Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
August 7, 2024
Consolidated Financial Results | |
for the Three Months Ended June 30, 2024 | |
(Under Japanese GAAP) | |
Company name: | Kurabo Industries Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 3106 |
URL: | https://www.kurabo.co.jp/ |
Representative: | Shinji Nishigaki, President |
Inquiries: | Kiyoshi Hamaguchi, Manager of Finance & Accounting Department |
Telephone: | +81-6-6266-5188 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on financial results: | None |
Holding of financial results briefing: | None |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
June 30, 2024 | 35,878 | 7.6 | 2,068 | 112.2 | 2,909 | 87.7 | 1,938 | 102.5 | ||||
June 30, 2023 | 33,338 | (2.0) | 975 | (38.1) | 1,550 | (38.5) | 957 | (40.9) | ||||
Note: Comprehensive income | For the three months ended June 30, 2024: | ¥5,974 million | [28.0%] | |||||||||
For the three months ended June 30, 2023: | ¥4,668 million | [69.8%] | ||||||||||
Basic earnings | Diluted earnings | |||||||||||
per share | per share | |||||||||||
Three months ended | Yen | Yen | ||||||||||
June 30, 2024 | 108.72 | - | ||||||||||
June 30, 2023 | 50.89 | - | ||||||||||
(2) Consolidated financial position
Total assets | Net assets | |||
As of | Millions of yen | Millions of yen | ||
June 30, 2024 | 196,455 | 122,112 | ||
March 31, 2024 | 192,789 | 118,074 | ||
Reference: | Equity | |||
As of June 30, 2024: | ¥120,868 million | |||
As of March 31, 2024: | ¥116,849 million |
Equity-to-asset ratio
%
61.5
60.6
2. Cash dividends
Annual dividends per share | |||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||||
Yen | Yen | Yen | Yen | Yen | |||||
Fiscal year ended | - | 40.00 | - | 60.00 | 100.00 | ||||
March 31, 2024 | |||||||||
Fiscal year ending | - | ||||||||
March 31, 2025 | |||||||||
Fiscal year ending | |||||||||
March 31, 2025 | 60.00 | - | 60.00 | 120.00 | |||||
(Forecast) | |||||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (from April 1, 2024
to March 31, 2025) | (Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Yen | |||
of yen | of yen | of yen | of yen | ||||||||
Six months ending | 70,000 | (3.7) | 3,300 | (14.9) | 4,200 | (7.2) | 2,700 | 7.0 | 151.78 | ||
September 30, 2024 | |||||||||||
Full year | 154,000 | 1.8 | 9,600 | 4.5 | 10,800 | 6.0 | 7,500 | 11.3 | 422.22 | ||
Note: Revisions to the forecast of financial results most recently announced: Yes |
* Notes
- Significant changes in the scope of consolidation during the period: None
-
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Note: For the details, please refer to "2. Quarterly consolidated financial statements and significant notes thereto (3) Notes to quarterly consolidated financial statements (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements)" on page 8 of the attached materials. - Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
Note: For the details, please refer to "2. Quarterly consolidated financial statements and significant notes thereto (3) Notes to quarterly consolidated financial statements (Notes on changes in accounting policies)" on page 8 of the attached materials.
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024
As of March 31, 2024
19,000,000 shares
19,000,000 shares
(ii) Number of treasury shares at the end of the period
As of June 30, 2024
As of March 31, 2024
1,266,842 shares
1,059,028 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024
Three months ended June 30, 2023
17,830,583 shares
18,813,685 shares
Note: The Company has introduced the Board Benefit Trust, a share-based compensation plan for directors, etc. using a trust, and the Company's shares held by the trust account are included in the number of treasury shares.
- Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None
- Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company's actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. For matters regarding the above earnings forecasts, please refer to "1. Overview of operating results and others (3) Explanation of consolidated financial forecasts and other forward-looking statements" on page 3 of the attached materials.
Attached Material | ||
1. Overview of operating results and others | 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 forecasts and other forward-looking statements | 3 |
2. Quarterly consolidated financial statements and significant notes thereto | 4 | |
(1) | Quarterly consolidated balance sheet | 4 |
(2) | Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive | |
income | 6 | |
(3) | Notes to quarterly consolidated financial statements | 8 |
(Notes on changes in accounting policies) | 8 | |
(Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) 8 | ||
(Notes on segment information, etc.) | 9 | |
(Notes on revenue recognition) | 10 | |
(Notes on significant changes in the amount of shareholders' equity) | 12 | |
(Notes on premise of going concern) | 12 | |
(Notes on quarterly consolidated balance sheet) | 12 | |
(Notes on quarterly consolidated statement of cash flows) | 13 |
- 1 -
1. Overview of operating results and others
-
Overview of operating results for the period under review
During the first three months of the fiscal year ending March 31, 2025 (from April 1, 2024 to June 30, 2024), the Japanese economy remained on a moderate recovery trend due to improvement in the income environment as a result of wage increases, growth in demand from inbound tourism, and an increase in exports.
On the other hand, amid concerns regarding geopolitical risks, such as the prolongation of the conflicts in the Middle East and Ukraine, not being eradicated, the outlook continues to remain uncertain mainly due to concerns over the future of the Chinese economy and rising prices of various commodities due to the weakening of the yen.
In this type of environment, the Group has strived to expand business operations of growth and priority businesses such as semiconductor production-related business and functional films, and to enhance the earning capability of core businesses such as textiles and flexible polyurethane foam based on the basic policy of "expand high-profit businesses and strengthen core businesses to achieve sustainable growth" in the medium-term corporate business plan "Progress' 24" (FY2022-FY2024) that is in its final fiscal year.
As a result, net sales were ¥35.8 billion (up 7.6% YoY), operating profit was ¥2.06 billion (up 112.2% YoY), ordinary profit was ¥2.9 billion (up 87.7% YoY), and profit attributable to owners of parent was ¥1.93 billion (up 102.5% YoY).
Results by segment are as follows. (Textiles)
Yarns experienced decreased revenue as orders for underwear in Japan were weak although there was a recovery trend in orders at a Thai subsidiary.
Fabrics experienced increased revenue as orders of casual clothing materials were solid at Thai and Chinese subsidiaries.
Textile products (sewn products, etc.) experienced increased revenue as orders for both uniforms and casual clothing were solid, and sales increased for the "Smartfit" management system that helps to mitigate risks in hot environments.
As a result, net sales were ¥12.4 billion (up 6.4% YoY) with operating profit of ¥0.08 billion (operating loss of ¥0.37 billion in the same period of the previous fiscal year).
(Chemical Products)
Flexible polyurethane foam for automotive interior experienced increased revenue due to steady orders in Japan, along with a recovery in automobile production and other factors, as well as due to carrying out the price pass-through from increased costs resulting from price hikes in raw materials and fuels, despite the weak sales at Chinese subsidiaries.
Functional resin products experienced increased revenue due to a recovery in orders for high-performance plastic products for semiconductor production in line and an increase in orders for functional films for solar cells.
Housing construction products experienced increased revenue due to an increase in orders for precast concrete products for apartment complexes, despite weak sales of heat-insulating materials.
Nonwoven fabrics experienced revenue at around the same level year on year.
As a result, net sales were ¥16.0 billion (up 13.6% YoY) with operating profit of ¥1.08 billion (up 54.6% YoY).
(Advanced Technology)
Electronics businesses experienced increased revenue due to strong sales for chemical concentration meters and other products for the semiconductor industry, as well as large-scale projects at a subsidiary for silicon wafer cleaning equipment.
Engineering businesses experienced increased revenue due to steady sales for exhaust gas treatment facilities and other products, despite weak sales for chemical supply systems for the semiconductor industry.
Biomedical businesses experienced revenue at around the same level year on year due to solid sales of mixer/deaerator models and other products. - 2 -
As a result, net sales were ¥4.2 billion (down 4.7% YoY) due to the impact of the transfer in the previous fiscal year of all the shares of a subsidiary that was engaged in manufacturing and sales of machine tools, etc., while operating profit was ¥0.5 billion (up 170.2% YoY).
(Food and Services)
Freeze-dried foods experienced revenue at around the same level year on year as sales were weak for molding soup while sales were steady for instant noodle ingredients and other products.
Hotels and their related services experienced increased revenue due to steady performance related to accommodations and restaurants resulting from the impact of strong domestic travel and demand from inbound tourism.
As a result, net sales were ¥2.2 billion (up 3.8% YoY) with operating profit of ¥0.07 billion (down 22.3% YoY).
(Real Estate)
Real estate leasing experienced revenue at around the same level year on year with net sales of ¥0.9 billion (down 0.6% YoY) and operating profit of ¥0.62 billion (down 0.2% YoY).
-
Overview of financial position for the period under review (Assets, liabilities and net assets)
Total assets at the end of the first quarter of the fiscal year ending March 31, 2025 increased by ¥3.6 billion from the end of the previous fiscal year to ¥196.4 billion mainly due to an increase in investment securities following a rise in share prices, although notes and accounts receivable - trade, and contract assets decreased.
Liabilities decreased by ¥0.3 billion from the end of the previous fiscal year to ¥74.3 billion mainly due to decreases in income taxes payable and notes and accounts payable - trade, although there was an increase in deferred tax liabilities, which are included in "other" under non-current liabilities.
Net assets increased by ¥4.0 billion from the end of the previous fiscal year to ¥122.1 billion mainly due to an increase in valuation difference on available-for-sale securities.
As a result of the above, the equity-to-asset ratio was 61.5%, up 0.9 percentage points. - Explanation of consolidated financial forecasts and other forward-looking statements
Regarding the consolidated financial forecasts for the second quarter (cumulative) (April 1, 2024 to September 30, 2024) and the full year (April 1, 2024 to March 31, 2025), based on recent trends in financial results, we have revised our financial forecasts announced on May 13, 2024.
For the details, please refer to the "Notification on Revisions to Financial Forecasts" (in Japanese only) separately disclosed today.
- 3 -
2. Quarterly consolidated financial statements and significant notes thereto
(1) Quarterly consolidated balance sheet
(Millions of yen) | ||||
As of March 31, 2024 | As of June 30, 2024 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 16,156 | 15,494 | ||
Notes and accounts receivable - trade, and contract | 32,432 | 30,836 | ||
assets | ||||
Electronically recorded monetary claims - operating | 7,664 | 7,272 | ||
Merchandise and finished goods | 15,474 | 13,864 | ||
Work in process | 6,505 | 7,587 | ||
Raw materials and supplies | 7,732 | 8,869 | ||
Other | 3,400 | 4,068 | ||
Allowance for doubtful accounts | (47) | (41) | ||
Total current assets | 89,320 | 87,950 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 21,438 | 21,197 | ||
Other, net | 23,208 | 22,943 | ||
Total property, plant and equipment | 44,646 | 44,140 | ||
Intangible assets | 1,717 | 1,754 | ||
Investments and other assets | ||||
Investment securities | 53,409 | 58,933 | ||
Other | 3,932 | 3,922 | ||
Allowance for doubtful accounts | (238) | (245) | ||
Total investments and other assets | 57,104 | 62,610 | ||
Total non-current assets | 103,469 | 108,505 | ||
Total assets | 192,789 | 196,455 | ||
Liabilities | ||||
Current liabilities | ||||
Notes and accounts payable - trade | 18,598 | 17,263 | ||
Electronically recorded obligations - operating | 3,939 | 3,997 | ||
Short-term borrowings | 9,331 | *3 | 10,495 | |
Income taxes payable | 2,548 | 1,025 | ||
Provision for bonuses | 1,444 | 547 | ||
Other | 8,194 | 8,449 | ||
Total current liabilities | 44,055 | 41,779 | ||
Non-current liabilities | ||||
Long-term borrowings | 2,313 | 2,746 | ||
Provision for retirement benefits for directors (and | 213 | 151 | ||
other officers) | ||||
Provision for share-based payments | 178 | 186 | ||
Retirement benefit liability | 12,188 | 12,076 | ||
Other | 15,764 | 17,402 | ||
Total non-current liabilities | 30,659 | 32,563 | ||
Total liabilities | 74,714 | 74,343 |
- 4 -
(Millions of yen) | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Net assets | |||
Shareholders' equity | |||
Share capital | 22,040 | 22,040 | |
Capital surplus | 15,237 | 15,237 | |
Retained earnings | 64,164 | 65,016 | |
Treasury shares | (2,654) | (3,488) | |
Total shareholders' equity | 98,788 | 98,806 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 25,054 | 28,883 | |
Deferred gains or losses on hedges | 49 | 83 | |
Foreign currency translation adjustment | (6,982) | (6,842) | |
Remeasurements of defined benefit plans | (60) | (63) | |
Total accumulated other comprehensive income | 18,061 | 22,061 | |
Non-controlling interests | 1,225 | 1,243 | |
Total net assets | 118,074 | 122,112 | |
Total liabilities and net assets | 192,789 | 196,455 |
- 5 -
-
Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)
(Millions of yen) | ||||
Three months ended | Three months ended | |||
June 30, 2023 | June 30, 2024 | |||
Net sales | 33,338 | 35,878 | ||
Cost of sales | 27,189 | 28,619 | ||
Gross profit | 6,149 | 7,259 | ||
Selling, general and administrative expenses | 5,174 | 5,190 | ||
Operating profit | 975 | 2,068 | ||
Non-operating income | ||||
Interest income | 22 | 32 | ||
Dividend income | 590 | 700 | ||
Share of profit of entities accounted for using equity | 7 | 8 | ||
method | ||||
Other | 166 | 239 | ||
Total non-operating income | 788 | 980 | ||
Non-operating expenses | ||||
Interest expenses | 85 | 82 | ||
Other | 128 | 57 | ||
Total non-operating expenses | 213 | 139 | ||
Ordinary profit | 1,550 | 2,909 | ||
Extraordinary income | ||||
Gain on sale of investment securities | 100 | - | ||
Total extraordinary income | 100 | - | ||
Extraordinary losses | ||||
Loss on disposal of non-current assets | 106 | - | ||
Loss on sale of investment securities | 6 | - | ||
Total extraordinary losses | 112 | - | ||
Profit before income taxes | 1,537 | 2,909 | ||
Income taxes | 609 | 945 | ||
Profit | 928 | 1,964 | ||
Profit (loss) attributable to non-controlling interests | (28) | 25 | ||
Profit attributable to owners of parent | 957 | 1,938 |
- 6 -
Quarterly consolidated statement of comprehensive income (cumulative)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Profit | 928 | 1,964 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 3,237 | 3,824 |
Deferred gains or losses on hedges | 153 | 34 |
Foreign currency translation adjustment | 332 | 147 |
Remeasurements of defined benefit plans, net of tax | 2 | (2) |
Share of other comprehensive income of entities | 13 | 7 |
accounted for using equity method | ||
Total other comprehensive income | 3,739 | 4,010 |
Comprehensive income | 4,668 | 5,974 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 4,653 | 5,938 |
Comprehensive income attributable to non-controlling | 14 | 36 |
interests | ||
- 7 -