KURABO INDUSTRIES LTD. 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 8, 2023
Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Under Japanese GAAP)
Company name: | Kurabo Industries Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 3106 |
URL: | https://www.kurabo.co.jp/ |
Representative: | Haruya Fujita, President |
Inquiries: | Hiroshi Fujii, Director, Executive Officer, and Manager of Finance & Accounting Department |
Telephone: | +81-6-6266-5188 |
Scheduled date to file quarterly securities report: | February 14, 2023 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on quarterly financial results: None | |
Holding of quarterly financial results briefing: | None |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-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, 2022 | 113,876 | 19.1 | 6,485 | 24.0 | 8,097 | 28.7 | 5,602 | 32.0 | |||||
December 31, 2021 | 95,582 | - | 5,230 | - | 6,294 | - | 4,244 | - | |||||
Note: Comprehensive income | For the nine months ended December 31, 2022: | ¥8,324 million | [142.6%] | ||||||||||
For the nine months ended December 31, 2021: | ¥3,431 million | [-%] | |||||||||||
Basic earnings | Diluted earnings | ||||||||||||
per share | per share | ||||||||||||
Nine months ended | Yen | Yen | |||||||||||
December 31, 2022 | 289.71 | - | |||||||||||
December 31, 2021 | 211.77 | - | |||||||||||
(2) Consolidated financial position
Total assets | Net assets | |
As of | Millions of yen | Millions of yen |
December 31, 2022 | 181,374 | 101,649 |
March 31, 2022 | 167,285 | 97,415 |
Reference: Equity
As of December | 31, 2022: | ¥99,989 million |
As of March 31, | 2022: | ¥96,016 million |
Equity-to-asset ratio
%
55.1
57.4
2. Cash dividends
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 | - | 0.00 | - | 70.00 | 70.00 | ||||
March 31, 2022 | |||||||||
Fiscal year ending | - | 35.00 | - | ||||||
March 31, 2023 | |||||||||
Fiscal year ending | |||||||||
March 31, 2023 | 35.00 | 70.00 | |||||||
(Forecast) | |||||||||
Note: Revisions to the forecast of cash dividends most recently announced: None |
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to
March 31, 2023) | (Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Yen | |||
of yen | of yen | of yen | of yen | ||||||||
Full year | 153,000 | 15.7 | 7,400 | (1.7) | 8,700 | (1.0) | 6,000 | 7.1 | 312.22 | ||
Note: Revisions to the forecast of financial results most recently announced: None |
* Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
-
Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
Note: For the details, please refer to "(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) in (3) Notes to quarterly consolidated financial statements in 2. Quarterly consolidated financial statements and significant notes thereto" on page 8 of the attached materials. - 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 shares)
As of December 31, 2022
As of March 31, 2022
20,000,000 shares
20,756,228 shares
(ii) Number of treasury shares at the end of the period
As of December 31, 2022
As of March 31, 2022
1,185,977 shares
971,652 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022
Nine months ended December 31, 2021
19,338,311 shares
20,043,229 shares
Note: The Company has introduced the Board Benefit Trust, a share-based compensation plan for directors, etc. using a trust, and the Company's shares held by the trust account are included in the number of treasury 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 (Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company's actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. For matters regarding the above earnings forecasts, please refer to "(3) Explanation of consolidated financial forecasts and other forward-looking statements" of "1. Qualitative information regarding financial results for the nine months ended December 31, 2022" on page 3 of the attached materials.
Attached Material | ||
1. Qualitative information regarding financial results for the nine months ended December 31, 2022 | 2 | |
(1) | Explanation of operating results | 2 |
(2) | Explanation of financial position | 3 |
(3) | Explanation of consolidated financial forecasts and other forward-looking statements | 3 |
2. Quarterly consolidated financial statements and significant notes thereto | 4 | |
(1) | Quarterly consolidated balance sheet | 4 |
(2) | Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive | |
income | 6 | |
Quarterly consolidated statement of income (cumulative) | 6 | |
Quarterly consolidated statement of comprehensive income (cumulative) | 7 | |
(3) | Notes to quarterly consolidated financial statements | 8 |
(Notes on premise of going concern) | 8 | |
(Notes on quarterly consolidated balance sheet) | 8 | |
(Notes on significant changes in the amount of shareholders' equity) | 8 | |
(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) | ||
...................................................................................................................................................................... | 8 | |
(Additional information) | 8 | |
(Segment information) | 9 | |
(Relationship to revenue recognition) | 10 |
- 1 -
1. Qualitative information regarding financial results for the nine months ended December 31, 2022
-
Explanation of operating results
During the first nine months of the fiscal year ending March 31, 2023 (from April 1, 2022 to December 31, 2022), the Japanese economy picked up moderately in part due to restrictions on activity having been relaxed under a "living-with-corona" scenario. However, this did not culminate in a full-scale economic recovery partially given effects of cost increases due to surging prices of raw materials and other resources along with depreciation of the yen, and also given effects of supply shortages particularly with respect to certain semiconductors and electronic components.
In this type of environment, based on the basic policy of "expand high-profit businesses and strengthen core businesses to achieve sustainable growth" in the medium-term corporate business plan "Progress '24" that came into effect in April 2022, the Group has focused on expanding sales for high-performance plastic products for semiconductor production, capturing casual clothing demand, as well as expanding sales for high-performance and high value-added textiles materials with our unique technologies as we worked toward a recovery in results in our core textile business. Furthermore, to respond to higher raw material, etc., the Group has passed on increased costs to our selling prices and worked to reduce costs to improve profits.
As a result, net sales for the period under review were ¥113.8 billion (up 19.1% YoY), operating profit was ¥6.48 billion (up 24.0% YoY), ordinary profit was ¥8.09 billion (up 28.7% YoY), and profit attributable to owners of parent was ¥5.6 billion (up 32.0% YoY).
Results by segment are as follows. (Textiles)
Yarns experienced increased revenue both from domestic and overseas subsidiaries due to steady sales of high-performance products that we produce with our unique technologies.
Fabrics experienced increased revenue due to recovery in orders of casual clothing materials, mainly in overseas subsidiaries, as well as steady sales in uniform materials.
Textile products (Sewn products, etc.) experienced increased revenue from increased orders of casual wear.
In addition, we made steady progress with profitability improvement measures that we have been pursuing up until now.
As a result, net sales were ¥43.3 billion (up 37.8% YoY) with operating profit of ¥0.69 billion (operating loss of ¥0.27 billion in the same period of the previous fiscal year).
(Chemical Products)
Flexible polyurethane foam experienced an overall increase in revenue due to the recovery in sales for automotive interior at domestic and Chinese subsidiaries despite the impact of semiconductor shortages and effects of supply chain disruptions as a result of China persisting with its zero-COVID policy, as well as from steady orders at our Brazilian subsidiary.
Functional resin products experienced increased revenue amidst favorable performance from high- performance plastic products for semiconductor production along with recovery in orders from functional films for automobiles.
Housing construction products experienced increased revenue due to steady sales of exterior materials and heat-insulating materials.
Nonwoven fabrics experienced recovery in orders involving applications for automotive filters.
As a result, net sales were ¥44.9 billion (up 17.8% YoY) with operating profit of ¥2.73 billion (up 26.4% YoY).
(Advanced Technology)
Electronics businesses experienced decreased revenue due to difficulty in procuring parts for film thickness meters and FA-related devices at our subsidiaries as a result of the disrupted global supply chain and due to sluggish sales of AFVI systems for HDI/Flex PCB, despite a large-scale project at a subsidiary for silicon wafer cleaning equipment.
Engineering businesses experienced decreased revenue with few biomass plant-related facilities and large- scale plant-related projects. - 2 -
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Kurabo Industries Ltd. published this content on 08 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 12:16:03 UTC.
