Sms Co., Ltd. TSE:2175
SMS : FY03-25 1H SMS Summary of Consolidated Financial Results
Source: MarketScreener
Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Consolidated Financial Results | |||||
for the Six Months Ended September 30, 2024 | |||||
(Based on Japanese GAAP) | |||||
October 29, 2024 | |||||
Company name: | SMS CO., LTD. | ||||
Stock exchange listing: | Tokyo | ||||
Stock code: | 2175 | URL https://www.bm-sms.co.jp/ | |||
Representative: | CEO | Natsuki Goto | |||
Inquiries: | CFO | Masato Sugizaki | TEL 03-6721-2400 | ||
Scheduled date to file Semi-annual Securities Report: | November 12, 2024 | ||||
Scheduled date to commence dividend payments: | - | ||||
Preparation of supplementary material on financial results: | Yes | ||||
Holding of financial results meeting: | Yes | (for institutional investors and analysts) |
(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2024 (from April 1, 2024 to September 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 | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
Six months ended September 30, 2024 | 31,842 | 15.9 | 3,574 | (24.0) | 4,926 | (14.7) | 3,670 | (12.1) |
Six months ended September 30, 2023 | 27,474 | 17.7 | 4,701 | 2.0 | 5,775 | 0.3 | 4,176 | 1.1 |
Earnings per share | Diluted earnings per share | ||||||||
Yen | Yen | ||||||||
Six months ended September 30, 2024 | 42.84 | 42.83 | |||||||
Six months ended September 30, 2023 | 47.81 | 47.66 | |||||||
(2) Consolidated financial position | |||||||||
Total assets | Net assets | Equity ratio | |||||||
Millions of yen | Millions of yen | % | |||||||
As of September 30, 2024 | 75,718 | 45,525 | 59.7 | ||||||
As of March 31, 2024 | 72,475 | 44,284 | 60.7 | ||||||
2. Cash dividends | |||||||||
Annual dividends per share | |||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | ||||||
Yen | Yen | Yen | Yen | ||||||
Year ended March 31, 2024 | - | 0.00 | - | 20.00 | |||||
Year ending March 31, 2025 | - | 0.00 | |||||||
Year ending March 31, 2025 (Forecast) | - | - |
Total
Yen 20.00
-
3. Forecast of consolidated financial results for the 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 | Earnings per share | |||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 65,665 | 21.7 | 9,096 | 10.0 | 11,002 | 11.1 | 8,018 | 10.9 | 93.59 |
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4. Notes | |
(1) Significant changes in the scope of consolidation during the six months ended September 30, 2024: | No |
- Application of special accounting methods for preparing semi-annual consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations: | No |
Changes in accounting policies due to other reasons: | No |
Changes in accounting estimates: | No |
Restatement of prior period financial statements: | No |
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2024 | 87,561,600 | shares | As of March 31, 2024 | 87,561,600 | shares | |
Number of treasury shares at the end of the period | ||||||
As of September 30, 2024 | 2,599,151 | shares | As of March 31, 2024 | 812,832 | shares | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||||
Six months ended September 30, 2024 | 85,678,059 | shares | Six months ended September 30, 2023 | 87,357,597 | shares |
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Semi-annual consolidated financial statements
Consolidated balance sheets
(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 18,236 | 16,551 |
Accounts receivable - trade | 8,228 | 8,344 |
Work in process | 13 | 68 |
Supplies | 25 | 30 |
Accounts receivable - other | 10,406 | 12,285 |
Prepaid expenses | 1,038 | 1,262 |
Other | 94 | 101 |
Allowance for doubtful accounts | (267) | (295) |
Total current assets | 37,775 | 38,347 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings | 1,131 | 1,288 |
Accumulated depreciation | (509) | (592) |
Buildings, net | 621 | 696 |
Tools, furniture and fixtures | 1,097 | 1,259 |
Accumulated depreciation | (877) | (998) |
Tools, furniture and fixtures, net | 220 | 260 |
Machinery, equipment and vehicles | 20 | 15 |
Accumulated depreciation | (15) | (14) |
Machinery, equipment and vehicles, net | 4 | 1 |
Right-of-use assets | 657 | 728 |
Accumulated depreciation | (371) | (490) |
Right-of-use assets, net | 285 | 238 |
Total property, plant and equipment | 1,132 | 1,196 |
Intangible assets | ||
Goodwill | 9,752 | 10,420 |
Software | 5,454 | 6,141 |
Trademark right | 11,814 | 13,417 |
Customer-related assets | 1,143 | 1,125 |
Other | 0 | 0 |
Total intangible assets | 28,165 | 31,104 |
Investments and other assets | ||
Investment securities | 2,652 | 2,177 |
Deferred tax assets | 1,262 | 1,368 |
Leasehold and guarantee deposits | 1,486 | 1,523 |
Total investments and other assets | 5,402 | 5,069 |
Total non-current assets | 34,699 | 37,370 |
Total assets | 72,475 | 75,718 |
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(Millions of yen) | ||
As of March 31, 2024 | As of September 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Accounts payable - trade | 460 | 298 |
Current portion of long-term borrowings | 1,901 | 1,901 |
Accounts payable - other | 12,730 | 15,247 |
Accrued expenses | 1,059 | 1,088 |
Income taxes payable | 1,344 | 1,391 |
Accrued consumption taxes | 930 | 829 |
Contract liabilities | 1,205 | 1,520 |
Deposits received | 183 | 198 |
Provision for bonuses | 909 | 948 |
Lease liabilities | 160 | 131 |
Other | 439 | 465 |
Total current liabilities | 21,325 | 24,022 |
Non-current liabilities | ||
Long-term borrowings | 4,251 | 3,301 |
Retirement benefit liability | 203 | 210 |
Deferred tax liabilities | 2,286 | 2,554 |
Lease liabilities | 121 | 102 |
Other | 2 | 2 |
Total non-current liabilities | 6,865 | 6,170 |
Total liabilities | 28,190 | 30,192 |
Net assets | ||
Shareholders' equity | ||
Share capital | 2,551 | 2,551 |
Capital surplus | 313 | 262 |
Retained earnings | 39,111 | 41,046 |
Treasury shares | (1,904) | (5,713) |
Total shareholders' equity | 40,071 | 38,146 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 322 | 196 |
Foreign currency translation adjustment | 3,607 | 6,862 |
Total accumulated other comprehensive income | 3,930 | 7,059 |
Share acquisition rights | 282 | 319 |
Total net assets | 44,284 | 45,525 |
Total liabilities and net assets | 72,475 | 75,718 |
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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)
Consolidated statements of income (cumulative)
(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Net sales | 27,474 | 31,842 |
Cost of sales | 2,965 | 3,380 |
Gross profit | 24,508 | 28,461 |
Selling, general and administrative expenses | 19,807 | 24,886 |
Operating profit | 4,701 | 3,574 |
Non-operating income | ||
Share of profit of entities accounted for using equity method | 1,098 | 1,359 |
Other | 28 | 60 |
Total non-operating income | 1,126 | 1,419 |
Non-operating expenses | ||
Foreign exchange losses | 18 | 15 |
Interest expenses | 33 | 43 |
Other | 0 | 8 |
Total non-operating expenses | 52 | 68 |
Ordinary profit | 5,775 | 4,926 |
Extraordinary income | ||
Gain on sale of non-current assets | 1 | 0 |
Total extraordinary income | 1 | 0 |
Extraordinary losses | ||
Loss on sale and retirement of non-current assets | 9 | 25 |
Loss on withdrawal from business | - | 38 |
Total extraordinary losses | 9 | 64 |
Profit before income taxes | 5,767 | 4,862 |
Income taxes | 1,591 | 1,191 |
Profit | 4,176 | 3,670 |
Profit attributable to owners of parent | 4,176 | 3,670 |
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Consolidated statements of comprehensive income (cumulative)
Profit
Other comprehensive income
Foreign currency translation adjustment
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) | |
Six months ended | Six months ended |
September 30, 2023 | September 30, 2024 |
4,176 | 3,670 |
2,175 | 3,239 |
(46) | (110) |
2,128 | 3,129 |
6,304 | 6,799 |
6,304 | 6,799 |
- | - |
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Consolidated statements of cash flows
(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 5,767 | 4,862 |
Depreciation | 1,115 | 1,327 |
Amortization of goodwill | 509 | 564 |
Loss (gain) on sale and retirement of non-current assets | 8 | 25 |
Share of loss (profit) of entities accounted for using equity | 496 | 365 |
method | ||
Increase (decrease) in allowance for doubtful accounts | (49) | 8 |
Increase (decrease) in provision for bonuses | (58) | (0) |
Increase (decrease) in retirement benefit liability | 6 | (19) |
Foreign exchange losses (gains) | 18 | 15 |
Interest expenses | 33 | 43 |
Decrease (increase) in trade receivables | (316) | 230 |
Increase (decrease) in accrued consumption taxes | 155 | (126) |
Decrease (increase) in accounts receivable - other | (1,357) | (1,826) |
Decrease (increase) in prepaid expenses | (157) | (193) |
Increase (decrease) in contract liabilities | 309 | 175 |
Increase (decrease) in accounts payable - other | 1,883 | 2,512 |
Other, net | 380 | (419) |
Subtotal | 8,744 | 7,547 |
Interest and dividends received | 17 | 28 |
Interest paid | (34) | (46) |
Income taxes refund (paid) | (1,505) | (1,145) |
Net cash provided by (used in) operating activities | 7,222 | 6,384 |
Cash flows from investing activities | ||
Payments into time deposits | (52) | (9) |
Proceeds from withdrawal of time deposits | 182 | - |
Purchase of property, plant and equipment | (365) | (209) |
Purchase of intangible assets | (1,554) | (1,666) |
Other, net | 1 | 0 |
Net cash provided by (used in) investing activities | (1,788) | (1,885) |
Cash flows from financing activities | ||
Repayments of long-term borrowings | (950) | (950) |
Repayments of lease liabilities | (78) | (77) |
Proceeds from issuance of share acquisition rights | 5 | 6 |
Proceeds from issuance of shares resulting from exercise of | 304 | - |
share acquisition rights | ||
Purchase of treasury shares | (0) | (3,915) |
Proceeds from disposal of treasury shares | - | 54 |
Dividends paid | (1,306) | (1,734) |
Net cash provided by (used in) financing activities | (2,027) | (6,617) |
Effect of exchange rate change on cash and cash equivalents | 214 | 354 |
Net increase (decrease) in cash and cash equivalents | 3,621 | (1,763) |
Cash and cash equivalents at beginning of period | 16,170 | 17,365 |
Cash and cash equivalents at end of period | 19,791 | 15,601 |
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