KOKUYO CO., LTD. July 31, 2023
KOKUYO CO., LTD.
FINANCIAL RESULTS
(Consolidated)
Results for the six months ended June 30, 2023
Company name: KOKUYO Co., Ltd
Stock listings: Tokyo Stock Exchange (Prime)
Stock code: 7984 (URL https://www.kokuyo.com)
Representative: Hidekuni Kuroda, President
For further information, please contact: Naotaka Umeda, Managing Officer, Financial Administration Division
Telephone: +81-6-6976-1221 (general)
Date for submission of securities report: August 4, 2023
Commencement date for dividend payments: September 5, 2023
Supplemental material of quarterly results: None
Convening briefing of quarterly results: Yes (for institutional investors and securities analysts)
(Figure less than ¥1 million have been omitted.)
1. Results for the six months ended June 30, 2023 (January 1, 2023 to June 30, 2023)
(1) Consolidated operating results
Net sales | Operating income | Ordinary income | |||||||
% change from | % change from | % change from | |||||||
Millions of yen | the previous | Millions of yen | the previous | Millions of yen | the previous | ||||
year | year | year | |||||||
6 months ended | 173,585 | 11.0 | 15,773 | 23.9 | 17,266 | 18.1 | |||
June 30, 2023 | |||||||||
6 months ended | 156,424 | − | 12,731 | − | 14,614 | − | |||
June 30, 2022 | |||||||||
(Note) Comprehensive income: | |||||||||
For the six months ended June 30, 2023 | ¥17,668 million | [41.8%] | |||||||
For the six months ended June 30, 2022 | ¥12,463 million | [－%] | |||||||
Profit attributable to owners of | Earnings per share | Diluted earnings per share | |||||||
parent | |||||||||
Millions of yen | % change from | Yen | Yen | ||||||
the previous year | |||||||||
6 months ended | 11,747 | 8.3 | 101.79 | − | |||||
June 30, 2023 | |||||||||
6 months ended | 10,845 | − | 93.78 | − | |||||
June 30, 2022 | |||||||||
(Note) Starting from the first quarter of the fiscal year ended December 2022, we have applied the ASBJ Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). The standard has been retroactively applied to the corresponding period of the previous fiscal year. However, the percentage change between the two periods is not shown.
- Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |||
Millions of yen | Millions of yen | % | Yen | |||
June 30, 2023 | 350,299 | 254,719 | 72.2 | 2,192.52 | ||
December 31, 2022 | 337,538 | 239,617 | 70.4 | 2,058.11 | ||
(Reference) Equity: | ||||||
June 30, 2023 | ¥253,075 million | |||||
December 31, 2022 | ¥237,744 million |
(Note) During the period under review, we finalized provisional amounts that we had used to account for a business combination. The finalized amounts have been incorporated into the results for the previous fiscal year (ended December 31, 2022).
- 1 -
2. Dividends
Dividend per share | ||||||||||
March 31 | June 30 | September 30 | Year-end | Full-year | ||||||
dividend | dividend | |||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal period ended | − | 28.00 | − | 29.00 | 57.00 | |||||
December 31, 2022 | ||||||||||
Fiscal period ending | − | 32.50 | ||||||||
December 31, 2023 | ||||||||||
Fiscal period ending | − | 32.50 | 65.00 | |||||||
December 31, 2023 | ||||||||||
(forecast) | ||||||||||
(Note) Revisions to estimated dividends published most recently: Yes
3. Consolidated Forecasts for the Fiscal Period Ending December 31, 2023 (January 1, 2023 to December 31, 2023)
Net sales | Operating income | Ordinary income | |||||
% change from | % change from | % change from | |||||
Millions of yen | the previous | Millions of yen | the previous | Millions of yen | the previous | ||
year | year | year | |||||
Full-year forecast | 337,000 | 12.0 | 23,000 | 20.2 | 25,200 | 19.1 | |
(Jan-Dec 2023) | |||||||
Profit attributable to owners of | Earnings per share | ||||||
parent | |||||||
Millions of yen | % change from | Yen | |||||
the previous year | |||||||
Full-year forecast | 18,500 | 1.4 | 160.15 | ||||
(Jan-Dec 2023) | |||||||
(Note) Revisions to financial forecasts published most recently: Yes |
- 2 -
* Others
- Significant changes in subsidiaries during the period under review (changes in certain specified subsidiaries accompanying revised scope of consolidation): None
New: － | Removed: － |
- Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: Yes
(Note) See page 12 of the reference document (2. Consolidated Financial Statements, (4) Notes: Application of particular accounts procedures to the preparation of quarterly consolidated financial statements).
- Changes in accounting principles, procedures and methods of presentation relating to preparation of the consolidated financial statements
- Changes due to revision of accounting standards: Yes
- Changes other than those under above: None
- Changes in accounting estimates: None
- Restatement: None
(Note) See page 12 of the reference document (2. Consolidated Financial Statements, (4) Notes: Changes in accounting principles).
- Number of shares of common stock issued
- Number of shares of common stock (including treasury stock) issued at:
June 30, 2023 | 128,742,463 | |
December 31, 2022 | 128,742,463 | |
2) | Number of shares of treasury stock held at: | |
June 30, 2023 | 13,315,319 | |
December 31, 2022 | 13,226,417 | |
3) | Number of shares of average stock during a term held at: | |
June 30, 2023 | 115,414,218 | |
June 30, 2022 | 115,647,891 |
- This quarterly financial summary is not subject to a review by a certified public account or independent auditor.
- Advice relating to appropriate use of financial forecasts and other relevant information
This document contains performance forecasts and other forward-looking statements. Such statements are based on information available at the time and, in part, on what are deemed to be reasonable assumptions. They are not guarantees of future performance. Actual results may differ markedly from what the forwardlooking statements suggest due to a plethora of variables. For more on the assumptions underlying the performance forecasts, as well as cautionary notes regarding the use of thereof, see page 7 of this document (4. Qualitative Information and Financial Statements, etc. (3) Qualitative Information Related to Consolidated Forecasts).
- 3 -
4. Qualitative Information and Financial Statements, etc.
All forward-looking statements in this document are based on assumptions deemed reasonable as of the end of the period under review.
On July 21, 2022, we merged with HNI Hong Kong Limited (now Kokuyo Hong Kong Limited). During the previous fiscal year (ended December 31, 2022), we accounted for this business combination using provisional amounts. During the period under review, we finalized these amounts. To enable year-on-year comparisons and analysis, we have incorporated into the results for the previous fiscal year a material change to the initial purchase price allocation.
(1) Business Results
(Millions of yen) | |||
6 months ended June | 6 months ended June | % change from the | |
30, 2022 | 30, 2023 | previous year | |
Net sales | 156,424 | 173,585 | 11.0 |
Operating income | 12,731 | 15,773 | 23.9 |
Ordinary income | 14,614 | 17,266 | 18.1 |
Profit attributable to owners of parent | 10,845 | 11,747 | 8.3 |
During the six months ended June 30, 2023, the Japanese economy continued on the normalization path that began with the easing of Covid restrictions, but uncertainties prevailed with fears of economic downturn abroad, the prolonged conflict in Ukraine, and soaring costs of energy and raw materials.
Against this backdrop, we continued working on our third medium-term plan, Field Expansion 2024, in which we tweak existing business and expand our business fields as part of our long-term vision, CCC 2030. To expand business fields, we reallocated resources from existing businesses, actively deployed strategic expenditures, and stepped up our global expansion efforts.
Despite a turbulent business climate, we maintained our competitiveness by flexibly adapting to the changing business conditions and shifting customer needs.
Net sales reached ¥173.5 billion (up 11.0% year on year). This year-on-year growth reflects the success of the furniture business in capturing office renovation demand. It also reflects the contribution of Kokuyo Hong Kong Limited following our full acquisition of the company last year. Gross profit increased to ¥68.0 billion (up 11.1% year on year) and gross profit ratio came to 39.2% (on par with the result for the six months ended June 30, 2022). Selling, general and administrative expenses increased to ¥52.2 billion (up 7.7% year on year), reflecting the proactive increase in strategic expenditures for expanding the business fields. Expense ratio (selling, general, and administrative expenses to net sales) came to 30.1% (down 0.9 percentage point year on year).
Reflecting these results, operating income reached ¥15.7 billion (up 23.9% year on year). Ordinary income reached ¥17.2 billion (up 18.1% year on year). Profit attributable to owners of parent reached ¥11.7 billion (up 8.3% year on year).
Segment
As part of our long-term vision, CCC 2030, we have redefined our role in society as that of a "Work & Life Style Company," and committed to being an organization that creates life-affirming solutions, alongside tangible stationery and furniture, in the domain of work and the domain of learning and daily life.
In the workstyle field, the pandemic has entrenched the dispersed workplace and diverse working patterns. Against this backdrop, we target emerging needs related to the rise of hybrid work.
In the lifestyle field, we target the rising demand for authentic self-expression in learning and lifestyle tools.
The following table shows the segment-specific results for the period under review.
- 4 -
(Millions of yen) | |||||
6 months ended | 6 months ended | % change from | |||
June 30, 2022 | June 30, 2023 | the previous year | |||
Net sales | 122,309 | 134,443 | 9.9 | ||
Workstyle field | |||||
Operating | 12,820 | 16,048 | 25.2 | ||
income | |||||
Net sales | 72,371 | 83,465 | 15.3 | ||
Furniture | |||||
Operating | 10,927 | 13,871 | 26.9 | ||
income | |||||
Net sales | 49,938 | 50,977 | 2.1 | ||
Business supply distribution | |||||
Operating | 1,892 | 2,176 | 15.0 | ||
income | |||||
Net sales | 48,043 | 54,001 | 12.4 | ||
Lifestyle field | |||||
Operating | 3,947 | 4,363 | 10.5 | ||
income | |||||
Net sales | 38,497 | 43,859 | 13.9 | ||
Stationery | |||||
Operating | 3,397 | 3,911 | 15.1 | ||
income | |||||
Net sales | 9,545 | 10,141 | 6.2 | ||
Interior retail | |||||
Operating | 549 | 452 | (17.8) | ||
income | |||||
Net sales | 204 | 208 | 1.8 | ||
Others | |||||
Operating | (53) | (123) | − | ||
income | |||||
Net sales | (14,132) | (15,067) | − | ||
Reconciliation | |||||
Operating | (3,981) | (4,515) | − | ||
income | |||||
Net sales | 156,424 | 173,585 | 11.0 | ||
Total | |||||
Operating | 12,731 | 15,773 | 23.9 | ||
income | |||||
Workstyle field
- Furniture
For our furniture businesses, we target the burgeoning demand for office renovation driven by these changes. Meanwhile, Kokuyo Hong Kong Limited spearheads our overseas business expansion. In this way, we drive earnings growth for our organization as a whole.
In Japan, we targeted the demand for office relocation and the brisk demand for office renovation amid the large growth in the supply of office buildings in the Tokyo Metropolitan Area. We pitched workstyle-focused office solutions for customers' strategic challenges. Our track record grew and our profits improved.
In China and ASEAN, business was affected by the Chinese economic downturn. We seek to expand in these markets by cross-selling and production integration, with Kokuyo Hong Kong Limited playing the central role.
Under such circumstances, the segment's net sales increased to ¥83.4 billion (up 15.3% year on year). Operating income increased to ¥13.8 billion (up 26.9% year on year).
- Business supply distribution
To expand business supply distribution, we are streamlining operations by integrating Kaunet with our wholesale distribution operations. We are also using system investment to improve user interface and user experience design, thereby enhancing customer value.
In the period under review, the retailer saw strong sales to large employers, with higher average revenue per unit thanks to the recovery in office attendance along with pricing revisions.
- 5 -
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Kokuyo Co. Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 11:08:02 UTC.
