MILBON CO., LTD. Consolidated Financial Results for the Three Months Ended March 31, 2022
[Japanese GAAP]
May 13, 2022 | |||
Name of registrant: | Milbon Co., Ltd. | Tokyo Stock Exchange, Prime Market | |
Code No.: | 4919 | URL https://www.milbon.com/en/ | |
Representative: | Ryuji Sato, Representative Director, President & CEO | ||
Inquiries: | Masahiro Murai, Managing Executive Director | TEL: +81-3-3517-3915 |
Scheduled filing date for quarterly report: May 13, 2022
Scheduled starting date of dividend payments: -
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (Telephone briefing for institutional investors and analysts)
(Amounts of less than one million yen have been omitted.)
1. Consolidated financial results for the three months ended March 31, 2022 (January 1, 2022 - March 31, 2022)
(1) Consolidated operating results | (Percentages show year-on-year changes.) | ||||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to owners | ||||||||||||||||||
of parent | |||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||||||
Three months ended March 31, 2022 | 9,635 | - | 1,496 | - | 1,633 | 8.7 | 1,166 | 6.9 | |||||||||||||
Three months ended March 31, 2021 | 8,989 | 14.9 | 1,633 | 58.4 | 1,502 | 79.8 | 1,091 | 81.4 | |||||||||||||
Note: Comprehensive income | Three months ended March 31, 2022: 1,788 million yen [30.5%] | Three months ended March 31, 2021: 1,370 million yen [-%] | |||||||||||||||||||
Basic earnings per share | Diluted earnings per share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
Three months ended March 31, 2022 | 35.89 | - | |||||||||||||||||||
Three months ended March 31, 2021 | 33.57 | - | |||||||||||||||||||
Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted from net sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income may be misleading. Accordingly, the percentage of year-on-year changes in net sales and operating income are not indicated in the above table. (Ordinary income and profit attributable to owners of parent remain unchanged.) If the figures for the previous fiscal year were on the same basis as for the current fiscal year, net sales for the first quarter would increase 9.1% and operating income would increase 1.4%. Please refer to the Financial Results Presentation Materials for details.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | ||||||
Million yen | Million yen | % | ||||||
As of March 31, 2022 | 47,321 | 40,750 | 86.1 | |||||
As of December 31, 2021 | 48,238 | 40,197 | 83.3 | |||||
(Reference) Equity As of March 31, 2022: 40,750 million yen As of December 31, 2021: 40,197 million yen
2. Payment of dividends
Annual dividends | ||||||||
End of 1st quarter | End of 2nd quarter | End of 3rd quarter | End of fiscal year | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Year ended December 31, 2021 | - | 30.00 | - | 38.00 | 68.00 | |||
Year ended December 31, 2022 | - | |||||||
Year ended December 31, 2022 | 34.00 | - | 46.00 | 80.00 | ||||
(forecast) | ||||||||
Note: Changes to latest dividends forecast: None |
3. Consolidated operating forecasts for the fiscal year ending December 31, 2022 (January 1, 2022 - December 31, 2022)
(Percentages show year-on-year changes.)
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings per share | |||||||||
owners of parent | |||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||
Year ending December 31, 2022 | 43,900 | - | 7,550 | - | 7,410 | 3.5 | 5,230 | 2.4 | 160.88 | ||||
Note: Changes to latest performance forecast: None
Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted from net sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income may be misleading. Accordingly, the percentage of year-on-year changes in net sales and operating income are not indicated in the above table. (Ordinary income, profit attributable to owners of parent, and basic earnings per share remain unchanged.) If the figures for the previous fiscal year were on the same basis as for the current fiscal year, net sales would increase 7.5% and operating income would increase 6.6%. Please refer to the Financial Results Presentation Materials for details.
*Notes | ||
(1) Significant changes in subsidiaries during the period | ||
(changes in specified subsidiaries resulting in the change in the scope of consolidation) | : None | |
New: 0 companies (Company name: ) | Exclude: 0 companies (Company name: ) |
- Application of accounting methods specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatements
1) | Changes in accounting policies due to amendment to the | ||||||
accounting standards, etc. | : | Yes | |||||
2) | Changes in accounting policies other than those in 1) above | : | Yes | ||||
3) | Changes in accounting estimates | : | None | ||||
4) | Retrospective restatements | : | None | ||||
(4) Number of shares issued (common stock) | |||||||
1) | Number of shares issued at the end of the period | As of | 33,117,234 shares | As of | 33,117,234 shares | ||
(including treasury shares) | March 31, 2022 | December 31, 2021 | |||||
2) | Number of treasury shares at the end of the period | As of | 606,184 shares | As of | 606,080 shares | ||
March 31, 2022 | December 31, 2021 | ||||||
3) Average number of shares during the period | Three months ended | 32,511,104 shares | Three months ended | 32,502,307 shares | |||
March 31, 2022 | March 31, 2021 | ||||||
*These financial statements are not subject to the review of the quarterly financial statements by a certified public accountant or an audit corporation.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.
○Accompanying Materials - Contents | ||
1. Qualitative Information on Consolidated Results for the Current Period ................................................................................. | 2 | |
(1) | Explanation on operating results .................................................................................................................................... | 2 |
(2) | Explanation on financial position .................................................................................................................................. | 3 |
(3) | Explanation on forward-looking statements including consolidated operating forecasts ............................................. | 3 |
2. Quarterly Consolidated Financial Statements and Main Notes ................................................................................................. | 4 | |
(1) | Quarterly Consolidated Balance Sheets ......................................................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ................. | 6 |
Quarterly Consolidated Statements of Earnings | ||
Three months ended March 31, 2021 and 2022 ...................................................................................................... | 6 | |
Quarterly Consolidated Statements of Comprehensive Income | ||
Three months ended March 31, 2021 and 2022 ...................................................................................................... | 7 | |
(3) | Notes regarding quarterly consolidated financial statements ........................................................................................ | 8 |
(Notes regarding going concern assumption) ................................................................................................................ | 8 | |
(Notes in case of any significant changes in shareholders' equity) ................................................................................ | 8 | |
(Changes in accounting policies) ................................................................................................................................... | 8 | |
(Segment information, etc.) ........................................................................................................................................... | 8 | |
(Significant subsequent events) ..................................................................................................................................... | 8 |
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1. Qualitative Information on Consolidated Results for the Current Period
(1) Explanation on operating results
In the first quarter of the fiscal year, the Japanese economy remained in a severe situation as the previous recovery phase stagnated due to the spread of a new variant of COVID-19 from January onwards. Looking ahead, there are many risks and uncertainties, such as soaring raw material and energy prices, and Russia's invasion of Ukraine.
In the domestic market, the spread of COVID-19 in regional cities led to a decrease in store visits, which had an impact, although there were signs of a recovery in demand due to the resumption of events. Although there was no significant negative impact in urban areas, sales grew moderately compared to the previous fiscal year, when consumption for beauty was strong.
In the overseas markets, China continued to face a difficult situation, with sales declining on a local currency basis due to the impact of the zero-COVID policy lockdown. In other major countries such as the U.S. and South Korea, both hair care products and hair coloring products performed well.
As a result of the above, consolidated net sales for the first quarter of the current fiscal year were 9,635 million yen, operating income was 1,496 million yen, ordinary income was 1,633 million yen (up 8.7% year on year), and profit attributable to owners of parent was 1,166 million yen (up 6.9% year on year).
Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted from net sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income may be misleading. Accordingly, the percentage of year-on-year changes in net sales and operating income are not indicated. (Ordinary income and profit attributable to owners of parent remain unchanged.) If the figures for the previous fiscal year were on the same basis as for the current fiscal year, net sales for the first quarter would increase 9.1% and operating income would increase 1.4%. Please refer to the Financial Results Presentation Materials for details.
Breakdown of net sales by product category and breakdown of net sales into domestic and overseas sales are shown below: [Breakdown of consolidated net sales by product category]
(Unit: Million yen) | ||||||||||||
Three months ended March 31, | Three months ended March 31, | Increase | ||||||||||
2021 | 2022 | Year-on-year | ||||||||||
Product category | (decrease) | |||||||||||
change (%) | ||||||||||||
Amount | Ratio (%) | Amount | Ratio (%) | amount | ||||||||
Hair care products | 4,975 | 55.4 | 5,333 | 55.4 | - | - | ||||||
Hair coloring products | 3,495 | 38.9 | 3,800 | 39.4 | - | - | ||||||
Permanent wave products | 318 | 3.5 | 314 | 3.3 | - | - | ||||||
Cosmetic products | 147 | 1.6 | 137 | 1.4 | - | - | ||||||
Other | 52 | 0.6 | 49 | 0.5 | - | - | ||||||
Total | 8,989 | 100.0 | 9,635 | 100.0 | - | - | ||||||
[Breakdown of net sales into domestic and overseas sales] | ||||||||||||
(Unit: Million yen) | ||||||||||||
Three months ended March 31, | Three months ended March 31, | Increase | ||||||||||
2021 | 2022 | Year-on-year | ||||||||||
(decrease) | ||||||||||||
change (%) | ||||||||||||
Amount | Ratio (%) | Amount | Ratio (%) | amount | ||||||||
Domestic sales | 7,182 | 79.9 | 7,249 | 75.2 | - | - | ||||||
Overseas sales | 1,807 | 20.1 | 2,385 | 24.8 | - | - | ||||||
Total | 8,989 | 100.0 | 9,635 | 100.0 | - | - | ||||||
Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted from net sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income may be misleading. Accordingly, changes in amounts and percentages are not indicated in the above table.
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Please refer to the Financial Results Presentation Materials for details on the calculation of the figures for the previous fiscal year using the same method as for the current fiscal year.
(2) Explanation on financial position
Total assets at the end of the first quarter under review decreased 916 million yen from the end of the previous fiscal year, to 47,321 million yen.
Current assets decreased by 1,159 million yen from the end of the previous fiscal year to 23,741 million yen. The main factors for the change were decreases of 2,161 million yen in cash and deposits, and 503 million yen in notes and accounts receivable-trade, and increases of 1,192 million yen in merchandise and finished goods, and 346 million yen in raw materials and supplies.
Non-current assets increased by 242 million yen from the end of the previous fiscal year to 23,579 million yen. Current liabilities decreased by 1,473 million yen from the end of the previous fiscal year to 5,836 million yen. The main factors for the change were decreases of 1,251 million yen in accounts payable-other and 926 million yen in income taxes payable, and an increase of 530 million yen in accounts payable-trade.
Non-current liabilities increased by 3 million yen from the end of the previous fiscal year to 734 million yen.
Net assets increased by 552 million yen from the end of the previous fiscal year to 40,750 million yen. This was mainly due to an increase of 708 million in foreign currency translation adjustments resulting from the depreciation of the yen.
As a result, the equity ratio changed from 83.3% at the end of the previous fiscal year to 86.1%. Net assets per share based on the total number of shares issued at the end of the fiscal year were 1,253.42 yen, compared to 1,236.41 yen at the end of the previous fiscal year.
(3) Explanation on forward-looking statements including consolidated operating forecasts
There is no change from the previous forecast (announced on February 10, 2022) for the full fiscal year.
Due to the high degree of uncertainty regarding the impact of COVID-19, the Company will promptly announce revisions to its consolidated earnings forecasts in the event that future changes, such as delays in the timing of convergence, require revisions to its consolidated earnings forecasts.
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Milbon Co. Ltd. published this content on 20 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2022 07:44:07 UTC.
