Zojirushi CorporationTSE: 7965

Consolidated Financial Results for the Nine Months Ended August 20,2024

Oct 3, 2024 at 6:40 AM UTC · Issued by Zojirushi Corporation

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 Nine Months Ended August 20, 2024

[Japanese GAAP]

October 1, 2024

Company name: Zojirushi Corporation

Stock exchange listing: Tokyo Stock Exchange

Securities code: 7965

URL: http://www.zojirushi.co.jp

Representative: Norio Ichikawa, Representative Director, President and Corporate Officer

Contact: Shigehisa Okamoto, Corporate Officer and General Manager, Accounting Department

Phone: +81-6-6356-2368

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on financial results: Available

Schedule of financial results briefing session: None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended August 20, 2024 (November 21, 2023 to August 20,

2024)
(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent

	Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	August 20, 2024	65,735	6.1	4,478	6.5	5,317	(2.0)	4,874	31.3
	August 20, 2023	61,938	0.0	4,203	(8.1)	5,425	(6.4)	3,711	(0.3)

(Note) Comprehensive income: Nine months ended August 20, 2024: ¥7,144 million [63.4%]

			Nine months ended August 20, 2023: ¥4,373 million [(37.9)%]
			Basic earnings		Diluted earnings
			per share		per share
	Nine months ended		Yen		Yen
	August 20, 2024		72.47		-
	August 20, 2023		54.86		-
(2) Consolidated Financial Position
			Total assets	Net assets	Equity ratio
			Million yen	Million yen	%
	As of August 20, 2024	113,092	86,816	76.0
	As of November 20, 2023	112,418	85,299	75.1

(Reference) Equity: As of August 20, 2024: ¥86,004 million As of November 20, 2023: ¥84,481 million

2. Dividends

				Annual dividends
		1st		2nd		3rd		Year-end		Total
		quarter-end		quarter-end	quarter-end

Fiscal year ended		Yen		Yen		Yen		Yen		Yen
	-	17.00		-		17.00	34.00
November 20, 2023

Fiscal year ending		-	17.00		-

November 20, 2024

Fiscal year ending
November 20, 2024								17.00	34.00
(Forecast)
(Note) Revision of the dividend forecast	announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 20, 2024 (November 21, 2023 to November 20, 2024)

(% indicates changes from the previous fiscal year.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent

Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
87,000	4.2	5,200	4.0	5,700	(12.3)	5,000	12.6	73.89
(Note) Revision	of the financial results forecast announced most recently: None

* Notes:

Significant changes in the scope of consolidation during the period: None
Newly included: - (Name) -
Excluded: - (Name) -
Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: None
2. Changes in accounting policies other than 1) above: None
3. Changes in accounting estimates: None
4. Retrospective restatement: None
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

August 20, 2024:	72,600,000 shares
November 20, 2023:	72,600,000 shares
2) Total number of treasury shares at the end of the period:
August 20, 2024:	7,001,517 shares
November 20, 2023:	4,928,881 shares
3) Average number of shares during the period (cumulative):
Nine months ended August 20, 2024:	67,264,370 shares
Nine months ended August 20, 2023:	67,663,184 shares

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary)
Explanation of the proper use of financial results forecast and other notes

Forward-looking statements, such as performance forecasts, made in this document are based on information currently available to the Company and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results, etc. may differ significantly due to various factors.

Table of Contents - Attachments
1. Qualitative Information on Financial Results for the Period under Review	2
(1)	Explanation of Operating Results	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Statements	3
2. Quarterly Consolidated Financial Statements and Principal Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statements of Income	6
	Nine Months Ended August 20	6
	Quarterly Consolidated Statements of Comprehensive Income	7
	Nine Months Ended August 20	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Notes on going concern assumption)	8
	(Notes when there are significant changes in amounts of equity)	8
	(Notes on segment information, etc.)	8
	(Notes on statements of cash flows)	8
Independent Auditor's Interim Review Report on the Quarterly Consolidated Financial Statements .... 9

1. Qualitative Information on Financial Results for the Period under Review

Explanation of Operating Results
The global economy maintained a steady growth trajectory during the period under review (November 21, 2023 to August 20, 2024) despite ongoing geopolitical risks. In Japan, signs of economic recovery were observed, including the normalization of automobile production, robust demand from travelers to Japan, and improvements in personal consumption. Overseas, there was a gradual recovery trend, supported by steady personal consumption in the U.S. and Europe, despite China experiencing an economic slowdown due to the real estate slump and sluggish personal consumption.
In this business environment, on November 21, 2022, the Group launched its three-yearmedium-term plan, SHIFT, intended to advance a steady shift toward becoming a brand of solutions that grows sustainably while delivering solutions to lifestyle and social issues, and made efforts toward implementation of specific measures under this plan.
For the period under review, the Group's net sales increased by ¥3,796 million (up 6.1% year on year) from the previous year to ¥65,735 million, due to growth in both domestic and overseas sales. Net sales by product category remained strong for cooking appliances, household and thermal products, and household appliances. Domestic net sales amounted to ¥40,082 million (up 7.7% year on year), and overseas net sales amounted to ¥25,653 million (up 3.8% year on year). As a result, overseas net sales made up 39.0% of net sales.
As for profits, operating profit amounted to ¥4,478 million (up 6.5% year on year) due to an increase in net sales resulting from strong domestic and overseas sales, as well as efforts to pass on the higher import costs due to the depreciation of the yen. Ordinary profit amounted to ¥5,317 million (down 2.0% year on year) due to foreign exchange losses. Profit attributable to owners of parent amounted to ¥4,874 million (up 31.3% year on year) due to the recording of gain on sale of non-current assets as extraordinary income, resulting from the transfer of land and a building associated with the relocation of a warehouse.
Business results by product category were as follows.

Cooking appliances
Net sales of cooking appliances amounted to ¥46,878 million (up 6.1% year on year).
In Japan, sales of rice cookers/warmers exceeded the previous year's results due to strong sales of the top- of-the-line induction heating pressure rice cooker "Embudaki." While sales of electric pots were sluggish, partly due to a shrinking market trend, toaster ovens performed well. Additionally, sales of electric kettles and electric griddles increased from the previous year, resulting in an overall sales increase year on year for cooking appliances.
Overseas, although electric pots struggled, sales of rice cookers/warmers were strong in China and Southeast Asia. Furthermore, oven ranges, which were newly introduced in Taiwan, contributed to a sales increase, resulting in an overall sales increase year on year.
Household and thermal products
Net sales of household and thermal products amounted to ¥14,246 million (up 4.9% year on year).
In Japan, sales increased year on year due to the strong performance of stainless-steel vacuum bottles and stainless-steel soup jars.
Overseas, despite struggles with stainless-steel products in China, strong sales in North America and Taiwan led to an overall sales increase year on year.
Household appliances
Net sales of household appliances amounted to ¥2,841 million (up 10.1% year on year).
In Japan, sales of air cleaners, humidifiers, and dish dryers were strong, resulting in a sales increase year on
year.
Overseas, humidifiers performed well in South Korea.

4) Others

Net sales of others amounted to ¥1,768 million (up 10.0% year on year).

 Net sales by region and product category					(Million yen)


						Overseas

			Japan	Asia					Total
					Americas	Other	Subtotal
					Of which,
					China
		Cooking	30,494	8,298	3,148	7,979	105	16,383		46,878
		appliances

		Household and	5,993	6,549	3,566	1,076	626	8,253		14,246
		thermal products

	Net	Household	2,331	510	28	-	-	510		2,841
	sales	appliances

		Others	1,263	396	129	105	4	505		1,768

			40,082	15,755	6,874	9,160	736	25,653		65,735

	Composition (%)	61.0	24.0	10.5	13.9	1.1	39.0		100.0

Explanation of Financial Position
In regard to financial position as of the end of the period under review, total assets increased by ¥674 million, liabilities decreased by ¥842 million, and net assets increased by ¥1,517 million from the end of the previous fiscal year. As a result, the equity ratio increased by 0.9 percentage point to 76.0%.
The increase of ¥674 million in total assets was attributable to an increase of ¥238 million in current assets and an increase of ¥436 million in non-current assets.
The increase of ¥238 million in current assets was due mainly to increases of ¥3,113 million in cash and deposits and ¥273 million in raw materials and supplies, partially offset by decreases of ¥1,847 million in notes and accounts receivable - trade, ¥1,008 million in merchandise and finished goods, and ¥307 million in other current assets. The increase of ¥436 million in non-current assets was due mainly to increases of ¥361 million in buildings and structures and ¥951 million in investment securities, partially offset by decreases of ¥468 million in land, ¥409 million in leased assets, and ¥187 million in deferred tax assets.
The decrease of ¥842 million in liabilities was attributable to an increase of ¥735 million in current liabilities and a decrease of ¥1,578 million in non-current liabilities.
The increase of ¥735 million in current liabilities was due mainly to increases of ¥291 million in notes and accounts payable - trade, ¥1,500 million in current portion of long-term borrowings, and ¥176 million in income taxes payable, partially offset by decreases of ¥591 million in accrued expenses and ¥512 million in provision for bonuses. The decrease of ¥1,578 million in non-current liabilities was due mainly to decreases of ¥1,500 million in long-term borrowings and ¥404 million in lease liabilities, partially offset by an increase of ¥433 million in deferred tax liabilities.
The increase of ¥1,517 million in net assets was due mainly to profit attributable to owners of parent of ¥4,874 million recorded, increases of ¥572 million in valuation difference on available-for-sale securities and ¥1,603 million in foreign currency translation adjustment, partially offset by dividends of surplus of ¥2,301 million paid and a decrease of ¥3,271 million due to acquisition of treasury shares.
Explanation of Consolidated Financial Results Forecast and Other Forward-LookingStatements Regarding the consolidated financial results forecast for the fiscal year ending November 20, 2024, we have left unchanged the forecast announced on December 25, 2023, in light of the business performance during the nine months ended August 20, 2024.
The exchange rate assumption was changed from 140 yen to the U.S. dollar, as announced on December 25, 2023, to 150 yen to the U.S. dollar on July 1, 2024.

2. Quarterly Consolidated Financial Statements and Principal Notes

(1) Quarterly Consolidated Balance Sheets

					(Million yen)

			As of November 20, 2023		As of August 20, 2024

Assets
Current assets
Cash and deposits			34,198		37,311
Notes and accounts receivable - trade	14,176	12,328
Electronically recorded monetary claims - operating	1,361	1,357
Merchandise and finished goods			24,254		23,245
Work in process			328		348
Raw materials and supplies	6,463	6,737
Other			2,881		2,573
Allowance for doubtful accounts		(23)	(23)
Total current assets	83,640	83,878
Non-current assets
Property, plant and equipment
Buildings and structures			13,324		13,389
Accumulated depreciation			(10,712)		(10,416)
Buildings and structures, net			2,611	2,973
Machinery, equipment and vehicles	3,946	4,010
Accumulated depreciation		(3,549)	(3,615)
Machinery, equipment and vehicles, net	397	394
Tools, furniture and fixtures			11,022	11,744
Accumulated depreciation	(9,139)	(9,700)
Tools, furniture and fixtures, net			1,883	2,044
Land	7,446	6,977
Leased assets	3,378	3,312
Accumulated depreciation			(1,221)		(1,565)
Leased assets, net			2,156	1,746
Construction in progress			81		38
Total property, plant and equipment			14,576	14,174
Intangible assets
Software	523	543
Other			193		175
Total intangible assets			717	718
Investments and other assets
Investment securities	7,806	8,757
Deferred tax assets	642	455
Retirement benefit asset			4,352		4,466
Other			684		642
Allowance for doubtful accounts		(2)	(2)
Total investments and other assets	13,484	14,320
Total non-current assets			28,777	29,213
Total assets		112,418	113,092

(Million yen)

As of November 20, 2023

As of August 20, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

Current portion of long-term borrowings

Lease liabilities

Accrued expenses

Income taxes payable

Contract liabilities

Refund liabilities

Provision for bonuses

Provision for product warranties

Provision for loss on voluntary recall of products Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Lease liabilities

Deferred tax liabilities

Retirement benefit liability

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

7,157	7,449
-	1,500
606	623
4,982	4,390
919		1,096
127		116
1,973	1,888
1,176	664
150	137
16	14
2,007		1,971
	19,117		19,852
1,500	-
1,646		1,242
1,956		2,389
2,615	2,547
283	243
	8,001	6,423
	27,118	26,276
4,022	4,022
4,295	4,327
69,394		71,967
(953)		(4,220)
	76,759	76,097
2,264	2,836
5,147	6,751
309	318

Total accumulated other comprehensive income	7,721	9,906
Non-controlling interests		818	812
Total net assets	85,299	86,816
Total liabilities and net assets		112,418	113,092

Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income
Nine Months Ended August 20, 2024

			(Million yen)

		For the nine months ended	For the nine months ended
		August 20, 2023	August 20, 2024
Net sales		61,938	65,735
Cost of sales	42,277	44,659
Gross profit		19,661	21,075
Selling, general and administrative expenses	15,458	16,597
Operating profit		4,203	4,478
Non-operating income
Interest income		107	302
Dividend income	122	139
Purchase discounts		28	18
Share of profit of entities accounted for using equity	516	342
method

Royalty income		38	31
Rental income	86	86
Foreign exchange gains		270	-
Refund of Chinese-value-added-tax	90	-
Other		57	66
Total non-operating income	1,319	988
Non-operating expenses
Interest expenses	62	52
Rental expenses on non-current assets		18	14
Foreign exchange losses	-	61
Other		15	20
Total non-operating expenses	97	148
Ordinary profit		5,425	5,317
Extraordinary income
Gain on sale of non-current assets		0	1,916
Gain on sale of investment securities	-	41
Total extraordinary income		0	1,958
Extraordinary losses
Loss on retirement of non-current assets		25	31
Provision for loss on product recalls	14	-
Total extraordinary losses		39	31
Profit before income taxes	5,386	7,244
Income taxes - current		716	1,923
Income taxes - deferred	824	381
Total income taxes		1,540	2,305
Profit	3,845	4,938
Profit attributable to non-controlling interests		133	64
Profit attributable to owners of parent		3,711	4,874

Quarterly Consolidated Statements of Comprehensive Income

Nine Months Ended August 20, 2024

					(Million yen)

			For the nine months ended		For the nine months ended
			August 20, 2023		August 20, 2024
Profit			3,845		4,938
Other comprehensive income
Valuation difference on available-for-sale securities		440	572
Foreign currency translation adjustment	(41)	1,490
Remeasurements of defined benefit plans, net of tax		27	9
Share of other	comprehensive income of entities	101	133
accounted for using equity method

Total other comprehensive income		527	2,205
Comprehensive income	4,373	7,144
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	4,291	7,059
Comprehensive	income attributable to non-controlling	81		84
interests

Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption)
Not applicable.

(Notes when there are significant changes in amounts of equity)

Based on the resolution of the Board of Directors meeting held on July 1, 2024, the Company acquired 2,098,600 treasury shares. As a result, treasury shares increased by ¥3,271 million during the period under review, and the balance of treasury shares at the end of the period under review was ¥4,220 million.

(Notes on segment information, etc.) [Segment information]

For the nine months ended August 20, 2023

The Group engages in manufacture and sales of household products and other products, as well as incidental operations thereto, and businesses other than household products are immaterial. Accordingly, the segment information is omitted.

For the nine months ended August 20, 2024

(Notes on statements of cash flows)

The Company has not prepared quarterly consolidated statements of cash flows for the nine months of the fiscal year ending November 20, 2024. However, depreciations (including amortization of intangible assets) for the first nine-month periods are as follows:

		(Million yen)
	For the nine months ended	For the nine months ended
	August 20, 2023	August 20, 2024
Depreciation	1,616	1,695