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.
Consolidated Financial Results
for the Six Months Ended September 30, 2024
[Japanese GAAP]
Company name: NITTO KOGYO CORPORATION | November 5, 2024 |
Listing: Tokyo, Nagoya | |
Securities code: 6651 | |
URL: https://www.nito.co.jp/ | |
Representative: Toru Kurono | President and COO |
Inquiries: Nobuki Kato | General Manager of Accounting Department |
Telephone: +81-561-62-3111
Scheduled date to file semi-annual securities report: November 8, 2024
Scheduled date to commence dividend payments: December 9, 2024
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
September 30, 2024 | 81,983 | 12.1 | 4,063 | (14.8) | 4,433 | (14.5) | 5,212 | 46.2 | ||
September 30, 2023 | 73,163 | 11.5 | 4,771 | 119.8 | 5,187 | 75.5 | 3,564 | 109.9 |
(Note) Comprehensive income: | Six months ended September 30, 2024: |
Six months ended September 30, 2023: |
¥ | 5,692 million | [ | 10.9%] |
¥ | 5,133 million | [ | 67.5%] |
Basic earnings | Diluted earnings per | ||||
per share | share | ||||
Six months ended | Yen | Yen | |||
September 30, 2024 | 137.42 | - | |||
September 30, 2023 | 93.97 | - | |||
(2) Consolidated Financial Position | |||||
Total assets | Net assets | Capital adequacy ratio | |||
As of | Millions of yen | Millions of yen | % | ||
September 30, 2024 | 173,355 | 111,451 | 62.9 | ||
March 31, 2024 | 161,742 | 108,696 | 67.1 |
(Reference) Equity: As of | September 30, 2024: | ¥ | 108,999 million | |||||||
As of | March 31, 2024: | ¥ | 108,488 million | |||||||
2. Dividends | ||||||||||
Annual dividends | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter-end | quarter-end | quarter-end | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended March 31, 2024 | - | 72.00 | - | 158.00 | 230.00 | |||||
Fiscal year ending March 31, 2025 | - | 64.00 | ||||||||
Fiscal year ending March 31, 2025 | - | 68.00 | 132.00 | |||||||
(Forecast) | ||||||||||
(Note) Revision to the forecast for dividends | announced most | recently: | Yes |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025) (Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings per | |||||||
to owners of parent | share | ||||||||||
Millions of | Millions of | Millions of | Millions of | ||||||||
yen | % | yen | % | yen | % | yen | % | Yen | |||
Full year | 178,000 | 10.8 | 12,000 | 0.3 | 12,000 | (4.5) | 10,000 | 14.7 | 263.64 | ||
(Note) Revision to the financial results forecast announced most recently: | Yes |
* Notes: | ||||
(1) Significant changes in the scope of consolidation during the period: | Yes | |||
Newly included: | 2 | (Company name: | Tempearl Industrial Co., Ltd. , | |
TEMPEARL INDUSTRIAL (VIETNAM) CO., LTD | ||||
Excluded: | - | (Company name: |
(2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes
)
)
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: Yes
- Changes in accounting estimates: Yes
- Restatement: None
(Note)
The depreciation method has been changed from the current interim consolidated accounting period, which falls under 'Cases in which changes in accounting policies are difficult to distinguish from changes in accounting estimates'.
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
September 30, 2024: | 40,458,000 | shares |
March 31, 2024: | 40,458,000 | shares |
2) Number of treasury shares at the end of the period: | ||
September 30, 2024: | 2,521,848 | shares |
March 31, 2024: | 2,527,613 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended September 30, 2024: | 37,932,528 | shares |
Six months ended September 30, 2023: | 37,930,827 | shares |
(Note)
The Company has introduced "Board Benefit Trust (BBT)" . The Company's shares in the BBT, which are reported as treasury shares under Shareholders'equity, are counted as the number of treasury shares as of the average number of shares outstanding for the period for the purpose of not including for computing earnings per share.
- Semi-annualfinancial results reports are exempt from review conducted by certified public accountants or an audit firm.
- Proper use of earnings forecasts, and other special matters
The financial results forecast and other forward-looking statements contained in this report are based on information currently available to the Company and certain assumptions that the Company deemed reasonable and the Company does not promise the achievement of those forecasts. Actual results may differ materially due to various factors.
Semi-annual Consolidated Financial Statements
Semi-annual Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 26,475 | 28,056 |
Notes and accounts receivable - trade, and contract | 39,617 | 35,642 |
assets | ||
Merchandise and finished goods | 9,526 | 12,221 |
Work in process | 3,629 | 6,256 |
Raw materials and supplies | 9,068 | 11,492 |
Other | 2,720 | 2,784 |
Allowance for doubtful accounts | (210) | (239) |
Total current assets | 90,826 | 96,214 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 24,699 | 26,515 |
Machinery, equipment and vehicles, net | 7,635 | 11,202 |
Land | 17,413 | 19,137 |
Leased assets, net | 209 | 214 |
Construction in progress | 4,565 | 2,140 |
Other, net | 1,591 | 2,120 |
Total property, plant and equipment | 56,114 | 61,331 |
Intangible assets | ||
Goodwill | 583 | 510 |
Other | 2,976 | 3,068 |
Total intangible assets | 3,560 | 3,578 |
Investments and other assets | ||
Investment securities | 5,557 | 5,820 |
Deferred tax assets | 369 | 543 |
Retirement benefit asset | 3,912 | 4,176 |
Other | 1,439 | 1,725 |
Allowance for doubtful accounts | (36) | (34) |
Total investments and other assets | 11,241 | 12,231 |
Total non-current assets | 70,916 | 77,141 |
Total assets | 161,742 | 173,355 |
(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 15,389 | 16,237 |
Short-term borrowings | 8 | 9,062 |
Current portion of long-term borrowings | 1,848 | 4,035 |
Lease liabilities | 154 | 125 |
Income taxes payable | 3,034 | 1,954 |
Provision for bonuses | 3,184 | 3,079 |
Provision for bonuses for directors (and other | - | 31 |
officers) | ||
Provision for loss on liquidation of subsidiaries | 64 | 63 |
and associates | ||
Building demolition cost allowance | 147 | 147 |
Asset retirement obligations | 55 | 82 |
Other | 9,899 | 6,721 |
Total current liabilities | 33,785 | 41,540 |
Non-current liabilities | ||
Long-term borrowings | 16,221 | 16,012 |
Long-term accounts payable - other | 36 | 36 |
Lease liabilities | 325 | 362 |
Deferred tax liabilities | 571 | 895 |
Provision for share awards | 101 | 92 |
Building demolition cost allowance | 230 | 230 |
Provision for retirement benefits for directors (and | - | 18 |
other officers) | ||
Retirement benefit liability | 1,538 | 1,997 |
Asset retirement obligations | 154 | 554 |
Other | 80 | 161 |
Total non-current liabilities | 19,260 | 20,364 |
Total liabilities | 53,046 | 61,904 |
Net assets | ||
Shareholders' equity | ||
Share capital | 6,578 | 6,578 |
Capital surplus | 6,986 | 7,714 |
Retained earnings | 91,728 | 90,932 |
Treasury shares | (3,205) | (3,195) |
Total shareholders' equity | 102,088 | 102,029 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 2,223 | 1,818 |
securities | ||
Foreign currency translation adjustment | 2,150 | 3,310 |
Remeasurements of defined benefit plans | 2,025 | 1,841 |
Total accumulated other comprehensive income | 6,399 | 6,970 |
Non-controlling interests | 208 | 2,451 |
Total net assets | 108,696 | 111,451 |
Total liabilities and net assets | 161,742 | 173,355 |
Semi-annual Consolidated Statements of Income and Comprehensive Income
Semi-annual Consolidated Statements of Income (For the six months)
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Net sales | 73,163 | 81,983 |
Cost of sales | 53,455 | 60,217 |
Gross profit | 19,708 | 21,765 |
Selling, general and administrative expenses | 14,936 | 17,702 |
Operating profit | 4,771 | 4,063 |
Non-operating income | ||
Interest income | 26 | 35 |
Dividend income | 125 | 142 |
Rental income from buildings | 42 | 71 |
Foreign exchange gains | 178 | 50 |
Other | 101 | 224 |
Total non-operating income | 474 | 523 |
Non-operating expenses | ||
Interest expenses | 25 | 76 |
Other | 33 | 78 |
Total non-operating expenses | 58 | 154 |
Ordinary profit | 5,187 | 4,433 |
Extraordinary income | ||
Gain on sale of non-current assets | 4 | 5 |
Gain on liquidation of subsidiaries and associates | 64 | - |
Gain on bargain purchase | - | 2,395 |
Total extraordinary income | 68 | 2,401 |
Extraordinary losses | ||
Loss on sale and retirement of non-current assets | 14 | 61 |
Loss on sale of investment securities | 1 | - |
Total extraordinary losses | 15 | 61 |
Profit before income taxes | 5,240 | 6,773 |
Income taxes - current | 1,658 | 1,794 |
Income taxes - deferred | 30 | (127) |
Total income taxes | 1,688 | 1,667 |
Profit | 3,551 | 5,105 |
Loss attributable to non-controlling interests | (12) | (106) |
Profit attributable to owners of parent | 3,564 | 5,212 |
Semi-annual Consolidated Statements of Comprehensive Income (For the six months)
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Profit | 3,551 | 5,105 |
Other comprehensive income |
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
483 | (401) |
1,087 | 1,194 |
10 | (206) |
1,581 | 586 |
5,133 | 5,692 |
5,135 | 5,783 |
(2) | (91) |
Semi-annual Consolidated Statements of Cash Flows
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 5,240 | 6,773 |
Depreciation | 2,128 | 2,925 |
Amortization of goodwill | 122 | 85 |
Gain on bargain purchase | - | (2,395) |
Increase (decrease) in provision for bonuses | (134) | (331) |
Increase (decrease) in provision for bonuses for | 31 | 21 |
directors (and other officers) | ||
Increase (decrease) in allowance for doubtful accounts | 24 | 3 |
Increase (decrease) in provision for share awards | 5 | (8) |
Increase (decrease) in provision for loss on liquidation | (11) | (1) |
of subsidiaries and associates | ||
Decrease (increase) in retirement benefit asset | (0) | (172) |
Interest and dividend income | (151) | (177) |
Interest expenses | 25 | 76 |
Loss (gain) on sale of non-current assets | (2) | 30 |
Loss on retirement of non-current assets | 12 | 25 |
Loss (gain) on sale of investment securities | 1 | - |
Loss (gain) on liquidation of subsidiaries and | (64) | - |
associates | ||
Decrease (increase) in trade receivables | 2,552 | 6,512 |
Decrease (increase) in inventories | (1,961) | (1,991) |
Increase (decrease) in trade payables | (1,623) | (1,294) |
Increase (decrease) in accrued consumption taxes | 386 | 707 |
Other, net | (3) | (709) |
Subtotal | 6,576 | 10,077 |
Interest and dividends received | 174 | 177 |
Interest paid | (20) | (62) |
Income taxes paid | (615) | (2,859) |
Net cash provided by (used in) operating activities | 6,114 | 7,331 |
Cash flows from investing activities | ||
Payments into time deposits | (197) | (0) |
Proceeds from withdrawal of time deposits | 136 | 162 |
Purchase of non-current assets | (6,904) | (6,695) |
Proceeds from sale of non-current assets | 4 | 2 |
Purchase of investment securities | (60) | (311) |
Proceeds from sale and redemption of investment | 40 | - |
securities | ||
Loan advances | - | (330) |
Purchase of shares of subsidiaries resulting in change | - | (3,216) |
in scope of consolidation | ||
Proceeds from liquidation of subsidiaries | 64 | - |
Other, net | (42) | (198) |
Net cash provided by (used in) investing activities | (6,957) | (10,587) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | (12) | 8,649 |
Proceeds from long-term borrowings | 5,000 | 2,000 |
Repayments of long-term borrowings | (27) | (25) |
Dividends paid | (2,161) | (6,003) |
Purchase of treasury shares | (1) | (0) |
Other, net | (44) | (85) |
Net cash provided by (used in) financing activities | 2,752 | 4,534 |
(Millions of yen) | ||
For the six months | For the six months | |
ended September 30, 2023 | ended September 30, 2024 | |
Effect of exchange rate change on cash and cash | 409 | 507 |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | 2,318 | 1,786 |
Cash and cash equivalents at beginning of period | 20,098 | 25,411 |
Cash and cash equivalents at end of period | 22,417 | 27,198 |