Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2025 (JGAAP)
August 9, 2024
Company name: | Suzumo Machinery Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Stock code: | 6405 |
URL: | http://www.suzumokikou.com/ |
Representative: | Minako Suzuki, President |
Contact: | Junko Koshino, Director and Managing Executive Officer |
Phone: | +81-3-3993-1371 |
Scheduled date for dividend payment: | - |
Supplementary materials for quarterly financial statements: | Yes |
Results briefing to be held: | None |
(Amounts of less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (April 1, 2024 to June 30, 2024)
(1) Consolidated operating results | (Percentages indicate year-on-year change) | ||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||
owners of parent | |||||||||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||
June 30, 2024 | 3,715 | 13.9 | 428 | 144.2 | 450 | 149.2 | 348 | 170.4 | |||||||||
June 30, 2023 | 3,262 | 3.9 | 175 | -31.9 | 180 | -32.3 | 128 | -16.3 | |||||||||
(Note) Comprehensive income: Three months ended June 30, 2024: 468 million yen (226.0%) | |||||||||||||||||
Three months ended June 30, 2023: 143 million yen (-37.7%) | |||||||||||||||||
Earnings | Diluted earnings | ||||||||||||||||
per share | per share | ||||||||||||||||
Three months ended | Yen | Yen | |||||||||||||||
June 30, 2024 | 26.95 | ― | |||||||||||||||
June 30, 2023 | 9.97 | ― | |||||||||||||||
(2) Consolidated financial position | |||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||
As of | Millions of yen | Millions of yen | % | ||||||||||||||
June 30, 2024 | 18,680 | 14,827 | 79.2 | ||||||||||||||
March 31, 2024 | 18,201 | 14,580 | 79.9 | ||||||||||||||
(Reference) Shareholders' equity: As of June 30, 2024: 14,792 million yen | |||||||||||||||||
As of March 31, 2024: 14,545 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, 2024 | ― | 15.00 | ― | 17.00 | 32.00 | ||||||||||||
Fiscal year ending March 31, 2025 | ― | ||||||||||||||||
Fiscal year ending March 31, 2025 (forecast) | 15.00 | ― | 18.00 | 33.00 |
(Note) Changes in dividend forecast from the most recent announcement: None
3. Consolidated earnings forecast for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)
(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 | ||
Six months | ||||||||||
ending | 7,595 | 12.8 | 690 | 51.7 | 695 | 44.0 | 495 | 67.5 | 38.28 | |
September 30, | ||||||||||
2024 | ||||||||||
Full-year | 15,960 | 10.0 | 1,900 | 28.8 | 1,915 | 27.8 | 1,350 | 18.3 | 104.41 | |
(Note) Changes in earnings forecast from the most recent announcement: None |
Notes:
- Significant changes in the scope of consolidation during the period under review: 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: | Yes |
2) | Changes in accounting policies due to other reasons: | None |
3) | Changes in accounting estimates: | Yes |
4) | Retrospective restatement: | None |
(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 (Changes in accounting policies) and (Changes in accounting estimates)."
- Total number of issued shares (common stock)
1) | Total number of issued shares at the end of the period (including treasury shares): | |
June 30, 2024: | 12,960,000 shares | |
March 31, 2024: | 12,960,000 shares | |
2) | Total number of treasury shares at the end of the period: | |
June 30, 2024: | 31,318 shares | |
March 31, 2024: | 30,180 shares | |
3) Average number of shares outstanding during the period: | ||
Three months ended June 30, 2024: | 12,929,081 shares | |
Three months ended June 30, 2023: | 12,925,846 shares |
- Review of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm: None
- 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. Summary of Business Results, (3) Explanation of Consolidated Financial Earnings Forecast and Other Forward- Looking Information" on page 3 of the Attachment.
Contents of Attached Materials | ||
1. Summary of Business Results | 2 | |
(1) | Summary of Business Results for the First Three Months of the Fiscal Year Ending March 31, 2025 | 2 |
(2) | Financial Condition During the First Three Months of the Fiscal Year Ending March 31, 2025 | 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 |
Consolidated Statement of Income | 6 | |
Consolidated Statement of Comprehensive Income | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
(Changes in accounting policies) | 8 | |
(Changes in accounting estimates) | 8 | |
(Application of special accounting treatment in preparing the quarterly financial statements) | 8 | |
(Notes on segment information, etc.) | 8 | |
(Notes in the event of significant changes in shareholders' equity) | 8 | |
(Notes on going concern assumption) | 8 | |
(Notes on statement of cash flows) | 8 |
1
1. Summary of Business Results
- Summary of Business Results for the First Three Months of the Fiscal Year Ending March 31, 2025
In the first three months of the fiscal year ending March 31, 2025 (April 1, 2024-June 30, 2024), the Japanese economy was on a gradual recovery path due to an improved employment and income environment and rising inbound demand. On the other hand, the outlook remains uncertain due to soaring raw material and energy prices caused by rising geopolitical risks and other factors, the resulting turmoil in the European market, instability in the Middle East, and the economic slowdown in China.
Under these circumstances, during the first three months of the fiscal year ending March 31, 2025, the movements toward mechanization and labor saving continued in the restaurant and retail industries, and product demand remained firm. We have been implementing price revisions for products and parts since April 2024, applying these revisions to delivered items in Japan and to orders received overseas.
In Japan, the business environment remained difficult for the restaurant and retail industries due to soaring raw material and energy prices. However, product demand continued to be steady, supported by the ongoing recovery in food service demand, the expansion of inbound demand, and labor-saving efforts amid a labor shortage. By product and business category, although product demand for sushi robots remained steady due to expansion needs from supermarkets and new store openings, sales declined as replacement demand from major conveyor belt sushi chains ran its course. Meanwhile, replacement demand and new customer count for our Fuwarica rice serving machines grew, mainly from major chain operators in the restaurant and cafeteria sector. In addition, the effect of price revisions contributed to higher domestic sales than in the same period of the previous year.
Overseas, while uncertainties continue against the backdrop of inflation, monetary tightening, the situation in Ukraine, and prolonged geopolitical risks in the Middle East, product demand has grown on increased overseas expansion by Japanese companies in the restaurant and retail industries, continued movements toward labor saving due to the worsening labor shortage and rising labor costs, and the growing popularity of Japanese food. By region, in East Asia and Southeast Asia, businesses have been impacted by the economic slowdown in China, leading to a decline in sales due to the cancellation or postponement of capital investment plans. On the other hand, in North America, the popularity of Japanese food and the expansion of Japanese companies into the region accelerated, and the movements toward mechanization and labor saving remained strong, leading to increased demand for products. In Europe, although soaring energy prices and supply concerns caused by the situation in Ukraine continued to impact businesses, product demand has recovered, aided by efforts since the previous consolidated fiscal year to tap into demand from local businesses. Just as in Japan, the effects of price revisions also contributed, and overseas sales increased year on year.
As a result, net sales in the first three months of the fiscal year ending March 31, 2025 totaled 3,715 million yen (+13.9% YoY). Of the total, domestic sales were 2,424 million yen (+3.1% YoY) and overseas sales came to 1,290 million yen (+41.9% YoY).
Summary of results in the first three months of the fiscal year ending March 31, 2025
Three months ended | Three months ended | Amount of | Percentage | ||||
June 30, 2023 | June 30, 2024 | change | change | ||||
Millions of yen | % of net sales | Millions of yen | % of net sales | Millions of yen | % | ||
Net sales | 3,262 | 100.0 | 3,715 | 100.0 | 453 | 13.9 | |
Domestic | 2,352 | 72.1 | 2,424 | 65.3 | 72 | 3.1 | |
Overseas | 909 | 27.9 | 1,290 | 34.7 | 380 | 41.9 | |
Gross profit | 1,527 | 46.8 | 1,893 | 51.0 | 366 | 24.0 | |
Operating profit | 175 | 5.4 | 428 | 11.5 | 252 | 144.2 | |
Ordinary profit | 180 | 5.5 | 450 | 12.1 | 269 | 149.2 | |
2
Profit attributable to owners of parent
128
3.9
348
9.4
219
170.4
Gross profit rose to 1,893 million yen (+24.0% YoY), thanks to higher sales and the effect of price revisions. Operating profit increased to 428 million yen (+144.2% YoY) due to a rise in gross profit. This increase occurred despite an overall rise in SG&A expenses. On one hand, exhibition expenses and other costs decreased through effective cost controls. On the other hand, SG&A expenses increased due to several factors: higher personnel expenses resulting from both new hires associated with business expansion and base salary increases, increased R&D expenses for future new products and businesses, higher amortization expenses following the replacement of the core system implemented in the previous fiscal year, increased packing and transportation costs driven by higher overseas sales, and rising costs at overseas subsidiaries due to the depreciation of the yen. Ordinary profit rose to 450 million yen (+149.2% YoY). Profit attributable to owners of parent grew to 348 million yen (+170.4% YoY) due to an extraordinary gain of 25 million yen on the sale of a portion of the business of consolidated subsidiary Japan System Project Co., Ltd.
(2) Financial Condition During the First Three Months of the Fiscal Year Ending March 31, 2025
(Assets)
Total assets as of June 30, 2024 were up 479 million yen from March 31, 2024 to 18,680 million yen. This change was primarily due to increases of 258 million yen in inventories, 130 million yen in notes receivable included in notes and accounts receivable - trade, and 104 million yen in prepaid expenses included in other current assets.
(Liabilities)
Liabilities as of June 30, 2024 were up 232 million yen from March 31, 2024 to 3,853 million yen. This change was primarily due to an increase of 298 million yen in accrued expenses included in other current liabilities, while income taxes payable decreased by 115 million yen.
(Net assets)
Net assets as of June 30, 2024 were up by 246 million yen from March 31, 2024 to 14,827 million yen. This change was primarily due to increases of 348 million yen from profit attributable to owners of parent and 112 million yen from foreign currency translation adjustment, despite a decrease of 219 million yen in retained earnings due to the payment of dividends.
(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, 2024.
3
2. Quarterly Consolidated Financial Statements and Primary Notes
(1) Consolidated Balance Sheet
(Thousands of yen) | |||||
Fiscal year ended | Three months ended | ||||
March 31, 2024 | June 30, 2024 | ||||
(as of March 31, 2024) | (as of June 30, 2024) | ||||
Assets | |||||
Current assets | |||||
Cash and deposits | 6,017,416 | 6,009,949 | |||
Notes and accounts receivable - trade | 1,542,113 | 1,594,268 | |||
Electronically recorded monetary claims - | 311,653 | 402,114 | |||
operating | |||||
Inventories | 2,562,521 | 2,821,025 | |||
Other | 267,105 | 375,737 | |||
Allowance for doubtful accounts | (8,136) | － | |||
Total current assets | 10,692,674 | 11,203,095 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Buildings and structures, net | 2,001,638 | 1,981,927 | |||
Land | 3,522,922 | 3,522,922 | |||
Other, net | 460,404 | 438,145 | |||
Total property, plant and equipment | 5,984,965 | 5,942,995 | |||
Intangible assets | |||||
Software | 532,713 | 519,287 | |||
Other | 6,385 | 8,824 | |||
Total intangible assets | 539,098 | 528,111 | |||
Investments and other assets | |||||
Investment securities | 47,349 | 50,308 | |||
Deferred tax assets | 673,244 | 693,725 | |||
Other | 272,153 | 270,344 | |||
Allowance for doubtful accounts | (7,680) | (7,680) | |||
Total investments and other assets | 985,067 | 1,006,698 | |||
Total non-current assets | 7,509,132 | 7,477,805 | |||
Total assets | 18,201,806 | 18,680,901 | |||
4
(Thousands of yen) | |||||
Fiscal year ended | Three months ended | ||||
March 31, 2024 | June 30, 2024 | ||||
(as of March 31, 2024) | (as of June 30, 2024) | ||||
Liabilities | |||||
Current liabilities | |||||
Accounts payable - trade | 571,231 | 656,962 | |||
Current portion of long-term borrowings | 56,109 | 55,275 | |||
Income taxes payable | 289,024 | 173,640 | |||
Provision for bonuses | 221,888 | 197,424 | |||
Other | 868,681 | 1,158,184 | |||
Total current liabilities | 2,006,935 | 2,241,487 | |||
Non-current liabilities | |||||
Long-term borrowings | 153,860 | 140,354 | |||
Provision for retirement benefits for directors | 3,720 | 3,930 | |||
(and other officers) | |||||
Retirement benefit liability | 1,208,389 | 1,226,371 | |||
Asset retirement obligations | 150,315 | 150,647 | |||
Other | 97,778 | 90,645 | |||
Total non-current liabilities | 1,614,063 | 1,611,948 | |||
Total liabilities | 3,620,998 | 3,853,436 | |||
Net assets | |||||
Shareholders' equity | |||||
Share capital | 1,154,418 | 1,154,418 | |||
Capital surplus | 1,001,696 | 1,001,696 | |||
Retained earnings | 12,216,103 | 12,344,680 | |||
Treasury shares | (15,975) | (15,975) | |||
Total shareholders' equity | 14,356,242 | 14,484,819 | |||
Accumulated other comprehensive income | |||||
Foreign currency translation adjustment | 269,954 | 382,837 | |||
Remeasurements of defined benefit plans | (80,204) | (75,137) | |||
Total accumulated other comprehensive | 189,750 | 307,699 | |||
income | |||||
Non-controlling interests | 34,814 | 34,945 | |||
Total net assets | 14,580,807 | 14,827,465 | |||
Total liabilities and net assets | 18,201,806 | 18,680,901 | |||
5
-
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income
First Three Months of the Fiscal Year Ending March 31, 2025
(Thousands of yen) | ||||
Three months ended | Three months ended | |||
June 30, 2023 | June 30, 2024 | |||
(from April 1, 2023 | (from April 1, 2024 | |||
to June 30, 2023) | to June 30, 2024) | |||
Net sales | 3,262,082 | 3,715,627 | ||
Cost of sales | 1,734,884 | 1,822,171 | ||
Gross profit | 1,527,197 | 1,893,456 | ||
Selling, general and administrative expenses | 1,351,844 | 1,465,323 | ||
Operating profit | 175,352 | 428,132 | ||
Non-operating income | ||||
Interest income | 326 | 372 | ||
Share of profit of entities accounted for using | 2,939 | 7,740 | ||
equity method | ||||
Foreign exchange gains | 1,611 | 13,612 | ||
Other | 1,354 | 1,572 | ||
Total non-operating income | 6,231 | 23,298 | ||
Non-operating expenses | ||||
Interest expenses | 670 | 1,024 | ||
Restricted stock-related expenses | 140 | 162 | ||
Other | 138 | 20 | ||
Total non-operating expenses | 948 | 1,207 | ||
Ordinary profit | 180,635 | 450,224 | ||
Extraordinary income | ||||
Gain on sale of businesses | ― | 25,869 | ||
Total extraordinary income | ― | 25,869 | ||
Extraordinary losses | ||||
Loss on retirement of non-current assets | 6 | 596 | ||
Total extraordinary losses | 6 | 596 | ||
Profit before income taxes | 180,629 | 475,496 | ||
Income taxes | 51,384 | 126,055 | ||
Profit | 129,244 | 349,441 | ||
Profit attributable to non-controlling interests | 418 | 1,057 | ||
Profit attributable to owners of parent | 128,825 | 348,383 | ||
6
Consolidated Statement of Comprehensive Income
First Three Months of the Fiscal Year Ending March 31, 2025
(Thousands of yen) | |||
Three months ended | Three months ended | ||
June 30, 2023 | June 30, 2024 | ||
(from April 1, 2023 | (from April 1, 2024 | ||
to June 30, 2023) | to June 30, 2024) | ||
Profit | 129,244 | 349,441 | |
Other comprehensive income | |||
Foreign currency translation adjustment | 9,199 | 106,601 | |
Remeasurements of defined benefit plans, net of | 5,181 | 5,066 | |
tax | |||
Share of other comprehensive income of entities | 226 | 7,781 | |
accounted for using equity method | |||
Total other comprehensive income | 14,607 | 119,449 | |
Comprehensive income | 143,851 | 468,890 | |
(Breakdown) | |||
Comprehensive income attributable to owners of | 142,963 | 466,333 | |
parent | |||
Comprehensive income attributable to non- | 888 | 2,557 | |
controlling interests | |||
7
(3) Notes to Quarterly Consolidated Financial Statements
(Changes in accounting policies)
(Application of "Accounting Standard for Current Income Taxes," etc.)
The Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; hereinafter, "2022 Revised Accounting Standard") has been applied from the beginning of the first quarter of the current fiscal year.
With regard to the revision of the classification of corporate income taxes (taxation on other comprehensive income), the Company adheres to the transitional treatment stipulated in the provisory clause of Paragraph 20-3 of the 2022 Revised Accounting Standard, as well as that in the provisory clause of Paragraph 65-2(2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022). This change in accounting policy has no impact on the quarterly consolidated financial statements.
(Changes in accounting estimates)
(Change in the useful life of property, plant and equipment)
In the "Other" category under property, plant and equipment owned by the Company, molds were previously depreciated over a useful life of two years. However, in response to expanding overseas sales and the diversification of customer preferences, the Company has changed its management policy to more actively invest in new products. As continuous investment is expected in the future, it is anticipated that mold investments will significantly increase, leading to a rise in the significance of molds and their depreciation expenses. Given this situation, the Company has determined that it is appropriate to review the useful life of molds to better reflect the actual conditions. Based on a reasonable estimate of the useful life based on actual use to date, the Company has changed the useful life to eight years effective from the first quarter of the current consolidated fiscal year. The impact of this change on the quarterly consolidated financial statements is immaterial.
(Application of special accounting treatment in preparing the quarterly financial statements) (Calculation of tax expenses)
In regard to tax expenses, we have adopted the calculation method of rationally estimating the effective tax rate on profit before income taxes for the consolidated fiscal year, after application of tax effect accounting; then multiplying the profit before income taxes for the period under review by the said tax rate. However, in the event the estimated effective tax rate cannot be applied, statutory effective tax rate is used.
(Notes on segment information, etc.) [Segment information]
Our group operates in a single segment, the cooked-rice processing equipment business, so segment data are omitted.
(Notes in the event of significant changes in shareholders' equity) There is no relevant information.
(Notes on going concern assumption) There is no relevant information.
(Notes on statement of cash flows)
The Company has not prepared a quarterly consolidated statement of cash flows for the first three months of the fiscal year ending March 31, 2025. Depreciation expenses (including amortization of intangible assets excluding
8