Translation ― Original text in Japanese
FY03/2024
(April 1, 2023 to March 31, 2024)
Financial Results
Materials
(Highlights)
April 26, 2024
FY03/2024 Financial Results Summary
Key Points of the Summary
POINT The first year of the Medium-Term Management Plan
"Chori Innovation Plan 2025"
- Profit at each stage exceeded our plan.
- Posted ordinary profit of ¥14.5 billion, net profit before income taxes of ¥14.7 billion, and net profit attributable to owners of parent of ¥9.6 billion, which were all record highs for a third straight year.
Business | ⚫ Despite a year-on-year decline in sales, profit increased mainly due to improved | |
profitability. | ||
results | ||
⚫ The Fibers, Textiles and Garments business profit grew substantially. The Chemicals | ||
summary | ||
business also performed well. | ||
⚫ Equity ratio | 57.2% Maintained at a high level. | |
Financial | ⚫ ROE (net profit*1 basis) | 12.5% |
base | ⚫ ROIC*2 | 12.4% |
*1: Net profit attributable to owners of parent | ||
*2: ROIC = Operating profit after income taxes / shareholders' equity (Equity + Interest-bearing debt) average during the period |
Dividends
- Year-enddividend increased from the dividend forecast announced on April 28, 2023.
Year-end dividend ¥60 per share (Dividend increase of ¥2 per share) Annual dividend ¥118 per share Consolidated dividend payout ratio: 30.2% Dividend on equity ratio (DOE): 4.1%
Topics
- The company-wide business transformation project (mission critical system (SAP) implementation project, called CARAT) is progressing with system development as planned towards full-scale operation from FY2025.
- The Sustainability Promotion Committee was established on April 1, 2024.
Today, we announced our materiality (key issues) and basic sustainability policy, etc.
CHORI CO., LTD.
1
FY03/2024 Financial Results Summary
Business Results Breakdown (YoY Comparison)
POINT | ⚫ The Japanese economy is on a gradual recovery trend due to the rebound of the manufacturing | |
industry and other factors. The outlook for the global economy is increasingly uncertain due to | ||
geopolitical risks such as Russia's invasion of Ukraine and conflict in the Middle East, as well as | ||
prolonged real estate recession in China, and other factors. | ||
⚫ Net sales decreased mainly due to lower sales in the Chemicals business outside Japan, but | ||
profit at each stage increased. The Fibers, Textiles and Garments business grew substantially, | ||
driven by expansion of fiber raw materials and domestic apparel-related products as well as | ||
improved profitability. | ||
Unit: billions of yen | FY03/2023 | FY03/2024 | Difference | Ratio |
Net sales | 329.4 | 307.7 | -21.7 | -6.6% |
Gross profit | 37.1 | 38.7 | +1.7 | +4.5% |
Selling, general and administrative expenses | 24.4 | 23.7 | -0.7 | -2.9% |
Operating profit | 12.7 | 15.0 | +2.4 | +18.8% |
Ordinary profit | 12.4 | 14.5 | +2.0 | +16.4% |
Net profit before income taxes | 12.8 | 14.7 | +1.9 | +14.9% |
Net profit attributable to owners of parent | 8.1 | 9.6 | +1.5 | +18.5% |
CHORI CO., LTD.
2
FY03/2024 Financial Results Summary
Reasons for Changes in Net Profit before Income Taxes
Unit: billions of yen | +4.0 | +0.7 | -0.4 | -0.2 | +0.3 |
-2.5 | SG&A | Share of | Gain on | Non- | |
decrease | profit (loss) | sale of | operating | ||
of entities | investment | profit (loss), | |||
Effect of | Increased | accounted | securities Extraordinary | ||
for using | profit (loss), | ||||
decreased | profit ratio | ||||
equity | etc. | ||||
sales | |||||
method | 14.7 | ||||
12.8 | |||||
FY03/2023 | FY03/2024 | ||||
Trends in Business Performance | |||||
FY03/2023 | FY03/2024 |
1Q | 2Q | 3Q | 4Q | Full-year | 1Q | 2Q | 3Q | 4Q | Full-year | ||||
total | total | ||||||||||||
Net sales | 81.9 | 86.6 | 86.9 | 74.0 | 329.4 | 75.8 | 77.1 | 80.5 | 74.3 | 307.7 | |||
Net profit (loss) before income taxes | 3.7 | 4.1 | 3.6 | 1.4 | 12.8 | 3.6 | 4.2 | 4.2 | 2.7 | 14.7 | |||
Fibers, Textiles and Garments | 0.8 | 1.2 | 1.7 | 1.4 | 5.1 | 1.9 | 2.4 | 2.1 | 1.6 | 8.0 | |||
Chemicals | 2.5 | 2.8 | 2.2 | 1.6 | 9.1 | 2.1 | 2.1 | 1.9 | 1.5 | 7.6 | |||
Machinery | -0.0 | 0.3 | -0.2 | -1.4 | -1.3 | -0.5 | -0.3 | 0.4 | -0.2 | -0.6 | |||
Others* | 0.4 | -0.2 | -0.1 | -0.2 | -0.2 | 0.0 | -0.0 | -0.3 | -0.1 | -0.4 | |||
Net profit attributable to owners of parent | 2.3 | 2.5 | 2.8 | 0.6 | 8.1 | 2.2 | 2.8 | 3.0 | 1.6 | 9.6 | |||
*"Others" includes adjustments. | 3 | ||||||||||||
CHORI CO., LTD. | |||||||||||||
FY03/2024 Financial Results Summary
Segment Results
Net sales | ■ Fibers, Textiles and Garments | |||||
Unit: billions of yen | ■ Chemicals ■ Machinery ■ Others | FY03/2023 | FY03/2024 | Difference | ||
144.8 | 145.9 | Fibers, Textiles | 144.8 | 145.9 | +1.0 | |
and Garments | ||||||
Chemicals | 180.0 | 160.0 | -20.0 | |||
180.0 | Machinery | 4.4 | 1.7 | -2.7 | ||
160.0 | Others | 0.1 | 0.1 | -0.0 | ||
1.7 | ||||||
4.4 | Total | 329.4 | 307.7 | -21.7 | ||
0.1 | 0.1 | |||||
FY03/2023 | FY03/2024 |
Net profit (loss) before income taxes
Unit: billions of yen | ■ Fibers, Textiles and Garments | |||
■ Chemicals ■ Machinery ■ Others* | ||||
5.1 | 8.0 | |||
9.1 | 7.6 | |||
-0.2 | -0.4 | |||
FY03/2023 | -1.3 | FY03/2024 | -0.6 | |
FY03/2023 | FY03/2024 | Difference | |
Fibers, Textiles | 5.1 | 8.0 | +2.9 |
and Garments | |||
Chemicals | 9.1 | 7.6 | -1.5 |
Machinery | -1.3 | -0.6 | +0.6 |
Others* | -0.2 | -0.4 | -0.2 |
Total | 12.8 | 14.7 | +1.9 |
*"Others" includes adjustments.
Fibers, Textiles and Garments | Chemicals | Machinery | |||
Significant increased profit | Decreased sales and profit | Decreased sales and segment loss | |||
Strong | Overall | Sluggish | Overall decrease in demand | Loss | Foreign exchange loss |
and poor market conditions | |||||
Expansion | Fiber raw materials・ | Steady | Fine chemicals・Life science | ||
Domestic apparel-related | CHORI CO., LTD. | ||||
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FY03/2024 Financial Results Summary
Net Sales by Operation
POINT | ⚫ Decreased sales across all operations. Overseas sales decreased primarily in | |
the China business and the Chemicals business. | ||
⚫ Trade ratio: 67.1% 1.9pt decrease YoY | ||
Unit: billions of yen
102.2 | -1.0 | ||||
101.2 | |||||
Domestic | 98.8 | -5.6 | 93.2 | ||
Import | |||||
Export | 39.5 | -1.9 | 37.6 | ||
Overseas | 88.9 | -13.2 | 75.7 | ||
FY03/2023 | FY03/2024 |
Diff.
Domestic | Amount of domestic sales |
sales | from domestic suppliers |
Overseas transactions
Import | Amount of net sales from |
sales | overseas to Japan |
Export | Amount of net sales from Japan |
sales | to overseas |
Overseas | Amount of net sales from |
sales | overseas business |
CHORI CO., LTD.
5
FY03/2024 Financial Results Summary
Financial Position
■ Total assets | ■ Net interest-bearing debt | |
■ Equity | Equity ratio | |
Unit: billions of yen | ||
143.2 | 143.4 |
57.2%
50.4%
82.1
72.2
-13.9-18.7
31-Mar-2331-Mar-24
Financial soundness
31-Mar-23 | 31-Mar-24 | Difference | |
Total assets | 143.2 | 143.4 | +0.2 |
Net interest-bearing debt | -13.9 | -18.7 | -4.8 |
Equity | 72.2 | 82.1 | +9.9 |
Equity ratio | 50.4% | 57.2% | +6.8pt |
Profitability/Capital efficiency
31-Mar-2331-Mar-24 Difference
ROA | 5.9% | 6.7% | +0.8pt |
(Net profit*1 basis) | |||
ROE | 11.8% | 12.5% | +0.7pt |
(Net profit*1 basis) | |||
ROIC*2 | 10.8% | 12.4% | +1.6pt |
(Reference) ROA | 9.0% | 10.1% | +1.1pt |
(Ordinary profit basis) | |||
*1: Net profit attributable to owners of parent
*2: ROIC = Operating profit after income taxes / shareholders' equity (Equity + Interest-bearing debt) average during the period
CHORI CO., LTD.
6
FY03/2024 Financial Results Summary
Cash Flows
POINT
⚫ Cash and cash equivalents amounted to ¥21.1 billion.
Operating activities: Provided ¥9.7 billion due to net profit before income taxes (¥14.7 billion) and others
Investing activities : Used ¥2.7 billion mainly due to the purchase of intangible assets associated with the introduction of a mission-critical system (¥1.9 billion)
Financing activities: Used ¥5.4 billion mainly due to dividend payments (¥2.8 billion), repayments of borrowings (¥2.4 billion) and others
Unit: billions of yen | FY03/2023 | FY03/2024 | Difference |
Cash flows from operating activities | 9.6 | 9.7 | +0.1 |
Cash flows from investing activities | -0.3 | -2.7 | -2.4 |
Cash flows from financing activities | -3.1 | -5.4 | -2.3 |
Effect of exchange rate change on cash and cash equivalents | 0.6 | 0.6 | +0.0 |
Total cash flows | 6.8 | 2.2 | -4.6 |
Cash and cash equivalents at end of period | 18.9 | 21.1 | +2.2 |
CHORI CO., LTD.
7
FY03/2024 Financial Results Summary
FY03/2025 Business Results Forecast
POINT
⚫ Steadily promoting The Medium-Term Management Plan "Chori Innovation Plan 2025"
- We are on track to achieve record profits for the fourth consecutive year and net profit attributable to owners of parent of ¥10 billion.
Cf. Final Year (FY03/2026) Financial Targets
Net sales ¥360.0 billion, net profit before income taxes ¥16.0 billion, net profit attributable to owners of parent ¥11.0 billion, ROA (net profit*1 basis): 7% or higher, ROE (net profit*1 basis): 12% or higher, ROIC*2 Approx.10%
*1: Net profit attributable to owners of parent
*2: ROIC = Operating profit after income taxes / shareholders' equity (Equity + Interest-bearing debt) average during the period
Unit: billions of yen | FY03/2024 | FY03/2025 | Difference | |||
Result | Forecast | |||||
Net sales | 307.7 | 320.0 | +12.3 | |||
Fibers, Textiles and Garments | 145.9 | 155.0 | +9.1 | |||
Chemicals | 160.0 | 163.0 | +3.0 | |||
Machinery | 1.7 | 2.0 | +0.3 | |||
Others | 0.1 | - | -0.1 | |||
Net profit (loss) before income taxes | 14.7 | 15.0 | +0.3 | |||
Fibers, Textiles and Garments | 8.0 | 6.8 | -1.2 | |||
Chemicals | 7.6 | 8.0 | +0.4 | |||
Machinery | -0.6 | 0.2 | +0.8 | |||
Others* | -0.4 | - | +0.4 | |||
Net profit attributable to owners of parent | 9.6 | 10.0 | +0.4 | |||
8 | ||||||
* Others" includes adjustments. | CHORI CO., LTD. | |||||
" |
FY03/2024 Financial Results Summary
Dividend
Dividend policy
FY03/2024 Year-end dividend
FY03/2025 Dividend forecast
Consolidated dividend payout ratio of at least 30% and dividend on equity (DOE) ratio of 3.5% or more (FY03/2024 -)
Based on FY03/2024 consolidated results, the year-end dividend will be ¥60 per share, an increase of ¥2 per share from the previous forecast of ¥58 per share. Combined with the interim dividend of ¥58 per share, the annual dividend is ¥118 per share.
The annual dividend forecast is ¥122 per share (interim dividend of ¥61 per share, year-end dividend of ¥61 per share), an increase of ¥4 per share from FY03/2024.
Trends in dividends per share (Annual) | DOE of 3.5% or more |
■ ■ Dividends in yen, % show consolidated dividend payout ratio EPS: Net profit per share
Unit: yen | Consolidated dividend payout ratio of | ||||
30% or more | 406 | ||||
391 | |||||
277 | 330 | Annual 118 | Annual 122 | ||
248 | |||||
30% | |||||
30% | |||||
51 | 60 | 61 | |||
Fiscal year-end | |||||
Fiscal year-end | |||||
84 | 105 | ||||
63 | 32% | 61 | |||
30% | 58 | ||||
25% | Interim | ||||
Interim | |||||
37 | |||||
73% | |||||
FY03/2020 | FY03/2021 | FY03/2022 | FY03/2023 | FY03/2024 | FY03/2025 |
(Forecast) |
CHORI CO., LTD.
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Chori Co. Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:36:22 UTC.