KANRO INC. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2020
[Japanese GAAP]
February 10, 2021
Company name: | Kanro Inc. |
Stock exchange listing: | Tokyo Stock Exchange |
Code number: | 2216 |
URL: | https://www.kanro.co.jp/en/ |
Representative: | Kazuyasu Misu, President and CEO |
Contact person: | Kazuhiro Abe, Director, Managing Executive Officer and CFO, and |
Division COO, Finance & Accounting Div. | |
Phone: | +81-3-3370-8811 |
Scheduled date of Annual General Meeting of | |
Shareholders: | March 26, 2021 |
Scheduled date of commencing dividend payments: | March 8, 2021 |
Scheduled date of filing annual securities report: | March 29, 2021 |
Supplementary materials prepared for annual | |
financial results: | Yes |
Schedule of annual financial results briefing session: | Yes (for institutional investors and financial analysts) |
(Amounts are rounded down to the nearest million yen) |
1. Non-consolidated Financial Results for FY2020 (January 1, 2020 to December 31, 2020)
(1) Non-consolidated Operating Results
(% of change from the previous fiscal year.)
Net sales | Operating income | Ordinary income | Net income | |
Fiscal year ended December 31, 2020 December 31, 2019 | Million yen %
| Million yen %
| Million yen % 860 (14.6) 1,007 (3.6) | Million yen %
|
Basic earnings per share | Diluted earnings per share | Return on equity | Ordinary income to total assets | Operating income to net sales | |
Fiscal year ended December 31, 2020 December 31, 2019 | Yen 86.58 92.36 | Yen － － | % 5.5 6.1 | % 4.4 5.1 | % 3.6 3.8 |
(Reference) Equity in earnings (losses) of affiliates: FY2020: ¥ - million
FY2019: ¥ - million
* The Company conducted a stock split of its common stock at a two-for-one ratio with the effective date of July 1, 2019. Basic earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Non-consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | |
As of December 31, 2020 As of December 31, 2019 | Million yen 19,779 19,169 | Million yen 11,175 10,827 | % 56.5 56.5 | Yen 1,584.80 1,535.52 |
(Reference) Equity: As of December 31, 2020: ¥11,175 million
As of December 31, 2019: ¥10,827 million
* The Company conducted a stock split of its common stock at a two-for-one ratio with the effective date of July 1, 2019. Net assets per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(3) Non-consolidated Cash Flows
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents at end of period | |
Fiscal year ended December 31, 2020 December 31, 2019 | Million yen 1,442 2,013 | Million yen (1,572) (971) | Million yen (48) (1,411) | Million yen 1,253 1,430 |
2. Dividends
Annual dividends | Total dividends | Payout ratio | Dividends to net assets | |||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||||
FY2019 FY2020 | Yen － － | Yen 30.00 15.00 | Yen － － | Yen 15.00 | Yen － | Million yen 214 | % 32.5 | % 2.0 |
17.00 | 32.00 | 228 | 37.0 | 2.1 | ||||
FY2021 (Forecast) | － | 15.00 | － | 15.00 | 30.00 | 35.9 |
* The Company conducted a stock split of its common stock at a two-for-one ratio with the effective date of July 1, 2019. Accordingly, the cash dividend for the 2nd quarter-end shows actual amount before the stock split, and total amount of annual cash dividends is indicated as "－." The annual cash dividends per share converted on the basis after the stock split is ¥30.00 for FY2019.
3. Non-consolidated Financial Results Forecast for FY2021 (January 1, 2021 to December 31, 2021)
(% of change from the previous fiscal year.)
Net sales | Operating income | Ordinary income | Net income | Basic earnings per share | |
First half Full year | Million yen %
| Million yen % 270 (21.6) 840 0.4 | Million yen % 280 (20.3) 860 (0.1) | Million yen % 150 (37.3) 590 (3.4) | Yen 21.27 83.67 |
* Notes:
(1) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No
4) Retrospective restatement: No
(2) Total number of issued shares (common shares)
FY2020
FY2019
1) Total number of issued shares at the end of the period
(including treasury shares)
7,657,802 shares
7,657,802 shares
2) Total number of treasury shares at the end of the period
606,390 shares
606,250 shares
3) Average number of shares during the period
7,051,477 shares
7,059,439 shares
*1. As the Company conducted a stock split of its common stock at a two-for-one ratio with the effective date of July 1, 2019, the total number of issued shares at the end of the period, the total number of treasury shares at the end of the period and average number of shares during the period are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
2. Total number of treasury shares at the end of the period includes the Company's treasury shares owned by Custody Bank of Japan, Ltd. (Trust Account) (December 31, 2020: 103,600 shares and December 31, 2019: 103,600 shares).
* These financial results are outside the scope of audit procedures by a certified public accountant or audit firm.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on currently available information and certain assumptions deemed reasonable. Actual results may differ significantly from these forecasts due to a wide range of factors.
(Method of obtaining supplementary briefing material on financial results)
Supplementary briefing material on financial results is disclosed on TDnet on February 10, 2021 as well as on the Company's website.
Table of Contents (Appendix)
1. Overview of Business Results, etc. ................................................................................................ 2
(1) Overview of Business Results for the Fiscal Year under Review ................................................ 2
(2) Overview of Financial Position for the Fiscal Year under Review ................................................ 2
(3) Overview of Cash Flows for the Fiscal Year under Review ......................................................... 3
(4) Risk Information Regarding the Novel Coronavirus Infection ...................................................... 4
(5) Future Outlook ........................................................................................................................... 4
2. Basic Concept Regarding Selection of Accounting Standards ....................................................... 5
3. Non-consolidated Financial Statements and Primary Notes ........................................................... 6
(1) Non-consolidated Balance Sheets .............................................................................................. 6
(2) Non-consolidated Statements of Income .................................................................................... 9
(3) Non-consolidated Statement of Changes in Equity ................................................................... 11
(4) Non-consolidated Statement of Cash Flows ............................................................................. 15
(5) Notes to Non-consolidated Financial Statements ..................................................................... 17
(Notes on going concern assumption) ...................................................................................... 17
(Segment information, etc.) ...................................................................................................... 17
(Equity in earnings or losses of affiliates, etc.) .......................................................................... 17
(Per share information) ............................................................................................................. 18
(Significant subsequent events) ................................................................................................ 18
1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year under Review
The Japanese economy during the fiscal year under review drastically worsened due to the spread of the novel coronavirus (COVID-19) pandemic. Although the economy showed signs of recovery after the lifting of the state of emergency declaration and various measures that followed, the situation remains challenging, as the number of new cases of infection surged again in November and there is no prospect of when COVID-19 will be contained. In the candy market, demand for all categories including hard candy and gummies significantly decreased, particularly in the convenience store (hereafter, CVS) channel, since the decrease in office and outing consumption exceeded the increase in stay-at-home consumption, as more people work from home and new cases of infection continue.
In such a business environment, Kanro has strived to advance measures of the "Growth strategy" and "Reinforcement of management base" which are basic strategies of the medium-term corporate strategy "NewKANRO 2021" while adapting to a "new lifestyle." However, net sales during the fiscal year under review decreased by ¥717 million (3.0%) year on year to ¥23,321 million.
In the hard candy category, in addition to the ongoing decrease in sales of the bag/stick type hard candy products, sales of small bags with zip type products, which had been enjoying a continued increase in recent years, turned to a decrease year on year due to the significant impact of COVID-19. By product, while there are some products with strong performance amid the COVID-19 crisis such as the Kenko Nodoame Tatakau Manuka Honey (健康のど飴たたかうマヌカハニー) series and Non-Sugar Super Menthol Nodoame (ノンシュガースーパーメントールのど飴), sales of the Nodoame (の ど飴) products significantly decreased mainly because people are required to live with face masks, and sales decreased in the CVS channel. In addition, sales of some products in existing mainstay brands such as Morimoriyama-no-Kudamono Ame (もりもり山のくだもの飴) and Kinno Milk (金のミルク) fell below the level of the previous fiscal year due to the significant impact of sales decline in the CVS channel. Sales in the gummy category increased year on year despite the COVID-19 crisis, due to character collaboration products of Puré Gummy (ピュレグミ) performing strongly, in addition to an increase in sales of Candemina Gummy (カンデミーナグミ), one of the leading brands, as well as the launch of new products such as Asobon! Gummy ( あそぼん！グミ), which captured in-home consumption demand. Sales of healthy snacks declined year on year, as they were affected by the growing number of private-label products at CVSs as well as market trends.
In terms of profits, gross profit decreased by ¥494 million (4.4%) year on year to ¥10,863 million, due to an increase in cost-of-sales ratio resulting from a decrease in production, in addition to a decrease in net sales.
Operating income decreased by ¥87 million (9.5%) year on year to ¥836 million. This was because of a decrease in gross profit, despite decreased selling expenses resulting from restrictions on sales promotion activities due to the impact of COVID-19 pandemic and efforts to reduce general expenses. Ordinary income decreased by ¥146 million (14.6%) year on year to ¥860 million due to the absence of income from loss posted in the previous fiscal year. Net income decreased by ¥41 million (6.4%) year on year to ¥610 million, mainly as a result of the absence of impairment loss posted in the previous fiscal year, as well as the posting of ¥74 million in gain on sales of investment securities associated with the sale of certain stocks to reduce strategic shareholdings.
(2) Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year under review increased by ¥609 million (3.2%) from the end of the previous fiscal year to ¥19,779 million. The increase in total assets was mainly attributable to increases in accounts receivable - other and property, plant and equipment of ¥153 million and ¥947 million, respectively, offsetting decreases in cash and deposits, accounts receivable - trade, andinvestment securities of ¥177 million, ¥159 million and ¥148 million, respectively.
Liabilities increased by ¥262 million (3.1%) from the end of the previous fiscal year to ¥8,604 million. The increase in liabilities was mainly attributable to increases in short-term loans payable, accounts payable - other and income taxes payable of ¥500 million, ¥347 million and ¥158 million, respectively, offsetting decreases in current portion of long-term loans payable, accrued consumption taxes and accrued expenses of ¥292 million, ¥215 million and ¥140 million, respectively.
Net assets increased by ¥347 million (3.2%) from the end of the previous fiscal year to ¥11,175 million. This was mainly due to an increase in retained earnings by ¥395 million as a result of the recording of ¥610 million in net income and the payment of ¥214 million in cash dividends.
(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents at the end of the fiscal year under review amounted to ¥1,253 million, a decline of ¥177 million from the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥1,442 million (net cash provided of ¥2,013 million in the previous fiscal year).
This was attributable to cash inflows mainly from operating revenues, despite income taxes paid and other factors.
(Cash flows from investing activities)
Net cash used in investing activities was ¥1,572 million (net cash used of ¥971 million in the previous fiscal year).
This was due to the fact that cash outflows for capital investment and other expenditures exceeded proceeds from sales of investment securities.
(Cash flows from financing activities)
Net cash used in financing activities was ¥48 million (net cash used of ¥1,411 million in the previous fiscal year).
This was attributable to cash outflows mainly for repayments of long-term loans payable and cash dividends paid, despite cash inflows from a net increase in short-term loans payable.
(Reference)Cash flow-related indicators
FY2018 | FY2019 | FY2020 | |
Equity ratio (%) | 53.3 | 56.5 | 56.5 |
Equity ratio on a market value basis (%) | 61.8 | 59.0 | 53.7 |
Cash flows to interest-bearing debt (Years) | 1.9 | 0.4 | 0.7 |
Interest coverage ratio (Times) | 170.0 | 340.2 | 385.8 |
(Notes) Equity ratio: Equity / Total assets
Equity ratio on a market value basis: Market capitalization / Total assets Cash flows to interest-bearing debt ratio: Interest-bearing debt / Cash flows Interest coverage ratio: Cash flows / Interest payments
(Note 1) Non-consolidated financial figures were used in all of the calculations above. (Note 2) Aggregate market value of shares is calculated based on issued and outstanding shares excluding treasury shares.
(Note 3) Operating cash flows are used for "cash flows" in the above calculations.
(Note 4) Interest-bearing debt include all liabilities (short-term loans payable and long-term loans payable) reflected on the non-consolidated balance sheets that incur interest payments. Interest payments represent the interest payments recorded in the non-consolidated statement of cash flows.
(Note 5) Figures prior to FY2017 are not disclosed as Kanro created consolidated financial statements.
(4) Risk Information Regarding the Novel Coronavirus Infection (Impact on business activities at this point)
The Company has been operating factories and maintaining production as usual in order to supply products in a stable manner as a food manufacturer, while strengthening infection prevention measures. In addition, the Company continues the work-from-home operation for employees that normally work at the headquarters, Toyosu Institute, and all branches, and strives to mitigate the risk of COVID-19 infection and protect the safety and health of officers and employees by reducing the number of employees and working hours in the offices. Although one headquarter employee was tested positive for COVID-19 by PCR testing, the Company took appropriate actions, and there have been no impact on its business activities.
(Impact on finance)
The Company currently has necessary and sufficient cash reserves for business activities and has also secured means of fund procurement. Therefore, the Company believes that there should be no significant impact on its business activities.
(Impact on corporate activities)
Going forward, if employees were tested positive for COVID-19, the Company may suspend its corporate activities temporarily.
(Ingredient procurement)
The supply of ingredients mainly from overseas has been disrupted as new cases of infection continue to be confirmed both inside and outside Japan, and there is a chance of unstable ingredient supply. However, the Company is prepared for switching into alternative ingredients in the event of significant disruption in ingredient supply. The Company will strive for the supply of safe and reliable products.
(5) Future Outlook
The Company expects the impact of COVID-19 to continue, as seen in developments such as the state of emergency declared again in January 2021. However, we expect that net sales in FY2021 will increase by ¥1,278 million (5.5%) year on year to ¥24,600 million by developing and promoting products that adapt to the new lifestyle for both hard candy and gummies, promoting our brand strategy centered on revamping our mainstay brand products and developing and nurturing new brand products that will lead the way in the future, as well as expanding export transactions.
In terms of profits, we will make aggressive IT investments to introduce a new core system and become a smart factory as a means to achieve a new workstyle, and implement various measures to promote digital marketing, in addition to coping with rising labor costs and personnel expenses resulting from expanded our business operations. As a result, operating income is expected to increase by ¥3 million (0.4%) year on year to ¥840 million, and ordinary income is expected to remain flat year on year at ¥860 million. Net income is projected to decrease by ¥20 million (3.4%) year on year to ¥590 million mainly due to the absence of gain on sales of investment securities associated with strategic shareholdings posted in the previous fiscal year.
2. Basic Concept Regarding Selection of Accounting Standards
In consideration of comparability across periods and across companies for the non-consolidated financial statements, the Company will prepare non-consolidated financial statements under Japanese accounting standards for the time being.
Concerning the application of International Financial Reporting Standards, the Company will take appropriate measures in consideration of trends in Japan and overseas.
3. Non-consolidated Financial Statements and Primary Notes (1) Non-consolidated Balance Sheets
As of December 31, 2019
Assets
Current assets
Cash and deposits Accounts receivable - trade Merchandise and finished goods Work in process
Raw materials and supplies Prepaid expenses Short-term loans receivable Accounts receivable - other
As of December 31, 2020
(Thousand yen)
1,490,990
1,313,031
6,250,709
6,090,805
637,370
585,357
3,332
7,820
213,949
236,471
134,042
147,943
1,050
1,910
3,809
157,806
Other | 840 | 1,646 |
Total current assets | 8,736,095 | 8,542,792 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings | 6,596,442 | 6,834,536 |
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net Machinery and equipment
Accumulated depreciation
Machinery and equipment, net Vehicles
Accumulated depreciation
Vehicles, net
305,489 | 296,882 |
11,754,578 | 12,852,273 |
(8,911,306) | (9,176,048) |
2,843,272 | 3,676,224 |
47,107 | 52,397 |
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment Intangible assets
Trademark right Software
Telephone subscription right Right of using facilities Total intangible assets
(3,271,141) 3,325,300 1,431,186
3,319,844 1,456,313
(1,125,697)(1,159,430)
(36,629) | (40,222) |
10,477 | 12,175 |
910,287 | 948,768 |
(639,204) | (686,004) |
271,082 | 262,764 |
1,497,709 | 1,497,709 |
161,836 | 152,383 |
(66,135) | (61,782) |
95,701 | 90,601 |
142,127 | 282,761 |
(3,514,692)
8,491,160 | 9,438,963 |
9,399 | 8,199 |
176,749 | 166,792 |
10,411 | 10,411 |
969 | 5,953 |
197,530 | 191,356 |
(Thousand yen)
As of December 31, 2019 | As of December 31, 2020 | |
Investments and other assets | ||
Investment securities | 431,054 | 282,851 |
Investments in capital | 10 | 10 |
Long-term loans receivable from employees | 1,545 | 1,635 |
Long-term prepaid expenses | 8,287 | 8,597 |
Guarantee deposits | 429,061 | 419,406 |
Deposits on admission | 16,900 | 13,900 |
Deferred tax assets | 857,862 | 879,787 |
Total investments and other assets | 1,744,721 | 1,606,187 |
Total non-current assets | 10,433,411 | 11,236,507 |
Total assets | 19,169,506 | 19,779,299 |
7 |
(Thousand yen)
Accounts payable - trade 1,692,176 | 1,597,976 |
Current portion of long-term loans payable 292,500 | － |
Accounts payable - other 632,351 | 979,729 |
Income taxes payable 75,631 | 234,316 |
Deposits received 119,726 | 125,620 |
Provision for directors' bonuses 67,300 | 65,200 |
Lease obligations 68,401 | 57,331 |
Provision for directors' share benefits 90,444 | 127,372 |
Capital stock 2,864,249 | 2,864,249 |
Legal capital surplus 2,141,805 | 2,141,805 |
Legal retained earnings 298,600 | 298,600 |
Reserve for advanced depreciation of non-current assets | 184,602 | 172,397 |
General reserve 4,420,000 | 5,020,000 |
Valuation difference on available-for-sale securities | 131,640 | 83,234 |
As of December 31, 2019 | As of December 31, 2020 | |
Liabilities | ||
Current liabilities | ||
Short-term loans payable | 500,000 | 1,000,000 |
Lease obligations | 36,483 | 42,142 |
Accrued expenses | 1,806,627 | 1,666,235 |
Accrued consumption taxes | 215,006 | － |
Provision for bonuses | 608,183 | 554,967 |
Other | 30 | － |
Total current liabilities | 6,046,016 | 6,266,188 |
Non-current liabilities | ||
Provision for retirement benefits | 2,060,659 | 2,105,097 |
Other | 76,178 | 48,245 |
Total non-current liabilities | 2,295,684 | 2,338,047 |
Total liabilities | 8,341,700 | 8,604,235 |
Net assets | ||
Shareholders' equity | ||
Capital surplus | ||
Other capital surplus | 409,178 | 409,178 |
Total capital surplus | 2,550,983 | 2,550,983 |
Retained earnings | ||
Other retained earnings | ||
Reserve for special depreciation | 28,341 | 14,170 |
Retained earnings brought forward | 1,002,476 | 824,712 |
Total retained earnings | 5,934,020 | 6,329,880 |
Treasury shares | (653,088) | (653,296) |
Total shareholders' equity | 10,696,165 | 11,091,818 |
Valuation and translation adjustments | ||
Deferred gains or losses on hedges | － | 10 |
Total valuation and translation adjustments | 131,640 | 83,245 |
Total net assets | 10,827,806 | 11,175,063 |
Total liabilities and net assets | 19,169,506 | 19,779,299 |
8 |
(2) Non-consolidated Statements of Income
(Thousand yen)
FY2019 | FY2020 | |
(From January 1, 2019 to | (From January 1, 2020 to | |
December 31, 2019) | December 31, 2020) | |
Net sales | 24,039,072 | 23,321,485 |
Cost of sales | ||
Beginning finished goods | 588,198 | 637,370 |
Cost of products manufactured | 11,832,305 | 11,623,780 |
Purchase of finished goods | 935,534 | 833,831 |
Total | 13,356,038 | 13,094,983 |
Ending finished goods | 637,370 | 585,357 |
Transfer to other account | 38,427 | 52,093 |
Total cost of sales | 12,680,240 | 12,457,532 |
Gross profit | 11,358,832 | 10,863,952 |
Selling, general and administrative expenses | 10,434,890 | 10,027,452 |
Operating income | 923,941 | 836,499 |
Non-operating income | ||
Interest and dividend income | 10,170 | 8,124 |
Subsidy income | － | 9,346 |
Income from loss | 64,273 | － |
Sold power income | 10,768 | 9,497 |
Other | 12,172 | 9,262 |
Total non-operating income | 97,385 | 36,231 |
Non-operating expenses | ||
Interest expenses | 5,178 | 3,491 |
Sold power expenses | 5,587 | 5,650 |
Loss on cancellation of leases | － | 1,785 |
Other | 2,957 | 950 |
Total non-operating expenses | 13,723 | 11,877 |
Ordinary income | 1,007,604 | 860,853 |
Extraordinary income | ||
Gain on sales of non-current assets | 1,725 | － |
Gain on sales of investment securities | 10,786 | 74,950 |
Total extraordinary income | 12,511 | 74,950 |
Extraordinary losses | ||
Loss on retirement of non-current assets | 1,378 | 670 |
Impairment loss | 136,944 | 25,234 |
Loss on sales of investment securities | 884 | 475 |
Total extraordinary losses | 139,207 | 26,380 |
Income before income taxes | 880,908 | 909,423 |
Income taxes - current | 226,681 | 299,496 |
Income taxes - deferred | 2,227 | (586) |
Total income taxes | 228,909 | 298,909 |
Net income | 651,999 | 610,513 |
Statement of cost of goods manufactured
FY2019 (From January 1, 2019 to December 31, 2019) | FY2020 (From January 1, 2020 to December 31, 2020) | ||||
Category | Note No. | Amount (Thousand yen) | Composition (%) | Amount (Thousand yen) | Composition (%) |
Total Ending work in process Cost of products manufactured | *1 *2 | 6,829,044 2,591,643 2,394,040 | 57.8 21.9 20.3 100.0 | 6,592,269 2,584,124 2,451,873 | 56.7 22.2 21.1 100.0 |
11,814,729 20,908 | 11,628,268 3,332 | ||||
11,835,638 3,332 | 11,631,600 7,820 | ||||
11,832,305 | 11,623,780 |
(Notes)*1 Major components are as follows.
Item | FY2019 (Thousand yen) | FY2020 (Thousand yen) |
Subcontract processing expenses Depreciation Repair expenses Utilities expenses | 112,245 937,769 283,196 447,376 | 120,517 1,008,256 286,082 394,628 |
*2 Reconciliation of cost of products manufactured and cost of sales
Category | FY2019 (Thousand yen) | FY2020 (Thousand yen) |
Cost of products manufactured Beginning finished goods Purchase of finished goods Total Ending finished goods Transfer to other account Cost of sales | 11,832,305 588,198 935,534 13,356,038 637,370 38,427 12,680,240 | 11,623,780 637,370 833,831 13,094,983 585,357 52,093 12,457,532 |
(Method of cost accounting)
Kanro adopts process costing as a method of cost accounting.
(3) Non-consolidated Statement of Changes in Equity
FY2019 (From January 1, 2019 to December 31, 2019)
(Thousand yen)
Shareholders' equity | ||||
Capital stock | Capital surplus | |||
Legal capital surplus | Other capital surplus | Total capital surplus | ||
Balance at beginning of current period | 2,864,249 | 2,141,805 | 409,178 | 2,550,983 |
Changes of items during period | ||||
Reversal of reserve for advanced depreciation of non-current assets | ||||
Reversal of reserve for special depreciation | ||||
Dividends of surplus | ||||
Provision of general reserve | ||||
Net income | ||||
Purchase of treasury shares | ||||
Disposal of treasury shares | ||||
Net changes of items other than shareholders' equity | ||||
Total changes of items during period | － | － | － | － |
Balance at end of current period | 2,864,249 | 2,141,805 | 409,178 | 2,550,983 |
Shareholders' equity | ||||||
Retained earnings | ||||||
Legal retained earnings | Other retained earnings | Total retained earnings | ||||
Reserve for advanced depreciation of non-current assets | Reserve for special depreciation | General reserve | Retained earnings brought forward | |||
Balance at beginning of current period | 298,600 | 196,806 | 42,512 | 3,720,000 | 1,258,746 | 5,516,664 |
Changes of items during period | ||||||
Reversal of reserve for advanced depreciation of non-current assets | (12,203) | 12,203 | － | |||
Reversal of reserve for special depreciation | (14,170) | 14,170 | － | |||
Dividends of surplus | (234,643) | (234,643) | ||||
Provision of general reserve | 700,000 | (700,000) | － | |||
Net income | 651,999 | 651,999 | ||||
Purchase of treasury shares | ||||||
Disposal of treasury shares | ||||||
Net changes of items other than shareholders' equity | ||||||
Total changes of items during period | － | (12,203) | (14,170) | 700,000 | (256,269) | 417,355 |
Balance at end of current period | 298,600 | 184,602 | 28,341 | 4,420,000 | 1,002,476 | 5,934,020 |
(Thousand yen)
Shareholders' equity | Valuation and translation adjustments | Total net assets | |||
Treasury shares | Total shareholders' equity | Valuation difference on available-for-sale securities | Deferred gains or losses on hedges | ||
Balance at beginning of current period | (474,080) | 10,457,818 | 198,770 | － | － 10,656,588 |
Changes of items during period | |||||
Reversal of reserve for advanced depreciation of non-current assets | － | － | |||
Reversal of reserve for special depreciation | － | － | |||
Dividends of surplus | (234,643) | (234,643) | |||
Provision of general reserve | － | － | |||
Net income | 651,999 | 651,999 | |||
Purchase of treasury shares | (188,239) | (188,239) | (188,239) | ||
Disposal of treasury shares | 9,232 | 9,232 | 9,232 | ||
Net changes of items other than shareholders' equity | (67,130) | － | － (67,130) | ||
Total changes of items during period | (179,007) | 238,347 | (67,130) | － | － 171,217 |
Balance at end of current period | (653,088) | 10,696,165 | 131,640 | － | － 10,827,806 |
FY2020 (From January 1, 2020 to December 31, 2020)
(Thousand yen)
Shareholders' equity | ||||
Capital stock | Capital surplus | |||
Legal capital surplus | Other capital surplus | Total capital surplus | ||
Balance at beginning of current period | 2,864,249 | 2,141,805 | 409,178 | 2,550,983 |
Changes of items during period | － | |||
Reversal of reserve for advanced depreciation of non-current assets | ||||
Reversal of reserve for special depreciation | ||||
Dividends of surplus | ||||
Provision of general reserve | ||||
Net income | ||||
Purchase of treasury shares | ||||
Disposal of treasury shares | ||||
Net changes of items other than shareholders' equity | ||||
Total changes of items during period | － | － | － | － |
Balance at end of current period | 2,864,249 | 2,141,805 | 409,178 | 2,550,983 |
Shareholders' equity | ||||||
Retained earnings | ||||||
Legal retained earnings | Other retained earnings | Total retained earnings | ||||
Reserve for advanced depreciation of non-current assets | Reserve for special depreciation | General reserve | Retained earnings brought forward | |||
Balance at beginning of current period | 298,600 | 184,602 | 28,341 | 4,420,000 | 1,002,476 | 5,934,020 |
Changes of items during period | ||||||
Reversal of reserve for advanced depreciation of non-current assets | (12,205) | 12,205 | － | |||
Reversal of reserve for special depreciation | (14,170) | 14,170 | － | |||
Dividends of surplus | (214,653) | (214,653) | ||||
Provision of general reserve | 600,000 | (600,000) | － | |||
Net income | 610,513 | 610,513 | ||||
Purchase of treasury shares | ||||||
Disposal of treasury shares | ||||||
Net changes of items other than shareholders' equity | ||||||
Total changes of items during period | － | (12,205) | (14,170) | 600,000 | (177,763) | 395,860 |
Balance at end of current period | 298,600 | 172,397 | 14,170 | 5,020,000 | 824,712 | 6,329,880 |
(Thousand yen)
Shareholders' equity | Valuation and translation adjustments | Total net assets | |||
Treasury shares | Total shareholders' equity | Valuation difference on available-for-sale securities | Deferred gains or losses on hedges | ||
Balance at beginning of current period | (653,088) | 10,696,165 | 131,640 | － | － 10,827,806 |
Changes of items during period | |||||
Reversal of reserve for advanced depreciation of non-current assets | － | － | － | ||
Reversal of reserve for special depreciation | － | － | － | ||
Dividends of surplus | (214,653) | (214,653) | |||
Provision of general reserve | － | － | |||
Net income | 610,513 | 610,513 | |||
Purchase of treasury shares | (207) | (207) | (207) | ||
Disposal of treasury shares | － | － | － | ||
Net changes of items other than shareholders' equity | (48,405) | 10 | (48,394) | ||
Total changes of items during period | (207) | 395,652 | (48,405) | 10 | 347,257 |
Balance at end of current period | (653,296) | 11,091,818 | 83,234 | 10 | 11,175,063 |
(4) Non-consolidated Statement of Cash Flows
FY2019
(From January 1, 2019 to
December 31, 2019)
Cash flows from operating activities
Income before income taxes Depreciation
Increase (decrease) in provision for bonuses
(Thousand yen)FY2020
(From January 1, 2020 to
December 31, 2020)
880,908 1,102,334
909,423 1,182,865
19,055
(53,215)
Increase (decrease) in provision for directors' bonuses | (3,800) (2,100) |
Increase (decrease) in provision for retirement benefits
116,831
44,438
Increase (decrease) in provision for directors' share benefits | 29,715 36,928 |
Interest and dividend income
(10,170)
(8,124)
Interest expenses | 5,178 | 3,491 |
Loss on retirement of non-current assets | 1,378 | 670 |
Impairment loss | 136,944 | 25,234 |
Loss (gain) on sales of non-current assets | (1,725) | － |
Loss (gain) on sales of investment securities | (9,901) | (74,474) |
Decrease (increase) in notes and accounts receivable - trade | (231,933) | 159,903 |
Decrease (increase) in inventories | (35,287) | 25,003 |
Increase (decrease) in notes and accounts payable - trade | (6,360) | (94,199) |
Increase (decrease) in accrued expenses | 104,194 | (140,143) |
Increase (decrease) in accrued consumption taxes | 223,125 | (211,698) |
Decrease (increase) in consumption taxes refund receivable | 114,314 | (150,252) |
Other, net | 5,294 | (69,602) |
Subtotal | 2,440,097 | 1,584,146 |
Interest and dividend income received | 10,170 | 8,124 |
Interest expenses paid | (5,920) | (3,739) |
Income taxes paid | (430,484) | (146,028) |
Net cash provided by (used in) operating activities | 2,013,863 | 1,442,503 |
Cash flows from investing activities | ||
Payments into time deposits | (60,000) | (60,000) |
Proceeds from withdrawal of time deposits | 60,000 | 60,000 |
Purchase of property, plant and equipment | (1,943,318) | (1,666,250) |
Proceeds from sales of property, plant and equipment | 1,071,553 | － |
Purchase of intangible assets | (79,725) | (61,067) |
Payments for removal of non-current assets | (52,200) | － |
Purchase of investment securities | (2,013) | (1,701) |
Proceeds from sales of investment securities | 32,729 | 154,630 |
Payments of loans receivable | － | (4,260) |
Collection of loans receivable | 1,490 | 3,310 |
Proceeds from refund of cash segregated as deposits | － | 3,000 |
Net cash provided by (used in) investing activities | (971,484) | (1,572,338) |
(Thousand yen)
Net increase (decrease) in short-term loans payable | (500,000) | 500,000 |
FY2019 | FY2020 | |
(From January 1, 2019 to | (From January 1, 2020 to | |
December 31, 2019) | December 31, 2020) | |
Cash flows from financing activities | ||
Repayments of long-term loans payable | (465,000) | (292,500) |
Repayments of lease obligations | (28,431) | (41,793) |
Net purchase of treasury shares | (185,274) | (207) |
Cash dividends paid | (233,221) | (213,624) |
Net cash provided by (used in) financing activities | (1,411,928) | (48,125) |
Net increase (decrease) in cash and cash equivalents | (369,548) | (177,959) |
Cash and cash equivalents at beginning of period | 1,800,539 | 1,430,990 |
Cash and cash equivalents at end of period | 1,430,990 | 1,253,031 |
(5) Notes to Non-consolidated Financial Statements
(Notes on going concern assumption)
Not applicable.
(Segment information, etc.)
This information has been omitted because the entire business of Kanro falls under the single business category of confectionery and food business.
(Equity in earnings or losses of affiliates, etc.)
Equity method is not applied as the Company has no affiliated companies.
(Per share information)
FY2019 (From January 1, 2019 to December 31, 2019) | FY2020 (From January 1, 2020 to December 31, 2020) | |
Net assets per share Basic earnings per share | ¥1,535.52 ¥92.36 | ¥1,584.80 ¥86.58 |
(Notes)1. Diluted earnings per share is not indicated as there are no residual shares outstanding.
2. The Company conducted a stock split of its common stock at a two-for-one ratio as of July 1, 2019. Net assets per share and basic earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
3. The Company's own shares that remain in the trust recorded as treasury shares in shareholders'
equity are included in treasury shares which were deducted in calculating the average number of shares during the period for the calculation of basic earnings per share. In addition, these shares are included in treasury shares deducted from total number of issued shares at the end of the period in calculating net assets per share.
The number of deducted treasury shares at the end of the period in calculating net assets per share for FY2019 and FY2020 was 103 thousand shares and 103 thousand shares, respectively.
The average number of treasury shares during the period deducted in calculating basic earnings per share for FY2019 and FY2020 was 105 thousand shares and 103 thousand shares, respectively.
4. Net assets per share were calculated based on the following data.
FY2019 (As of December 31, 2019) | FY2020 (As of December 31, 2020) | |
Total net assets (Thousand yen) | 10,827,806 | 11,175,063 |
Net assets relating to common stock at year-end (Thousand yen) | 10,827,806 | 11,175,063 |
Number of outstanding shares of common stock (Thousand shares) | 7,657 | 7,657 |
Number of treasury shares of common stock (Thousand shares) | 606 | 606 |
Number of shares of common stock at year-end used for calculating net assets per share (Thousand shares) | 7,051 | 7,051 |
5. Basic earnings per share was calculated based on the following data.
FY2019 (From January 1, 2019 to December 31, 2019) | FY2020 (From January 1, 2020 to December 31, 2020) | |
Net income (Thousand yen) | 651,999 | 610,513 |
Amount not attributable to common stock holders (Thousand yen) | － | － |
Net income relating to common stock (Thousand yen) | 651,999 | 610,513 |
Average number of outstanding shares of common stock during the period (Thousand shares) | 7,059 | 7,051 |
(Significant subsequent events)
Not applicable.
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KANRO Co. Ltd. published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2021 04:32:04 UTC.
