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 November 30, 2024 | ||||||||||||
[Japanese GAAP] | ||||||||||||
January 14, 2025 | ||||||||||||
Company name: SAKATA SEED CORPORATION | ||||||||||||
Listing: | Tokyo | |||||||||||
Securities code: 1377 | ||||||||||||
URL: | https://corporate.sakataseed.co.jp/ | |||||||||||
Representative: | Hiroshi Sakata | President and Representative Director | ||||||||||
Senior Executive Officer | ||||||||||||
Inquiries: | Takenori Hoshi | Senior General Manager of General Administration Div. | ||||||||||
General Manager of Finance Dept. | ||||||||||||
Telephone: | +81-45-945-8800 | |||||||||||
Scheduled date to file semi-annual securities report: | January 14, 2025 | |||||||||||
Scheduled date to commence dividend payments: | February 7, 2025 | |||||||||||
Preparation of supplementary material on financial results: Yes | ||||||||||||
Holding of financial results briefing: | Yes | (for institutional investors and analysts) | ||||||||||
(Yen amounts are rounded down to millions, unless otherwise noted.) | ||||||||||||
1. Consolidated Financial Results for the Six Months Ended November 30, 2024 (June 1, 2024 to November 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 | % | ||||||
November 30, 2024 | 42,325 | 3.6 | 5,672 | 7.2 | 5,650 | (0.8) | 5,123 | 58.8 | ||||
November 30, 2023 | 40,872 | 7.6 | 5,292 | (4.6) | 5,698 | (12.4) | 3,226 | (24.6) | ||||
(Note) Comprehensive income: | Six months ended November 30, 2024: | ¥ | 941 million | [ | (91.7) %] | |||||||
Six months ended November 30, 2023: | ¥ | 11,392 million | [ | 3.3%] | ||||||||
Basic earnings | Diluted earnings per | |||||||||||
per share | share | |||||||||||
Six months ended | Yen | Yen | ||||||||||
November 30, 2024 | 116.84 | - | ||||||||||
November 30, 2023 | 72.75 | - | ||||||||||
(2) Consolidated Financial Position | ||||||||||||
Total assets | Net assets | Capital adequacy ratio | ||||||||||
As of | Millions of yen | Millions of yen | % | |||||||||
November 30, 2024 | 188,578 | 159,689 | 84.4 | |||||||||
May 31, 2024 | 192,717 | 160,533 | 83.1 | |||||||||
(Reference) Equity: As of | November 30, 2024: | ¥ | 159,244 million | |||||||||
As of | May 31, 2024: | ¥ | 160,081 million |
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2. Dividends | ||||||||||
Annual dividends | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter-end | quarter-end | quarter-end | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Year ended May 31, 2024 | - | 25.00 | - | 40.00 | 65.00 | |||||
Year ending May 31, 2025 | - | 30.00 | ||||||||
Year ending May 31, 2025(Forecast) | - | 35.00 | 65.00 | |||||||
(Note) Revision to the forecast for dividends announced most recently: | None | |||||||||
3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 31, 2025(June 1, 2024 to May 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 of yen | % Millions of yen | % Millions of yen | % Millions of yen | % | Yen | |||||
Full year | 93,500 | 5.4 | 11,000 | 4.8 | 11,000 | (1.1) | 9,000 | (44.3) | 205.25 | |
(Note) Revision to the financial results forecast announced most recently: | Yes | |||||||||
* Notes: | ||||||||||
(1) Significant changes in the scope of consolidation during the period: | None |
- 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: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
November 30, 2024: | 46,410,750 | shares |
May 31, 2024: | 47,410,750 | shares |
2) Number of treasury shares at the end of the period: | ||
November 30, 2024: | 2,561,730 | shares |
May 31, 2024: | 3,561,536 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended November 30, 2024: | 43,849,130 | shares |
Six months ended November 30, 2023: | 44,349,449 | shares |
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- 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
(Caution Regarding Forward-looking Statements)
Forecasts of business performance and future developments noted in this report are based on assumptions from information available to management at the time of disclosure and deemed reasonable at the present time. The Company makes no promised or commitments regarding achievements of such forecasts and future developments. Actual results may differ significantly from forecasts.
For details of business performance forecasts and guidelines for assumptions, please refer to the material announced today, January 14, 2025. "Notice Regarding Differences Between the Financial Results Forecasts and Actual Results for the Six Months Ended November 30, 2024, and Revisions of the Financial Results Forecasts for the Year Ending May 31, 2025"
(How to obtain financial results briefing materials)
The Company plans to hold a financial results briefing session for institutional investors and analysts on Tuesday, January 21, 2025. We plan to post a video of the presentation (explanatory section), financial results briefing materials, and a summary of Q&A session on our website soon after the event.
(How to obtain supplementary material on financial results)
The Company will publish supplementary material on financial results on TD-net and on our website on the same day.
(Information about Treasury Shares)
The Company includes the shares (54,600 shares as of the six months ended November 2024, and 54,600 shares as of the year ended May 2024) held by The Custody Bank of Japan, Ltd. (Trust account E) as trustee assets of the "Board Benefit Trust (BBT)" in treasury shares in the six months consolidated financial statements. Accordingly, the Company includes these shares as treasury shares deducted from the average number of shares outstanding used for calculating basic earnings per share (54,600 shares for the six months ended November 2024, and 54,600 shares for the six months ended November 2023).
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Semi-annual Consolidated Financial Statements
Semi-annual Consolidated Balance Sheets
(Millions of yen) | ||
As of May 31, 2024 | As of November 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 37,132 | 36,300 |
Notes and accounts receivable - trade, and contract | 21,779 | 17,959 |
assets | ||
Securities | - | 99 |
Merchandise and finished goods | 43,082 | 46,339 |
Work in process | 6,125 | 3,426 |
Raw materials and supplies | 1,148 | 1,163 |
Costs on construction contracts in progress | 40 | 64 |
Other | 7,870 | 8,025 |
Allowance for doubtful accounts | (331) | (331) |
Total current assets | 116,846 | 113,046 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 38,786 | 37,972 |
Accumulated depreciation | (23,436) | (23,205) |
Buildings and structures, net | 15,349 | 14,767 |
Machinery, equipment and vehicles | 21,647 | 21,699 |
Accumulated depreciation | (14,868) | (14,751) |
Machinery, equipment and vehicles, net | 6,778 | 6,948 |
Land | 14,427 | 14,143 |
Construction in progress | 5,310 | 7,334 |
Other | 10,276 | 10,230 |
Accumulated depreciation | (6,276) | (6,315) |
Other, net | 3,999 | 3,914 |
Total property, plant and equipment | 45,865 | 47,108 |
Intangible assets | 4,892 | 4,322 |
Investments and other assets | ||
Investment securities | 19,720 | 18,713 |
Long-term loans receivable | 27 | 29 |
Retirement benefit asset | 401 | 422 |
Deferred tax assets | 3,876 | 3,716 |
Other | 1,097 | 1,233 |
Allowance for doubtful accounts | (11) | (14) |
Total investments and other assets | 25,112 | 24,100 |
Total non-current assets | 75,870 | 75,531 |
Total assets | 192,717 | 188,578 |
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(Millions of yen) | ||
As of May 31, 2024 | As of November 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 5,666 | 4,723 |
Short-term borrowings | 2,559 | 3,982 |
Income taxes payable | 4,761 | 1,868 |
Other | 9,918 | 9,317 |
Total current liabilities | 22,906 | 19,892 |
Non-current liabilities | ||
Long-term borrowings | 1,077 | 731 |
Deferred tax liabilities | 3,333 | 3,347 |
Retirement benefit liability | 999 | 990 |
Provision for retirement benefits for directors (and | 103 | 166 |
other officers) | ||
Provision for share awards for directors (and other | 187 | 205 |
officers) | ||
Other | 3,577 | 3,554 |
Total non-current liabilities | 9,277 | 8,996 |
Total liabilities | 32,184 | 28,888 |
Net assets | ||
Shareholders' equity | ||
Share capital | 13,500 | 13,500 |
Capital surplus | 10,793 | 10,793 |
Retained earnings | 121,965 | 123,336 |
Treasury shares | (7,213) | (5,218) |
Total shareholders' equity | 139,045 | 142,412 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 9,616 | 8,986 |
securities | ||
Foreign currency translation adjustment | 11,084 | 7,510 |
Remeasurements of defined benefit plans | 335 | 334 |
Total accumulated other comprehensive income | 21,035 | 16,832 |
Non-controlling interests | 451 | 444 |
Total net assets | 160,533 | 159,689 |
Total liabilities and net assets | 192,717 | 188,578 |
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Semi-annual Consolidated Statements of Income and Comprehensive Income
(Millions of yen) | ||
For the six months | For the six months | |
ended November 30, 2023 | ended November 30, 2024 | |
Net sales | 40,872 | 42,325 |
Cost of sales | 15,977 | 14,907 |
Gross profit | 24,895 | 27,417 |
Selling, general and administrative expenses | 19,603 | 21,744 |
Operating profit | 5,292 | 5,672 |
Non-operating income | ||
Interest income | 443 | 360 |
Dividend income | 287 | 330 |
Rental income | 85 | 82 |
Foreign exchange gains | 305 | - |
Other | 257 | 148 |
Total non-operating income | 1,379 | 921 |
Non-operating expenses | ||
Interest expenses | 115 | 152 |
Share of loss of entities accounted for using equity | 583 | 98 |
method | ||
Loss on net monetary position | 129 | 174 |
Foreign exchange losses | - | 441 |
Other | 145 | 76 |
Total non-operating expenses | 973 | 944 |
Ordinary profit | 5,698 | 5,650 |
Extraordinary income | ||
Gain on sale of non-current assets | - | 2,345 |
Total extraordinary income | - | 2,345 |
Extraordinary losses | ||
Loss on valuation of investment securities | 225 | 117 |
Impairment losses | 3 | 7 |
Loss on disaster | - | 428 |
Total extraordinary losses | 228 | 553 |
Profit before income taxes | 5,470 | 7,442 |
Income taxes | 2,188 | 2,293 |
Profit | 3,281 | 5,149 |
Profit attributable to non-controlling interests | 55 | 26 |
Profit attributable to owners of parent | 3,226 | 5,123 |
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Profit
Other comprehensive income
Valuation difference on available-for-sale securities 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 parent
Comprehensive income attributable to non-controlling interests
(Millions of yen) | |
For the six months | For the six months |
ended November 30, 2023 | ended November 30, 2024 |
3,281 | 5,149 |
1,429 | (629) |
6,651 | (3,580) |
28 | (0) |
1 | 1 |
8,110 | (4,207) |
11,392 | 941 |
11,327 | 919 |
64 | 21 |
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Semi-annual Consolidated Statements of Cash Flows
(Millions of yen) | ||
For the six months | For the six months | |
ended November 30, 2023 | ended November 30, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 5,470 | 7,442 |
Depreciation | 2,148 | 2,223 |
Impairment losses | 3 | 7 |
Amortization of goodwill | 35 | 64 |
Increase (decrease) in retirement benefit liability | (145) | 2 |
Increase (decrease) in allowance for doubtful accounts | 0 | 12 |
Interest and dividend income | (731) | (691) |
Interest expenses | 115 | 152 |
Foreign exchange losses (gains) | (11) | (4) |
Loss on net monetary position | 129 | 174 |
Share of loss (profit) of entities accounted for using | 583 | 98 |
equity method | ||
Loss (gain) on sale of non-current assets | (21) | (2,399) |
Loss (gain) on valuation of investment securities | 225 | 117 |
Loss on disaster | - | 428 |
Decrease (increase) in accounts receivable - trade, and | 2,688 | 2,766 |
contract assets | ||
Decrease (increase) in inventories | (2,169) | (2,502) |
Increase (decrease) in trade payables | (1,461) | (895) |
Increase (decrease) in accounts payable - other | (1,196) | (887) |
Other, net | 1,568 | 856 |
Subtotal | 7,231 | 6,967 |
Interest and dividends received | 736 | 713 |
Interest paid | (112) | (152) |
Income taxes refund | 38 | 31 |
Income taxes paid | (1,449) | (5,031) |
Payments associated with disaster loss | - | (159) |
Net cash provided by (used in) operating activities | 6,443 | 2,369 |
Cash flows from investing activities | ||
Payments into time deposits | (1,119) | (762) |
Proceeds from withdrawal of time deposits | 1,712 | 7,800 |
Purchase of property, plant and equipment | (2,496) | (4,225) |
Proceeds from sale of property, plant and equipment | 76 | 2,747 |
Purchase of intangible assets | (792) | (251) |
Purchase of investment securities | (875) | (143) |
Purchase of shares of subsidiaries resulting in change | (595) | - |
in scope of consolidation | ||
Other, net | (62) | 66 |
Net cash provided by (used in) investing activities | (4,153) | 5,231 |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | 1,597 | 1,548 |
Repayments of long-term borrowings | (47) | (310) |
Repayments of lease liabilities | (378) | (351) |
Dividends paid | (1,552) | (1,753) |
Other, net | (33) | (28) |
Net cash provided by (used in) financing activities | (413) | (897) |
Effect of exchange rate change on cash and cash | 1,089 | (324) |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | 2,966 | 6,378 |
Cash and cash equivalents at beginning of period | 20,334 | 20,264 |
Cash and cash equivalents at end of period | 23,300 | 26,643 |
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