August 3, 2023
Summary of Consolidated Financial Results
for the First Quarter Ended June 30, 2023 [Japan GAAP]
Name of Company: | KAGA ELECTRONICS CO., LTD. | ||
Stock Code: | 8154 | URL: https://www.taxan.co.jp/ | |
Stock Exchange Listing: | Tokyo Stock Exchange, Prime Market | ||
Representative | Title: Representative Director, | Name: Ryoichi Kado | |
President & COO | |||
Contact Person | Title: Senior Executive Officer | Name: Yasuhiro Ishihara | |
Head of Administration Headquarters | |||
Phone: | +81-(0)3-5657-0111 | ||
Date of filing of quarterly securities report (tentative): | August 10, 2023 | ||
Date of commencement of dividend payment (tentative): | - | ||
Quarterly earnings supplementary explanatory documents: Yes | |||
Quarterly earnings presentation: | No |
(Yen in millions, rounded down)
1. Financial results for the first quarter of the fiscal year ending March 2024 (April 1, 2023 - June 30, 2023)
- Result of operations (Consolidated, year-to-date)
(Percentage figures represent year on year changes)
Profit attributable | ||||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | to owners of | |||||||||||||||||||||||
parent | ||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||
First quarter ended June 2023 | 137,694 | (7.8) | 6,994 | (28.8) | 6,909 | (29.9) | 5,767 | (17.4) | ||||||||||||||||||
First quarter ended June 2022 | 149,302 | 40.9 | 9,820 | 120.6 | 9,858 | 115.9 | 6,984 | 143.2 | ||||||||||||||||||
Note: Comprehensive income: 1Q of FY2024/3: 9,404 million yen [(16.9%)] | 1Q of FY2023/3: 11,314 million yen[ 234.4%] | |||||||||||||||||||||||||
Earnings per | Earnings per | |||||||||||||||||||||||||
share | ||||||||||||||||||||||||||
share | ||||||||||||||||||||||||||
(diluted) | ||||||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||||
First quarter ended June 2023 | 219.63 | - | ||||||||||||||||||||||||
First quarter ended June 2022 | 266.10 | - | ||||||||||||||||||||||||
(2) Financial Position (Consolidated) | ||||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||||
Million yen | Million yen | % | ||||||||||||||||||||||||
As of June 30, 2023 | 292,822 | 135,983 | 46.4 | |||||||||||||||||||||||
As of March 31, 2023 | 286,217 | 129,737 | 45.3 | |||||||||||||||||||||||
129,608 million yen | ||||||||||||||||||||||||||
Reference: Shareholders' equity:As of June 30, 2023: 135,850 million yen | As | of March 31, 2023: | ||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||
Dividend per share | ||||||||||||||||||||||||||
1Q | 2Q | 3Q | Year-end | Full year | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||
Fiscal year ended March 2023 | - | 100.00 | - | 120.00 | 220.00 | |||||||||||||||||||||
Fiscal year ending March 2024 | - | |||||||||||||||||||||||||
Fiscal year ending March 2024 (Forecast) | 110.00 | - | 110.00 | 220.00 | ||||||||||||||||||||||
Notes: Change in the dividend forecast from the latest announcement: None
Breakdown of interim dividend for FY2023/3: Ordinary dividend: 70.00 yen; Extraordinary dividend: 30.00 yen
Breakdown of year-end dividend for FY2023/3: Ordinary dividend: 70.00 yen; 55th anniversary commemorative
dividend: 10.00 yen; Extraordinary dividend: 40.00 yen
3. Forecast for the fiscal year ending March 2024 (Consolidated, April 1, 2023 - March 31, 2024)
(Percentage figures represent year on year changes)
Net sales | Operating income | Ordinary income | Profit attributable | Earnings per | |||||
to owners of parent | share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 550,000 | (9.5) | 25,000 | (22.5) | 25,000 | (23.6) | 18,000 | (22.0) | 685.42 |
Note: Change in the forecast from the latest announcement: None
- Notes
- Changes in significant subsidiaries (Changes in specified subsidiaries accompanied by changes in the
scope of consolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial
statements | : None |
- Changes in accounting policies, estimates, and retrospective restatement
- Changes due to revision of accounting standards : None
(b) Changes other than (a) | : None |
(c) Changes in accounting estimates | : None |
(d) Retrospective restatement | : None |
- Number of shares outstanding (common stock)
- Shares outstanding (including treasury shares)
As of June 30, 2023: | 28,702,118 | As of March 31, 2023 | 28,702,118 |
(b) Treasury shares | |||
As of June 30, 2023: | 2,441,233 | As of March 31, 2023 | 2,440,983 |
(c) Average number of shares (quarterly consolidated during the period) | |||
Period ended June 30, 2023: | 26,261,015 | Period ended June 30, 2022: | 26,247,868 |
- The quarterly audit procedures by a certified public accountant or auditing firm are not applicable to this Quarterly Financial Results report.
- Cautionary statement regarding forecasts of operating results and special notes
(Caution regarding forward-looking statements)
Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. For conditions as assumption for earnings forecast and cautionary statement regarding use of the forecast, please see "1. Results of Operations, (3) Qualitative information on consolidated earnings forecast" on page 4.
(How to obtain supplementary materials on quarterly financial results)
Supplementary materials on quarterly financial results are disclosed through TDnet and posted on the Company's website today (August 3, 2023).
Index for Supplementary Information | ||
(2) | Overview of financial condition | 4 |
(3) Qualitative information on consolidated earnings forecast | 4 | |
2. Quarterly Consolidated Financial Statements and Major Notes | 5 | |
(1) | Quarterly consolidated balance sheet | 5 |
(2) | Quarterly consolidated statements of income and comprehensive income | 7 |
For the first quarter (April 1, 2023 - June 30, 2023) | 7 | |
(3) Notes to quarterly consolidated financial statements | 9 | |
(Notes to going concern assumptions) | 9 | |
(Significant change in shareholders' equity) | 9 | |
(Changes in accounting policies) | 9 | |
(Segment information) | 9 |
1. Results of Operations
- Overview of consolidated business performance
During the first quarter of the consolidated fiscal period under review, while sales increased in the information equipment business, the software business, and the others business, decreased in the electronic components business, which is the Group's core business, due to the disappearance of spot demand and emergence of some impact of inventory adjustments by customers in general, given easing of supply shortages of semiconductors and electronic components. As a result, net sales were 137,694 million yen, down 7.8% year on year. Operating income decreased by 28.8% year on year to 6,994 million yen. Aside from a decline in gross profit due to lower sales, the income decrease resulted from having incorporated loss on valuation of inventories and provision of allowance for doubtful accounts on trade receivables associated with a business partner of the Group that filed a petition for commencement of civil rehabilitation proceedings. Ordinary income decreased by 29.9% year on year to 6,909 million yen. Profit attributable to owners of parent decreased by 17.4% year on year to 5,767 million yen, with gain on sales of securities recorded as extraordinary income in connection with the sale of shares that were held for investment purposes.
In November 2021, the Group formulated its three-year management plan, Medium- Term Management Plan 2024, which runs from the fiscal year ended March 31, 2023, up to the fiscal year ending March 31, 2025. Having achieved, two years ahead of the plan, the targets for the two income items of operating income and ROE in the previous fiscal year, which was the first year of the plan, the Group announced the latest outlook in May 2023, with net sales of 750 billion yen, operating income of 30 billion yen or higher, and ROE of 10% or higher.
In the earnings forecasts the Group announced for the fiscal year ending in March 2024, the second year of the plan, decreases are projected in both net sales and incomes on the assumption that the impact of inventory adjustments would become tangible in the supply chain in which the Group is involved with respect to the electronic components business. Nonetheless, performance exceeded the internal plan in the first quarter under review, which therefore got off to a good start.
FY 2023/3 1Q | FY 2024/3 1Q | ||||
(April 1, 2022 - | (April 1, 2023 - | YoY | |||
June 30, 2022) | June 30, 2023) | ||||
(Million yen) | (Million yen) | (Million yen) | |||
Net sales | 149,302 | 137,694 | (11,608) | (7.8%) | |
Gross profit | 19,838 | 17,553 | (2,284) | (11.5%) | |
(Margin) | 13.3% | 12.7% | (0.6pt) | - | |
SG&A | 10,018 | 10,559 | 541 | 5.4% | |
Operating income | 9,820 | 6,994 | (2,826) | (28.8%) | |
Ordinary income | 9,858 | 6,909 | (2,948) | (29.9%) | |
Profit before income taxes | 9,982 | 7,912 | (2,069) | (20.7%) | |
Profit attributable to owners | 6,984 | 5,767 | (1,216) | (17.4%) | |
of parent | |||||
Exchange Rate | |||||
(Average rate during the year period) | 129.57yen | 137.37yen | 7.80yen | - | |
USD | |||||
- 2 -
Business segment performance was as follows.
-
Electronic components (Development, manufacture and sale of semiconductors, general electronic components and other products, the electronics manufacturing service (EMS), and other activities)
In this business, sales in the component sales business declined sharply, attributable partly to the disappearance of spot demand for some products and emergence of some impact of inventory adjustments by customers in general, given easing of supply shortages of semiconductors and electronic components that had continued for two consecutive years until the previous fiscal year. In the EMS business, sales in the automotive sector increased due to improved supply and demand balance of semiconductors and electronic components, whereas sales in applications related to medical and industrial equipment decreased due partly to inventory adjustments at key customers.
As a result, net sales decreased by 10.1% year on year to 120,015 million yen, and segment income decreased by 34.3% year on year to 5,922 million yen.
(Note) Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis.
-
Information equipment (Sales of PCs, PC peripherals, home electric appliances, photograph and imaging products, original brand products, and other products)
In this business, amid the season of high demand for newly enrolled students, sales of PCs to educational institutions were strong. Sales of security software and PC peripheral products also remained solid. The LED installation business made steady progress with contribution from sales of large-scale projects that the Group has been pushing forward on a full scale since the previous fiscal year.
As a result, net sales increased by 8.1% year on year to 12,050 million yen, and segment income increased by 32.2% year on year to 746 million yen. - Software (Production of computer graphics, planning and development of amusement products, and other activities)
In this business, overall loss decreased reflecting increased sales with contribution from orders for large-scale and new projects in smartphone games development and computer graphics production.
As a result, net sales increased by 15.8% year on year to 577 million yen, and segment loss of 4 million yen was recorded (33 million yen of segment loss in the same period of the previous fiscal year). - Others (Repair and support for electronics equipment, and sales of amusement equipment and sports goods, and others)
In this business, the PC and PC peripheral recycling business was strong. Sales of game equipment for the amusement industry also increased both in domestic and overseas markets.
As a result, net sales increased by 20.9% year on year to 5,050 million yen, and segment income increased by 17.0% year on year to 291 million yen.
Financial Results by Business Segment
FY 2023/3 1Q | FY 2024/3 1Q | ||||
(April 1, 2022 - | (April 1, 2023 - | YoY | |||
June 30, 2022) | June 30, 2023) | ||||
(Million yen) | (Million yen) | (Million yen) | |||
Electronic | Net sales | 133,477 | 120,015 | (13,461) | (10.1%) |
components | Segment income | 9,018 | 5,922 | (3,095) | (34.3%) |
Information | Net sales | 11,147 | 12,050 | 902 | 8.1% |
equipment | Segment income | 564 | 746 | 181 | 32.2% |
Software | Net sales | 498 | 577 | 78 | 15.8% |
Segment income | (33) | (4) | 28 | - | |
Others | Net sales | 4,178 | 5,050 | 872 | 20.9% |
Segment income | 249 | 291 | 42 | 17.0% | |
Total | Net sales | 149,302 | 137,694 | (11,608) | (7.8%) |
Segment income | 9,820 | 6,994 | (2,826) | (28.8%) |
Note: "Segment income" shows unadjusted figures for each business segment and adjusted figures for the total.
- 3 -
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Kaga Electronics Co. Ltd. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 06:18:38 UTC.