SUZUMO MACHINERY COMPANY LIMITED Consolidated Financial Results for the First Nine Months of
the Fiscal Year Ending March 31, 2023 (JGAAP)
February 10, 2023
Company name: | Suzumo Machinery Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Stock code: | 6405 |
URL: | https://www.suzumokikou.com/ |
Representative: | Minako Suzuki, President |
Contact: | Toru Shiga, Executive Officer and General Manager of Administration Division |
Phone: | +81-3-3993-1371 |
Scheduled date to file quarterly report: | February 10, 2023 |
Scheduled date for dividend payment: | - |
Supplementary materials for quarterly financial statements: | None |
Results briefing to be held: | None |
(Amounts of less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
(1) Consolidated Operating Results | (Percentages indicate year-on-year change) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
December 31, 2022 | 10,033 | 14.7 | 842 | -38.0 | 774 | -43.6 | 548 | -43.0 | |
December 31, 2021 | 8,747 | 26.1 | 1,358 | 114.3 | 1,372 | 117.1 | 963 | 128.9 |
(Note) Comprehensive income: Nine months ended December 31, 2022: | 724 million yen (-29.5%) | ||||
Nine months ended December 31, 2021: | 1,028 million yen (139.4%) | ||||
Earnings | Diluted earnings | ||||
per share | per share | ||||
Nine months ended | Yen | Yen | |||
December 31, 2022 | 42.50 | ― | |||
December 31, 2021 | 74.68 | ― |
(Note) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
Earnings per share are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | ||||||||
As of | Millions of yen | Millions of yen | % | |||||||
December 31, 2022 | 16,642 | 13,555 | 81.3 | |||||||
March 31, 2022 | 16,416 | 13,254 | 80.6 | |||||||
(Reference) Shareholders' equity: As of December 31, 2022: 13,531 million yen | ||||||||||
As of March 31, 2022: 13,236 million yen | ||||||||||
2. Dividends | ||||||||||
Annual dividend per share | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter | quarter | quarter | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended March 31, 2022 | ― | 0.00 | ― | 40.00 | 40.00 | |||||
Fiscal year ending March 31, 2023 | ― | 15.00 | ― | |||||||
Fiscal year ending March 31, 2023 (forecast) | 16.00 | 31.00 | ||||||||
(Note 1) Changes in dividend forecast from the most recent announcement: None
(Note 2) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
For the fiscal year ended March 2022, the actual amount of dividends before the stock split is stated. For the fiscal year ending March 2023 (forecast), the amount of dividends after the stock split is stated.
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3. Consolidated earnings forecast for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(Percentages indicate year-on-year change)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | ||||||
owners of parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full-year | 13,390 | 15.8 | 1,230 | -18.9 | 1,150 | -25.5 | 770 | -28.0 | 59.60 | |
(Note 1) Changes in earnings forecast from the most recent announcement: Yes
(Note 2) The Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
Earnings per share are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in a change in the scope of consolidation): None
Newly included: | - |
Excluded: | - |
- Application of special accounting treatment in preparing the quarterly financial statements: Yes
(Note) For details, please see the attached materials on page 8, "2. Quarterly Consolidated Financial Statements and Primary Notes; (3) Notes to Quarterly Consolidated Financial Statements (Application of special accounting treatment in preparing the quarterly financial statements)." - Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) | Changes in accounting policies due to revision of accounting standards: | None |
2) | Changes in accounting policies due to other reasons: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatement: | None |
- Total number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury shares):
December 31, 2022: | 12,960,000 shares |
March 31, 2022: | 12,960,000 shares |
2) Total number of treasury shares at the end of the period: | |
December 31, 2022: | 33,112 shares |
March 31, 2022: | 56,900 shares |
3) Average number of shares outstanding during the period: | |
Nine months ended December 31, 2022: | 12,917,415 shares |
Nine months ended December 31, 2021: | 12,898,491 shares |
(Note) Company split shares of common stock at a ratio of 2 for 1 on August 1, 2022.
The number of issued shares (common stock) is calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
- The quarterly financial statements are outside the scope of quarterly reviews by certified public accountants and auditing firms.
-
Explanation of the proper use of financial results forecast and other notes
Forward-looking statements in this document, including outlook on future performance, are based on currently available information and certain assumptions that the Company regards as reasonable, and the Company does not in any way guarantee their achievement. Actual results may differ substantially from the projections herein depending on various factors. For the preconditions of and precautions in using the financial results forecast, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information" on page 3 of the Attachment.
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Contents of Attached Materials | ||
Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information | ||
2. Quarterly Consolidated Financial Statements and Primary Notes | 4 | |
(1) | Consolidated Balance Sheet | 4 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
(Notes on going concern assumption) | 8 | |
(Notes in the event of significant changes in shareholders' equity) | 8 | |
(Application of special accounting treatment in preparing the quarterly financial statements) | 8 |
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1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Business Results
In the first nine months of the fiscal year ending March 31, 2023 (April 1, 2022-December 31, 2022), business sentiment in the manufacturing sector deteriorated on an increase in raw material costs, while business sentiment in the non- manufacturing sector improved significantly in consumption-related sectors such as accommodation and food services, reflecting a rapid recovery in inbound demand. Business sentiment was thus polarized. Private consumption continues to be affected by COVID-19, but a significant decline has been avoided due to factors such as a with-COVID lifestyle taking root.
Going forward, the economy is expected to recover as economic activity normalizes, but it is necessary to continue to pay close attention to prices, resource prices, foreign exchange trends, and international developments.
Under these circumstances, during the first nine months of the fiscal year ending March 31, 2023, demand for our products remained high as the food service and retail industries, our key customers, further accelerated their mechanization and labor-saving initiatives. Meanwhile, although the semiconductor and material supply shortage has continued to affect our manufacturing activities, improvements have been progressing since the third quarter of the fiscal year ending March 31, 2023. In addition, we have continued to expand our supply chain for parts and materials and switch to alternative parts through changes in product design to meet growing demand.
Although Japan entered the eighth wave of the COVID-19 pandemic, there were no restrictions on movement as in the seventh wave. Inbound demand has been recovering due to this and the significant easing of entry restrictions since October. On the other hand, the business environment remains difficult for the restaurant and retail industries due to continued high raw material and energy prices and the ongoing labor shortage, but moves to save labor are progressing. By business category, the demand for the Fuwarica rice serving machine continued to increase from restaurants and cafeterias, and the demand for sushi robots from major conveyor-belt sushi chains remained strong. In addition, domestic sales rose year on year since sales from Japan System Project Co., Ltd. (JSP), which joined our group in October 2021, contributed to consolidated results from the first quarter of the current fiscal year.
Overseas, product demand has remained firm despite the rising risk of recession, mainly in the US and Europe, due to inflation and tightening of financial conditions. The trend toward mechanization, which replaces human labor with machines, continues to accelerate due to the worsening labor shortage and soaring labor costs in the restaurant and retail industries. Overseas sales were up year on year due to expanding product demand in Southeast Asia as food service demand continued to recover, and continuing strong demand for sushi robot products from restaurant operators and supermarkets in North America.
As a result, net sales for the first nine months of the fiscal year ending March 31, 2023, were 10,033 million yen (+14.7% YoY). Of the total, domestic sales were 6,707 million yen (+18.0% YoY) and overseas sales were 3,325 million yen (+8.6% YoY).
Summary of results in the first nine months of the fiscal year ending March 31, 2023
Nine months ended | Nine months ended | Amount of | Percentage | ||||
December 31, 2021 | December 31, 2022 | change | change | ||||
Millions of yen | % of net sales | Millions of yen | % of net sales | Millions of yen | % | ||
Net sales | 8,747 | 100.0 | 10,033 | 100.0 | 1,285 | 14.7 | |
Domestic | 5,685 | 65.0 | 6,707 | 66.9 | 1,022 | 18.0 | |
Overseas | 3,062 | 35.0 | 3,325 | 33.1 | 263 | 8.6 | |
Gross profit | 4,294 | 49.1 | 4,651 | 46.4 | 357 | 8.3 | |
Operating profit | 1,358 | 15.5 | 842 | 8.4 | -516 | -38.0 | |
Ordinary profit | 1,372 | 15.7 | 774 | 7.7 | -598 | -43.6 | |
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Profit attributable to owners of parent
963
11.0
548
5.5
-414
-43.0
On the profit front, gross profit rose to 4,651 million yen (+8.3% YoY) due to higher sales, although the cost of sales ratio rose due to higher product material costs and foreign exchange effects related to the elimination of unrealized gains on inventory assets at overseas subsidiaries. Operating profit was down from the same period of the previous year to 842 million yen (-38.0% YoY) due to: increased costs for the company due to the addition of JSP to the group; an increase in packing and transportation costs due to soaring logistics costs; expenses for establishing various systems in anticipation of business growth and aggressive investment in human resources; increases in travel expenses mainly for overseas business trips due to the relaxation of travel restrictions, and exhibition costs; and an increase in SG&A expenses mainly associated with the relocation of the head office. Ordinary profit was down from the same period of the previous year to 774 million yen (-43.6% YoY) due to the decrease in operating profit as well as an equity-method investment loss of 128 million yen, which was recorded as a non-operating expense in consideration of the impact on the company's future results of a decline in operating results at Bluefin Trading LLC, an equity-method affiliate, in the third quarter of the fiscal year ending March 31, 2023 and an expected decrease in sales to major trading partners. Profit attributable to owners of parent decreased to 548 million yen (-43.0% YoY) due to the decline in ordinary profit, despite an extraordinary gain of 128 million yen on the sale of investment securities from the company's policy shareholdings.
(2) Explanation of Financial Condition
(Assets)
Total assets as of December 31, 2022, increased by 226 million yen to 16,642 million yen from March 31, 2022. This was mainly due to an increase of 543 million yen in property, plant and equipment, 536 million yen in notes and accounts receivable - trade, and 423 million yen in inventories, while cash and deposits decreased by 1,097 million yen.
(Liabilities)
Liabilities as of December 31, 2022, decreased by 74 million yen to 3,087 million yen from March 31, 2022, mainly due to an increase of 189 million yen in accounts payable - trade, and a decrease of 257 million yen in income taxes payable.
(Net assets)
Net assets as of December 31, 2022, increased by 301 million yen to 13,555 million yen from March 31, 2022. This was mainly due to the fact that while retained earnings decreased by 451 million yen due to the payment of dividends, profit attributable to owners of parent increased by 548 million yen, and foreign currency translation adjustment increased by 245 million yen.
(3) Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information
The earnings forecast has been revised from that announced on May 13, 2022. For details, please refer to the Revised Earnings Forecast released today (February 10, 2023).
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Suzumo Machinery Co. Ltd. published this content on 24 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 04:16:08 UTC.
