Matsuda Sangyo Co., Ltd. TSE:7456

MATSUDA SANGYO : Presentation Material for Financial Results (Q1 / FY2025)

Published

Source: MarketScreener

First Quarter of the

Fiscal Year Ending March 31, 2025

Financial Statements Briefing Materials

Matsuda Sangyo Co., Ltd.

August 9, 2024

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

This document was prepared for the purpose of deepening understanding of our company, and is not intended to solicit investment. The contents in this document were prepared based on various materials, including press releases, that have been published to date. However, we do not take any responsibility for the accuracy, completeness, relevance, or any other aspects of these contents.

Please note that we also do not take responsibility for any omissions, errors, or inaccuracies in the published text, graphs, or other contents.

This document contains forward-looking statements related to future performance. These statements do not guarantee future performance and are subject to risks and uncertainties. Future performance may differ from the targets due to changes in the business environment and other factors.

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 version shall prevail.

Matsuda Sangyo Co., Ltd.

CSR IR Dept.

Inquiry form: https://www.matsuda-sangyo.co.jp/ja/contact/contact4.html

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

2

Overview of Financial Results for FY3/25 1Q

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

Consolidated Financial Results

  • Both sales and operating income and net income increased compared to the same quarter of the previous year

FY3/24 1Q

FY3/25 1Q

Year-on-year

increase (decrease)

Net sales

88.5

111.7

+23.2

+26.2%

Operating profit

2.4

3.1

+0.7

+29.3%

Operating margin

2.7%

2.8%

+0.1pt

-

Ordinary profit

2.9

3.7

+0.8

+28.0%

Profit attributable to owners of parent

2.0

2.5

+0.5

+27.6%

Earnings per share (yen)

77.5

99.5

+22.0

+28.4%

(billion yen)

FY3/25

Forecasts

380.0

10.0

2.6%

11.0

7.6

293.2

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

4

Quarterly Trend for Consolidated Financial Results

(billion yen)

94.5

90.2

92.6

111.7

88.1

87.8

80.5

88.5

89.1

Net Sales

1Q

2Q

3Q

4Q

FY3/23

1Q

2Q

3Q

4Q

FY3/24

1Q

FY3/25

4.2

3.6

3.4

3.1

2.4

2.4

2.6

2.1

2.1

Operating

Profit

1Q

2Q

3Q

4Q

FY3/23

1Q

2Q

3Q

4Q

FY3/24

1Q

FY3/25

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

5

Consolidated Balance Sheet

Assets

(billion yen)

March 31, 2024

June 30, 2024

Increase (decrease)

Main reasons for change

Current assets

102.3

109.8

+7.5

(+) Increase in accounts receivable-trade and inventories

Non-current assets

46.6

47.8

+1.1

(+) New installation of factory equipment (Iruma)

Total assets

148.9

157.6

+8.7

Liabilities

March 31, 2024

June 30, 2024

Increase (decrease)

Main reasons for change

Current liabilities

44.5

50.8

+6.3

(+) Increase in accounts payable-trade and short-term loans

payable

Non-current liabilities

13.0

12.5

(0.4)

(-) Repayment of long-term loans payable

Interest bearing debt

29.4

35.2

+5.8

Total liabilities

57.5

63.4

+5.8

Net assets

March 31, 2024

June 30, 2024

Increase (decrease)

Main reasons for change

Total net assets

91.3

94.2

+2.8

(+) Increase in retained earnings

Total liabilities and net assets

148.9

157.6

+8.7

Shareholder’s equity ratio

61.2%

59.6%

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

6

Consolidated Cash Flow Statements

(billion yen)

FY3/24 1Q

FY3/25 1Q

Increase

(decrease)

Summary

Cash flows from operating activities

Cash flows from investing activities

(0.9) (4.7) (3.8)

(2.3) (1.4) +0.8

  1. Increase in cash from quarterly profit before income taxes and accounts payable-trade
    (-) Decrease in cash from an increase in accounts receivable-trade and inventories (Impact on year-end date: 4.3 billion yen)

(-) New installation of factory equipment and software.

Free cash flows

(3.2)

(6.2)

(2.9)

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

4.9

4.8

(0.1)

+1.8 (1.1) (2.9)

  1. Increase in cash from an Increase in short-term loans payable (-) Decrease in cash from the repayment of long-term loans payable, and cash dividends paid

Cash and cash equivalents at end of period

13.5

13.2

(0.2)

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

7

Precious Metals Business Segment (Overview of Financial Results)

  • In the electronic devices field of the electronics sector, which is the key market for the Precious Metals Business Segment, overall demand did not recover despite signs of expansion in new demand associated with artificial intelligence (AI) technology, and the production situation for semiconductors and electronic parts remained sluggish.
  • Against this backdrop, the Precious Metals Business Segment recorded year-on-year increases in both net sales and operating profit on the back of an increase in precious metals recycling volume from the jewelry sector as well as the steady market price of gold

FY3/24 1Q FY3/25 1Q Increase (decrease)

Net sales

59.9

85.7

25.7

+42.9%

Operating profit

1.8

2.4

+0.6

+33.9%

Operating margin

3.0%

2.8%

▲0.2pt

-

(billion yen)

FY3/25 1Q

Increase (decrease)

Reasons for increase (decrease)

Gold

65.0

+26.1

+67.3%

Quantity increased by 28.1% and

prices decreased by 39.2%

Silver

6.2

+2.1

+52.2%

Quantity increased by 9.9% and prices

decreased by 42.4%

Platinum

10.7

(1.9)

(15.4)%

Quantity decreased by 2.8% and

group

prices decreased by 12.7%

Other

3.6

(0.5)

(13.7)%

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

8

Food Business Segment (Overview of Financial Results)

  • In the food production sector, which is the key market for the Food Business Segment, personal consumption was sluggish despite the growth in inbound demand. Although raw material prices stabilized, the market environment was unstable due to the impact of yen depreciation and rising logistics costs.
  • Amidst these circumstances, the Food Business Segment registered an increase in the sales volume of seafood products. However, the sales volume of livestock and agricultural products decreased, along with an overall decline in selling prices, which contributed to a year-on-year fall in net sales. On the other hand, due to efforts to optimize costs by improving inventory turnover ratio, operating profit increased year on year.

(billion yen)

FY3/24 1Q FY3/25 1Q Increase (decrease)

Net sales

28.5

26.0

(2.5)

(9.0)%

Operating profit

0.6

0.7

+0.0

+15.8%

Operating margin

2.1%

2.7%

+0.6pt

-

FY3/25 1Q

Increase (decrease)

Reasons for increase (decrease)

Seafood

10.3

+0

+0.9%

Quantity increased by 5.0% and prices

products

decreased by 4.1%

Livestock

10.8

(1.8)

(14.8)%

Quantity decreased by 4.1% and

products

prices increased by 10.7%

Agricultural

3.5

(0.1)

(4.4)%

Quantity decreased by 6.1% and

products

prices increased by 1.7%

Other

1.2

(0.6)

(32.9)%

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

9

Changes in Operating Profit

  • The precious metals business segment did not see an improvement in quantity due to the downturn in the electronic device sector, but the rise in gold and silver prices contributed.
  • The food business segment saw fluctuations in sales volume, but improved profit margins through cost rationalization and changes in product composition.

(billion yen)

Precious Metals

Business Segment

Precious metals

Quantity

Increase in production

factor

market impact

costs and SG&A expenses

Food Business

Segment

(0.0)

Quantity

Profit margin

Increase in SG&A

factor

improvement

expenses

Copyright Ⓒ MATSUDA SANGYO CO.,LTD.

10