S.T. CORPORATION 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.
November 8, 2022
Consolidated Financial Results
for the Six Months Ended September 30, 2022
(Under Japanese GAAP)
Company name: | S.T. CORPORATION |
Listing: | Tokyo Stock Exchange |
Securities code: | 4951 |
URL: | https://www.st-c.co.jp/ |
Representative: | Takako Suzuki, Representative Executive Officer, President, COO |
Inquiries: | Kouichi Yoshizawa, Executive Officer |
Telephone: | +81-3-3367-6314 |
Scheduled date to file quarterly securities report: | November 14, 2022 |
Scheduled date to commence dividend payments: | December 9, 2022 |
Preparation of supplementary material on quarterly financial results: | Yes |
Holding of quarterly financial results briefing: | None (video streaming only) |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
September 30, 2022 | 23,448 | (0.1) | 1,649 | (36.2) | 1,846 | (32.0) | 1,218 | (34.0) | |
September 30, 2021 | 23,478 | - | 2,584 | - | 2,716 | - | 1,845 | - |
Note: Comprehensive income | For the six months ended September 30, 2022: | ¥1,275 million | [(14.3)%] | |||
For the six months ended September 30, 2021: | ¥1,488 million | [-%] | ||||
Basic earnings per share | Diluted earnings per | |||||
share | ||||||
Six months ended | Yen | Yen | ||||
September 30, 2022 | 54.80 | - | ||||
September 30, 2021 | 83.05 | 83.03 | ||||
Notes: 1. Figures for the six months ended September 30, 2022, are the figures after applying "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and relevant ASBJ regulations. The percentage of year-on-year change is not shown.
2. Diluted earnings per share for the six months ended September 30, 2022, are not given since there are no dilutive shares.
- Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
As of | Millions of yen | Millions of yen | % | Yen |
September 30, 2022 | 45,613 | 32,623 | 70.3 | 1,441.55 |
March 31, 2022 | 44,402 | 31,847 | 70.4 | 1,407.03 |
Reference: Equity | ||||
As of September 30, 2022: | ¥32,061 million | |||
As of March 31, 2022: | ¥31,274 million |
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 | - | 19.00 | - | 19.00 | 38.00 | |
March 31, 2022 | ||||||
Fiscal year ending | - | 20.00 | ||||
March 31, 2023 | ||||||
Fiscal year ending | - | 20.00 | 40.00 | |||
March 31, 2023 | ||||||
(forecast) | ||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (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 of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Fiscal year ending | 47,500 | 4.5 | 2,550 | (21.6) | 2,850 | (18.1) | 1,900 | 71.3 | 85.48 | ||
March 31, 2023 | |||||||||||
Note: Revisions to the earnings forecasts 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
Newly included: | - companies |
Excluded: | - companies |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
Note: For more details, please refer to the section of "Changes in accounting policies" under "(4) Notes to quarterly consolidated financial statements" of "2. Quarterly consolidated financial statements and significant notes thereto" on page 9 of the attached material.
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022 | 23,000,000 shares |
As of March 31, 2022 | 23,000,000 shares |
(ii) Number of treasury shares at the end of the period
As of September 30, 2022 | 759,170 shares |
As of March 31, 2022 | 772,820 shares |
(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022 | 22,240,850 shares |
Six months ended September 30, 2021 | 22,220,190 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-lookingstatements 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. Please refer to "(3) Explanation of consolidated earnings forecasts and other forward-looking statements" of "1. Qualitative information on quarterly consolidated financial results" on page 3 of the attached materials for the suppositions that form the assumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts.
Change in presentation of amounts
Amounts given on the Company's quarterly consolidated financial statements and other items were previously rounded down to thousands, but starting from the first quarter of the current fiscal year and the three months ended June 30, 2022, figures are rounded down to millions.
To make comparisons easier, figures for the previous fiscal year and the six months ended September 30, 2021, have also been rounded down to millions.
Method of obtaining the supplementary material on quarterly financial results
We intend to post the supplementary material on quarterly financial results to the "Investors" page of our corporate website soon after the announcement of the financial results for the six months ended September 30, 2022, on Tuesday, November 8, 2022.
S.T. CORPORATION (4951)
- Attached Material Index
1. Qualitative information on quarterly consolidated financial results ............................................................................ | 2 | |
(1) | Explanation of operating results............................................................................................................................ | 2 |
(2) | Explanation of financial position .......................................................................................................................... | 3 |
(3) | Explanation of consolidated earnings 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) | Quarterly consolidated statement of cash flows .................................................................................................... | 8 |
(4) | Notes to quarterly consolidated financial statements ............................................................................................ | 9 |
Notes on going concern assumption...................................................................................................................... | 9 | |
Notes when there are significant changes in amounts of shareholders' equity ..................................................... | 9 | |
Application of specific accounting for preparing the quarterly consolidated financial statements ....................... | 9 | |
Changes in accounting policies ............................................................................................................................. | 9 | |
Segment information ............................................................................................................................................. | 9 |
- 1 -
S.T. CORPORATION (4951)
1. Qualitative information on quarterly consolidated financial results
-
Explanation of operating results
During the six months ended September 30, 2022, the Japanese economy showed signs of recovery as the status of the novel coronavirus disease (COVID-19) improved moderately and economic and social activities started to normalize. On the other hand, a sense of uncertainty about the future persists as there are concerns surrounding the impact of energy resource and raw material price hikes, etc., on personal consumption, owing to the continuing war in Ukraine and the rapid depreciation in the yen amid widening differences in interest rates in Japan and the US.
Under these circumstances, the Group has been taking action to enable its sustainable growth under its strategy of brand value management through initiatives that involve "drastic review of the existing business profit structure," "concentrated resources in growth areas," "clarification of business development systems," and "formulation and disclosure of long-term ESG strategies."
For the six months ended September 30, 2022, the Group's net sales amounted to 23,448 million yen (down 0.1% year on year) owing to a decline in Cloth Care sales as late summer heat resulted in seasonal wardrobe updates being pushed back, despite growth in Thermal Care shipments.
As for profit, operating profit was 1,649 million yen (down 36.2% year on year), because of a rise in procurement costs caused by yen depreciation and an increase in selling, general and administrative expenses due to strategic marketing expenses for growth, and ordinary profit was 1,846 million yen (down 32.0% year on year) and profit attributable to owners of parent was 1,218 million yen (down 34.0% year on year), as the share of profit of entities accounted for using equity method improved.
Given that the Group operates a single segment of the daily necessities business, operating results by business category are as follows.
In the Air Care (Air Fresheners and Deodorizers) category, we have been engaging in efforts that involve striving for more consistent sales of our existing mainstay products and developing high value-added products. Even though there was stagnant growth in sales of Shoshu-Riki for entrances and living rooms, an existing core product, Shoshu-Riki Natulief Reed Diffuser for entrances and living rooms, a new high value-added aromatic product, contributed to sales and sales of products with high unit price and high added value, such as Shoshu-Riki Premium Aroma for entrances and living rooms in the Premium Aroma series, were firm. Therefore, net sales were 10,711 million yen (up 0.2% year on year).
In the Cloth Care (Mothproofing Agents) category, we are strengthening the Mushuda series by updating the product lineup and are moving forward with efforts to expand sales of Mushuda mite repellent. However, sales of existing core products, including Mushuda for Drawers and Clothes Cases and Neopara Ace, declined because sales activities targeting seasonal wardrobe updates of this spring were launched earlier than normal and the late summer heat resulted in seasonal wardrobe updates being pushed back this fall, resulting in net sales of 4,436 million yen (down 7.3% year on year).
For the Thermal Care (Disposable Warmers) category, we are focusing on expanding awareness and strengthening the lineup of the existing Onpax brand. In the fall, we launched sales of the Haru-Onpax Airy (adhesive type) value- added line, which achieves a new level of "lightness" and "thinness." Thanks mainly to an increase in sales of adhesive-type disposable warmers, net sales were 1,113 million yen (up 23.6% year on year).
In the Hand Care (Household Gloves) category, we worked to expand sales of Family gloves for home use. Although sales of industrial-use gloves, etc., grew, the selling price was revised downward, and demand driven by greater awareness of hygiene weakened, resulting in net sales of 2,888 million yen (down 0.5% year on year).
In the Humidity Care (Dehumidifiers) category, we moved forward with a shift toward high value-added products by strengthening the Bincho-tan series and Dry Pet Clear products in order to prevent them from becoming mere commodities. Thanks mainly to growth in sales of tank-type dehumidifiers, net sales were 1,940 million yen (up 1.3% year on year).
In the Home Care (Others) category, we have been aggressively promoting efforts to enter new business fields, which has included developing the Senjo-Riki and Kome-Touban brands. In addition to firm sales of Kome-Touban, which prevents bugs in rice, our entry into the growing pet care products market and the spring introduction of Shinsenban, a new product that maintains the freshness of vegetables, contributed to sales, resulting in net sales of 2,358 million yen (up 3.2% year on year). - 2 -
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S.T.Corporation published this content on 29 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2022 11:20:06 UTC.
