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 Three Months Ended May 31, 2024 (Based on Japanese GAAP)
August 28, 2024 | |||||
Company name: | IZUMI CO., LTD. | ||||
Stock exchange listing: | Tokyo | ||||
Stock code: | 8273 | URL https://www.izumi.co.jp/ | |||
Representative: | President and Representative Director | Yasuaki Yamanishi | |||
Inquiries: | General Manager of Finance & Accounting | Takashi Mukai | TEL +81-82-264-3211 | ||
Department | |||||
Scheduled date to file Quarterly Securities Report: | August 30, 2024 | ||||
Scheduled date to commence dividend payments: | - | ||||
Preparation of supplementary material on quarterly financial results: | Yes | ||||
Holding of quarterly financial results meeting: | Yes | (For institutional investors and analysts) |
(Amounts less than one million yen are rounded down)
1. Consolidated financial results for three months ended May 31, 2024 (from March 1, 2024 to May 31, 2024)
(1) Consolidated financial results (cumulative) | Percentages indicate year-on-year changes | |||||||||||||
Operating revenue | Operating profit | Ordinary profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||
Three months ended May 31, 2024 | 108,784 | (4.8) | 5,811 | (28.7) | 6,063 | (27.2) | 3,933 | (28.9) | ||||||
Three months ended May 31, 2023 | 114,314 | 3.8 | 8,150 | 3.6 | 8,324 | 4.8 | 5,529 | 4.4 | ||||||
Earnings per share | Diluted earnings per share | |||||||||||||
Yen | Yen | |||||||||||||
Three months ended May 31, 2024 | 55.00 | - | ||||||||||||
Three months ended May 31, 2023 | 77.35 | - | ||||||||||||
(2) Consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||
As of May 31, 2024 | 496,872 | 294,560 | 56.6 | |||||||||||
As of February 29, 2024 | 489,509 | 294,233 | 57.3 |
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 | - | 44.00 | - | 45.00 | 89.00 | |
Year ending February 28, 2025 | - | |||||
Year ending February 28, 2025 | 45.00 | - | 45.00 | 90.00 | ||
(Forecast) | ||||||
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3. Forecast of consolidated financial results for the fiscal year ending February 28, 2025 (from March 1, 2024 to February 28, 2025) Percentages indicate year-on-year changes
Operating revenue | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | |||||
owners of parent | |||||||||
Six months ending | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
238,300 | 2.1 | 11,700 | (24.6) | 11,900 | (24.7) | 7,300 | (30.2) | 102.07 | |
August 31, 2024 | |||||||||
Full year | 527,300 | 11.9 | 26,500 | (15.7) | 26,300 | (18.6) | 14,400 | (29.7) | 201.35 |
(Note) Changes in the most recently announced forecast of financial results: Yes
For details, please refer to the "Notice Regarding Forecast of Financial Results" (in Japanese only) announced today.
4. Notes
- Changes in significant subsidiaries during the three months ended May 31, 2024 (changes in specified subsidiaries resulting in the change in scope of consolidation):
- Application of special accounting methods for preparing quarterly consolidated financial statements:
No
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 May 31, 2024 | 71,665,200 | shares | As of February 29, 2024 | |
Number of treasury shares at the end of the period | ||||
As of May 31, 2024 | 146,966 | shares | As of February 29, 2024 | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||
Three months ended May 31, 2024 | 71,518,266 | shares | Three months ended May 31, 2023 |
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Quarterly consolidated financial statements
Quarterly consolidated balance sheets
(Millions of yen) | |||
As of February 29, 2024 | As of May 31, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 11,997 | 10,180 | |
Notes and accounts receivable - trade, and contract assets | 52,002 | 55,839 | |
Merchandise and finished goods | 25,496 | 28,883 | |
Work in process | 101 | 110 | |
Raw materials and supplies | 663 | 679 | |
Other | 14,422 | 14,602 | |
Allowance for doubtful accounts | (531) | (545) | |
Total current assets | 104,153 | 109,750 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 152,953 | 154,293 | |
Land | 167,901 | 168,514 | |
Other, net | 13,589 | 12,849 | |
Total property, plant and equipment | 334,444 | 335,657 | |
Intangible assets | |||
Goodwill | 843 | 1,498 | |
Other | 10,096 | 9,900 | |
Total intangible assets | 10,939 | 11,399 | |
Investments and other assets | |||
Other | 40,540 | 40,633 | |
Allowance for doubtful accounts | (568) | (568) | |
Total investments and other assets | 39,972 | 40,064 | |
Total non-current assets | 385,356 | 387,121 | |
Total assets | 489,509 | 496,872 | |
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(Millions of yen) | |||
As of February 29, 2024 | As of May 31, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 24,140 | 30,282 | |
Short-term borrowings | 26,700 | 25,900 | |
Current portion of long-term borrowings | 15,573 | 13,941 | |
Accounts payable - other | 13,109 | 11,064 | |
Income taxes payable | 5,540 | 7,524 | |
Provision for bonuses | 2,325 | 4,017 | |
Provision for bonuses for directors (and other officers) | 57 | 63 | |
Contract liabilities | 7,190 | 7,370 | |
Provision for loss on building demolition | 213 | 330 | |
Provision for loss on lease contracts | 32 | 32 | |
Provision for system failure response costs | 1,001 | 778 | |
Other | 20,188 | 24,716 | |
Total current liabilities | 116,074 | 126,023 | |
Non-current liabilities | |||
Long-term borrowings | 35,444 | 32,608 | |
Long-term leasehold and guarantee deposits received | 21,850 | 21,898 | |
Provision for retirement benefits for directors (and other | 81 | 46 | |
officers) | |||
Provision for loss on interest repayment | 255 | 261 | |
Provision for loss on lease contracts | 358 | 350 | |
Provision for loss on building demolition | 209 | 209 | |
Retirement benefit liability | 9,267 | 9,414 | |
Asset retirement obligations | 9,641 | 9,765 | |
Other | 2,093 | 1,731 | |
Total non-current liabilities | 79,202 | 76,287 | |
Total liabilities | 195,276 | 202,311 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 19,613 | 19,613 | |
Capital surplus | 22,753 | 22,753 | |
Retained earnings | 235,852 | 236,568 | |
Treasury shares | (625) | (625) | |
Total shareholders' equity | 277,594 | 278,310 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 2,380 | 2,374 | |
Remeasurements of defined benefit plans | 579 | 546 | |
Total accumulated other comprehensive income | 2,960 | 2,920 | |
Non-controlling interests | 13,678 | 13,329 | |
Total net assets | 294,233 | 294,560 | |
Total liabilities and net assets | 489,509 | 496,872 | |
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Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statements of income
(Millions of yen) | |||
Three months ended | Three months ended | ||
May 31, 2023 | May 31, 2024 | ||
Operating revenue | 114,314 | 108,784 | |
Net sales | 100,369 | 94,812 | |
Cost of sales | 66,639 | 64,046 | |
Gross profit | 33,729 | 30,765 | |
Operating revenue | 13,945 | 13,972 | |
Operating gross profit | 47,674 | 44,738 | |
Selling, general and administrative expenses | 39,524 | 38,926 | |
Operating profit | 8,150 | 5,811 | |
Non-operating income | |||
Interest and dividend income | 37 | 24 | |
Purchase discounts | 56 | 56 | |
Share of profit of entities accounted for using equity method | 14 | 11 | |
Other | 217 | 271 | |
Total non-operating income | 325 | 364 | |
Non-operating expenses | |||
Interest expenses | 88 | 64 | |
Other | 62 | 47 | |
Total non-operating expenses | 151 | 111 | |
Ordinary profit | 8,324 | 6,063 | |
Extraordinary income | |||
Gain on sale of non-current assets | 95 | - | |
Subsidy income | 156 | - | |
Other | 15 | - | |
Total extraordinary income | 266 | - | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 46 | 15 | |
Impairment losses | 65 | 128 | |
Loss on store closings | 162 | 0 | |
Provision for loss on building demolition | - | 117 | |
Other | - | 0 | |
Total extraordinary losses | 274 | 263 | |
Profit before income taxes | 8,317 | 5,800 | |
Income taxes - current | 2,518 | 2,476 | |
Income taxes - deferred | 207 | (626) | |
Total income taxes | 2,725 | 1,850 | |
Profit | 5,592 | 3,949 | |
Profit attributable to non-controlling interests | 62 | 15 | |
Profit attributable to owners of parent | 5,529 | 3,933 | |
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Quarterly consolidated statements of comprehensive income | |||
(Millions of yen) | |||
Three months ended | |||
Three months ended | |||
May 31, 2023 | May 31, 2024 | ||
Profit | 5,592 | 3,949 | |
Other comprehensive income |
Valuation difference on available-for-sale securities Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income Comprehensive income Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
303 | (339) |
(31) | (33) |
(2) | 1 |
269 | (370) |
5,861 | 3,578 |
5,690 | 3,894 |
171 | (315) |
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Quarterly consolidated statements of cash flows | ||||
(Millions of yen) | ||||
Three months ended | Three months ended | |||
May 31, 2023 | May 31, 2024 | |||
Cash flows from operating activities | ||||
Profit before income taxes | 8,317 | 5,800 | ||
Depreciation | 3,867 | 4,166 | ||
Share-based payment expenses | 12 | 18 | ||
Amortization of goodwill | 133 | 133 | ||
Increase (decrease) in allowance for doubtful accounts | 98 | 10 | ||
Interest and dividend income | (37) | (24) | ||
Interest expenses | 88 | 64 | ||
Share of loss (profit) of entities accounted for using equity | (14) | (11) | ||
method | ||||
Subsidy income | (156) | - | ||
Loss (gain) on sale of non-current assets | (95) | - | ||
Loss on retirement of non-current assets | 46 | 15 | ||
Impairment losses | 65 | 128 | ||
Loss on store closings | 162 | 0 | ||
Increase (decrease) in provision for loss on building | - | 117 | ||
demolition | ||||
Decrease (increase) in trade receivables and contract assets | (4,048) | (3,779) | ||
Decrease (increase) in inventories | (2,146) | (3,321) | ||
Increase (decrease) in trade payables | 2,556 | 5,790 | ||
Increase (decrease) in deposits received | 454 | 2,602 | ||
Other, net | 5,721 | 3,684 | ||
Subtotal | 15,026 | 15,396 | ||
Interest and dividends received | 43 | 30 | ||
Interest paid | (101) | (77) | ||
Subsidies received | 156 | - | ||
System failure response costs paid | - | (222) | ||
Income taxes refund (paid) | (5,658) | (685) | ||
Net cash provided by (used in) operating activities | 9,466 | 14,441 | ||
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (3,727) | (5,956) | ||
Proceeds from sale of property, plant and equipment | 444 | 13 | ||
Purchase of intangible assets | (461) | (279) | ||
Purchase of shares of subsidiaries resulting in change in | - | (1,564) | ||
scope of consolidation | ||||
Other, net | (7) | 47 | ||
Net cash provided by (used in) investing activities | (3,752) | (7,740) | ||
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(Millions of yen) | ||
Three months ended | ||
Three months ended | ||
May 31, 2023 | May 31, 2024 | |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | 1,400 | (800) |
Proceeds from long-term borrowings | 500 | - |
Repayments of long-term borrowings | (5,401) | (4,467) |
Purchase of treasury shares | (0) | (0) |
Dividends paid | (3,145) | (3,218) |
Dividends paid to non-controlling interests | (32) | (32) |
Other, net | (0) | (0) |
Net cash provided by (used in) financing activities | (6,680) | (8,518) |
Net increase (decrease) in cash and cash equivalents | (966) | (1,817) |
Cash and cash equivalents at beginning of period | 10,331 | 11,997 |
Cash and cash equivalents at end of period | 9,364 | 10,180 |
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