Financial Announcement for Second Quarter of the Year Ending March 2024
[Japan standard] (Consolidated)
November 2, 2023 | ||||
Company name: TOLI Corporation | Stock exchange: Tokyo Stock Exchange | |||
Code number | 7971 | URL https://www.toli.co.jp | ||
Representative | (Position) | President and Representative Director | (Name) Motohiro Nagashima | |
Official | (Position) | General Manager, Accounting and Finance | (Name) Takashi Matsumoto | TEL 06-6494-6691 |
responsible for | Department |
inquiries | |||
Scheduled date for submission November 9, 2023 | Scheduled date for start of dividend | November 29, 2023 | |
of quarterly reports: | payments: | ||
Preparation of supplementary explanatory materials for the quarterly financial announcement | : | Yes | |
Holding of a briefing on the quarterly financial announcement | : | None |
(Amounts of less than one million yen are rounded off)
1. Consolidated results for second quarter of the year ending March 2024 (April 1, 2023 to September 30, 2023)
(1) Consolidated results (year to date) | (% shows change for the quarter against the same quarter of the previous year) | ||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Q2 for year ending March 2024 | 46,448 | 8.6 | 1,304 | - | 1,447 | - | 869 | - | |
Q2 for year ended March 2023 | 42,754 | 6.3 | (68) | - | 17 | - | (67) | - |
(Note) | Comprehensive income | Q2 for year ending March 2024: 2,063 million yen [―%] | |||||||||||
Q2 for year ended March 2023: 23 million yen (-82.4%) | |||||||||||||
Profit per share | Profit per share - diluted | ||||||||||||
Yen | Yen | ||||||||||||
Q2 for year ending March 2024 | 14.44 | - | |||||||||||
Q2 for year ended March 2023 | (1.13) | - | |||||||||||
(2) Consolidated assets | |||||||||||||
Total assets | Net assets | Capital-to-asset ratio | |||||||||||
Million yen | Million yen | % | |||||||||||
Q2 for year ending March 2024 | 83,754 | 42,351 | 50.2 | ||||||||||
Year ended March 2023 | 84,791 | 40,894 | 47.9 | ||||||||||
(Reference) Equity capital | Q2 for year ending March 2024: 42,055 million yen | ||||||||||||
For year ended March 2023: 40,613 million yen | |||||||||||||
2. Dividend payments | |||||||||||||
Annual dividend | |||||||||||||
End 1st quarter | End 2nd quarter | End 3rd quarter | End of year | Total | |||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||
Year ended March 2023 | - | 0.00 | - | 10.00 | 10.00 | ||||||||
Year ending March 2024 | - | 3.00 | |||||||||||
Year ending March 2024 | - | 8.00 | 11.00 | ||||||||||
(forecast) | |||||||||||||
(Note) | Adjustment from most recently published dividend forecast: None |
3. Consolidated forecasts for year ending March 2024 (April 1, 2023 to March 31, 2024)
(% shows change from previous term)
Net sales | Operating income | Ordinary income | Profit attributable to | Profit per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full term | 101,000 | 6.1 | 4,000 | 13.3 | 4,050 | 11.3 | 2,750 | 7.3 | 45.99 |
(Note) | Adjustment from most recently published performance projections: None |
- Notes
- Significant changes to subsidiaries during the consolidated first quarter under review (changes for a specified subsidiary entailing a change in the scope of consolidation): None
- Application of specific accounting procedure for creation of quarterly consolidated financial statement: None
- Changes in accounting policies, changes in accounting estimates, representation of amendments
[1] | Changes in accounting policies accompanying revisions to accounting standards | : None |
[2] | Changes to accounting policies other than [1] | : None |
[3] | Changes in accounting estimates | : None |
[4] | Representation of amendments | : None |
(4) Number of outstanding shares (ordinary shares) | |||||
[1] | Number of outstanding shares at end | Q2 for year ending | 66,829,249 | Year ended March | 66,829,249 |
of year (including treasury shares) | March 2024 | shares | 2023 | shares | |
[2] | Number of shares in treasury shares | Q2 for year ending | 6,643,464 | Year ended March | 6,642,988 |
at end of year | March 2024 | shares | 2023 | shares | |
[3] | Average number of shares during the | Q2 for year ending | 60,186,042 | Q2 for year ended | 60,207,572 |
term (cumulative from start of fiscal | March 2024 | shares | March 2023 | shares | |
year) |
- Quarterly financial announcements are out of the scope of quarterly review by a certified public accountant or an audit corporation.
- Explanation of the appropriate use of performance projections and other special instructions
The financial forecasts and other descriptions related to future events presented in this document are based on information currently available and certain assumptions judged as reasonable. As such, the financial forecasts and future descriptions are not considered to ensure the fulfillment thereof. Actual financial performance may vary significantly due to various factors. For details, such as assumptions for financial forecasts and cautions when using financial forecasts, please refer to "1. Qualitative information regarding quarterly results - (3) Explanation concerning future predictive information, such as consolidated forecasts" on page 3 of the attachment.
- Contents of the supplementary materials
1. | Qualitative information regarding quarterly results ················································································ | 2 | |
(1) | Explanation of the management performance ················································································ | 2 | |
(2) | Explanation of the financial situation ·························································································· | 3 | |
(3) | Explanation concerning future predictive information, such as consolidated forecasts ································· | 3 | |
2. | Quarterly consolidated financial statements and major notes ···································································· | 4 | |
(1) | Consolidated balance sheets ····································································································· | 4 | |
(2) | Consolidated statement of income and consolidated statement of comprehensive income ···························· | 6 | |
Consolidated statement of income | |||
Consolidated second quarter ································································································· | 6 | ||
Consolidated statement of comprehensive income | |||
Consolidated second quarter ································································································· | 7 | ||
(3) | Consolidated statements of cash flows ························································································ | 8 | |
(4) | Notes on consolidated financial statements ··················································································· | 9 | |
(Notes on the assumption of the company as a going concern) ································································ | 9 | ||
(Notes when there are significant changes in amounts of shareholders' equity) ············································ | 9 | ||
(Segment information, etc.) ········································································································· | 9 |
- 1 -
1. Qualitative information regarding quarterly results
- Explanation of the management performance
During the consolidated second quarter under review, the Japanese economy showed a moderate recovery trend due to improvements in the income environment and the normalization of social and economic activities after the transition of COVID- 19 to a Class 5 infectious disease. On the other hand, the future of the business environment remains uncertain, with crude oil prices once again increasing due to factors such as the weak yen and the prolonged situation in Ukraine.
In the construction industry, which is closely related to our Group's business, although corporate capital investment has remained at a high level due to the recovery in demand for stores and accommodation facilities thanks to a recovery in the number of foreign visitors to Japan, the business environment remains unpredictable due to factors such as stagnation in construction investment caused by the soaring prices for various construction materials and the rise in labor costs.
Under these circumstances, our Group is pursuing the following five key strategies in the Medium-term Business Plan "SHINKA Plus ONE" covering the period from FY2021 to FY2024 toward the realization of our long-term vision "TOLI VISION 2030": A. Reinforcement of core businesses, B. Expanding the growth of promising business, C. Creation of a fifth business, D. Enhancement of capabilities across the Group, and E. Building a business base that supports growth. In the period under review, while working to spread the sales price revisions, our Group worked to further improve our profitability, focusing on establishing a stable supply system and reducing manufacturing costs such as through full-scale operation of the new No. 3 line of Hiroka TOLI Floor, expanding in-house production of raw nylon yarn for carpet tiles, and increasing the recycling rate at carpet tile recycling plants.
As a result, for the consolidated second quarter under review, the Company posted net sales of 46,448 million yen (up 8.6% compared with the same period of the previous year), operating income of 1,304 million yen (operating loss of 68 million yen for the same period of the previous year), ordinary income of 1,447 million yen (up 8,069.0% compared with the same period of the previous year), and profit attributable to owners of parent of 869 million yen (loss attributable to owners of parent of 67 million yen for the same period of the previous year).
Performance for business segments is as follows. This information includes business between segments.
In the Product Business, net sales increased due to the spread of the effect of sales price revisions and improved face-to-face promotional activities. In the area of vinyl flooring materials, we strengthened our spec activities with products such as the "NS800" anti-slip vinyl floor sheet launched in August, and also made progress in the adoption of advanced products such as the "Deodorant NS Toware NW" high-durability vinyl floor sheet for toilets and the "E-CleanNW-EX" vinyl floor tile, which does not require wax maintenance for a long time.
In the area of carpets, net sales were higher than the previous year due to increased adoption of "GA-3600 Sustive Back," which plays a role in promoting TOLI Complete Recycling, reflecting growing environmental needs, and a strong performance in the GX Series of graphic tile carpets.
For wallcovering materials, net sales increased slightly despite a decrease in sales volume due to strong sales of "Real Deco," our proprietary non-combustible decorative wallcovering material, and the spread of sales price revisions for wallcovering materials in general.
In the area of curtains, although demand for made-to-order curtains remained weak, net sales increased year on year due to the focus on sales promotion activities regarding the comprehensive sample book "fuful," which focuses on design and functionality and was released in June under the concept of "Choosing curtains is fun!"
As a result, for the Product Business, net sales were 28,171 million yen (up 8.3% from the previous fiscal year) and segment income came to 1,158 million yen (segment loss of 137 million yen for the same period of the previous year).
In the Interior Wholesaling Business, amid a continued rise in procurement costs for various interior design-related materials, we focused on product proposals that met customer needs while passing these costs onto selling prices. In the Installation Business, we focused on winning orders, including renovation work, by leveraging the Group's construction capabilities, resulting in a significant year-on-year increase in net sales. On the other hand, while the business environment in China was expected to improve accompanying the end of the Zero-COVID policy, net sales of TOLI (SHANGHAI) Corporation for the second quarter (January to June 2023) declined year on year due to the impact of slowing economic growth in China and issues such as the continued turmoil in the real estate industry.
As a result, the Interior Wholesaling and Installation Business reported net sales of 30,301 million yen (up 8.3% compared with the same period of the previous year) and segment income of 530 million yen (up 52.7% compared with the same period of the previous year).
- 2 -
- Explanation of the financial situation
- Financial state
Current assets at the end of second quarter of the fiscal year under review were down 3,001 million yen compared with the end of the previous fiscal year to 47,676 million yen. This was mainly due to a decrease in notes and accounts receivable-trade resulting from collection of notes and accounts receivable and others. Non-current assets amounted to 36,078 million yen, up 1,965 million yen from the end of the previous fiscal year. This was mainly due to an increase in investment securities as a result of higher stock prices.
As a result, total assets were down 1,036 million yen compared with the end of the previous fiscal year to 83,754 million yen.
Current liabilities at the end of second quarter of the fiscal year under review were down 3,228 million yen compared with the end of the previous fiscal year to 28,498 million yen. This was mainly due to a decrease in notes and accounts payable-trade resulting from payment of notes and accounts payable and others. Non-current liabilities amounted to 12,905 million yen, up 735 million yen from the end of the previous fiscal year.
As a result, total liabilities were down 2,493 million yen compared with the end of the previous fiscal year to 41,403 million yen.
Total net assets at the end of second quarter of the fiscal year under review were up 1,456 million yen compared with the end of the previous fiscal year to 42,351 million yen. This was mainly due to an increase in valuation difference on available-for-sale securities as a result of higher stock prices.
[2] State of cash flows
During the consolidated second quarter under review, cash and cash equivalents increased 54 million yen compared with the end of the previous fiscal year to finish at 9,642 million yen (9,604 million yen for the previous consolidated second quarter).
(Cash flows from operating activities)
Cash flows from operating activities amounted to 2,865 million yen (1,453 million yen in the previous fiscal year). Revenue increased compared to the same period of the previous fiscal year mainly due to an increase in profit before income taxes and an increase in inventories.
(Cash flows from investing activities)
Cash flows from investing activities totaled payments of 2,031 million yen (1,488 million yen in the previous fiscal year). Expenditures increased compared to the same period of the previous fiscal year, mainly due to an increase in expenditures due to a purchase of property, plant and equipment and a purchase of shares of subsidiaries resulting in change in scope of consolidation.
(Cash flows from financing activities)
Cash flows from financing activities totaled payments of 817 million yen (585 million yen in the previous fiscal year). Expenditures increased compared to the same period of the previous fiscal year, mainly due to an increase in dividends paid.
-
Explanation concerning future predictive information, such as consolidated forecasts
There have been no changes to the full-year consolidated earnings forecasts announced on October 31, 2023.
If an event affecting our Group's financial results occurs and it becomes necessary to revise the forecast, we will promptly make an announcement.
- 3 -
2. | Quarterly consolidated financial statements and major notes | |||
(1) | Consolidated balance sheets | |||
(Million yen) | ||||
Previous fiscal year | Q2 of current fiscal year | |||
(March 31, 2023) | (September 30, 2023) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 9,745 | 9,816 | ||
Notes and accounts receivable - trade | 20,287 | 16,050 | ||
Electronically recorded monetary claims | 6,666 | 6,949 | ||
Merchandise and finished goods | 8,978 | 9,337 | ||
Work in process | 1,780 | 2,152 | ||
Raw materials and supplies | 2,284 | 2,105 | ||
Other | 993 | 1,312 | ||
Allowance for doubtful accounts | (58) | (48) | ||
Total current assets | 50,677 | 47,676 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 7,077 | 7,072 | ||
Machinery, equipment and vehicles, net | 5,483 | 5,258 | ||
Tools, furniture and fixtures, net | 439 | 412 | ||
Land | 8,343 | 8,345 | ||
Construction in progress | 1,587 | 2,565 | ||
Other, net | 110 | 97 | ||
Total property, plant and equipment | 23,042 | 23,751 | ||
Intangible assets | ||||
Software | 698 | 521 | ||
Other | 113 | 296 | ||
Total intangible assets | 811 | 818 | ||
Investments and other assets | ||||
Investment securities | 5,200 | 6,768 | ||
Deferred tax assets | 792 | 361 | ||
Other | 4,525 | 4,670 | ||
Allowance for doubtful accounts | (260) | (292) | ||
Total investments and other assets | 10,258 | 11,509 | ||
Total non-current assets | 34,113 | 36,078 | ||
Total assets | 84,791 | 83,754 |
- 4 -
(Million yen) | ||
Previous fiscal year | Q2 of current fiscal year | |
(March 31, 2023) | (September 30, 2023) | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 18,232 | 16,107 |
Electronically recorded obligations | 6,066 | 6,084 |
Short-term loans payable | 1,020 | 320 |
Income taxes payable | 1,107 | 617 |
Accrued expenses | 1,677 | 1,680 |
Provision for bonuses | 739 | 786 |
Provision for bonuses for directors (and other | 9 | - |
officers) | ||
Other | 2,874 | 2,902 |
Total current liabilities | 31,726 | 28,498 |
Non-current liabilities | ||
Long-term loans payable | 5,680 | 6,380 |
Net defined benefit liability | 3,762 | 3,858 |
Other | 2,727 | 2,666 |
Total non-current liabilities | 12,169 | 12,905 |
Total liabilities | 43,896 | 41,403 |
Net assets | ||
Shareholders' equity | ||
Capital stock | 6,855 | 6,855 |
Capital surplus | 6,426 | 6,426 |
Retained earnings | 26,311 | 26,578 |
Treasury shares | (1,500) | (1,500) |
Total shareholders' equity | 38,092 | 38,359 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 2,048 | 3,137 |
Foreign currency translation adjustment | 336 | 429 |
Remeasurements of defined benefit plans | 136 | 129 |
Total accumulated other comprehensive income | 2,521 | 3,696 |
Non-controlling interests | 281 | 295 |
Total net assets | 40,894 | 42,351 |
Total liabilities and net assets | 84,791 | 83,754 |
- 5 -
-
Consolidated statement of income and consolidated statement of comprehensive income
(Consolidated statement of income) (Consolidated second quarter)
(Million yen) | ||
Previous consolidated second | Current consolidated second | |
quarter | quarter | |
(April 1, 2022 - September 30, | (April 1, 2023 - September 30, | |
2022) | 2023) | |
Net sales | 42,754 | 46,448 |
Cost of sales | 31,112 | 32,960 |
Gross profit | 11,641 | 13,488 |
Selling, general and administrative expenses | 11,710 | 12,183 |
Operating income or loss (-) | (68) | 1,304 |
Non-operating income | ||
Interest income | 0 | 1 |
Dividend income | 93 | 91 |
Purchase discounts | 37 | 39 |
Dividend income of insurance | 43 | 46 |
Other | 121 | 117 |
Total non-operating income | 297 | 296 |
Non-operating expenses | ||
Interest expenses | 31 | 32 |
Share of loss of entities accounted for using equity | 162 | 103 |
method | ||
Other | 17 | 18 |
Total non-operating expenses | 211 | 153 |
Ordinary income | 17 | 1,447 |
Extraordinary income | ||
Gain on sales of non-current assets | - | 3 |
Gain on sales of investment securities | 15 | 2 |
Total extraordinary income | 15 | 5 |
Extraordinary losses | ||
Loss on retirement of non-current assets | 10 | 35 |
Total extraordinary losses | 10 | 35 |
Profit before income taxes | 23 | 1,417 |
Income taxes - current | 158 | 576 |
Income taxes - deferred | (60) | (47) |
Total income taxes | 98 | 529 |
Profit (loss) | (74) | 888 |
Profit attributable to non-controlling interests or Loss | (6) | 19 |
attributable to non-controlling interests (-) | ||
Profit attributable to owners of parent or Loss attributable | (67) | 869 |
to owners of parent (-) | ||
- 6 -
(Consolidated statement of comprehensive income) (Consolidated second quarter)
(Million yen) | ||
Previous consolidated second | Current consolidated second | |
quarter | quarter | |
(April 1, 2022 - September 30, | (April 1, 2023 - September 30, | |
2022) | 2023) | |
Profit (loss) | (74) | 888 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | (197) | 1,088 |
Foreign currency translation adjustment | 300 | 92 |
Remeasurements of defined benefit plans, net of tax | (5) | (6) |
Total other comprehensive income | 97 | 1,175 |
Comprehensive income | 23 | 2,063 |
Comprehensive income attributable to | ||
owners of parent | 29 | 2,044 |
non-controlling interests | (6) | 19 |
- 7 -
(3) Consolidated statements of cash flows
(Million yen) | ||
Previous consolidated second | Current consolidated second | |
quarter | quarter | |
(April 1, 2022 - September 30, | (April 1, 2023 - September 30, | |
2022) | 2023) | |
Cash flows from operating activities | ||
Profit before income taxes | 23 | 1,417 |
Depreciation | 1,083 | 1,236 |
Loss on retirement of non-current assets | 10 | 35 |
Loss (gain) on sales of non-current assets | - | (3) |
Loss (gain) on sales of investment securities | (15) | (2) |
Increase (decrease) in allowance for doubtful accounts | 28 | 22 |
Increase (decrease) in net defined benefit liability | 69 | 87 |
Interest and dividend income | (94) | (93) |
Subsidy income | (11) | (1) |
Interest expenses | 31 | 32 |
Decrease (increase) in notes and accounts receivable - | 3,635 | 4,004 |
trade | ||
Decrease (increase) in inventories | (2,175) | (504) |
Increase (decrease) in notes and accounts payable - | (1,077) | (2,155) |
trade | ||
Other | 153 | (291) |
Subtotal | 1,660 | 3,783 |
Interest and dividend income received | 94 | 93 |
Subsidy received | 11 | 1 |
Interest expenses paid | (32) | (32) |
Income taxes paid | (280) | (980) |
Cash flows from operating activities | 1,453 | 2,865 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (1,315) | (1,606) |
Proceeds from sale of property, plant and equipment | - | 5 |
Purchase of intangible assets | (195) | (56) |
Purchase of investment securities | (4) | (4) |
Proceeds from sale of investment securities | 21 | 4 |
Payments of loans receivable | (6) | (2) |
Collection of loans receivable | 9 | 4 |
Purchase of shares of subsidiaries resulting in change | - | (321) |
in scope of consolidation | ||
Other | 2 | (54) |
Cash flows from investing activities | (1,488) | (2,031) |
Cash flows from financing activities | ||
Proceeds from long-term loans payable | 800 | 900 |
Repayments of long-term loans payable | (800) | (900) |
Cash dividends paid | (482) | (601) |
Other | (103) | (215) |
Cash flows from financing activities | (585) | (817) |
Effect of exchange rate change on cash and cash | 35 | 38 |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | (585) | 54 |
Cash and cash equivalents at beginning of year | 10,189 | 9,587 |
Cash and cash equivalents at end of quarter | 9,604 | 9,642 |
- 8 -
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TOLI Corporation published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2023 04:05:04 UTC.