TOLI CORPORATION Financial Announcement for Year Ended March 31, 2023 [Japan standard]
(Consolidated)
May 9, 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 ordinary | June 22, 2023 | Scheduled date for start of | June 23, 2023 | |||
general meeting of shareholders | dividend payments | |||||
Scheduled date for submission | June 22, 2023 | |||||
of financial statements | ||||||
Preparation of supplementary explanatory materials for the financial announcement | : | Yes | ||||
Holding a briefing on the financial announcement | : | Yes (for securities analysts) | ||||
(Amounts of less than one million yen are rounded off) |
1. Consolidated results for year ended March 2023 (April 1, 2022 to March 31, 2023)
(1) Consolidated results
(% shows change from previous term)
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Year ended March 2023 | 95,230 | 7.6 | 3,531 | 302.2 | 3,640 | 192.5 | 2,562 | 255.8 | |
Year ended March 2022 | 88,513 | 3.0 | 878 | (44.9) | 1,244 | (38.6) | 720 | (48.1) | |
(Note) Comprehensive income Year ended March 2023: 3,127 million yen [240.9%] Year ended March 2022: 917 million yen [-60.3%]
Profit per share | Profit per share - | Return on equity | Return on total | Operating income | |
diluted | capital | assets | on sales | ||
Yen | Yen | % | % | % | |
Year ended March 2023 | 42.57 | - | 6.5 | 4.4 | 3.7 |
Year ended March 2022 | 11.79 | - | 1.9 | 1.6 | 1.0 |
(Reference) Investment gain or loss under equity method Year ended March 2023: -262 million yen Year ended March 2022: -108 million yen
(2) Consolidated assets
Total assets | Net assets | Capital-to-asset ratio | Net assets per share | |
Million yen | Million yen | % | Yen | |
Year ended March 2023 | 84,791 | 40,894 | 47.9 | 674.80 |
Year ended March 2022 | 79,982 | 38,285 | 47.5 | 630.05 |
(Reference) Equity capital Year ended March 2023: 40,613 million yen Year ended March 2022: 38,013 million yen
(3) State of consolidated cash flows
Cash flows from operating | Cash flows from investing | Cash flows from financing | Term-end balance of cash | ||||||||||||
activities | activities | activities | and cash equivalents | ||||||||||||
Million yen | Million yen | Million yen | Million yen | ||||||||||||
Year ended March 2023 | 3,599 | (3,275) | (934) | 9,587 | |||||||||||
Year ended March 2022 | 4,962 | (4,016) | (1,060) | 10,189 | |||||||||||
2. Dividend payments | |||||||||||||||
Annual dividend | Dividend | Dividend | Dividend ratio to | ||||||||||||
payout ratio | |||||||||||||||
End 1st | End 2nd | End 3rd | End of | ||||||||||||
Total | payments | (consolidate | net assets | ||||||||||||
quarter | quarter | quarter | Year | (total) | (consolidated) | ||||||||||
d) | |||||||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | ||||||||
Year ended March 2022 | 0.00 | 8.00 | 8.00 | 482 | 67.9 | 1.3 | |||||||||
- | - | ||||||||||||||
Year ended March 2023 | - | 0.00 | - | 10.00 | 10.00 | 601 | 23.5 | 1.5 | |||||||
Year ending March 2024 (forecast) | - | 2.00 | - | 8.00 | 10.00 | 22.7 |
3. Consolidated forecasts for year ending March 2024 (April 1, 2023 to March 31, 2024)
(% shows the change for the full term against the previous full term and change for the quarter against the same quarter of the previous year)
Net sales | Operating | Ordinary income | Profit attributable to | Profit per | |||||||||
income | owners of parent | share | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||
2nd quarter (cumulative) | 45,000 | 5.3 | 350 | - | 500 | - | 300 | - | 4.98 | ||||
Full term | 99,500 | 4.5 | 3,600 | 1.9 | 3,900 | 7.1 | 2,650 | 3.4 | 44.03 | ||||
*Notes
- Significant changes to subsidiaries during the current term (changes for a specified subsidiary entailing a change in the scope of consolidation): 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 |
(3) Number of outstanding shares (ordinary shares)
- Number of outstanding shares at end of year (including treasury shares)
- Number of shares in treasury shares at end of year
- Average number of shares during the term
Year ended | 66,829,249 shares | Year ended | 66,829,249 shares |
March 2023 | March 2022 | ||
Year ended | 6,642,988 shares | Year ended | 6,494,889 shares |
March 2023 | March 2022 | ||
Year ended | 60,197,736 shares | Year ended | 61,096,915 shares |
March 2023 | March 2022 | ||
(Reference) Outline of Non-Consolidated business performance | ||||||||||||||||
Non-consolidated business performance for year ended March 2023 (April 1, 2022 to March 31, 2023) | ||||||||||||||||
(1) Non-consolidated management performance | (% shows change from previous term) | |||||||||||||||
Net sales | Operating income | Ordinary income | Net income | |||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||
Year ended March 2023 | 57,689 | 10.3 | 2,044 | - | 2,651 | 321.9 | 1,924 | 469.5 | ||||||||
Year ended March 2022 | 52,284 | 2.2 | 39 | (93.9) | 628 | (50.5) | 337 | (70.8) | ||||||||
Profit per share | Profit per share - diluted | |||||||||||||||
Yen | Yen | |||||||||||||||
Year ended March 2023 | 31.97 | - | ||||||||||||||
Year ended March 2022 | 5.53 | - | ||||||||||||||
(2) Non-consolidated financial state | ||||||||||||||||
Total assets | Net assets | Capital-to-asset ratio | Net assets per share | |||||||||||||
Million yen | Million yen | % | Yen | |||||||||||||
Year ended March 2023 | 73,943 | 29,289 | 39.6 | 486.65 | ||||||||||||
Year ended March 2022 | 66,606 | 27,607 | 41.4 | 457.58 | ||||||||||||
(Reference) Equity capital Year ended March 2023: 29,289 million yen | Year ended March 2022: 27,607 million yen |
Reason for Differences from Non-consolidated Financial Results in Previous Fiscal Year
While pressure continued on rising manufacturing costs, efforts to improve profitability by conducting manufacturing cost reduction activities in addition to sales price revisions resulted in a certain level of difference in net sales and profit compared with the results in the previous fiscal year.
*This document is out of the scope of audit 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 of financial forecasts and cautions when using the financial forecast, please refer to "(4) Financial Forecast" in "1. Overview of Management Performance, etc." on page 4 of the attachment.
- Contents of the supplementary materials
(4) | Financial Forecasts | 4 |
2. | Basic Thinking Concerning Selection of Accounting Standards | 4 |
3. | Consolidated Financial Statements and Major Notes | 5 |
(1) | Consolidated balance sheet | 5 |
(2) | Consolidated statement of income and consolidated statement of comprehensive income | 7 |
(Consolidated statement of income) | 7 | |
(Consolidated statement of comprehensive income) | 8 | |
(3) | Consolidated statement of changes in equity | 9 |
(4) | Consolidated statements of cash flows | 11 |
(5) | Notes on consolidated financial statements | 13 |
(Notes on the assumption of the company as a going concern) | 13 | |
(Segment information, etc.) | 13 | |
(Per-share data) | 15 | |
(Important post-balance-sheet events) | 15 |
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1. Overview of Management Performance, etc.
(1) Overview of Management Performance
During the current fiscal year, the Japanese economy showed a gradual recovery in consumer spending and the number of foreign visitors to Japan. This occurred along with the gradual easing of restrictions on activities under COVID-19, as we moved toward the normalization of daily life, and economic activities have been picking up, albeit slowly. On the other hand, the future of the business environment remains uncertain due to supply chain disruptions caused by heightened geopolitical risks, inflation caused by rising costs (such as raw materials and energy costs).
In the construction industry, which is closely related to the Group's business, construction costs continued to rise due to soaring prices of various construction materials, and the housing and non-housing markets, which were robust in the first half of the fiscal year, are now showing somewhat sluggish growth. On the other hand, some aspects of the market are expected to recover in the future, such as the progress of large-scale redevelopment projects in urban areas and the new construction and renovation markets for store and accommodation facilities driven by the recovery of inbound demand.
Under these circumstances, the Company Group is pursuing priority strategies centering on strengthening core businesses and expanding growing businesses under the Medium-Term Business Plan "SHINKA Plus ONE," which is the first phase toward the realization of our Long-Term vision "TOLI VISION 2030." In the period under review, to cope with rising raw materials cost, we focused on reducing manufacturing costs by having in-house production of raw nylon yarn for carpet tiles and improving the ratio of recycled raw materials used. We also worked to improve earnings by having the second round of sales price revisions that took place in May and the third round in September.
In light of the current drastic changes in the management environment, and in particular, the fact that the key capital investment plan, which is the pillar of "SHINKA Plus ONE," has been delayed for about one year, we have reviewed the time schedule of each Medium-Term Business strategy and have revised the period-setting for "SHINKA Plus ONE" to 4 years instead of 3 years. In addition, we shall revise upward the management indicators for the final year and steadily execute priority strategies for further growth.
As a result, the Group recorded in the current fiscal year on a consolidated basis net sales of 95,230 million yen (up 7.6% from the previous fiscal year), operating income of 3,531 million yen (up 302.2% from the previous fiscal year), ordinary income of 3,640 million yen (up 192.5% from the previous fiscal year), and profit attributable to owners of parent of 2,562 million yen (up 255.8% from the previous fiscal year).
Performance for business segments is as follows. This information includes business between segments.
In the Product Business, net sales increased as a result of enhanced promotion activities centering on new merchandise launched in the fiscal year under review, as well as efforts to focus on sales price revisions from May onward. In terms of profit, an earnings improvement was achieved through various efforts to reduce manufacturing costs and have sales price revisions take root. However, the situation remains bleak because the raw materials cost continues to be high.
For the vinyl flooring materials, net sales increased significantly over the previous year as a result of sales promotion activities focused on the Royal Series of vinyl floor tiles, the Company's mainstay merchandise, and the Tile Collection, which includes single-layer vinyl floor tiles that utilize the Company's proprietary technology. In addition, ToughtecTile, a new, third flooring material launched in April, was highly appraised as an evolution of vinyl floor tiles and received the GOOD DESIGN AWARD 2022, raising expectations for future market penetration.
For carpets, the Company focused on sales promotion activities for GA-3600 Sustive Back, an environmentally friendly carpet tile system launched in June, by strengthening promotion of the TOLI Complete Recycling, which returns 100% of used carpet tiles to raw materials, for the office market, where demand for environmental responsiveness is increasing. Although the overall sales volume of carpet tiles for housing and non-housing remained weak, net sales grew year on year with sales price revisions.
For wallcovering materials, net sales significantly exceeded the previous year's level due to sales promotion activities for "VS," a general-purpose vinyl wallpaper and "Real Deco," a non-combustible decorative wallcovering material launched in the fiscal year under review, as well as the fact that sales price revisions took root in the small-lot housing market. For curtains, the Company strengthened sales promotion activities for Contract Curtains for medical and educational facilities, which were launched in October, targeting the medical and welfare markets that are on the road to recovery; however, overall net sales of curtains fell slightly below the previous year.
As a result, for the Product Business, net sales were 57,971 million yen (up 10.3% from the previous fiscal year) and segment income came to 2,344 million yen (up 334.8% from the previous fiscal year).
In the Interior Wholesaling and Installation Business, amid a continued rise in procurement costs for interior design-related materials, we increased both revenues and profits in Japan by passing these costs onto selling prices and by improving our customer-focused,community-based services. Accompanying the end of the Zero-COVID policy in China, net sales of TOLI (SHANGHAI) Corporation have been recovering since October, and the company's net sales for the period under review (January to December 2022) exceeded the previous year.
As a result, net sales for the Interior Wholesaling and Installation Business were 62,490 million yen (up 5.7% from the previous fiscal year) and segment income came to 1,487 million yen (up 69.7% from the previous fiscal year).
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(2) Overview of Financial Position
As of the end of current fiscal year, current assets on a consolidated basis amounted to 50,677 million yen, up 3,837 million yen from the end of the previous fiscal year. This was mainly due to an increase in trade receivables and merchandise and finished goods. Non-current assets amounted to 34,113 million yen, up 970 million yen from the end of the previous fiscal year. This was mainly due to an increase in machinery, equipment and vehicles, resulting from the capital investment of a manufacturing subsidiary.
As a result, total assets amounted to 84,791 million yen, up 4,808 million yen from the end of the previous fiscal year.
As of the end of current fiscal year, current liabilities on a consolidated basis amounted to 31,726 million yen, up 2,373 million yen from the end of the previous fiscal year. This was mainly due to an increase in trade payables and income taxes payable. Non-current liabilities amounted to 12,169 million yen, down 174 million yen from the end of the previous fiscal year.
As a result, total liabilities amounted to 43,896 million yen, up 2,198 million yen from the end of the previous fiscal year.
As of the end of current fiscal year, total net assets were 40,894 million yen, up 2,609 million yen from the end of previous fiscal year. This was mainly due to an increase in retained earnings.
(3) Overview of Cash Flows
During the current fiscal year under review, cash and cash equivalents decreased 601 million yen from the end of previous period to finish at 9,587 million yen (10,189 million yen at the end of prior period).
The status of respective cash flows and underlying factors for the current fiscal year are as follows.
(Cash flows from operating activities)
Cash flows from operating activities amounted to 3,599 million yen (4,962 million yen in the previous fiscal year). This was mainly due to a decrease in revenues from the prior period, accompanying a decrease, etc. in changes in the amount of trade receivables and inventories.
(Cash flows from investing activities)
Cash flows from investing activities totaled payments of 3,275 million yen (4,016 million yen in the previous fiscal year). This was mainly due to a decrease in payments from the prior period, accompanying payments for investments in capital of subsidiaries and associates, etc. in the prior period.
(Cash flows from financing activities)
Cash flows from financing activities totaled payments of 934 million yen (1,060 million yen in the previous fiscal year). This was mainly due to a decrease in payments, accompanying a decrease in purchase of treasury shares from the prior period.
Cash flow indices for the Group are shown below.
Period ended | Period ended | Period ended | Period ended | |
March 2020 | March 2021 | March 2022 | March 2023 | |
Capital-to-asset ratio (%) | 46.1 | 49.2 | 47.5 | 47.9 |
Capital-to-asset ratio on market value basis (%) | 20.3 | 19.9 | 16.7 | 19.4 |
Cash flow-to-interest-bearing debt ratio (years) | 1.7 | 2.1 | 1.8 | 2.5 |
Interest coverage ratio | 68.4 | 66.2 | 81.5 | 56.5 |
(Note) Capital-to-asset ratio: Equity capital/Total assets
Capital-to-asset ratio on market value basis: Market capitalization for stock/Total assets
Cash flow-to-interest-bearing debt ratio: Interest-bearing debts/Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities/Interest payments
- The indices above were calculated based on the financial data on a consolidated basis.
- Market capitalization for stock was calculated as follows: Term-end closing price for shares × Term-end number of shares outstanding (after deducting treasury shares).
- For the cash flows from operating activities, the data for cash flows from operating activities as stated in the consolidated statements of cash flows was used. Interest-bearing debts are all liabilities on the consolidated balance sheets for which interest is paid. For interest payments, the data for interest expenses paid shown in the consolidated statements of cash flows was used.
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TOLI Corporation published this content on 02 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2023 07:23:07 UTC.
