Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
February 9, 2024
Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
Company name: | Okamura Corporation |
Listing: | Tokyo Stock Exchange |
Securities code: | 7994 |
URL: | https://www.okamura.com/ |
Representative: | Masayuki Nakamura, Representative Director, President and Chief Executive Officer |
Inquiries: | Sakae Fukuda, Director and Executive Officer, Chief Financial Officer |
Telephone: | +81-(0)45-319-3445 |
Scheduled date to file quarterly securities report: | February 13, 2024 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on quarterly financial results: Not prepared | |
Holding of quarterly financial results briefing: | Not scheduled |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Operating Results for the Nine Months Ended December 31, 2023 (From April 1, 2023 to December 31, 2023)
(1) Operating Results (cumulative) | (Percentages indicate year-over-year changes.) | ||||||||||||
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, 2023 | 210,221 | 6.4 | 13,191 | 64.3 | 14,990 | 58.5 | 12,634 | 37.6 | |||||
December 31, 2022 | 197,531 | 8.1 | 8,027 | (14.5) | 9,460 | (11.1) | 9,184 | 18.0 | |||||
Note: Comprehensive income | For the nine months ended December 31, 2023: | ¥16,703 million | [82.9%] | ||||||||||
For the nine months ended December 31, 2022: | ¥9,132 million | [35.7%] | |||||||||||
Basic earnings | Diluted earnings | ||||||||||||
per share | per share | ||||||||||||
Nine months ended | Yen | Yen | |||||||||||
December 31, 2023 | 133.49 | - | |||||||||||
December 31, 2022 | 93.98 | - | |||||||||||
(2) Financial Positions | |||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||
As of | Millions of yen | Millions of yen | % | ||||||||||
December 31, 2023 | 257,039 | 162,206 | 62.2 | ||||||||||
March 31, 2023 | 252,914 | 152,702 | 59.6 | ||||||||||
Reference: Equity | |
As of December 31, 2023: | ¥159,922 million |
As of March 31, 2023: | ¥150,756 million |
2. Dividend
Annual dividends per share | ||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended | - | 22.00 | - | 33.00 | 55.00 | |||
March 31, 2023 | ||||||||
Fiscal year ending | - | 43.00 | - | |||||
March 31, 2024 | ||||||||
Fiscal year ending | 43.00 | 86.00 | ||||||
March 31, 2024 (Forecast) | ||||||||
Note: Revisions to the forecast of dividends most recently announced: None |
3. Forecast of Consolidated Performance for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)
(Percentages indicate year-over-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 290,600 | 4.9 | 23,600 | 35.8 | 25,500 | 34.7 | 20,100 | 26.4 | 212.37 | |
Note: Revisions to the forecast of performance most recently announced: None
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in scope of consolidation): None
Newly included: -
Excluded: - - Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2023
As of March 31, 2023
100,621,021 shares
100,621,021 shares
(ii) Number of treasury stock at the end of the period
As of December 31, 2023
As of March 31, 2023
5,975,261 shares
5,972,073 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023
Nine months ended December 31, 2022
94,647,212 shares
97,735,266 shares
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
-
Proper use of earnings forecasts and other special matters
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 Forecast of Consolidated Performance and Other Forward-Looking Information in 1. Qualitative Information on Quarterly Financial Results on page 4 of the Attachments to this Financial Results summary.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results | 2 | |
(1) | Explanation of Operating Results | 2 |
(2) | Explanation of Financial Position | 4 |
(3) | Explanation of Forecast of Consolidated Performance and Other Forward-Looking Information | . 4 |
2. Quarterly Consolidated Financial Statements and Principal Notes | 5 | |
(1) | Quarterly Consolidated Balance Sheets | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 7 |
(3) | Quarterly Consolidated Statements of Cash Flows | 9 |
(4) | Notes to Quarterly Consolidated Financial Statements | 11 |
(Notes on going concern assumption) | 11 | |
(Notes in case of significant changes in shareholders' equity) | 11 | |
(Segment information, etc.) | 11 | |
(Significant subsequent events) | 12 |
1
1. Qualitative Information on Quarterly Financial Results
-
Explanation of Operating Results
At the Okamura Group (the "Group"), our mission is to "contribute to society by creating environments where people can thrive with rich ideas and reliable quality." We aim to achieve a society where people can thrive.
During the nine months ended December 31, 2023, the Japanese domestic economy was on a path toward the normalization of economic activity as behavioral restrictions resulting from COVID-19 were eased and inbound demand recovered due to the increase in foreign tourists. However, the outlook remained clouded due to factors such as geopolitical risk surrounding the situations in Ukraine and the Middle East, concerns surrounding the future of the Chinese economy, soaring materials and parts prices, and movements in interest and exchange rates due to global monetary tightening.
Under these conditions, the Group worked to enhance its corporate value by providing society with high-quality products and services that accurately capture customer needs.
As a result, for the period under review, the Group recorded net sales of 210,221 million yen (up 6.4% year over year), operating profit of 13,191 million yen (up 64.3% year over year), ordinary profit of 14,990 million yen (up 58.5% year over year), and profit attributable to owners of parent of 12,634 million yen (up 37.6% year over year).
Performance by segment is presented below.
Net sales | Segment profit (loss) | |||||||
(Millions of yen) | (Millions of yen) | |||||||
Segment name | Nine months | Nine months | Nine months | Nine months | ||||
ended | ended | ended | ended | |||||
Change | Change | |||||||
December 31, | December 31, | December 31, | December 31, | |||||
2022 | 2023 | 2022 | 2023 | |||||
Office Furniture | 107,302 | 109,503 | 2,200 | 7,291 | 8,450 | 1,158 | ||
business | ||||||||
Store Displays | 76,135 | 81,979 | 5,843 | 1,949 | 3,633 | 1,684 | ||
business | ||||||||
Material Handling | 9,734 | 13,772 | 4,037 | (1,193) | 928 | 2,122 | ||
Systems business | ||||||||
Other | 4,359 | 4,966 | 607 | (20) | 178 | 199 | ||
Total | 197,531 | 210,221 | 12,689 | 8,027 | 13,191 | 5,164 | ||
Note: The totals for segment profit (loss) correspond to operating profit on the quarterly consolidated statements of income.
2
Office Furniture business
In the Office Furniture business, it has become a key management issue for many companies, regardless of industry sector or scope, to structure offices that are compatible with new working styles, and demand for office refurbishment was vigorous. Under these conditions, Okamura Corporation (the "Company") endeavored to capture demand through sales proposals for new working styles compatible with hybrid working and the digital age, and by supporting these proposals with an enhanced lineup of new products that embrace working style changes. Meanwhile, amid the impact from soaring materials and parts prices, we endeavored to reduce production and logistics costs and promoted our efforts to pass on price rises. This led to the segment achieving its highest-ever levels of both net sales and profit.
As a result, segment net sales amounted to 109,503 million yen (up 2.1% year over year) and segment profit was 8,450 million yen (up 15.9% year over year).
Store Displays business
In the Store Displays business, demand for store renovations remained steady against the backdrop of competition among businesses that handle food and expectations for a recovery in inbound demand. Under these conditions, the Company worked to capture demand through proposals leveraging its overall strength by expanding total support framework for store creation, including services such as store design and construction management, in addition to its extensive product lineup featuring display fixtures, refrigerated showcases and other products. Meanwhile, amid the impact from soaring prices of materials and parts, we endeavored to reduce production and logistics costs and promoted our efforts to pass on price rises. This led to the segment achieving its highest-ever levels of both net sales and profit.
As a result, segment net sales amounted to 81,979 million yen (up 7.7% year over year) and segment profit was 3,633 million yen (up 86.4% year over year).
Material Handling Systems business
In the Material Handling Systems business, demand for automated warehousing equipment remained at a high level, mainly for large-scale logistics facilities, against the backdrop of demand for personnel savings and labor savings. Meanwhile, procurement difficulties and soaring prices of materials and parts continued due to disruptions in global supply chains. Under these conditions, the Company engaged in proactive proposal activities making maximum use of the strength of its superior products, and orders received increased robustly. In the nine months ended December 31, 2023, the Company recorded sales from multiple large projects. In addition, we endeavored to improve profitability, for example by reducing production and logistics costs and passing on price increases. This led to record-high net sales and a significant increase in operating profit.
As a result, segment net sales amounted to 13,772 million yen (up 41.5% year over year) and segment profit was 928 million yen (compared to segment loss of 1,193 million yen in the same period of the previous fiscal year).
3
-
Explanation of Financial Position
The financial position as of December 31, 2023 (the end of the third quarter under review) was as follows. Total assets amounted to 257,039 million yen, an increase of 4,125 million yen from the end of the previous fiscal year. Current assets decreased by 7,742 million yen, mainly due to a decrease in notes and accounts receivable - trade, and contract assets, despite increases in cash and deposits and merchandise and finished goods. Non-current assets increased by 11,867 million yen, mainly due to increases in buildings
and structures, land, and investment securities.
Liabilities stood at 94,833 million yen, a decrease of 5,378 million yen from the end of the previous fiscal year, mainly due to decreases in notes and accounts payable - trade and income taxes payable.
Net assets amounted to 162,206 million yen, an increase of 9,503 million yen from the end of the previous fiscal year, mainly due to increases in retained earnings and valuation difference on available-for- sale securities.
As a result, the equity ratio increased by 2.6 percentage points from the end of the previous fiscal year to 62.2%.
Cash flows for the nine months ended December 31, 2023 were as follows.
Net cash provided by operating activities was 15,425 million yen (compared to 8,105 million yen provided in the same period of the previous fiscal year). This was mainly a result of profit before income taxes of 18,716 million yen, depreciation of 4,786 million yen, and a decrease in trade receivables and contract assets of 11,965 million yen, despite income taxes paid of 8,374 million yen, a decrease in trade payables of 5,066 million yen, and a gain on sale of investment securities of 3,751 million yen.
Net cash used in investing activities was 6,852 million yen (compared to 2,455 million yen used in the same period of the previous fiscal year). This was mainly a result of purchase of property, plant and equipment of 11,336 million yen, and purchase of intangible assets of 952 million yen, despite proceeds from sale and redemption of investment securities of 4,839 million yen.
Net cash used in financing activities was 5,766 million yen (compared to 3,569 million yen used in the same period of the previous fiscal year). This was mainly a result of dividends paid of 6,758 million yen.
As a result, cash and cash equivalents at the end of the nine months ended December 31, 2023 amounted to 40,313 million yen, a net increase of 3,314 million yen from the end of the previous fiscal year (compared to a net increase of 2,814 million yen in the same period of the previous fiscal year). - Explanation of Forecast of Consolidated Performance and Other Forward-Looking Information
The forecast of consolidated performance for the fiscal year ending March 31, 2024 remains unchanged from the forecast figures announced on November 2, 2023.
Please note that the performance forecasts are based on the information available as of the day of their announcement, and actual results may differ from these forecasts due to various factors.
4
2. Quarterly Consolidated Financial Statements and Principal Notes
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | ||||
As of March 31, 2023 | As of December 31, 2023 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 38,534 | 41,015 | ||
Notes and accounts receivable - trade, and contract | 73,571 | 61,606 | ||
assets | ||||
Securities | 491 | - | ||
Merchandise and finished goods | 9,974 | 11,571 | ||
Work in process | 5,298 | 5,413 | ||
Raw materials and supplies | 5,892 | 6,560 | ||
Other | 3,838 | 3,710 | ||
Allowance for doubtful accounts | (157) | (176) | ||
Total current assets | 137,443 | 129,701 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 14,713 | 23,382 | ||
Land | 27,823 | 30,381 | ||
Other, net | 23,812 | 20,303 | ||
Total property, plant and equipment | 66,349 | 74,067 | ||
Intangible assets | ||||
Goodwill | 2,161 | 2,658 | ||
Other | 3,052 | 3,211 | ||
Total intangible assets | 5,213 | 5,870 | ||
Investments and other assets | ||||
Investment securities | 36,975 | 40,410 | ||
Other | 6,958 | 7,023 | ||
Allowance for doubtful accounts | (26) | (33) | ||
Total investments and other assets | 43,907 | 47,401 | ||
Total non-current assets | 115,470 | 127,338 | ||
Total assets | 252,914 | 257,039 |
5
(Millions of yen) | |||
As of March 31, 2023 | As of December 31, 2023 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 28,906 | 21,857 | |
Electronically recorded obligations - operating | 11,603 | 13,735 | |
Short-term borrowings | 6,314 | 7,932 | |
Current portion of long-term borrowings | 1,194 | 3 | |
Current portion of bonds payable | - | 5,000 | |
Income taxes payable | 4,909 | 2,102 | |
Provision for bonuses | 4,246 | 3,011 | |
Other | 9,293 | 9,040 | |
Total current liabilities | 66,470 | 62,682 | |
Non-current liabilities | |||
Bonds payable | 10,000 | 5,000 | |
Long-term borrowings | 3,650 | 4,670 | |
Retirement benefit liability | 15,169 | 16,102 | |
Other | 4,921 | 6,377 | |
Total non-current liabilities | 33,741 | 32,150 | |
Total liabilities | 100,211 | 94,833 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 18,670 | 18,670 | |
Capital surplus | 16,770 | 16,770 | |
Retained earnings | 112,162 | 117,589 | |
Treasury shares | (7,711) | (7,717) | |
Total shareholders' equity | 139,891 | 145,312 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 10,135 | 12,526 | |
Foreign currency translation adjustment | 563 | 1,936 | |
Remeasurements of defined benefit plans | 165 | 147 | |
Total accumulated other comprehensive income | 10,864 | 14,610 | |
Non-controlling interests | 1,946 | 2,283 | |
Total net assets | 152,702 | 162,206 | |
Total liabilities and net assets | 252,914 | 257,039 |
6
-
Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income Nine months ended December 31
(Millions of yen) | |||
Nine months ended | Nine months ended | ||
December 31, 2022 | December 31, 2023 | ||
Net sales | 197,531 | 210,221 | |
Cost of sales | 136,441 | 141,966 | |
Gross profit | 61,090 | 68,254 | |
Selling, general and administrative expenses | |||
Packing and transportation costs | 7,243 | 7,265 | |
Salaries and allowances | 19,247 | 19,623 | |
Provision for bonuses | 1,578 | 2,181 | |
Rent expenses | 6,735 | 6,438 | |
Other | 18,258 | 19,553 | |
Total selling, general and administrative expenses | 53,063 | 55,062 | |
Operating profit | 8,027 | 13,191 | |
Non-operating income |
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
21 | 32 | ||
872 | 906 | ||
436 | 363 | ||
281 | 2 | ||
444 | 774 | ||
2,055 | 2,078 | ||
Interest expenses | 123 | 107 | |
Loss on sale and retirement of non-current assets | 357 | 83 | |
Other | 140 | 88 | |
Total non-operating expenses | 622 | 279 | |
Ordinary profit | 9,460 | 14,990 | |
Extraordinary income | |||
Gain on sale of investment securities | 4,517 | 3,771 | |
Insurance claim income | 202 | - | |
Total extraordinary income | 4,720 | 3,771 | |
Extraordinary losses | |||
Impairment losses | 30 | 25 | |
Loss on sale of investment securities | 139 | 19 | |
Loss on valuation of investment securities | 1 | - | |
Loss on disaster | 181 | - | |
Total extraordinary losses | 352 | 44 | |
Profit before income taxes | 13,828 | 18,716 | |
Income taxes - current | 3,838 | 5,414 | |
Income taxes - deferred | 657 | 504 | |
Total income taxes | 4,495 | 5,919 | |
Profit | 9,332 | 12,797 | |
Profit attributable to non-controlling interests | 148 | 162 | |
Profit attributable to owners of parent | 9,184 | 12,634 |
7
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Disclaimer
Okamura Corporation published this content on 09 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:42 UTC.