarily to an increase in merchandise (up 11,497 million yen), despite a decrease in cash and deposits (down 9,935 million yen).
Non-current assets stood at 51,921 million yen (up 4.4% from the end of the previous fiscal year), mainly reflecting increases in construction in progress (up 1,736 million yen) and tools, furniture and fixtures (up 471 million yen).
Liabilities
Total liabilities as of the end of the first six months ended August 31, 2024, were 117,643 million yen (up 3.1% compared to the end of the previous fiscal year).
Current liabilities totaled 58,635 million yen (down 7.4% from the end of the previous fiscal year), due primarily to an increase in Short-term loans payable (up 8,674 million yen), despite a decrease in current portion of long-term borrowings (down 16,300 million yen).
Non-current liabilities were 59,007 million yen (up 16.2% compared to the end of the previous fiscal year), mainly reflecting increases in long- term borrowings (up 5,000 million yen) and bonds (up 3,000 million yen).
Net assets
Total net assets as of the end of the first six months ended August 31, 2024, were 75,268 million yen (up 7.6% compared to the end of the previous fiscal year) due chiefly to an increase in retained earnings (up 4,499 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
Looking at the consolidated earnings forecasts for the fiscal year ending February 28, 2025, there are changes in the figures that were presented in the "Summary of Consolidated Financial Results for the Fiscal Year Ending February 29, 2024 (Japanese GAAP)" announced on April 12, 2024. For more details, please refer to "Notice Revisions to the Full-Year Business Results and Regarding Dividends from Retained Earnings (Interim Dividends), Revision to Year-End Dividend Forecast" announced today (August 31, 2024).
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Quarterly consolidated financial statements
Consolidated balance sheets
(Millions of yen) | |||
As of February 29, 2024 | As of August 31, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 30,548 | 20,612 | |
Notes and accounts receivable - trade | 12,631 | 15,525 | |
Merchandise | 85,994 | 97,491 | |
Other operating assets | - | 1,891 | |
Other | 5,606 | 6,049 | |
Allowance for doubtful accounts | (498) | (581) | |
Total current assets | 134,281 | 140,990 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 47,376 | 47,845 | |
Accumulated depreciation | (18,611) | (19,029) | |
Buildings and structures, net | 28,764 | 28,816 | |
Vehicles | 2,214 | 1,870 | |
Accumulated depreciation | (186) | (263) | |
Vehicles, net | 2,027 | 1,606 | |
Tools, furniture and fixtures | 5,735 | 6,207 | |
Accumulated depreciation | (3,734) | (3,934) | |
Tools, furniture and fixtures, net | 2,000 | 2,273 | |
Land | 136 | 136 | |
Construction in progress | 683 | 2,419 | |
Other | 217 | 247 | |
Total property, plant and equipment | 33,829 | 35,499 | |
Intangible assets | |||
Software | 1,249 | 1,216 | |
Goodwill | 78 | 74 | |
Other | 2 | 2 | |
Total intangible assets | 1,330 | 1,293 | |
Investments and other assets | |||
Investment securities | 0 | 0 | |
Shares of subsidiaries and associates | 29 | 29 | |
Long-term loans receivable | 1,574 | 1,826 | |
Leasehold and guarantee deposits | 5,514 | 5,812 | |
Construction assistance fund receivables | 3,537 | 3,646 | |
Deferred tax assets | 3,471 | 3,371 | |
Other | 464 | 445 | |
Allowance for doubtful accounts | (2) | (2) | |
Total investments and other assets | 14,589 | 15,128 | |
Total non-current assets | 49,749 | 51,921 | |
Total assets | 184,031 | 192,911 |
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(Millions of yen) | |||
As of February 29, 2024 | As of August 31, 2024 | ||
Liabilities | |||
Current liabilities | |||
Accounts payable - trade | 5,783 | 7,304 | |
Short-term loans payable | - | 8,674 | |
Current portion of long-term borrowings | 16,300 | - | |
Accounts payable - other | 4,151 | 3,914 | |
Income taxes payable | 2,556 | 3,473 | |
Contract liabilities | 26,809 | 28,698 | |
Deposits received | 247 | 184 | |
Provision for bonuses | 1,046 | 1,408 | |
Other provisions | 48 | 48 | |
Other | 6,384 | 4,929 | |
Total current liabilities | 63,327 | 58,635 | |
Non-current liabilities | |||
Bonds | - | 3,000 | |
Long-term borrowings | 46,700 | 51,700 | |
Long-term guarantee deposits | 679 | 729 | |
Asset retirement obligations | 3,085 | 3,253 | |
Other | 308 | 325 | |
Total non-current liabilities | 50,773 | 59,007 | |
Total liabilities | 114,101 | 117,643 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 4,157 | 4,157 | |
Capital surplus | 4,726 | 5,240 | |
Retained earnings | 64,093 | 68,593 | |
Treasury shares | (4,344) | (4,344) | |
Total shareholders' equity | 68,631 | 73,646 | |
Accumulated other comprehensive income | |||
Foreign currency translation adjustment | 381 | 530 | |
Total accumulated other comprehensive income | 381 | 530 | |
Share acquisition rights | 10 | 12 | |
Non-controlling interests | 906 | 1,078 | |
Total net assets | 69,930 | 75,268 | |
Total liabilities and net assets | 184,031 | 192,911 |
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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)
Consolidated statements of income (cumulative)
(Millions of yen) | |||
Six months ended | Six months ended | ||
August 31, 2023 | August 31, 2024 | ||
Net sales | 203,696 | 249,651 | |
Cost of sales | 168,792 | 205,350 | |
Gross profit | 34,903 | 44,300 | |
Selling, general and administrative expenses | 27,805 | 34,217 | |
Operating profit | 7,098 | 10,083 | |
Non-operating income | |||
Interest income | 69 | 61 | |
Other | 26 | 39 | |
Total non-operating income | 96 | 101 | |
Non-operating expenses | |||
Interest expenses | 170 | 214 | |
Foreign exchange losses | 67 | 142 | |
Commission expenses | - | 169 | |
Other | 37 | 53 | |
Total non-operating expenses | 275 | 580 | |
Ordinary profit | 6,918 | 9,603 | |
Extraordinary income | |||
Gain on sale of non-current assets | - | 0 | |
Subsidy income | 83 | - | |
Other | 4 | 3 | |
Total extraordinary income | 87 | 3 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 18 | 45 | |
Loss on closing of stores | - | 31 | |
Information security expenses | 131 | - | |
Other | 1 | 0 | |
Total extraordinary losses | 152 | 77 | |
Profit before income taxes | 6,853 | 9,530 | |
Income taxes - current | 1,265 | 3,063 | |
Income taxes - deferred | 830 | 100 | |
Total income taxes | 2,096 | 3,164 | |
Profit | 4,757 | 6,365 | |
Profit (loss) attributable to non-controlling interests | (66) | (119) | |
Profit attributable to owners of parent | 4,823 | 6,485 |
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Consolidated statements of comprehensive income (cumulative)
(Millions of yen) | ||||||
Six months ended | Six months ended | |||||
August 31, 2023 | August 31, 2024 | |||||
Profit | 4,757 | 6,365 | ||||
Other comprehensive income | ||||||
Foreign currency translation adjustment | 92 | 148 | ||||
Total other comprehensive income | 92 | 148 | ||||
Comprehensive income | 4,849 | 6,514 | ||||
Comprehensive income attributable to | ||||||
Comprehensive | income | attributable to | owners of | 4,915 | 6,634 | |
parent | ||||||
Comprehensive | income | attributable | to | non- | (66) | (119) |
controlling interests | ||||||
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Consolidated statements of cash flows
(Millions of yen) | |||
Six months ended | Six months ended | ||
August 31, 2023 | August 31, 2024 | ||
Cash flows from operating activities | |||
Profit before income taxes | 6,853 | 9,530 | |
Depreciation | 1,269 | 2,409 | |
Amortization of goodwill | 3 | 3 | |
Increase (decrease) in allowance for doubtful accounts | 91 | 82 | |
Increase (decrease) in provision for bonuses | 301 | 362 | |
Interest and dividend income | (69) | (61) | |
Interest expenses | 170 | 214 | |
Foreign exchange losses (gains) | 12 | 275 | |
Subsidy income | (83) | - | |
Share-based payment expenses | 107 | 2 | |
Loss (gain) on sale of non-current assets | - | (0) | |
Loss on retirement of non-current assets | 18 | 45 | |
Information security expenses | 131 | - | |
Decrease (increase) in trade receivables | (4,381) | (3,183) | |
Decrease (increase) in inventories | 8,174 | (11,463) | |
Decrease (increase) in accounts receivable - other | (101) | (392) | |
Increase (decrease) in other operating assets | - | (1,891) | |
Increase (decrease) in accrued consumption taxes | 2,190 | (1,724) | |
Increase (decrease) in trade payables | (212) | 1,514 | |
Increase (decrease) in accounts payable - other | (263) | (112) | |
Increase (decrease) in refund liability | 130 | (163) | |
Increase (decrease) in deposits received | (62) | (63) | |
Increase (decrease) in accrued expenses | 233 | 366 | |
Other, net | (209) | 438 | |
Subtotal | 14,305 | (3,808) | |
Interest and dividends received | 69 | 61 | |
Interest paid | (168) | (222) | |
Income taxes paid | (593) | (1,761) | |
Subsidies received | 83 | - | |
Information security expenses paid | (131) | - | |
Net cash provided by (used in) operating activities | 13,564 | (5,731) | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (2,201) | (3,411) | |
Purchase of intangible assets | (278) | (426) | |
Payments for asset retirement obligations | (16) | - | |
Loan advances | (468) | (236) | |
Proceeds from collection of loans receivable | 370 | 1,218 | |
Payments of leasehold and guarantee deposits | (300) | (876) | |
Proceeds from refund of leasehold and guarantee | 19 | 579 | |
deposits | |||
Payments of construction assistance fund receivables | - | (346) | |
Proceeds from collection of construction assistance | 215 | 205 | |
fund receivables | |||
Other, net | (11) | (144) | |
Net cash provided by (used in) investing activities | (2,671) | (3,438) |
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(Millions of yen) | ||||
Six months ended | Six months ended | |||
August 31, 2023 | August 31, 2024 | |||
Cash flows from financing activities | ||||
Increase (decrease) in short-term loans payable | - | 8,674 | ||
Proceeds from long-term borrowings | 5,000 | 5,000 | ||
Repayments of long-term borrowings | (20,000) | (16,300) | ||
Proceeds from issuance of bonds | - | 3,000 | ||
Purchase of treasury shares | - | (0) | ||
Dividends paid | (2,638) | (1,984) | ||
Proceeds from share issuance to | non-controlling | - | 807 | |
shareholders | ||||
Net cash provided by (used in) financing activities | (17,638) | (803) | ||
Effect of exchange rate change on | cash and cash | (63) | 37 | |
equivalents | ||||
Net increase (decrease) in cash and cash equivalents | (6,809) | (9,935) | ||
Cash and cash equivalents at beginning of period | 37,473 | 30,548 | ||
Cash and cash equivalents at end of period | 30,664 | 20,612 |
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