OKAMURA CORPORATION Financial Results for First Quarter of Fiscal Year
Ending March 31, 2022 [Japanese GAAP] (Consolidated)
August 4, 2021 | ||
Okamura Corporation | Listing: Tokyo Stock Exchange | |
Code Number: 7994 | URL: https://www.okamura.co.jp/ | |
Representative: | Masayuki Nakamura, Representative Director, President and Chief Executive Officer | |
Contact: | Sakae Fukuda, Director and Executive Officer, CFO | TEL: +81-(0)45-319-3445 |
Scheduled date for filing of quarterly report: | August 12, 2021 | |
Scheduled date for commencement of dividend payments: | - | |
Preparation of supplementary materials to explain quarterly financial results: | None | |
Scheduling of meeting to explain quarterly financial results: | None |
(Amounts less than 1 million yen have been rounded down.)
1. Consolidated Operating Results for First Quarter (April 1, 2021 to June 30, 2021) of FY Ending March 2022 (April 1, 2021 to March 31, 2022)
(1) Operating Results (cumulative)
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
First quarter of FY ending March 2022 | 60,264 | 22.8 | 4,142 | - | 4,873 | 465.5 | 3,294 | - | |
First quarter of FY ended March 2021 | 49,068 | (18.0) | 324 | (87.2) | 861 | (72.9) | 1 | (99.9) | |
Note: | Comprehensive income | ¥2,474 million (-16.8%) for the first quarter of FY ending March 2022 | ||||||||||||
¥2,975 million (311.8%) for the first quarter of FY ended March 2021 | ||||||||||||||
Profit per share | Diluted profit per share | |||||||||||||
yen | yen | |||||||||||||
First quarter of FY ending March 2022 | 33.04 | - | ||||||||||||
First quarter of FY ended March 2021 | 0.01 | - | ||||||||||||
(2) Financial Position | ||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||
First quarter of FY ending March 2022 | 231,086 | 137,313 | 59.0 | |||||||||||
FY ended March 2021 | 245,473 | 139,776 | 56.5 | |||||||||||
Reference: Total equity | ¥136,288 million for the first quarter of FY ending March 2022 | |||||||||||||
¥138,757 million for FY ended March 2021 | ||||||||||||||
2. Dividend | ||||||||||||||
Annual dividend | ||||||||||||||
End of first quarter | End of second quarter | End of third quarter | Year-end | Total | ||||||||||
yen | yen | yen | yen | yen | ||||||||||
FY ended March 2021 | - | 12.00 | - | 20.00 | 32.00 | |||||||||
FY ending March 2022 | - | |||||||||||||
FY ending March 2022 (forecast) | 20.00 | - | 20.00 | 40.00 | ||||||||||
Note: | Revision of the most recently released dividend forecasts: None |
3. Forecast of Consolidated Performance for FY Ending March 2022 (April 1, 2021 to March 31, 2022)
(% Figures indicate year-over-year increase/decrease.)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit per share | ||||||
owners of parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | yen | ||
2Q (cumulative) | 118,000 | 12.1 | 6,300 | 120.4 | 7,000 | 96.6 | 4,900 | 127.3 | 49.21 | |
Full year | 247,000 | 1.0 | 16,500 | 16.4 | 17,500 | 13.8 | 12,300 | 2.7 | 123.53 | |
Note: Revision of the most recently released performance forecasts: Yes
* Notes
- Changes in the number of material subsidiaries during the quarter under review (This indicates whether there have been changes in the number of specified subsidiaries involving changes in the scope of consolidation): None
New | - company(ies) ( | -) |
Excluded | - company(ies) ( | -) |
- Adoption of a special accounting method applicable to the preparation of consolidated quarterly financial statements: None
-
Changes in accounting policy or accounting estimates, or restatement
Changes in accounting policy in accordance with revisions to accounting standards: Yes
- Changes other than those in above in accounting policy: None
- Changes in accounting estimates: None
- Restatement: None
Note: For details, please refer to 2. Consolidated Quarterly Financial Statements and Important Notes (4) Notes regarding Consolidated Quarterly Financial Statements (Changes in accounting policies) on page 10 of the Appendix.
- Number of shares of stock (common stock)
- Number of shares issued (including treasury stock) at the end of the term
- Number of shares of treasury stock at the end of the term
- Average number of shares during the term (cumulative quarters)
1Q of FY ending | 100,621,021 | FY ended | 100,621,021 |
March 2022 | March 2021 | ||
1Q of FY ending | 1,629,199 | FY ended | 189,377 |
March 2022 | March 2021 | ||
1Q of FY ending | 99,711,729 | 1Q of FY ended | 110,141,071 |
March 2022 | March 2021 | ||
- The Summary of Quarterly Financial Results is not subject to quarterly audit by a Certified Public Accountant or an audit firm.
- Explanation of Appropriate Use of Performance Forecasts and Other Issues Requiring Particular Mention
- The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (3) Explanation of the performance forecast in 1. Qualitative Information Concerning Consolidated Quarterly Financial Results on page 4 of the Appendix.
Okamura Corporation (7994) Financial Results for First Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)
- Table of Contents for Appendix
(3) | Explanation of the performance forecast ................................................................................................................. | 4 | |
2. | Consolidated Quarterly Financial Statements and Important Notes .................................................................................. | 5 | |
(1) | Consolidated Quarterly Balance Sheet..................................................................................................................... | 5 |
- Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive
Income ..................................................................................................................................................................... | 7 | |
(3) | Consolidated Quarterly Statements of Cash Flows .................................................................................................. | 9 |
(4) | Notes regarding Consolidated Quarterly Financial Statements.............................................................................. | 10 |
Note regarding the assumption of going concern................................................................................................ | 10 | |
Note regarding occurrence of significant change in amount of shareholders' equity .......................................... | 10 | |
Changes in accounting policies........................................................................................................................... | 10 | |
Segment information ........................................................................................................................................... | 11 | |
Significant subsequent events ............................................................................................................................. | 12 |
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Okamura Corporation (7994) Financial Results for First Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)
1. Qualitative Information Concerning Consolidated Quarterly Financial Results
-
Explanation of the progress in (consolidated) operating results
During the first quarter of the consolidated fiscal year under review, the Japanese economy continued to experience severe difficulties, particularly in the non-manufacturing sector despite some signs of recovery. These economic conditions have resulted in a widening performance disparity from sector to sector as the government issued state of emergency declarations and focused infection prevention measures on select prefectures on the back of the global novel coronavirus pandemic. The outlook for the Japanese economy remains uncertain as the risk of a resurgence in infection cases has materialized, although economic activities are expected to recover supported by, among other things, the spread of vaccination.
Under these circumstances, the Okamura Group disseminated information by leveraging our internal expertise in the form of, for example, releasing the report "Workplace Strategy toward a Post-COVID-19 Society, while challenging itself to try new pandemic-era workstyles. Through these activities, we strove to develop new market potential by creating distinctive products and offering total solutions.
As a result of the above, during the first quarter of the consolidated fiscal year under review, the Company posted net sales of ¥60,264 million (¥49,068 million in the same period of the previous fiscal year), operating income of ¥4,142 million (¥324 million in the same period of the previous fiscal year), ordinary income of ¥4,873 million (¥861 million in the same period of the previous fiscal year), and profit attributable to owners of parent of ¥3,294 million (¥1 million in the same period of the previous fiscal year). The Company posted record-high quarterly operating income, ordinary income, and profit for the first quarter of the fiscal year ending March 31, 2022.
In July 2021, we revised part of our existing management philosophy and systematically reorganized it into the "Okamura Way" to align with changing values that reflect the increasing importance of realizing a sustainable society. We aim to further enhance our corporate value and contribute to resolving social issues.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the first quarter of the consolidated fiscal year under review. As such, percentage changes from the same period of the previous consolidated fiscal year have been omitted in our explanation of the progress in (consolidated) operating results for the first quarter of the consolidated fiscal year under review.
For details, please refer to 2. Consolidated Quarterly Financial Statements and Important Notes (4) Notes regarding Consolidated Quarterly Financial Statements (Changes in accounting policies).
Performance results by segment are discussed below.
Net sales (Millions of yen) | Segment income or loss (Millions of yen) | |||||
Segment name | First quarter of FY | First quarter of FY | Increase/ | First quarter of FY | First quarter of FY | Increase/ |
ended March 2021 | ending March 2022 | decrease | ended March 2021 | ending March 2022 | decrease | |
Office Furniture | 25,910 | 31,038 | 5,127 | 329 | 2,881 | 2,552 |
Store Displays | 18,534 | 25,235 | 6,701 | (333) | 1,297 | 1,631 |
Material Handling | 3,768 | 2,669 | (1,098) | 434 | (31) | (466) |
Systems | ||||||
Others | 855 | 1,320 | 464 | (105) | (5) | 99 |
Total | 49,068 | 60,264 | 11,195 | 324 | 4,142 | 3,817 |
Note: The total of segment income or loss corresponds to the operating income on Consolidated Quarterly Statements of Income.
Office Furniture
In the Office Furniture segment, the trend to create new office environments, such as work style reform, is expanding nationwide, reaching a broad base of companies, regardless of industry or scale. This trend is further intensifying due to rapid changes in the ways that people work amid the novel coronavirus pandemic. Under these circumstances, the Company made active efforts to popularize proposals on how to create new office environments that meet customer needs, leveraging the results obtained from our proof-of-concept office "LABO Office" to put into practice and verify new ways of working. This is in addition to the experience and knowledge gained from various measures executed within the Company as part of our own work style reform. Owing to these efforts, both net sales and income increased significantly in comparison to the first quarter of the previous consolidated fiscal year.
As a result, net sales in this segment amounted to ¥31,038 million (¥25,910 million in the same period of the previous fiscal year), and the segment income amounted to ¥2,881 million (a segment income of ¥329 million in the same period of the previous fiscal year).
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Okamura Corporation (7994) Financial Results for First Quarter of Fiscal Year Ending March 31, 2022 (Consolidated)
Store Displays
In the Store Displays segment, renovation demand remained firm particularly among retailers such as supermarkets and drug stores, which represent the Company's main customer base. Under these circumstances, the Company stepped up efforts to deliver total solutions for display fixtures, store carts, store security products, and the like by leveraging the organization's comprehensive capabilities. The Company also made efforts to cater to new demand for infection prevention measures. Owing to these efforts, both net sales and income increased significantly in comparison to the first quarter of the previous consolidated fiscal year.
As a result, net sales in this segment amounted to ¥25,235 million (¥18,534 million in the same period of the previous fiscal year), and the segment income amounted to ¥1,297 million (a segment loss of ¥333 million in the same period of the previous fiscal year).
Material Handling Systems
In the Material Handling Systems segment, demand for automated storage systems remained at high levels. This was mainly among major logistics facilities on the back of expanding stay-at-home demand and growing labor-saving needs arising from labor shortages. Under these circumstances, the Company actively engaged in promotion activities for proposals that maximize the strengths of its products, which stand out due to their superiority. It also worked to take thorough infection prevention measures at work sites as well as to strengthen the engineering platform. Despite these efforts, both net sales and income declined in comparison to the first quarter of the previous consolidated fiscal year, mainly due to stagnation in sales negotiations since the beginning of the previous fiscal year and customers' postponing investment resulting from the spread of novel coronavirus infections.
As a result, net sales in this segment amounted to ¥2,669 million (¥3,768 million in the same period of the previous fiscal year), and the segment loss amounted to ¥31 million (a segment income of ¥434 million in the same period of the previous fiscal year).
-
Explanation of the changes in (consolidated) financial position
The Company's consolidated financial position at the end of the first quarter of the fiscal year under review is as follows:
Total assets amounted to ¥231,086 million, down ¥14,387 million compared with the end of the previous consolidated fiscal year. Current assets decreased by ¥12,841 million, mainly because of a decrease in notes and accounts receivable-trade and contract assets, and non-current assets decreased by ¥1,545 million, mainly due to a fall in the value of investment securities.
Liabilities amounted to ¥93,772 million, down ¥11,924 million compared with the end of the previous consolidated fiscal year, mainly due to an increase in short-term loans payable and a decrease in notes and accounts payable-trade, income taxes payable, and provision for bonuses.
Net assets amounted to ¥137,313 million, down ¥2,462 million from the end of the previous fiscal year, mainly because of an increase in retained earnings, a fall in the valuation difference on available-for-sale securities, and an increase in treasury stock.
As a result of the above, the equity ratio amounted to 59.0%, up 2.5 percentage points. A review of cash flows for the first quarter of the current fiscal year is as follows:
Operating activities generated a net cash increase of ¥1,952 million (an increase of ¥7,924 million in the same period of the previous fiscal year), reflecting inflows including profit before income taxes for the quarter of ¥4,816 million, depreciation and amortization of ¥1,398 million, and a decrease in notes and accounts receivable-trade and contract assets of ¥11,924 million. Outflows included a decrease in provision for bonuses of ¥2,972 million and decreases in notes and accounts payable-trade of ¥7,316 million and income taxes paid of ¥4,338 million.
Investment activities resulted in a net cash outflow of ¥1,093 million (a net cash outflow of ¥649 million in the same period of the previous fiscal year), reflecting outflows including disbursements of ¥903 million for the purchase of property, plant and equipment, ¥173 million for the purchase of intangible assets, and ¥302 million for the purchase of investment securities.
Financing activities resulted in a net cash outflow of ¥3,089 million (a net cash outflow of ¥30 million in the same period of the previous fiscal year), reflecting inflows including an increase in short-term loans payable of ¥1,253 million and outflows including the acquisition of treasury stock of ¥2,037 million and cash dividends paid of ¥2,012 million.
Consequently, consolidated cash and cash equivalents at the end of the current fiscal year's first quarter decreased by ¥2,043 million from the end of the previous fiscal year (an increase of ¥7,054 million in the same period of the previous fiscal year) to ¥42,375 million.
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Okamura Corporation published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2021 05:21:06 UTC.
