EARTH CORPORATION Consolidated Financial Results
for the Fiscal Year Ended December 31, 2021 (Japanese GAAP)
February 14, 2022 | ||
Company name: | Earth Corporation | Listing Stock Exchange: Tokyo |
Stock code: | 4985 | URL: https://corp.earth.jp/en/index.html |
Representative: | Katsunori Kawabata, President and Representative Director, Chairman of the Board of Directors of | |
each group company | ||
Contact: | Tsuyoshi Mitsuzuka, Senior Executive Officer, Director General, Group Management Headquarters | |
Tel: | +81-3-5207-7458 |
Ordinary annual general meeting of shareholders: Scheduled date for dividend payment:
Scheduled date to file securities report: Preparation of supplemental explanatory materials: Results briefing to be held:
March 25, 2022
March 9, 2022
March 28, 2022 Yes
Yes (For securities analysts and institutional investors)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 1 to December 31, 2021)
(1) Consolidated operating results
(Percentages indicate YoY change)
Sales | Operating income | Ordinary income | Net income attributable | ||||||
to owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Fiscal year ended | 203,785 | 3.9 | 10,667 | (6.6) | 11,362 | (2.6) | 7,142 | 101.4 | |
December 31, 2021 | |||||||||
Fiscal year ended | 196,045 | 3.4 | 11,416 | 191.5 | 11,661 | 169.6 | 3,547 | 183.8 | |
December 31, 2020 | |||||||||
Note: Comprehensive income for the fiscal year ended December 31, 2021 was 7,621 million yen (52.9%), and comprehensive income for the fiscal year ended December 2020 was 4,982 million yen (101.6%).
Net income per | Diluted net income | Ratio of net | Ratio of ordinary | Operating income | |||
income to equity | income to total | ||||||
share | per share | capital | assets | margin | |||
Yen | Yen | % | % | % | |||
Fiscal year ended | 323.76 | － | 12.4 | 9.4 | 5.2 | ||
December 31, 2021 | |||||||
Fiscal year ended | 170.65 | － | 7.4 | 10.3 | 5.8 | ||
December 31, 2020 | |||||||
Reference: Equity in | Fiscal year ended | **million yen | Fiscal year ended | **million yen | |||
earnings of affiliates | December 31, 2021 | December 31, | |||||
2020 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Million yen | Million yen | % | Million yen | |
Fiscal year ended | 120,715 | 64,596 | 49.7 | 2,720.37 |
December 31, 2021 | ||||
Fiscal year ended | 119,870 | 59,823 | 46.1 | 2,507.62 |
December 31, 2020 | ||||
Reference: Equity capital amounted to 59,958 million yen as of December 31, 2021 and 55,299 million as of December 31, 2020.
(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents at end of | ||||
operating activities | investing activities | financing activities | ||
period | ||||
Million yen | Million yen | Million yen | Million yen | |
Fiscal year ended | 4,814 | (3,220) | (4,610) | 21,027 |
December 31, 2021 | ||||
Fiscal year ended | 24,590 | (3,168) | (4,938) | 23,716 |
December 31, 2020 | ||||
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2. Dividends
Dividend per share | Ratio of | |||||||
Total | Payout ratio | dividends to | ||||||
End of Q1 | End of Q2 | End of Q3 | Year-end | Total | dividends | (consolidated) | net assets | |
(consolidated) | ||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | ％ | % | |
Fiscal year ended | － | 0.00 | － | 115.00 | 115.00 | 2,536 | 67.4 | 5.1 |
December 31, 2020 | ||||||||
Fiscal year ended | － | 0.00 | － | 118.00 | 118.00 | 2,600 | 36.4 | 4.5 |
December 31, 2021 | ||||||||
Fiscal year ending | ||||||||
December 31, 2022 | － | 0.00 | － | 118.00 | 118.00 | 35.8 | ||
(forecast) |
3. Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)
(Percentages indicate rates of YoY change)
Sales | Operating income | Ordinary income | Net income attributable | Net income | |||||
to owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Six months ending | 91,500 | － | 13,300 | － | 13,400 | － | 9,280 | － | 421.04 |
June 30, 2022 | |||||||||
Full-year | 155,000 | － | 10,750 | － | 11,150 | － | 7,280 | － | 330.30 |
Note: The Company will begin applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the beginning of the fiscal year ending December 31, 2022. The figures above reflect impact from the application of this standard, so rates of YoY change referring to the fiscal year ended December 31, 2021 have been omitted.
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*Notes | ||||||
(1) Changes in significant subsidiaries during the period under review: | None | |||||
(Transfers of specified subsidiaries associated with changes in the Company's scope of consolidation) | ||||||
Newly subsidiaries added: | None | |||||
Subsidiaries excluded: | None | |||||
(2) Changes in accounting policies and accounting estimates and retrospective restatements | ||||||
1. Accounting policy changes due to accounting standard revisions, etc.: | None | |||||
2. Other accounting policy changes: | None | |||||
3. Changes in accounting estimates: | None | |||||
4. Retrospective restatements: | None | |||||
(3) Number of shares outstanding (common stock) | ||||||
1. Shares outstanding | As of December | 22,077,500 | As of December | 22,057,500 | ||
(including treasury stock) | 31, 2021 | 31, 2020 | ||||
2. Treasury shares outstanding | As of December | 36,939 | As of December | 5,065 | ||
31, 2021 | 31, 2020 | |||||
3. Average number of shares | Fiscal year ended | 22,062,456 | Fiscal year ended | 20,786,948 | ||
outstanding | December 31, 2021 | December 31, 2020 | ||||
*Summaries of financial statements are not subject to audit through certified public accountants or auditing corporations.
*Appropriate use of earnings forecast and other special notes
The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company, and certain assumptions it considers reasonable, but are not intended to be a promise that the Company will achieve. Actual results may vary materially from forecasts due to a variety of factors. For more information regarding assumptions made when formulating earnings projections and matters to note when using these projections, please see "1. Overview of Operating Results, (4)
Future Prospects" on page five of the accompanying materials.
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Accompanying Materials ― Contents | ||
1. Overview of Business Results, etc. ......................................................................... | ||
Overview of business results for the fiscal year under review.................................................... | ||
(2) | Overview of financial position for the fiscal year under review................................................... | 5 |
(3) | Overview of cash flows for the fiscal year under review ........................................................ | 5 |
(4) | Future outlook ........................................................................................ | 7 |
(5) | Basic Policy concerning the Allocation of Profits and Dividends for Fiscal 2021 and Fiscal 2022 ........................ | 8 |
2. Basic Views on Selection of Accounting Standards ............................................................. | 9 | |
3. Consolidated Financial Statements and Primary Notes ......................................................... | 10 | |
(1) | Consolidated Balance Sheet ............................................................................. | 10 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income............................ | 12 |
Consolidated Statement of Income ........................................................................ | 12 | |
Consolidated Statement of Comprehensive Income............................................................ | 14 | |
(3) | Consolidated Statement of Changes in Equity ............................................................... | 15 |
(4) | Consolidated Statement of Cash Flows .................................................................... | 17 |
(5) | Notes to Consolidated Financial Statements ................................................................ | 18 |
(Notes to going concern assumptions) ...................................................................... | 18 | |
(Change in presentation of results) ........................................................................ | 18 | |
(Segment information, etc.) .............................................................................. | 19 | |
(Per share information) ................................................................................. | 24 | |
(Significant subsequent events) ........................................................................... | 24 | |
(6) Other ................................................................................................ | 24 |
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1. Overview of Business Results, etc.
(1) Overview of business results for the fiscal year under review
Although the Japanese economy continued to incur impact from the COVID-19 pandemic throughout the fiscal year ended December 31, 2021, new infections decreased thanks to various policies and growth in Japan's vaccinated population, while the economy and social conditions exhibited signs of gradual recovery, including the holding of the Tokyo 2020 Olympic and Paralympic Games, which had been postponed for one year. However, the future of the pandemic remains extremely uncertain, and priority measures have been put in place to thwart the spread of new variants in some regions.
Meanwhile, conditions in Asian regions in which the Earth Corporation is conducting business development continue to require close attention because waves of COVID-19 infections continue to intermittently impact various nations in these Asian regions.
Under these economic conditions, the Company announced its medium-term management plan, "Act For SMILE－COMPASS 2023－" in February 2021. In accordance with the Company's corporate philosophy, "We act to live in harmony with the Earth," the plan includes four fundamental policies: "Reform Corporate Compass & Infrastructure," "Expand Profit Foundation in Asia," "ESG/Open Innovation," and "Generate Cost Synergies." The Company is striving to implement priority measures associated with these policies during the fiscal year ended December 31, 2021, the first year of the plan.
During the fiscal year ended December 31, 2021, the Company generated 203,785 million yen in sales (+3.9% YoY). This sales growth was due in part to upward impact stemming from factors associated with the Household Products Business, including ongoing high customer demand and the launch of new products in response to lifestyle changes caused by COVID-19. Also contributing to this growth was expansion in the General Environment and Sanitation Business that was caused by an increase in contract numbers. Meanwhile, gross profit rose due to higher sales and the introduction of new products, but operating income amounted to 10,667 million yen (-6.6% YoY), while ordinary income came to 11,362 million yen (-2.6% YoY). These declines were primarily due to an increase in returns of insecticides and repellents, active investment in marketing and human resources, and a rise in logistical costs. At the same time, net income attributable to owners of parent reached a record high of 7,142 million yen (+101.4% YoY) in part because it did not incur downward impact it previously sustained during the fiscal year ended December 31, 2020, when the Company recorded impairment losses on goodwill associated with its acquisition of Earth Corporation Vietnam as extraordinary losses.
Results by segment were as follows.
Household Products Business
Through its Household Products Business, the Company endeavored to rejuvenate corresponding markets through advertising, the creation of appealing sales areas, and other means of communicating with customers while pursuing new customers with the launch of new products and updating existing products to improve their value. At the same time, it strove to lower manufacturing costs and raise the efficiency of its sales-related spending as it targeted improvement in profitability. Overseas, despite downward impact stemming from lockdowns implemented in response to the COVID-19 pandemic, the Company generated sales growth, particularly in China, thanks to its proactive investment of management resources.
In the fiscal year ended December 31, 2021, sales generated through the Household Products Business amounted to 188,493 million yen (+5.1% YoY), rising thanks primarily to growth in the market share of insecticides and repellents that resulted from favorable sales of new products in this category and sales of bath salts, which saw an expansion in the size of their market due to changes in customer demand caused by COVID-19. Meanwhile, gross profit increased due to the introduction of new products and higher sales, but segment operating profit declined to 9,944 million yen (-0.4% YoY) as a result of growth in returns of insecticides and repellents, active investments in marketing and human resources, and soaring logistical costs.
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EARTH Chemical Co. Ltd. published this content on 14 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2022 06:31:59 UTC.
