Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending March 31, 2023 (JGAAP)
November 11, 2022 | |
Company name: | Suzumo Machinery Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Stock code: | 6405 |
URL: | https://www.suzumokikou.com/ |
Representative: | Minako Suzuki, President |
Contact: | Toru Shiga, Executive Officer and General Manager of Administration Division |
Phone: | +81-3-3993-1371 |
Scheduled date to file quarterly report: | November 11, 2022 |
Scheduled date for dividend payment: | - |
Supplementary materials for quarterly financial statements: | Yes |
Results briefing to be held: | Yes |
(Amounts of less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)
(1) Consolidated Operating Results | (Percentages indicate year-on-year change) | ||||||||
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, 2022 | 6,351 | 22.1 | 436 | -31.2 | 468 | -27.9 | 379 | -20.2 | |
September 30, 2021 | 5,201 | 21.4 | 634 | 252.0 | 650 | 264.6 | 475 | 306.3 |
(Note) Comprehensive income: Six months ended | September 30, 2022: 499 million yen (-11.4%) | ||
Six months ended | September 30, 2021: 564 million yen (301.1%) | ||
Earnings | Diluted earnings | ||
per share | per share | ||
Six months ended | Yen | Yen | |
September 30, 2022 | 29.39 | ― | |
September 30, 2021 | 36.87 | ― |
(Note) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
Earnings per share are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | ||||||||
As of | Millions of yen | Millions of yen | % | |||||||
September 30, 2022 | 16,830 | 13,524 | 80.2 | |||||||
March 31, 2022 | 16,416 | 13,254 | 80.6 | |||||||
(Reference) Shareholders' equity: As of September 30, 2022: 13,502 million yen | ||||||||||
As of March 31, 2022: 13,236 million yen | ||||||||||
2. Dividends | ||||||||||
Annual dividend per share | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter | quarter | quarter | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended March 31, 2022 | ― | 0.00 | ― | 40.00 | 40.00 | |||||
Fiscal year ending March 31, 2023 | ― | 15.00 | ||||||||
Fiscal year ending March 31, 2023 (forecast) | ― | 16.00 | 31.00 | |||||||
(Note 1) Changes in dividend forecast from the most recent announcement: None
(Note 2) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
For the fiscal year ended March 2022, the actual amount of dividends before the stock split is stated. For the fiscal year ending March 2023 (forecast), the amount of dividends after the stock split is stated.
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3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(Percentages indicate year-on-year change)
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 | 13,000 | 12.4 | 1,800 | 18.6 | 1,800 | 16.6 | 1,315 | 22.9 | 101.81 | |
(Note 1) Changes in earnings forecast from the most recent announcement: None
(Note 2) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
Earnings per share are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: | - |
Excluded: | - |
- Application of special accounting treatment in preparing the quarterly financial statements: Yes
(Note) For details, please see the attached materials on page 8, "2. Quarterly Consolidated Financial Statements and Primary Notes; (3) Notes to Quarterly Consolidated Financial Statements (Application of special accounting treatment in preparing the quarterly financial statements)." - Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) | Changes in accounting policies due to revision of accounting standards: | None |
2) | Changes in accounting policies due to other reasons: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatement: | None |
- Total number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury shares):
September 30, 2022: | 12,960,000 shares |
March 31, 2022: | 12,960,000shares |
2) Total number of treasury shares at the end of the period: | |
September 30, 2022: | 32,540 shares |
March 31, 2022: | 56,900 shares |
3) Average number of shares outstanding during the period: | |
Six months ended September 30, 2022: | 12,913,292 shares |
Six months ended September 30, 2021: | 12,895,884 shares |
(Note) Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
The number of issued shares (common stock) is calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
- The quarterly financial statements are outside the scope of quarterly reviews by certified public accountants and auditing firms.
-
Explanation of the proper use of financial results forecast and other notes
Forward-looking statements in this document, including outlook on future performance, are based on currently available information and certain assumptions that the Company regards as reasonable, and the Company does not in any way guarantee their achievement. Actual results may differ substantially from the projections herein depending on various factors. For the preconditions of and precautions in using the financial results forecast, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information" on page 3 of the Attachment.
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Contents of Attached Materials | ||
1. Qualitative Information on Quarterly Financial Results .................................................................................................. | 2 | |
(1) | Explanation of Business Results .................................................................................................................................. | 2 |
(2) | Explanation of Financial Condition ............................................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information ............................ | 3 |
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................................. | 4 | |
(1) | Consolidated Balance Sheet ........................................................................................................................................ | 4 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income...................................... | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements ................................................................................................ | 8 |
(Notes on going concern assumption)............................................................................................................................ | 8 | |
(Notes in the event of significant changes in shareholders' equity) ................................................................................ | 8 | |
(Application of special accounting treatment in preparing the quarterly financial statements) ....................................... | 8 |
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1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Business Results
In the first six months of the fiscal year ending March 31, 2023 (April 1, 2022-September 30, 2022), the Japanese economy saw diverging business sentiments across industries. While the manufacturing industry was weighed down by soaring raw material prices stemming from a rise in resource prices and a weak yen, the non-manufacturing industry saw improvements in a range of fields including construction and logistics-related. Individual consumption is on a recovery track owing to a decline in COVID-19 cases nationwide since September 2022, and travel-related spending in particular is expected to receive a boost from government subsidies going forward.
However, the economy presently faces numerous downside risks, including the rise in consumer prices, particularly for daily necessities such as food and energy, yen depreciation and rising resource prices, and geopolitical instability caused in large part by the Russian invasion of Ukraine.
Under these conditions, during the six months ended September 30, 2022, demand for our products remained high as the food service and retail industries, our key customers, further accelerated their mechanization and labor-saving initiatives. On the other hand, the semiconductor and material supply shortage continued to affect our manufacturing activities, and we responded to the growing demand by securing new material and part vendors and changing product designs to enable the use of alternative parts.
In the domestic market, despite a surge in COVID-19 cases in the seventh wave of the infections, the pandemic is showing signs of settling down, and inbound demand is expected to recover owed to a substantial easing of immigration regulations and a weak yen. The food service and retail industries continue to face harsh business environments due to a surge in raw material and energy prices and labor shortages, but advances are being made in labor-saving efforts. By business category, demand for the Fuwarica rice serving machine from restaurants and cafeterias continued to expand, and demand for sushi robots from major conveyor belt sushi chains increased. In addition, domestic sales rose year on year since sales from Japan System Project Co., Ltd. (JSP), which joined our group in October 2021, contributed to consolidated results from the first quarter of the current fiscal year.
Overseas, demand for our products expanded as the intensified labor shortage and rising labor costs in the food service and retail industries further accelerated the move to mechanization. Overseas sales were up year on year due to solid contributions from the growing demand for sushi robot products from food service operators and supermarkets in North America, in addition to increased demand in Southeast Asia driven by a recovery in eating-out demand.
As a result, net sales in the six months ended September 30, 2022 stood at 6,351 million yen (+22.1% YoY). Of the total, domestic sales were 4,189 million yen (+23.6% YoY) and overseas sales were 2,162 million yen (+19.4% YoY).
Summary of results in the first six months of the fiscal year ending March 31, 2023
Six months ended | Six months ended | Amount of | Percentage | |||||
September 30, 2021 | September 30, 2022 | change | change | |||||
Millions of yen | % of net sales | Millions of yen | % of net sales | Millions of yen | % | |||
Net sales | 5,201 | 100.0 | 6,351 | 100.0 | 1,150 | 22.1 | ||
Domestic | 3,391 | 65.2 | 4,189 | 66.0 | 798 | 23.6 | ||
Overseas | 1,810 | 34.8 | 2,162 | 34.0 | 351 | 19.4 | ||
Gross profit | 2,561 | 49.3 | 3,036 | 47.8 | 474 | 18.5 | ||
Operating profit | 634 | 12.2 | 436 | 6.9 | -198 | -31.2 | ||
Ordinary profit | 650 | 12.5 | 468 | 7.4 | -181 | -27.9 | ||
Profit attributable | to | 475 | 9.1 | 379 | 6.0 | -95 | -20.2 | |
owners of parent | ||||||||
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On the profit front, gross profit was up 18.5% to 3,036 million yen owing to the increase in net sales. Operating profit decreased 31.2% to 436 million yen as a result of higher SG&A expenses, driven by the addition of JSP to the group; higher packing and transportation costs due to soaring logistics costs; aggressive investment in personnel and costs for establishing various systems with an eye to business growth; exhibition expenses and higher travel expenses mainly for overseas travel following the easing of travel restrictions; and expenses arising from the relocation of the head office. Ordinary profit was down 27.9% to 468 million yen, and profit attributable to owners of parent was down 20.2% to 379 million yen despite an extraordinary gain of 128 million yen on the sale of investment securities from its policy shareholdings, due to higher SG&A expenses.
(2) Explanation of Financial Condition
(Assets)
Total assets as of September 30, 2022 were up 414 million yen from March 31, 2022 to 16,830 million yen. This change was primarily due to increases of 303 million yen in inventories and 108 million yen in building and structures, net.
(Liabilities)
Liabilities as of September 30, 2022 were up 144 million yen from March 31, 2022 to 3,306 million yen. This change was chiefly due to a 168 million yen increase in provision for bonuses.
(Net assets)
Net assets as of September 30, 2022 were up 270 million yen from March 31, 2022 to 13,524 million yen. This change was mainly due to a 258 million yen decrease in retained earnings due to the payment of dividends and a 91 million yen decrease in valuation difference on available-for-sale securities, offset by increases of 379 million yen in profit attributable to owners of parent and 197 million yen in foreign currency translation adjustment.
(3) Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information
Earnings forecast is based on currently available information. Actual results may differ substantially from the projections herein depending on various factors. The forecast figures remain unchanged from those announced on May 13, 2022.
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