February 14, 2025
KOKUYO CO., LTD.
FINANCIAL RESULTS
(Consolidated)
Results for the fiscal year ended December 31, 2024
Company name: KOKUYO Co., Ltd
Stock listings: Tokyo Stock Exchange (Prime)
Stock code: 7984 (URL https://www.kokuyo.com)
Representative: Hidekuni Kuroda, President and CEO
For further information, please contact: Hitoshi Honda (Executive Officer, Manager of Finance and Accounting Division)
Telephone: +81-6-6976-1221 (general)
Ordinary General Meeting of Shareholders: March 28, 2025
Commencement date for dividend payments: March 31, 2025
Date for submission of securities report: March 31, 2025
Supplemental material for results: Yes (such material is provided)
Briefing about results: Yes (for institutional investors and securities analysts)
(Figures less than ¥1 million have been omitted.)
1. Full-period Results (January 1, 2024 to December 31, 2024)
(1) Consolidated operating results
Net sales | Operating income | Ordinary income | |||||||||||||||
Millions of yen | Year-on-year | Millions of yen | Year-on-year | Millions of yen | Year-on-year | ||||||||||||
change (%) | change (%) | change (%) | |||||||||||||||
Fiscal year ended | 338,227 | 2.9 | 22,028 | (7.6) | 24,410 | (6.1) | |||||||||||
December 31, 2024 | |||||||||||||||||
Fiscal year ended | 328,753 | 9.2 | 23,830 | 24.6 | 25,989 | 22.8 | |||||||||||
December 31, 2023 | |||||||||||||||||
(Note) Comprehensive income: | |||||||||||||||||
For the fiscal year ended December 31, 2024 | ¥17,215 million | [(26.8%)] | |||||||||||||||
For the fiscal year ended December 31, 2023 | ¥23,516 million | [40.5%] | |||||||||||||||
Diluted | Ordinary | Operating | |||||||||||||||
Profit attributable to owners of | Earnings | Return on | income to | income to | |||||||||||||
earnings | |||||||||||||||||
parent | per share | equity | total assets | net sales | |||||||||||||
per share | |||||||||||||||||
ratio | ratio | ||||||||||||||||
Millions of yen | Year-on-year | Yen | Yen | % | % | % | |||||||||||
change (%) | |||||||||||||||||
Fiscal year ended | 21,787 | 14.3 | 192.15 | − | 8.5 | 6.8 | 6.5 | ||||||||||
December 31, 2024 | |||||||||||||||||
Fiscal year ended | 19,069 | 4.6 | 165.60 | − | 7.8 | 7.5 | 7.2 | ||||||||||
December 31, 2023 | |||||||||||||||||
(Reference) Equity in net income of affiliates: | |||||||||||||||||
For the fiscal year ended December 31, 2024 | ¥237 million | ||||||||||||||||
For the fiscal year ended December 31, 2023 | ¥223 million |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | ||
Millions of yen | Millions of yen | % | Yen | ||
December 31, 2024 | 362,959 | 264,062 | 71.8 | 2,299.39 | |
December 31, 2023 | 358,412 | 253,426 | 70.3 | 2,209.32 | |
(Reference) Equity: | |||||
December 31, 2024 | ¥260,552 million | ||||
December 31, 2023 | ¥251,841 million |
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(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
operating activities | investing activities | financing activities | equivalents at year end | |
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Fiscal year ended | 16,377 | 12,254 | (15,624) | 132,080 |
December 31, 2024 | ||||
Fiscal year ended | 34,739 | (3,798) | (14,442) | 115,161 |
December 31, 2023 | ||||
2. Dividends
Dividend per share | ||||||||||||
March 31 | June 30 | September 30 | Year-end | Full-year | ||||||||
dividend | dividend | |||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||
Fiscal period ended December | − | 32.50 | − | 34.00 | 66.50 | |||||||
31, 2023 | ||||||||||||
Fiscal period ended December | − | 38.00 | − | 39.00 | 77.00 | |||||||
31, 2024 | ||||||||||||
Fiscal period ending December | − | 45.50 | − | 45.50 | 91.00 | |||||||
31, 2025 (forecast) | ||||||||||||
Total annual dividend | Consolidated payout ratio | Ratio of dividends to net | ||||||||||
payments | assets (consolidated) | |||||||||||
Millions of yen | % | % | ||||||||||
Fiscal period ended December | 7,635 | 40.2 | 3.1 | |||||||||
31, 2023 | ||||||||||||
Fiscal period ended December | 8,734 | 40.1 | 3.4 | |||||||||
31, 2024 | ||||||||||||
Fiscal period ending December | 50.1 | |||||||||||
31, 2025 (forecast) | ||||||||||||
3. Consolidated Forecasts for the Fiscal Period Ending December 31, 2025 (January 1 to December 31, 2025)
Net sales | Operating income | Ordinary income | |||||
Millions of yen | Year-on-year | Millions of yen | Year-on-year | Millions of yen | Year-on-year | ||
change (%) | change (%) | change (%) | |||||
June 30, 2025 | 191,000 | 6.9 | 16,000 | 2.1 | 16,400 | (8.8) | |
interim period | |||||||
Full-year forecast | 366,000 | 8.2 | 24,000 | 9.0 | 24,500 | 0.4 | |
(Jan-Dec 2025) | |||||||
Profit attributable to owners of | Earnings per share | ||||||
parent | |||||||
Millions of yen | Year-on-year | Yen | |||||
change (%) | |||||||
June 30, 2025 | 12,100 | (22.6) | 107.32 | ||||
interim period | |||||||
Full-year forecast | 20,100 | (7.7) | 181.70 | ||||
(Jan-Dec 2025) | |||||||
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* Other
(1) [Have there been any] significant changes in subsidiaries during the period under review: Yes
New: 4 companies added to scope of consolidation:
Origin Co.,Ltd., Estic Co., Ltd., Kokuyo-Ik (Thailand) Co., Ltd., Kokuyo International (Thailand) Co., Ltd.
Removed: −
- Changes or restatements in accounting principles, procedures and methods of presentation relating to preparation of the consolidated financial statements
- Changes due to revision of accounting standards: None
- Changes other than those under above: None
- Changes in accounting estimates: None
- Restatements: None
- Number of shares of common stock issued
- Number of shares of common stock (including treasury stock) issued at:
December 31, 2024 | 115,742,463 | |
December 31, 2023 | 121,542,463 | |
2) | Number of shares of treasury stock held at: | |
December 31, 2024 | 2,428,833 | |
December 31, 2023 | 7,552,105 | |
3) | Number of shares of average stock during a term held at: | |
December 31, 2024 | 113,388,873 | |
December 31, 2023 | 115,157,242 |
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(Reference) Summary of non-consolidated results
1. Full-period Results (January 1, 2024 to December 31, 2024)
(1) Non-consolidated operating results
Net sales | Operating income | Ordinary income | ||||||||||||
Millions of yen | Year-on-year | Millions of yen | Year-on-year | Millions of yen | Year-on-year | |||||||||
change (%) | change (%) | change (%) | ||||||||||||
Fiscal year ended | 173,470 | 3.9 | 12,579 | (9.2) | 20,155 | (0.8) | ||||||||
December 31, 2024 | ||||||||||||||
Fiscal year ended | 166,926 | 5.5 | 13,846 | 21.0 | 20,313 | 22.6 | ||||||||
December 31, 2023 | ||||||||||||||
Net income | Earnings per share | Diluted earnings per share | ||||||||||||
Millions of yen | Year-on-year | Yen | Yen | |||||||||||
change (%) | ||||||||||||||
Fiscal year ended | 20,834 | 25.9 | 183.54 | − | ||||||||||
December 31, 2024 | ||||||||||||||
Fiscal year ended | 16,554 | 9.0 | 143.60 | − | ||||||||||
December 31, 2023 | ||||||||||||||
(2) Non-consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||
December 31, 2024 | 309,630 | 234,849 | 75.8 | 2,070.27 | ||||||||||
December 31, 2023 | 317,537 | 232,265 | 73.1 | 2,035.37 | ||||||||||
(Reference) Equity: | ||||||||||||||
December 31, 2024 | ¥234,849 million | |||||||||||||
December 31, 2023 | ¥232,265 million |
- This financial summary is not subject to a review by a certified public accountant or independent auditor.
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Advice relating to appropriate use of financial forecasts and other relevant information
This document contains performance forecasts and other forward-looking statements. Such statements are based on information available at the time and, in part, on what are deemed to be reasonable assumptions. They are not guarantees of future performance. Actual results may differ markedly from what the forward-looking statements suggest due to a plethora of variables.
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1. Activity Report
All forward-looking statements in this document are based on assumptions deemed reasonable as of the end of the period under review.
(1) Analysis of Business Results
1) Business Results in Period Under Review
(Millions of yen) | |||
Fiscal year ended | Fiscal year ended | Year-on-year change | |
December 31, 2023 | December 31, 2024 | (%) | |
Net sales | 328,753 | 338,227 | +2.9 |
Operating income | 23,830 | 22,028 | (7.6) |
Ordinary income | 25,989 | 24,410 | (6.1) |
Profit attributable to owners of parent | 19,069 | 21,787 | +14.3 |
During the fiscal year under review (January 1 to December 31, 2024), the Japanese economy traced a moderate recovery path, with improved corporate earnings, employment situation, and personal income. However, the economic outlook was mired by an economic downturn overseas amid economic uncertainties in China and by other factors such as the soaring costs of energy and raw materials.
Against this backdrop, we continued working on our third medium-term plan, Field Expansion 2024, in which we tweak existing business and expand our business fields as part of our long-term vision, CCC 2030. To expand business fields, we reallocated resources from existing businesses, actively deployed strategic expenditures, and stepped up our global expansion efforts.
The business climate had changed dramatically, but we maintained our competitiveness by flexibly adapting to the changing business conditions and shifting customer needs.
Net sales reached ¥338.2 billion (up 2.9% year on year). This year-on-year growth reflects the success of the furniture business in capitalizing on the brisk demand for office relocations and office renovations. Gross profit increased to ¥132.9 billion (up 4.3% year on year), reflecting sales price revisions, which more than offset the high raw material prices. Gross profit ratio came to 39.3% (0.5 points up year on year). Selling, general and administrative expenses increased to ¥110.8 billion (up 7.1% year on year), reflecting strategic expenditures and organizational bolstering for expanding the business fields. Expense ratio (selling, general, and administrative expenses to net sales) came to 32.8% (up 1.3 points year on year).
Reflecting these results, operating income reached ¥22.0 billion (down 7.6% year on year). Ordinary income reached ¥24.4 billion (down 6.1% year on year). Profit attributable to owners of parent reached ¥21.7 billion (up 14.3% year on year). A major component was the recording of ¥10.2 billion in extraordinary income item, namely gain on sale of investment securities. This gain more than offset an ¥5.1 billion in an extraordinary loss item, namely impairment loss. The impairment occurred in goodwill and other intangible assets in subsidiary Kokuyo Hong Kong Limited (Kokuyo Hong Kong).
Segment
As part of our long-term vision, CCC 2030, we have redefined our role in society as that of a "Work & Life Style Company," and committed to being an organization that creates life-affirming solutions, alongside tangible stationery and furniture, in the domain of work and the domain of learning and daily life.
In the workstyle field, the pandemic has entrenched the dispersed workplace and diverse working styles. Against this backdrop, we target emerging needs related to the rise of hybrid work.
In the lifestyle field, we target the rising demand for authentic self-expression in learning and lifestyle tools.
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The following table shows the segment-specific results for the period under review.
(Millions of yen) | |||||
Fiscal year ended | Fiscal year ended | Year-on-year change | |||
December 31, 2023 | December 31, 2024 | (%) | |||
Workstyle field | Net sales | 252,293 | 260,740 | +3.3 | |
Operating income | 26,351 | 27,427 | +4.1 | ||
Furniture | Net sales | 154,472 | 161,805 | +4.7 | |
Operating income | 22,458 | 22,956 | +2.2 | ||
Business supply | Net sales | 97,820 | 98,935 | +1.1 | |
distribution | Operating income | 3,892 | 4,471 | +14.9 | |
Lifestyle field | Net sales | 104,248 | 104,814 | +0.5 | |
Operating income | 7,501 | 6,515 | (13.1) | ||
Stationery | Net sales | 83,899 | 83,575 | (0.4) | |
Operating income | 6,802 | 5,993 | (11.9) | ||
Interior retail | Net sales | 20,348 | 21,238 | +4.4 | |
Operating income | 698 | 521 | (25.3) | ||
Others | Net sales | 438 | 476 | +8.7 | |
Operating income | (370) | (479) | − | ||
Reconciliation | Net sales | (28,226) | (27,803) | − | |
Operating income | (9,651) | (11,434) | − | ||
Total | Net sales | 328,753 | 338,227 | +2.9 | |
Operating income | 23,830 | 22,028 | (7.6) | ||
Workstyle field
- Furniture businesses
For our furniture businesses, we target the burgeoning demand for office renovation driven by the diversification of working styles. Meanwhile, we pursue growth overseas by channeling Kokuyo Hong Kong's resources and applying the interior design expertise we demonstrated in Japan. In this way, the business drives earnings growth for our organization as a whole.
In Japan, we continue seeing brisk demand for new office builds (office relocations) and office renovations. To capitalizing on this demand, we are working to expand the business and improve profitability by tailoring workstyle solutions to customers' strategic issues more effectively and by streamlining workflows.
In China and ASEAN, Kokuyo Hong Kong has played a central role in efforts to improve production and strengthen sales operations. However, in the period under review, these efforts were affected by the economic malaise in China.
Under such circumstances, the segment's net sales increased to ¥161.8 billion (up 4.7% year on year). Operating income increased to ¥22.9 billion (up 2.2% year on year).
- Business supply distribution
In this business area, we use technological innovation to deliver personalized shopping experiences through Benri Net, a platform for purchase-management services.
During the period under review, profitability improved following sales revisions, and our solutions system for large-scale corporate clients performed well.
Under these circumstances, the segment's net sales came to ¥98.9 billion (up 1.1% year on year).
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Operating income increased to ¥4.4 billion (up 14.9% year on year).
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Lifestyle field
- Stationery businesses
In this business area, we are shifting to a strategy that involves capitalizing on the global momentum for positive study/learning experiences. To this end, we are positioning our Campus brand as a brand that delivers value in study/learning.
In Japan, we have worked to improve profitability by revising sales prices and optimizing business resource allocation. We have also made progress in our e-commerce business.
In China, with our stationery for secondary school girls remaining in strong demand, we built up retail partnerships, but performance was adversely affected by the economic malaise in China.
In India, we focused on improving sales productivity and expanding capacity to supply mainstay products and launched value-added products. However, performance was adversely affected by inflation and intensifying competition in India.
Under these circumstances, the segment's net sales decreased to ¥83.5 billion (down 0.4% year on year). Operating income decreased to ¥5.9 billion (down 11.9% year on year).
- Interior retail businesses
In this business area, we building a network of offline and online stores, channeling the customer connections and marketing prowess developed in our existing interior retail businesses. We are also working closer with partners to expand our business reach in the B2B sector as part of a business portfolio shift that will contribute to long-term growth.
In the fiscal year ended December 31, 2024, profit margins narrowed amid the low yen. However, revenue grew thanks to successful sales campaigns and progress in our e-commerce business.
Under these circumstances, the segment's net sales increased to ¥21.2 billion (up 4.4% year on year). Operating income decreased to ¥0.5 billion (down 25.3% year on year).
2) Outlook for Fiscal 2025
(Millions of yen) | |||
FY2024 (full-year) result | FY2025 (full-year) forecast | Year-on-year change | |
(%) | |||
Net sales | 338,227 | 366,000 | +8.2 |
Operating income | 22,028 | 24,000 | +9.0 |
Ordinary income | 24,410 | 24,500 | +0.4 |
Profit attributable to | 21,787 | 20,100 | (7.7) |
owners of parent | |||
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Segment
(Millions of yen) | ||||||
FY2024 (full-year) | FY2025 (full-year) | Year-on-year | ||||
result | forecast | change (%) | ||||
Furniture | Net sales | 161,805 | 172,300 | ＋6.5 | ||
Operating income | 22,956 | 26,600 | ＋15.9 | |||
Business supply | Net sales | 98,935 | 111,500 | ＋12.7 | ||
distribution | Operating income | 4,471 | 4,800 | ＋7.4 | ||
Stationery | Net sales | 83,575 | 86,100 | ＋3.0 | ||
Operating income | 5,993 | 6,400 | ＋6.8 | |||
Interior retail | Net sales | 21,238 | 23,000 | ＋8.3 | ||
Operating income | 521 | 800 | ＋53.6 | |||
Others | Net sales | 476 | 700 | ＋47.1 | ||
Operating income | (479) | (500) | - | |||
Reconciliation | Net sales | (27,803) | (27,600) | - | ||
Operating income | (11,434) | (14,100) | - | |||
Total | Net sales | 338,227 | 366,000 | ＋8.2 | ||
Operating income | 22,028 | 24,000 | ＋9.0 | |||
(2) Qualitative and Other Information Related to Consolidated Financial Position
1) Assets, liabilities, and net assets
As of December 31, 2024, total assets amounted to ¥362.9 billion, up ¥4.5 billion from December 31, 2023 (the end of the previous fiscal year).
Current assets increased by ¥22.7 billion to ¥252.8 billion. The main factors were an increase of ¥16.7 billion in cash and deposits and an increase of ¥6.8 billion in notes and accounts receivable and contract assets, partially offset by a decrease of ¥1.5 billion in merchandise and finished goods.
Non-current assets decreased by ¥18.1 billion to ¥110.0 billion. The main factors were a decrease of ¥17.7 billion in investment securities and a decrease of ¥4.9 billion in goodwill, partially offset by an increase of ¥1.6 billion in property, plant and equipment and an increase of ¥1.4 billion in retirement benefit assets.
As of December 31, 2024, liabilities amounted to ¥98.8 billion, down ¥6.0 billion from December 31, 2023. The main factors were a decrease of ¥4.8 billion in current portion of long-term loans payable and a decrease of ¥3.2 billion in deferred tax liabilities, which more than offset an increase of ¥1.8 billion in income taxes payable.
As of December 31, 2024, net assets totaled ¥264.0 billion, up ¥10.6 billion from December 31, 2023. The main factors were an increase of ¥21.7 billion in profit attributable to owners of parent, partially offset by a decrease of ¥8.1 billion in dividends of surplus and a decrease of ¥1.6 billion in purchase of treasury shares.
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2) Cash Flows
As of December 31, 2024, consolidated cash and cash equivalents (hereafter referred to as cash) totaled ¥132.0 billion, an increase of ¥16.9 billion from December 31, 2023.
Cash flows from operating activities
Net cash provided by operating activities was ¥16.3 billion (down ¥18.3 billion year on year). The main factors included 1) the recording of ¥34.1 billion in profit before income taxes, 2) outflow items that were higher than they were last year, namely adjustments for non-financial losses (including ¥7.8 billion in depreciation and ¥5.2 billion in impairment loss), and ¥2.7 billion in decrease in inventories, and 3) inflow items that were lower than they were last year, namely ¥10.3 billion in income taxes paid, ¥10.2 billion in gain on sale of investment securities, ¥5 billion in increase in notes and accounts receivable - trade, and ¥4.8 billion in gain on sales of non-current assets.
Cash flows from investing activities
Net cash earned by investing activities was ¥12.2 billion (compared to ¥3.7 billion used the same period last year). The main positive cash flows were ¥15.0 billion in proceeds from sales and redemption of investment securities and ¥5.5 billion in proceeds from sales of property, plant and equipment. The main negative cash flow was ¥7.7 billion in capital expenditure.
Cash flows from financing activities
Net cash used in financing activities was ¥15.6 billion (up ¥1.1 billion year on year). The main positive cash flow was ¥1.6 billion in decrease in cash segregated as deposits for purchase of treasury shares. The main negative cash flows were ¥8.1 billion in cash dividends paid, ¥5.2 billion in repayments of long- term loans payable, and ¥1.6 billion in purchase of treasury shares.
Trends in cash flow indices for the Kokuyo Group are shown below.
December | December | December | December | December | |
2020 | 2021 | 2022 | 2023 | 2024 | |
fiscal period | fiscal period | fiscal period | fiscal period | fiscal period | |
Equity ratio (%) | 70.1 | 70.3 | 70.4 | 70.3 | 71.8 |
Equity ratio (%) (market | 51.6 | 61.2 | 63.6 | 73.0 | 87.3 |
capitalization basis) | |||||
Ratio of operating cash flow to | 1.0 | 0.7 | 1.6 | 0.4 | 0.6 |
interest-bearing debt (year) | |||||
Interest coverage ratio (times) | 89.3 | 134.9 | 41.4 | 174.5 | 71.9 |
(Note) Equity ratio: Total shareholders' equity / total assets
Equity ratio (market capitalization basis): Market capitalization / total assets
Ratio of operating cash flow to interest-bearing debt: Interest-bearing debt / operating cash flow
Interest coverage ratio: Operating cash flow / interest payments
- All indices are calculated using consolidated financial data.
- Market capitalization is calculated by multiplying Kokuyo's closing share price at year-end by the number of shares issued and outstanding at term-end (excluding treasury stock).
- Operating cash flow refers to cash flows from operating activities as shown in the consolidated cash flow statements. Interest-bearing debt is the sum of all debt upon which interest must be paid as shown in the consolidated balance sheets. Interest payments are interest paid as shown in the consolidated statements of cash flows.
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