SUZUMO MACHINERY COMPANY LIMITED Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2024 (JGAAP)
August 10, 2023
Company name: | Suzumo Machinery Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Stock code: | 6405 |
URL: | http://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: | August 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 three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)
(1) Consolidated Operating Results | (Percentages indicate year-on-year change) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
June 30, 2023 | 3,262 | 3.9 | 175 | -31.9 | 180 | -32.3 | 128 | -16.3 | ||
June 30, 2022 | 3,141 | 14.5 | 257 | -29.2 | 266 | -28.9 | 153 | -45.8 | ||
(Note) Comprehensive income: Three months ended June 30, 2023: 143 million yen (-37.7%) | ||||||||||
Three months ended June 30, 2022: 231 million yen (-29.9%) | ||||||||||
Earnings | Diluted earnings | |||||||||
per share | per share | |||||||||
Three months ended | Yen | Yen | ||||||||
June 30, 2023 | 9.97 | ― | ||||||||
June 30, 2022 | 11.93 | ― |
(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 | % | |||||||
June 30, 2023 | 17,070 | 13,653 | 79.8 | |||||||
March 31, 2023 | 17,033 | 13,716 | 80.4 | |||||||
(Reference) Shareholders' equity: As of June 30, 2023: 13,627 million yen | ||||||||||
As of March 31, 2023: 13,691 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, 2023 | ― | 15.00 | ― | 16.00 | 31.00 | |||||
Fiscal year ending March 31, 2024 | ― | |||||||||
Fiscal year ending March 31, 2024 (forecast) | 15.00 | ― | 16.00 | 31.00 | ||||||
(Note) Changes in dividend forecast from the most recent announcement: None
3. Consolidated earnings forecast for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)
(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 | ||
Six months | ||||||||||
ending | 6,960 | 9.6 | 330 | -24.4 | 335 | -28.6 | 220 | -42.0 | 17.02 | |
September 30, | ||||||||||
2023 | ||||||||||
Full-year | 15,000 | 11.5 | 1,500 | 24.6 | 1,505 | 32.1 | 1,020 | 23.5 | 78.88 | |
(Note) Changes in earnings forecast from the most recent announcement: None
Notes:
-
Changes in significant subsidiaries during the period under review: None
(changes in specified subsidiaries resulting in a change in the scope of consolidation)
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 9, "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):
June 30, 2023: | 12,960,000 shares |
March 31, 2023: | 12,960,000 shares |
2) Total number of treasury shares at the end of the period: | |
June 30, 2023: | 34,574 shares |
March 31, 2023: | 34,014 shares |
3) Average number of shares outstanding during the period: | |
Three months ended June 30, 2023: | 12,925,846 shares |
Three months ended June 30, 2022: | 12,902,425 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 4 of the Attachment.
Contents of Attached Materials | ||
(2) | Explanation of Financial Condition | 4 |
(3) | Explanation of Consolidated Financial Earnings Forecast and Other Forward-Looking Information | 4 |
2. Quarterly Consolidated Financial Statements and Primary Notes | 5 | |
(1) | Consolidated Balance Sheet | 5 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements | 9 |
(Notes on going concern assumption) | 9 | |
(Notes in the event of significant changes in shareholders' equity) | 9 | |
(Application of special accounting treatment in preparing the quarterly financial statements) | 9 |
1
1. Qualitative Information on Quarterly Financial Results
- Explanation of Business Results
In the first three months of the fiscal year ending March 31, 2024 (April 1, 2023-June 30, 2023), the Japanese economy recovered moderately, reflecting a recovery in business sentiment in the manufacturing sector and an improvement in business sentiment in consumer-related industries in the non-manufacturing sector, particularly in the accommodation and food services sector. In particular, consumer spending remained on a recovery trend due to the expansion of service consumption, including eating out and travel, as a result of the resurgence of various events and the revitalization of the movement of people.
As for the economic outlook, a moderate recovery is expected to continue, led by consumer spending, capital investment, and inbound demand.
Under these circumstances, during the first three months of the fiscal year ending March 31, 2024, the movements toward mechanization and labor saving continued in the restaurant and retail industries, and product demand remained firm. The impact on production activities due to the semiconductor and material supply shortage, which had continued since the year before last, has largely disappeared in the first quarter of the fiscal year ending March 31, 2024.
In Japan, the business environment remained difficult for the restaurant and retail industries due to soaring raw material and energy prices, but product demand remained strong due to the shift of COVID-19 to Class 5 in May 2023, recovery of inbound demand, and the continued labor-saving moves amid an ongoing labor shortage. By business category, domestic sales rose year on year, driven by demand for replacing sushi robots from major conveyor-belt sushi chains, as well as increased product demand for Fuwarica rice serving machines from restaurants and cafeterias, hotels, inns, and school meal service businesses.
Overseas, although mechanization and labor saving continued due to the intensified labor shortage and rising labor costs in the restaurant and retail industries, demand for our products decreased on a decline in business operators' appetite for capital investment against the backdrop of inflation and the tightening of financial conditions centered on the United States and Europe, and geopolitical risks related to the situation in Ukraine. By region, in East and Southeast Asia, food service demand continued to recover, and demand for products increased as Japanese companies expanded overseas. In Europe, however, overseas sales were lower year on year due to a decline in demand for products owing to factors such as the cancellation or postponement of capital investment plans as businesses continue to be affected by soaring energy prices and worsening supply concerns caused by the situation in the Ukraine.
As a result, net sales for the first quarter of the fiscal year ending March 31, 2024 totaled 3,262 million yen (+3.9% YoY). Of the total, domestic sales were 2,352 million yen (+15.4% YoY), and overseas sales came to 909 million yen (- 17.5% YoY).
Summary of results in the first three months of the fiscal year ending March 31, 2024
Three months ended | Three months ended | Amount of | Percentage | |||||
June 30, 2022 | June 30, 2023 | change | change | |||||
Millions of yen | % of net sales | Millions of yen | % of net sales | Millions of yen | % | |||
Net sales | 3,141 | 100.0 | 3,262 | 100.0 | 121 | 3.9 | ||
Domestic | 2,039 | 64.9 | 2,352 | 72.1 | 313 | 15.4 | ||
Overseas | 1,102 | 35.1 | 909 | 27.9 | -192 | -17.5 | ||
Gross profit | 1,497 | 47.7 | 1,527 | 46.8 | 29 | 2.0 | ||
Operating profit | 257 | 8.2 | 175 | 5.4 | -82 | -31.9 | ||
Ordinary profit | 266 | 8.5 | 180 | 5.5 | -86 | -32.3 | ||
Profit attributable | to | 153 | 4.9 | 128 | 3.9 | -25 | -16.3 | |
owners of parent | ||||||||
2
Gross profit rose to 1,527 million yen (+2.0% YoY) due to an increase in sales. Operating profit decreased to 175 million yen (-31.9% YoY) due to an increase in SG&A expenses, chiefly due to an increase in labor costs associated with the establishment of a foundation for business growth in the previous fiscal year; an increase in rent due to the relocation of the head office; an increase in travel expenses, mainly for overseas business trips due to the relaxation of COVID-related restrictions; and investment in product development, despite a decrease in packing and transportation expenses due to a decrease in overseas sales and stabilization of the rise in logistics costs. Ordinary profit was 180 million yen (-32.3% YoY). Profit attributable to owners of parent decreased to 128 million yen (-16.3% YoY) although the decrease was lessened by the impact of an extraordinary loss of 25 million yen on the extinguishment of tie-in shares resulting from the absorption-type merger of Suzumo Maintenance Co., Ltd in the same quarter of the previous fiscal year.
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Suzumo Machinery Co. Ltd. published this content on 18 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2023 07:42:02 UTC.
