KANRO INC. Non-consolidated Financial Results
for the Three Months Ended March 31, 2022
[Japanese GAAP]
April 28, 2022
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 filing quarterly securities report: | May 12, 2022 |
Scheduled date of commencing dividend payments: | - |
Supplementary materials prepared for quarterly financial results: Yes | |
Schedule of quarterly financial results briefing session: | No |
(Amounts are rounded down to the nearest million yen)
1. Non-consolidated Financial Results for the Three Months Ended March 31, 2022 (January 1,
2022 to March 31, 2022) | ||||||||||
(1) Non-consolidated Operating Results | (% of change from the previous fiscal year.) | |||||||||
Net sales | Operating income | Ordinary income | Net income | |||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
March 31, 2022 | 5,992 | 31.0 | 700 | 609.7 | 739 | 634.3 | 499 | 338.6 | ||
March 31, 2021 | 4,576 | － | 98 | － | 100 | － | 113 | － |
Basic earnings per share | Diluted earnings per share | |
Three months ended | Yen | Yen |
March 31, 2022 | 70.80 | － |
March 31, 2021 | 16.15 | － |
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the three months ended March 31, 2022. Figures for the three months ended March 31, 2021 are the amounts after retrospectively applying the said standard, etc. Accordingly, the percentage changes from the previous corresponding period are not provided for the three months ended March 31, 2021.
(2) Non-consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of March 31, 2022 | 20,630 | 12,089 | 58.6 |
As of December 31, 2021 | 21,200 | 11,750 | 55.4 |
(Reference) Equity: As of March 31, 2022: ¥12,089 million As of December 31, 2021: ¥11,750 million
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the three months ended March 31, 2022. Figures as of December 31, 2021 are the amounts after retrospectively applying the said standard, etc.
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2. Cash Dividends
Annual cash dividends per share
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
FY2021 | － | 15.00 | － | 25.00 | 40.00 | |
FY2022 | － | |||||
FY2022 (Forecast) | 25.00 | － | 25.00 | 50.00 | ||
(Note) Revision to the forecast for dividends announced most recently: Yes
3. Non-consolidated Financial Results Forecast for FY2022 (January 1, 2022 to December 31, 2022)
(% of change from the previous fiscal year.)
Net sales | Operating | Ordinary income | Net income | Basic earnings | |||||
income | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First half | 11,900 | 21.6 | 900 | 104.5 | 950 | 106.0 | 650 | 75.5 | 92.07 |
Full year | 24,200 | 12.1 | 1,530 | 21.9 | 1,590 | 23.1 | 1,080 | 22.9 | 152.98 |
(Notes) 1. Revision to the financial results forecast announced most recently: Yes
2. The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. is applied from the beginning of the fiscal year ending December 31, 2022. Accordingly, the forecasts stated above are the amounts after the application of the said standard, etc. The percentage changes from the previous corresponding period stated herein are calculated on the assumption that the said standard, etc. were applied in the fiscal year ended December 31, 2021.
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* Notes:
- Accounting policies adopted specially for the preparation of non-consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
As of March 31, | As of December 31, | ||
2022 | 2021 | ||
1) | Total number of issued shares at the end of the period | 7,657,802 shares | 7,657,802 shares |
(including treasury shares) | |||
2) | Total number of treasury shares at the end of the period | 597,974 shares | 606,634 shares |
January 1, 2022 to | January 1, 2021 to | ||
March 31, 2022 | March 31, 2021 | ||
3) Average number of shares during the period | 7,054,894 shares | 7,051,358 shares |
- 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) (March 31, 2022: 114,900 shares and December 31, 2021: 123,600 shares).
- These financial results are outside the scope of the quarterly review 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. Please refer to "(3) Explanation of Non-consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Appendix for assumptions on financial results forecasts and notes on the use of such forecasts.
(Method of obtaining supplementary material on financial results)
Supplementary material on financial results is disclosed on TDnet on April 28, 2022 as well as on the Company's website.
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Table of Contents (Appendix) | ||
1. Qualitative Information on Financial Results for the Period under Review...................................... | 2 | |
(1) | Explanation of Business Results ................................................................................................ | 2 |
(2) | Explanation of Financial Position................................................................................................ | 2 |
(3) | Explanation of Non-consolidated Financial Results Forecast and Other Forward-looking | |
Information.................................................................................................................................. | 3 | |
2. Non-consolidated Financial Statements and Primary Notes........................................................... | 4 | |
(1) | Non-consolidated Balance Sheets.............................................................................................. | 4 |
(2) | Non-consolidated Statements of Income .................................................................................... | 6 |
(3) | Notes to Non-consolidated Financial Statements ....................................................................... | 7 |
(Notes on going concern assumption) ........................................................................................ | 7 | |
(Notes in the case of significant changes in shareholders' equity) ............................................. | 7 | |
(Changes in accounting policies) ................................................................................................ | 7 | |
(Revenue recognition) ................................................................................................................ | 7 |
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1. Qualitative Information on Financial Results for the Period under Review
"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the three months ended March 31, 2022, and comparisons and analysis with the same period of the previous year and the full previous fiscal year are made using figures after retrospective application of that standard, etc.
(1) Explanation of Business Results
The Japanese economy during the three months ended March 31, 2022 saw a stalled improvement in personal consumption due to the application of priority measures to prevent the spread of COVID-19 infections in a number of regions as a result of the resurgence of infections caused by mutant strains. Although the measures were fully lifted in March, the outlook remains uncertain, mainly due to such risks as rising raw material prices and fluctuations in financial and capital markets resulting from the situation in Ukraine and other factors.
As for the candy market, the hard candy category recovered from the drop in consumption of throat drops (のど飴) and other products in the same period of the previous fiscal year, when there had been a decrease in the movement of people and people had become used to wearing face masks in their daily life, and turned to a year-on-year increase. The gummy category, which has returned to a growth trend since May 2021, remains strong, with a significant year-on-year increase.
In such a business environment, Kanro has steadily strived to advance the three business strategies of "Value Creation," "ESG Management," and "Expansion of our Business Domains," under our corporate purpose "Sweeten the Future" which was formulated in February of 2022, the first year of Medium-term Corporate Strategy 2024. As a result, net sales during the three months ended March 31, 2022 increased by ¥1,416 million (31.0%) year on year to ¥5,992 million.
Sales of hard candy products increased ¥407 million (14.3%) year on year to ¥3,251 million as sales of bag type hard candy products increased mainly in the basic gourmet category and sales of the stick type hard candy products and small bags with zip type products, which had continued to be sluggish, also turned to an increase. By product, sales of Kinno Milk candy (金のミルクキャンデイ), with a new flavor launched September 2021, were solid. Sales of gummy products increased ¥1,032 million (66.4%) year on year to ¥2,587 million, owing to large increases in sales of leading brands Puré Gummy (ピュレグミ) and Candemina Gummy (カンデミーナグミ), and in sales of a new product Marosh (マ ロッシュ), a marshmallow product launched last year. Sales of healthy snacks decreased ¥23 million (13.3%) year on year to ¥153 million due to further growth in the number of private-label products at convenience stores.
In terms of profits, gross profit increased by ¥761 million (44.6%) year on year to ¥2,466 million and operating income increased by ¥602 million (609.7%) year on year to ¥700 million, due to an increase in marginal profit from higher sales. Ordinary income increased by ¥638 million (634.3%) year on year to ¥739 million coupled with income from loss recognized.
In addition, net income for the period under review increased ¥385 million (338.6%) year on year to ¥499 million, partly because gain on sales of investment securities was posted in the previous fiscal year but not in the current fiscal year.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review decreased by ¥569 million (2.7%) from the end of the previous fiscal year to ¥20,630 million.
The decrease in total assets was mainly attributable to a decrease in accounts receivable - trade by ¥311 million, a decrease in deferred tax assets by ¥225 million, and a decrease in cash and deposits by ¥188 million, despite an increase in merchandise and finished goods by ¥141 million.
Liabilities decreased by ¥909 million (9.6%) from the end of the previous fiscal year to ¥8,540 million.
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KANRO Co. Ltd. published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 04:49:07 UTC.
