Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
August 13, 2024
Company name: Nichireki Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 5011
URL: https://www.nichireki.co.jp/english/
Representative: Manabu Obata, President and Representative Director
Contact: Takeshi Goto, Executive Officer and General Manager of Finance and Accounting Department
Phone: +81-3-3265-1511
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on financial results: Not available
Schedule of financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||
Profit attributable to | ||||||||
Net sales | Operating profit | Ordinary profit | owners of the parent | |||||
company | ||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % |
June 30, 2024 | 13,527 | (1.0) | 76 | (34.3) | 164 | (69.2) | 54 | (81.0) |
June 30, 2023 | 13,670 | 7.5 | 116 | (81.9) | 535 | (46.4) | 288 | (82.9) |
(Note) Comprehensive income: Three months ended June 30, 2024: ¥ (112) million [ -%] Three months ended June 30, 2023: ¥1,022 million [(30.8)%]
Basic earnings | Diluted earnings | |||
per share | per share | |||
Three months ended | Yen | Yen | ||
June 30, 2024 | 1.87 | - | ||
June 30, 2023 | 9.66 | - | ||
(2) Consolidated Financial Position | ||||
Total assets | Net assets | Equity ratio | ||
Million yen | Million yen | % | ||
As of June 30, 2024 | 93,845 | 73,694 | 78.5 | |
As of March 31, 2024 | 95,094 | 74,836 | 78.7 |
(Reference) Equity: As of June 30, 2024: ¥73,694 million As of June 30, 2023: ¥74,836 million
2. Dividends | |||||
Annual dividends | |||||
1st | 2nd | 3rd | Year-end | Total | |
quarter-end | quarter-end | quarter-end | |||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen |
- | 35.00 | - | 35.00 | 70.00 | |
March 31, 2024 | |||||
Fiscal year ending | - | ||||
March 31, 2025 | |||||
Fiscal year ending | 35.00 | - | 40.00 | 75.00 | |
March 31, 2025 (Forecast) | |||||
(Note) Revision to the dividends forecast announced most recently: No
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
(% indicates changes from the previous corresponding period.)
Profit attributable | Basic earnings | ||||||||
Net sales | Operating profit | Ordinary profit | to owners of the | ||||||
per share | |||||||||
parent company | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First half | 32,000 | (0.9) | 1,300 | (32.2) | 1,400 | (40.5) | 900 | (37.1) | 30.63 |
Full year | 80,000 | 8.4 | 7,000 | 16.3 | 7,200 | 12.7 | 4,600 | (2.5) | 156.53 |
(Note) Revision to the financial results forecast announced most recently: No
*Notes:
- Significant changes in the scope of consolidation during the period: No
- Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: Yes
- Changes in accounting estimates: No
- Restatement: No
(Note) For detail information, please refer to "(3) Notes to the Quarterly Consolidated Financial Statements
(Notes to changes in accounting policies)" in "2. Quarterly Consolidated Financial Statements and Primary Notes" on page 8 of these quarterly consolidated financial results (Appendix).
- Total 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: 31,685,955 shares
As of March 31, 2024: 31,685,955 shares - Total number of treasury shares at the end of the period:
-
Total number of issued shares at the end of the period (including treasury shares): As of June 30, 2024: 31,685,955 shares
As of June 30, 2024: 2,293,658 shares
As of March 31, 2024: 2,293,658 shares
-
Average number of shares during the period (cumulative from the beginning of the fiscal year): Three months ended June 30, 2024: 29,392,297 shares
Three months ended June 30, 2023: 29,867,454 shares
*Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)
*Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors.
For assumptions of the forecasts of the financial results and precautions in using the forecasts, please refer to "(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information" in "1. Overview of Business Results, etc." on page 3 of these quarterly consolidated financial results (Appendix).
Table of Contents | |
1. Overview of Business Results, etc. ................................................................................................................ 2 | |
(1) Overview of Business Results for the Current Quarter under Review | 2 |
(2) Overview of Financial Position for the Current Quarter under Review | 3 |
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information | 3 |
2. Quarterly Consolidated Financial Statements and Primary Notes | 4 |
(1) Quarterly Consolidated Balance Sheets | 4 |
(2) Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
Consolidated Statements of Income for the Three-Month Period | 6 |
Consolidated Statements of Comprehensive Income for the Three-Month Period | 7 |
(3) Notes to the Quarterly Consolidated Financial Statements | 8 |
(Notes on Going Concern Assumption) | 8 |
(Notes in the Case of Significant Changes in Shareholders' Equity) | 8 |
(Notes to changes in accounting policies) | 8 |
(Notes to quarterly consolidated statements of cash flows) | 8 |
(Notes to segment Information, etc.) | 9 |
1
1. Overview of Business Results, etc.
(1) Overview of Business Results for the Current Quarter under Review
In the three months ended June 30, 2024, the Japanese economy experienced a gradual recovery trend due to improvements in employment and income environment, with implementation of pay increase by many companies. Meanwhile, there remains a risk that a downturn in overseas economies, such as the impact of continuing high interest rates in Europe and the U.S. and concerns about the future of the Chinese economy, will put downward pressure on the economy.
With regard to the business environment surrounding the Nichireki Group (hereinafter referred to as the "Group"), levels of public investment were steady as a whole against the backdrop of growing construction demand for preventing and mitigating disasters, national resilience measures, etc. However, there is a need to address the issues of an increase in labor costs due to labor shortages caused by a declining and aging population, as well as long working hours. In addition, raw material prices remain in the high range due to the continuing depreciation of the yen, and consequently a close watch is continuously required on trends in crude oil prices and exchange rates.
In this business environment, the Group has implemented various measures, aiming to grow into a sustainable corporate group with the entire organization working as one under quick and accurate decision-making as we enter the fourth year of the Medium-term Management Plan "Resilience 2025 (Shinayaka 2025)."
In the three months ended June 30, 2024, the Group posted net sales of ¥13,527 million (down 1.0% year on year), operating profit of ¥76 million (down 34.3% year on year), and ordinary profit of ¥164 million (down 69.2% year on year). Profit attributable to owners of the parent company decreased by 81.0% to ¥54 million.
Results by business segment were as follows.
Applied and Processed Asphalt Products Business
In the Applied and Processed Asphalt Products Business, we worked on increasing sales by further strengthening design and marketing activities for high value-added products aiming for "longer life and higher performance of paved roads" and "reduction of environmental load," in addition to coping with raw material prices that continued to remain in the high range.
Net sales for the segment were ¥5,475 million (down 1.1% year on year) and segment profit was ¥841 million (down 6.6% year on year) in the three months ended June 30, 2024.
Road Paving Business
In the Road Paving Business, we worked on marketing activities by providing proposals on construction methods related to preventing and mitigating disasters and national resilience measures as well as the steady execution of construction work.
Net sales for the segment were ¥7,970 million (down 1.0% year on year) and segment profit was ¥127 million (up 57.2% year on year) in the three months ended June 30, 2024.
Other Business
In the Other Business, net sales for the segment were ¥81 million (up 3.6% year on year) and segment profit was ¥59 million (up 1.9% year on year) mainly due to real estate lease revenue.
2
(2) Overview of Financial Position for the Current Quarter Under Review
Total assets decreased by ¥1,249 million from the end of the previous fiscal year to ¥93,845 million. This is attributable mainly to an increase in construction in progress of ¥4,631 million, despite a decrease in notes and accounts receivable - trade, and contract assets of ¥6,342 million.
Liabilities decreased by ¥107 million from the end of the previous fiscal year to ¥20,150 million. This is attributable mainly to an increase in accounts payable - other of ¥4,197 million, despite a decrease in notes and accounts payable - trade of ¥2,606 million.
Net assets decreased by ¥1,141 million from the end of the previous fiscal year to ¥73,694 million. This is attributable mainly to a decrease in retained earnings of ¥973 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
With regard to the forecast for the fiscal year ending March 31, 2025, no change has been made to the consolidated financial results forecast, which was announced on May 10, 2024.
3
2. Quarterly Consolidated Financial Statements and Primary Notes
(1) Quarterly Consolidated Balance Sheets
(Million yen)
As of March 31, 2024 | As of June 30, 2024 |
Assets Current assets
Cash and deposits Notes and accounts receivable - trade, and contract
assets
Electronically recorded monetary claims - operating Merchandise and finished goods
Costs on construction contracts in progress Raw materials and supplies
Other Allowance for doubtful accounts
Total current assets Non-current assets
Property, plant and equipment Buildings and structures, net
Machinery, equipment and vehicles, net Land
Leased assets, net Construction in progress
Other, net Total property, plant and equipment
Intangible assets Other
Total intangible assets Investments and other assets
Investment securities Investments in capital of subsidiaries and
associates
Retirement benefit asset Deferred tax assets
Long-term time deposits Other
Allowance for doubtful accounts Total investments and other assets
Total non-current assets Total assets
25,745 | 25,921 |
17,880 | 11,537 |
2,385 | 2,229 |
1,431 | 1,281 |
142 | 514 |
1,317 | 1,346 |
720 | 1,081 |
(57) | (59) |
49,564 | 43,853 |
8,925 | 8,796 |
4,026 | 4,166 |
11,145 | 11,145 |
188 | 164 |
769 | 5,400 |
676 | 764 |
25,731 | 30,437 |
1,202 | 1,206 |
1,202 | 1,206 |
9,753 | 9,364 |
917 | 881 |
2,773 | 2,923 |
76 | 102 |
4,420 | 4,420 |
712 | 710 |
(58) | (56) |
18,595 | 18,347 |
45,529 | 49,991 |
95,094 | 93,845 |
4
Liabilities
Current liabilities
Notes and accounts payable - trade Electronically recorded obligations - operating Short-term borrowings
Current portion of long-term borrowings Accounts payable - other
Income taxes payable Contract liabilities Provision for bonuses Other provisions Other
Total current liabilities Non-current liabilities
Long-term accounts payable - other Lease liabilities
Long-term deposits received Deferred tax liabilities Asset retirement obligations Long-term borrowings Total non-current liabilities
Total liabilities Net assets
Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares
Total shareholders' equity Accumulated other comprehensive income
Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans
Total accumulated other comprehensive income Total net assets
Total liabilities and net assets
(Million yen) | |
As of March 31, 2024 | As of June 30, 2024 |
8,664 | 6,057 |
1,521 | 1,348 |
1,300 | 1,300 |
1 | - |
2,020 | 6,217 |
1,123 | 65 |
493 | 321 |
1,060 | 462 |
169 | 49 |
1,510 | 2,003 |
17,865 | 17,826 |
0 | 0 |
105 | 126 |
48 | 48 |
2,048 | 2,014 |
135 | 135 |
55 | - |
2,392 | 2,324 |
20,258 | 20,150 |
2,919 | 2,919 |
4,028 | 4,028 |
66,200 | 65,227 |
(3,008) | (3,008) |
70,140 | 69,167 |
3,565 | 3,369 |
202 | 256 |
927 | 900 |
4,695 | 4,527 |
74,836 | 73,694 |
95,094 | 93,845 |
5
- Quarterly Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
For the Three-Month Period
(Million yen) | ||
For the three months | For the three months | |
ended June 30, 2023 | ended June 30, 2024 | |
Net sales | 13,670 | 13,527 |
Cost of sales | 10,934 | 10,738 |
Gross profit | 2,736 | 2,789 |
Selling, general and administrative expenses | 2,619 | 2,712 |
Operating profit | 116 | 76 |
Non-operating income | ||
Interest income | 4 | 3 |
Dividend income | 120 | 131 |
Share of profit of entities accounted for using equity | 220 | - |
method | ||
Foreign exchange gains | 66 | 26 |
Derivative income | 107 | - |
Other | 6 | 2 |
Total non-operating income | 524 | 163 |
Non-operating expenses | ||
Interest expenses | 1 | 0 |
Share of loss of entities accounted for using equity | - | 72 |
method | ||
Loss on valuation of derivatives | 79 | - |
Other | 25 | 1 |
Total non-operating expenses | 105 | 75 |
Ordinary profit | 535 | 164 |
Extraordinary income | ||
Gain on sale of non-current assets | 8 | 10 |
Insurance claim income | 1 | 12 |
Total extraordinary income | 9 | 22 |
Extraordinary losses | ||
Loss on retirement of non-current assets | 0 | 0 |
Loss on disaster | - | 10 |
Other | 0 | 2 |
Total extraordinary losses | 0 | 12 |
Profit before income taxes | 544 | 174 |
Income taxes - current | 82 | 80 |
Income taxes - deferred | 173 | 38 |
Total income taxes | 255 | 119 |
Profit | 288 | 54 |
Profit attributable to owners of the parent company | 288 | 54 |
6
Consolidated Statements of Comprehensive Income For the Three-Month Period
Profit
Other comprehensive income
Valuation difference on available-for-sale securities Deferred gains or losses on hedges
Foreign currency translation adjustment 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 the parent company
(Million yen) | |
For the three months | For the three months |
ended June 30, 2023 | ended June 30, 2024 |
288 | 54 |
794 | (195) |
(66) | - |
5 | 15 |
(16) | (26) |
17 | 39 |
734 | (167) |
1,022 | (112) |
1,022 | (112) |
7