July 29, 2022
Consolidated Financial Results for the First Six Months of Fiscal Year
Ending December 31, 2022 (Six Months Ended June 30, 2022)
Company name: MonotaRO Co., Ltd. | Listing: Tokyo Stock Exchange, Prime Market | ||||||||||||
Stock code: | 3064 | URL: https://www.monotaro.com | |||||||||||
Representative: | Masaya Suzuki, President & CEO | ||||||||||||
Contact: | Tetsuya Koda, Senior Executive Officer, General Manager of Business | Tel: +81-6-4869-7190 | |||||||||||
Admin. Dept. | |||||||||||||
Scheduled date to file Quarterly Securities Report: August 10, 2022 | |||||||||||||
Scheduled date of dividend payments: September 9, 2022 | |||||||||||||
Supplementary materials: Yes | Investors meeting: Yes | ||||||||||||
(Figures are rounded down to the nearest million yen) | |||||||||||||
1. Consolidated Financial Results for the Six Months Ended June 30, 2022 | |||||||||||||
(January 1, 2022 - June 30, 2022) | |||||||||||||
(1) Consolidated results of operations | (Percentages show the change from the same period of previous fiscal year) | ||||||||||||
Net income | |||||||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||||||
owners of the parent | |||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
Six months ended Jun. 30, 2022 | 109,863 | 19.6 | 13,136 | 10.4 | 13,319 | 11.2 | 9,317 | 11.7 | |||||
Six months ended Jun. 30, 2021 | 91,868 | 22.0 | 11,898 | 27.7 | 11,973 | 28.2 | 8,344 | 27.6 | |||||
Note: Comprehensive income: Six months ended Jun. 30, 2022: 9,476 million yen (12.7%) | |||||||||||||
Six months ended Jun. 30, 2021: 8,409 million yen (32.3%) | |||||||||||||
Net income per share | Diluted net income per share | ||||||||||||
Yen | Yen | ||||||||||||
Six months ended Jun. 30, 2022 | 18.75 | 18.75 | |||||||||||
Six months ended Jun. 30, 2021 | 16.80 | 16.79 |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share and diluted net income per share are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
As of Jun. 30, 2022 | 105,996 | 66,921 | 62.3 | ||
As of Dec. 31, 2021 | 95,789 | 60,283 | 61.9 | ||
Reference: Shareholders' equity | Jun. 30, 2022: 66,030 million yen | Dec. 31, 2021: 59,286 million yen |
2. Dividends
Dividends per share | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Annual | |||
Yen | Yen | Yen | Yen | Yen | |||
Year ended Dec. 31, 2021 | - | 5.75 | - | 5.75 | 11.50 | ||
Year ending Dec. 31, 2022 | (actual) | - | 6.50 | ||||
Year ending Dec. 31, 2022 | (forecast) | - | 7.00 | 13.50 |
Note: Amendments to dividend forecast compared with the most recent disclosure: None
3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2022 (January 1, 2022 - December 31, 2022)
(Percentages show the change from the same period of previous fiscal year)
Net sales | Operating income | Ordinary income | Net income attributable | Net income | ||||||
to owners of the parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 226,073 | 19.2 | 24,380 | 1.0 | 24,392 | 0.4 | 17,067 | (2.8) | 34.35 |
Note: Revision of consolidated forecast during this quarter: None
4. Others
- Changes in the number of material subsidiaries resulting in changes in scope of consolidation during the six-month period ended June 30, 2022: None
- Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
- Changes in accounting principles and estimates, or retrospective restatements:
- Changes in accounting principles caused by the revision of accounting standards: Yes
- Changes in accounting principles other than mentioned in 1): None
- Changes in estimates: None
- Retrospective restatements: None
- Number of shares outstanding (common shares)
- Number of shares outstanding at the end of period (including treasury stock)
Jun. 30, 2022: | 501,313,800 shares | Dec. 31, 2021: | 501,275,000 shares |
2) Number of treasury stock at the end of period | |||
Jun. 30, 2022: | 4,443,916 shares | Dec. 31, 2021: | 4,443,812 shares |
3) Average number of shares outstanding during the period | |||
Six months ended Jun. 30, 2022: | 496,869,945 shares | Six months ended Jun. 30, 2021: | 496,822,639 shares |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and the respective numbers of shares above are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
This quarterly report of financial results is out of scope from quarterly review procedures conducted by independent auditors.
* Cautionary statement with respect to forward-looking statements
The forecasts above are based on the judgments made in accordance with information currently available. Forecasts therefore include risks and uncertainties. Actual figures may differ from these forecasts due to subsequent changes in the circumstances.
1. Qualitative Information on the Consolidated Financial Statements
(1) Qualitative Information Regarding Consolidated Results of Operations
The Japanese economy during the first six months of the fiscal year ending December 31, 2022 generally continued to be unpredictable with concerns about the global rebound of the novel coronavirus infectious disease (COVID-19), supply chain disruptions, shortages in the supply of semiconductors and other components, rising energy and raw material prices, a rapid depreciation of the yen,as well as concerns about the impact on the economy from the Russian aggression in Ukraine.
In this economic environment, we have continually concentrated on acquiring new customers aggressively mainly through internet advertisements (paid listings) and internet search engine optimization (SEO), which can improve our website's position on the search engines. We also conducted promotion activities including direct mail using e-mail and mail flyers, daily special prices, the publication and distribution of catalogs. In terms of catalogs, we newly published RED BOOK vol. 18 Spring Edition in late February, divided into 13 volumes with 174 thousand items and approximately 3.1 million issues available in total.
Furthermore, the total number of our product lineup reached approximately 18 million items in total and 494 thousand items in stock which are available for the same day shipment to meet the increase in demand corresponding to the expansion of our customer base as of the end of the first six months of the fiscal year ending December 31, 2022. In addition, in order to strengthen the logistics base, "Inagawa Distribution Center" (Kawabe-gun, Hyogo Prefecture, total floor area of about 189,000 m2) started its operation in April.
In addition, in relation to the sales of MRO products to enterprise customers through the integrated purchase systems, both the number of customers and the amount of sales steadily increased.
Consequently, we have successfully obtained 636,978 newly registered accounts for the first six months of the fiscal year ending December 31, 2022 and the number of registered accounts totaled 7,416,297 as of the end of the first six months of the fiscal year ending December 31, 2022.
In addition, NAVIMRO, which is our Korean subsidiary, also aggressively engaged in acquiring new customers mainly through paid listings and focused on increasing both its product lineup and the number of products in stock in order to expand its customer base.
All of our efforts mentioned above resulted in net sales of 109,863 million yen (19.6% increase from the same period of the previous fiscal year), operating income of 13,136 million yen (10.4% increase from the same period of the previous fiscal year), ordinary income of 13,319 million yen (11.2% increase from the same period of the previous fiscal year), and net income attributable to owners of the parent of 9,317 million yen, a corresponding 11.7% increase.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of June 30, 2022 (the end of the first six months of the fiscal year ending December 31, 2022) amounted to 105,996 million yen, an increase of 10,207 million yen from the end of the previous fiscal year. This was attributable to increases of 6,746 million yen, 2,939 million yen, 2,604 million yen, 2,518 million yen, and 2,323 million yen in machinery and equipment, buildings, notes and accounts receivable-trade, merchandise, and software, respectively, despite decreases of 6,536 million yen and 2,696 million yen, 1,618 million yen in cash and deposits, construction in progress, and software in progress, respectively.
On the other hand, total liabilities as of June 30, 2022 amounted to 39,074 million yen, an increase of 3,569 million yen from the end of the previous fiscal year. This was due mainly to increases of 1,974 million yen and 986 million yen in accounts payable-trade and accounts payable-other, respectively.
Total net assets amounted to 66,921 million yen, an increase of 6,637 million yen from the end of the previous fiscal year. This was largely due to net income attributable to owners of the parent of 9,317 million yen offset by dividend payments of 2,856 million yen for the first six months of the fiscal year ending December 31, 2022.
As a result, the equity ratio as of June 30, 2022 was 62.3%, up 0.4 percentage points from the end of the previous fiscal year.
(3) Forecast for the Fiscal Year Ending December 31, 2022
Our consolidated financial results for the first six months of this fiscal year were almost in line with our plan in terms of sales and slightly higher in terms of operating income. However, the economic outlook is difficult to forecast at this time due to continued rapid inflation mainly in Europe and the United States, and the accompanying a policy of rising interest rates especially in the United States. Therefore, the consolidated forecast for the fiscal year ending December 31, 2022, disclosed on February 3, 2022, has not been changed at this time.
2. Consolidated Quarterly Financial Statements
(1) Consolidated quarterly balance sheets
Accounts | (In millions of yen) | ||||||||||||
As of Dec. 31, 2021 | As of Jun. 30, 2022 | ||||||||||||
Assets | |||||||||||||
Current assets | |||||||||||||
Cash and deposits | 12,379 | 5,843 | |||||||||||
Notes and accounts receivable-trade | 21,665 | 24,270 | |||||||||||
Electronically recorded monetary claims | 900 | 1,499 | |||||||||||
Merchandise | 14,647 | 17,166 | |||||||||||
Goods in transit | 696 | 695 | |||||||||||
Supplies | 86 | 115 | |||||||||||
Accounts receivable-other | 5,961 | 6,041 | |||||||||||
Other | 844 | 1,565 | |||||||||||
Allowance for doubtful accounts | (95) | (92) | |||||||||||
Total current assets | 57,086 | 57,105 | |||||||||||
Noncurrent assets | |||||||||||||
Property, plant and equipment | |||||||||||||
Buildings, net | 9,822 | 12,762 | |||||||||||
Leased assets, net | 3,282 | 3,013 | |||||||||||
Construction in progress | 9,164 | 6,468 | |||||||||||
Other, net | 5,835 | 13,370 | |||||||||||
Total property, plant and equipment | 28,105 | 35,615 | |||||||||||
Intangible assets | |||||||||||||
Goodwill | 770 | 816 | |||||||||||
Other | 5,562 | 6,259 | |||||||||||
Total intangible assets | 6,332 | 7,076 | |||||||||||
Investments and other assets | |||||||||||||
Guarantee deposits | 2,634 | 3,041 | |||||||||||
Other | 1,683 | 3,220 | |||||||||||
Allowance for doubtful accounts | (54) | (62) | |||||||||||
Total investments and other assets | 4,264 | 6,199 | |||||||||||
Total noncurrent assets | 38,702 | 48,890 | |||||||||||
Total assets | 95,789 | 105,996 | |||||||||||
Liabilities | |||||||||||||
Current liabilities | |||||||||||||
Accounts payable-trade | 14,562 | 16,536 | |||||||||||
Short-term loans | - | 17 | |||||||||||
Current portion of long-term loans payable | - | 2,250 | |||||||||||
Lease obligations | 34 | 23 | |||||||||||
Accounts payable-other | 4,409 | 5,395 | |||||||||||
Income taxes payable | 4,090 | 4,457 | |||||||||||
Provision for employees' bonuses | 121 | 137 | |||||||||||
Provision for accident related loss | 16 | 16 | |||||||||||
Other | 589 | 771 | |||||||||||
Total current liabilities | 23,824 | 29,606 | |||||||||||
Noncurrent liabilities | |||||||||||||
Long-term loans payable | 9,000 | 6,750 | |||||||||||
Lease obligations | 586 | 596 | |||||||||||
Net defined benefit liability | 388 | 453 | |||||||||||
Asset retirement obligations | 1,222 | 1,416 | |||||||||||
Other | 484 | 251 | |||||||||||
Total noncurrent liabilities | 11,681 | 9,467 | |||||||||||
Total liabilities | 35,505 | 39,074 | |||||||||||
Net assets | |||||||||||||
Shareholders' equity | |||||||||||||
Capital stock | 2,000 | 2,008 | |||||||||||
Capital surplus | 899 | 1,003 | |||||||||||
Retained earnings | 56,646 | 63,107 | |||||||||||
Treasury stock | (413) | 502 | |||||||||||
Total shareholders' equity | 59,133 | 65,616 | |||||||||||
Accumulated other comprehensive income | |||||||||||||
Foreign currency translation adjustment | 151 | 415 | |||||||||||
Remeasurements of defined benefit plans | 1 | (1) | |||||||||||
Total accumulated other comprehensive income | 152 | 413 | |||||||||||
Subscription rights to shares | 99 | 95 | |||||||||||
Non-controlling interests | 897 | 795 | |||||||||||
Total net assets | 60,283 | 66,921 | |||||||||||
Total liabilities and net assets | 95,789 | 105,996 |
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MonotaRO Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 06:33:01 UTC.