SEIKO GROUP CORPORATION Consolidated Results for the 6 months
(from April 1 to September 30, 2023)
November 15, 2023
- Key Points of Actual Results and Forecast
- Consolidated Results
- Financial Forecast for FY2023
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- Key Points of Actual Results and Forecast
- Consolidated Results
- Financial Forecast for FY2023
2
Key Points of Actual Results and Forecast
Actual results for 1H FY2023 (Apr. - Sep. 2023)
Net Sales 131.2 billion yen (year-on-year+1.1%) Operating Profit 8.1 billion yen (year-on-year -7.8%)
- Consolidated net sales as a whole increased due to steady growth in the EVS and SS domains, despite lower sales in the DS domain.
- Operating profit declined as slowdown in DS domain was not covered by EVS and SS domains.
Financial Forecast for FY2023
Net Sales 268.0 billion yen (no change) Operating Profit 12.0 billion yen (no change)
- Consolidated financial forecast remains unchanged, but forecasted results by segment have been revised.
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- Key Points of Actual Results and Forecast
- Consolidated Results
- Financial Forecast for FY2023
4
Consolidated P/L for 1H FY2023 (Apr. - Sep. 2023)
(Billions of yen) | FY22 | FY23 | Variance | ||
1H | 1H | Amt. | % | ||
Net Sales | 129.9 | 131.2 | +1.3 | +1.1% | |
Gross Profit | 55.6 | 58.5 | +2.8 | +5.2% | |
% | 42.8% | 44.6% | +1.8pt | ||
Operating Profit | 8.8 | 8.1 | -0.6 | -7.8% | |
% | 6.8% | 6.2% | -0.6pt | ||
Ordinary Profit | 9.5 | 9.2 | -0.3 | -3.3% | |
% | 7.4% | 7.0% | -0.4pt | ||
Income before | 9.4 | 9.1 | -0.3 | -3.4% | |
income taxes | |||||
Profit attributable | 5.2 | 6.2 | +0.9 | +18.7% | |
to owners of parent | |||||
% | 4.1% | 4.8% | +0.7pt | ||
Exchange Rates | USD | 134.0 | 141.1 | +7.1 | +5.3% |
(JPY) | EUR | 138.8 | 153.5 | +14.7 | +10.6% |
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Breakdown of Year-on-Year Change
*Extraordinary income/losses are the amounts recorded for the current period.
Net Sales : y/y | + 1.3 |
（Exchange rate fluctuations | c. + 3.5） |
Operating Profit : y/y | - 0.6 |
(Exchange rate fluctuations | c. + 1.0） |
Impact of increase in Net sales | + 1.9 |
Impact of improved GP% | + 0.9 |
Increase in SG&A expenses | - 3.5 |
Ordinary Profit : y/y | - 0.3 | |
Decrease in Operating profit | - 0.6 | |
Increase in Dividend income | + 0.1 | |
Others | + 0.2 | |
Extraordinary Income/Losses : | - 0.1 | |
Extraordinary Income | 0.0 |
Reversal of provision for business restructuring | 0.0 |
Extraordinary Losses | 0.2 |
Information security expenses | 0.2 |
Analyses of Changes in Operating Profit for 1H FY2023
Operating profit decreased due to deteriorated performance of DS Domain and increased SG&A expenses in line with business expansion of EVS Domain.
（Billions of yen） | Impact of | ||||
improved GP% | Increase in | ||||
Impact of | |||||
etc.* | labor expenses | Increase in | |||
increase | |||||
advertising | Increase in | ||||
in Net sales | |||||
expenses | |||||
other | |||||
1H FY22 | SG&A expenses | ||||
Operating Profit |
Exchange rate fluctuations
c. - 0.7
Exchange rate fluctuations
c. + 1.0
1H FY23
Operating Profit
*The impact of improved GP% is an aggregation of the impact of improved GP% for each business segment, and does not factor in the impact of GP% changes due to changes in the business structure.
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Net Sales & Operating Profit by Segment for 1H FY2023 (Apr. - Sep. 2023)
Net Sales | ||||
(Billions of yen) | (Composition ratio) | |||
FY22 | FY23 | Variance | ||
1H | 1H | |||
Watches | 71.8 | 77.7 | +5.9 | |
(55%) | (59%) | |||
Emotional | ||||
11.3 | 12.2 | +0.9 | ||
Value | Others/adj. | |||
(9%) | (9%) | |||
Solutions | ||||
Sub Total | 83.1 | 89.9 | +6.8 | |
Devices Solutions | 34.3 | 27.6 | -6.7 | |
(26%) | (21%) | |||
Systems Solutions | 18.0 | 18.9 | +0.8 | |
(14%) | (14%) | |||
Sub Total | 135.5 | 136.5 | +0.9 | |
Others | 0.5 | 0.5 | +0.0 | |
(0%) | (0%) | |||
Cons. adj. | -6.1 | -5.7 | +0.3 | |
(-5%) | (-4%) | |||
Cons. Total | 129.9 | 131.2 | +1.3 | |
Operating Profit
FY22 | FY23 | Variance |
1H | 1H | |
7.2 | 9.4 | +2.1 |
-0.3 | 0.1 | +0.4 |
6.9 | 9.5 | +2.6 |
4.1 | 0.2 | -3.8 |
2.0 | 2.2 | +0.2 |
13.1 | 12.0 | -1.0 |
0.0 | 0.1 | +0.0 |
-4.3 | -4.0 | +0.3 |
8.8 | 8.1 | -0.6 |
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EVS Domain
Achieved an increase in net sales and profit due to significant net sales growth in the Watches Business and WAKO Business for the Japanese market.
(Billions of yen) | (Billions of yen) |
4Q
3Q
41.2
40.2
46.3
42.3
90.0 2H forecast
0.5
4.0
5.4
1Q | 2Q | 3Q | 4Q | Total | 1H | ||
2H | |||||||
forecast | FY23 | 8.2% | 12.7% | 10.6% | |||
FY22 | 6.2% | 10.3% | 8.7% | 1.4% | 6.8% | 8.4% |
2Q
1Q
44.1
35.4
68.283.1
32.839.0
47.6 | 4Q | ||
89.9 | 3Q | ||
42.3 | 2Q | ||
1Q | |||
2.1
3.34.5
1.6 | 2.7 | 2.4 |
1.0 | ||
6.9
6.0
3.4
FY21 | 3.3% | 4.7% | 7.9% | 5.4% | 5.5% | 4.0% |
9.5
FY2021 | FY2022 | FY2023 | FY2021 | FY2022 | FY2023 |
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Watches Business in EVS Domain
Completed
Watches
- In Japan, GB performed favorably against the background of personal consumption and demand from inbound tourists, which showed a recovery trend.
- Overseas, net sales increased year on year as GB grew in the U.S., Europe, and Asia, especially for Seiko Presage and Seiko 5 Sports, despite a delayed recovery in China.
Movements Net sales decreased year on year due to the sluggish Chinese economy.
(Billions of yen) | (Billions of yen) |
4Q
3Q
2Q
1Q
33.9
33.3
38.4
34.8
37.8
29.871.8
57.5
27.733.9
74.2
41.1
36.5
2H
forecast0.3
3.4
4Q | 1.7 | |||
77.7 | 3Q | 2.4 | 4.5 | |
7.2 | ||||
2Q | 1.9 | 3.3 | 2.6 | |
1.4 | ||||
1Q | ||||
4.0
5.9
3.5
2H | 1Q | 2Q | 3Q | 4Q | Total | 1H | |
forecast | FY23 | 9.6% | 14.4% | 12.1% | |||
FY22 | 7.9% | 12.1% | 9.0% | 1.2% | 7.7% | 10.1% | |
9.4 | FY21 | 5.1% | 6.6% | 7.2% | 5.3% | 6.1% | 5.9% |
FY2021 | FY2022 | FY2023 | FY2021 | FY2022 | FY2023 |
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Disclaimer
Seiko Holdings Corporation published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 03:10:20 UTC.
