SMS : FY03-25 Q1 SMS Summary of Consolidated Financial Results

Published July 26, 2024 at 10:01 p.m. UTC

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 Three Months Ended June 30, 2024
		(Based on Japanese GAAP)
			July 26, 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 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 three months ended June 30, 2024 (from April 1, 2024 to June 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	%
Three months ended June 30, 2024	17,426	14.7	3,000	(19.5)	4,114	(10.7)	3,163	(6.7)
Three months ended June 30, 2023	15,194	21.4	3,729	20.8	4,609	13.9	3,389	13.9

	Earnings per share	Diluted earnings per share
		Yen				Yen
Three months ended June 30, 2024		36.71			36.70
Three months ended June 30, 2023		38.89			38.70
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of June 30, 2024	74,758		45,395		60.3
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	-
Year ending March 31, 2025 (Forecast)				0.00			-		-

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	93.03

4. Notes
(1)	Significant changes in the scope of consolidation during the three months ended June 30, 2024:	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	Yes
(3)	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 June 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 June 30, 2024	1,644,032	shares	As of March 31, 2024	812,832	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2024	86,185,768	shares	Three months ended June 30, 2023	87,154,946	shares

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2024	As of June 30, 2024
Assets
Current assets
Cash and deposits	18,236	18,237
Accounts receivable - trade	8,228	7,815
Work in process	13	23
Supplies	25	31
Accounts receivable - other	10,406	11,878
Prepaid expenses	1,038	1,285
Other	94	134
Allowance for doubtful accounts	(267)	(288)
Total current assets	37,775	39,116
Non-current assets
Property, plant and equipment
Buildings	1,131	1,260
Accumulated depreciation	(509)	(550)
Buildings, net	621	710
Tools, furniture and fixtures	1,097	1,190
Accumulated depreciation	(877)	(931)
Tools, furniture and fixtures, net	220	259
Machinery, equipment and vehicles	20	21
Accumulated depreciation	(15)	(16)
Machinery, equipment and vehicles, net	4	4
Right-of-use assets	657	685
Accumulated depreciation	(371)	(423)
Right-of-use assets, net	285	262
Total property, plant and equipment	1,132	1,236
Intangible assets
Goodwill	9,752	10,089
Software	5,454	5,753
Trademark right	11,814	12,612
Customer-related assets	1,143	1,139
Other	0	0
Total intangible assets	28,165	29,594
Investments and other assets
Investment securities	2,652	1,978
Deferred tax assets	1,262	1,323
Leasehold and guarantee deposits	1,486	1,508
Total investments and other assets	5,402	4,810
Total non-current assets	34,699	35,641
Total assets	72,475	74,758

		(Millions of yen)
	As of March 31, 2024	As of June 30, 2024
Liabilities
Current liabilities
Accounts payable - trade	460	360
Current portion of long-term borrowings	1,901	1,901
Accounts payable - other	12,730	13,758
Accrued expenses	1,059	1,512
Income taxes payable	1,344	1,074
Accrued consumption taxes	930	1,035
Contract liabilities	1,205	1,469
Deposits received	183	150
Provision for bonuses	909	479
Lease liabilities	160	155
Other	439	480
Total current liabilities	21,325	22,377
Non-current liabilities
Long-term borrowings	4,251	4,251
Retirement benefit liability	203	208
Deferred tax liabilities	2,286	2,420
Lease liabilities	121	102
Other	2	2
Total non-current liabilities	6,865	6,985
Total liabilities	28,190	29,362
Net assets
Shareholders' equity
Share capital	2,551	2,551
Capital surplus	313	262
Retained earnings	39,111	40,539
Treasury shares	(1,904)	(3,713)
Total shareholders' equity	40,071	39,640
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	322	260
Foreign currency translation adjustment	3,607	5,199
Total accumulated other comprehensive income	3,930	5,460
Share acquisition rights	282	295
Total net assets	44,284	45,395
Total liabilities and net assets	72,475	74,758

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2023	June 30, 2024
Net sales	15,194	17,426
Cost of sales	1,392	1,596
Gross profit	13,802	15,830
Selling, general and administrative expenses	10,073	12,829
Operating profit	3,729	3,000
Non-operating income
Share of profit of entities accounted for using equity method	881	1,099
Foreign exchange gains	0	21
Other	14	17
Total non-operating income	897	1,138
Non-operating expenses
Interest expenses	16	20
Other	0	4
Total non-operating expenses	16	24
Ordinary profit	4,609	4,114
Extraordinary income
Gain on sale of non-current assets	0	0
Total extraordinary income	0	0
Extraordinary losses
Loss on sale and retirement of non-current assets	5	4
Loss on withdrawal from business	-	30
Total extraordinary losses	5	34
Profit before income taxes	4,604	4,079
Income taxes	1,214	916
Profit	3,389	3,163
Profit attributable to owners of parent	3,389	3,163

Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2023	June 30, 2024
Profit	3,389	3,163
Other comprehensive income
Foreign currency translation adjustment	135	1,578
Share of other comprehensive income of entities accounted	(18)	(48)
for using equity method

Total other comprehensive income	117	1,530
Comprehensive income	3,507	4,693
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	3,507	4,693
Comprehensive income attributable to non-controlling	-	-
interests