July 31, 2020
Consolidated Financial Results for the First Six Months of Fiscal Year
Ending December 31, 2020 (Six Months Ended June 30, 2020)
Company name: MonotaRO Co., Ltd. | Listing: Tokyo Stock Exchange, First Section | ||||||||||
Stock code: | 3064 | URL: https://www.monotaro.com | |||||||||
Representative: | Masaya Suzuki, President & CEO | ||||||||||
Contact: | Tetsuya Koda, Senior Executive Officer, General Manager of Admin. Dept. | Tel: +81-6-4869-7190 | |||||||||
Scheduled date to file Quarterly Securities Report: August 7, 2020 | |||||||||||
Scheduled date of dividend payments: September 10, 2020 | |||||||||||
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, 2020 | |||||||||||
(January 1, 2020 - June 30, 2020) | |||||||||||
(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, 2020 | 75,281 | 19.6 | 9,318 | 22.7 | 9,342 | 22.8 | 6,540 | 23.3 | |||
Six months ended Jun. 30, 2019 | 62,970 | 21.8 | 7,597 | 13.2 | 7,607 | 13.8 | 5,302 | 15.1 |
Note: Comprehensive income: Six months ended Jun. 30, 2020: 6,357 million yen (23.4%) | ||
Six months ended Jun. 30, 2019: 5,151 million yen (14.9%) | ||
Net income per share | Diluted net income per share | |
Yen | Yen | |
Six months ended Jun. 30, 2020 | 26.33 | 26.32 |
Six months ended Jun. 30, 2019 | 21.35 | 21.34 |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
As of Jun. 30, 2020 | 65,407 | 41,955 | 63.6 | ||
As of Dec. 31, 2019 | 59,691 | 37,512 | 62.1 | ||
Reference: Shareholders' equity | Jun. 30, 2020: 41,621 million yen | Dec. 31, 2019: 37,051 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, 2019 | - | 7.50 | - | 7.50 | 15.00 | |
Year ending Dec. 31, 2020 | (actual) | - | 8.50 | |||
Year ending Dec. 31, 2020 | (forecast) | - | 8.50 | 17.00 |
Note: Amendments to dividend forecast compared with the most recent disclosure: None
3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2020 (January 1, 2020 - December 31, 2020)
(Percentages show the change from the same period of previous fiscal year)
Net income | |||||||||||
Net sales | Operating income | Ordinary income | attributable to owners | Net income per share | |||||||
of the parent | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Full year | 156,468 | 19.0 | 18,569 | 17.2 | 18,584 | 17.0 | 12,997 | 18.3 | 52.32 | ||
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, 2020: 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: None
- 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, 2020: | 250,627,600 shares | Dec. 31, 2019: | 250,623,200 shares |
2) Number of treasury stock at the end of period | |||
Jun. 30, 2020: | 2,221,788 shares | Dec. 31, 2019: | 2,200,988 shares |
3) Average number of shares outstanding during the period | |||
Six months ended Jun. 30, 2020: | 248,415,462 shares | Six months ended Jun. 30, 2019: | 248,344,898 shares |
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, 2020 generally continued to be weak with government economic and fiscal policies providing some support, while concerns about the global spread of the novel coronavirus infectious disease (COVID-19) , the policy trend in the United States, and the continuity of the growth momentum of the Chinese economy made the outlook for the future Japanese economy weak and unpredictable.
Among mid-to-small manufacturers, the major customers of our industrial MRO products, economic conditions also remained weak due to uncertain outlook.
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 REDBOOK vol. 16 Spring Edition in late February, divided into 11 volumes with 194 thousand items and approximately 2.6 million issues available in total.
Furthermore, the total number of our product lineup reached approximately 18 million items in total and 461 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, 2020.
In addition, in relation to the sales of MRO products to large customers through the integrated purchase systems, both the number of customers and the amount of sales steadily increased.
Consequently, we have successfully obtained 725,681 newly registered accounts for the first six months of the fiscal year ending December 31, 2020 and the number of registered accounts totaled 4,835,382 as of the end of the second quarter.
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 75,281 million yen (19.6% increase from the same period of the previous fiscal year), operating income of 9,318 million yen (22.7% increase from the same period of the previous fiscal year), ordinary income of 9,342 million yen (22.8% increase from the same period of the previous fiscal year), and net income attributable to owners of the parent of 6,540 million yen, a corresponding 23.3% increase.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of June 30, 2020 (the end of the first six months of the fiscal year ending December 31, 2020) amounted to 65,407 million yen, an increase of 5,715 million yen from the end of the previous fiscal year. This was attributable to increases of 2,967 million yen, 2,246 million yen and 627 million yen in notes and accounts receivable-trade, construction in progress and software in progress, respectively, despite a decrease of 350 million yen in cash and deposits.
On the other hand, total liabilities as of June 30, 2020 amounted to 23,451 million yen, an increase of 1,272 million yen from the end of the previous fiscal year. This was due mainly to increases of 1,649 million yen and 460 million yen in accounts payable-trade and accounts payable-other, respectively, despite decreases of 1,000 million yen and 612 million yen in long-term loans payable and lease obligations, respectively.
Total net assets amounted to 41,955 million yen, an increase of 4,442 million yen from the end of the previous fiscal year. This was largely due to net income attributable to owners of the parent of 6,540 million yen offset by dividend payments of 1,863 million yen for the first six months of the fiscal year ending December 31, 2020.
As a result, the equity ratio as of June 30, 2020 was 63.6%, up 1.6 percentage points from the end of the previous fiscal year.
(3) Forecast for the Fiscal Year Ending December 31, 2020
Our consolidated financial forecast for the fiscal year ending December 31, 2020 disclosed on February 3, 2020 is calculated based on figures that do not incorporate assumptions about the impact of COVID-19.
However, the spread of COVID-19 infection is expected to have various social and economic effects in the future. The results of the Group for the first six months of this fiscal year were almost in line with the plan. However, if revisions to our business forecasts become necessary, we will disclose them promptly.
2. Consolidated Quarterly Financial Statements
(1) Consolidated quarterly balance sheets
Accounts | (In millions of yen) | |||||||||||
As of Dec. 31, 2019 | As of Jun. 30, 2020 | |||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and deposits | 11,155 | 10,804 | ||||||||||
Notes and accounts receivable-trade | 13,889 | 16,857 | ||||||||||
Electronically recorded monetary claims | 582 | 586 | ||||||||||
Merchandise | 11,267 | 11,681 | ||||||||||
Goods in transit | 193 | 401 | ||||||||||
Supplies | 101 | 120 | ||||||||||
Accounts receivable-other | 4,286 | 4,104 | ||||||||||
Other | 366 | 507 | ||||||||||
Allowance for doubtful accounts | (71) | (78) | ||||||||||
Total current assets | 41,771 | 44,984 | ||||||||||
Noncurrent assets | ||||||||||||
Property, plant and equipment | ||||||||||||
Buildings, net | 4,110 | 4,019 | ||||||||||
Leased assets, net | 4,321 | 4,059 | ||||||||||
Other, net | 3,616 | 5,843 | ||||||||||
Total property, plant and equipment | 12,048 | 13,922 | ||||||||||
Intangible assets | ||||||||||||
Goodwill | 75 | 66 | ||||||||||
Other | 3,009 | 3,627 | ||||||||||
Total intangible assets | 3,084 | 3,693 | ||||||||||
Investments and other assets | ||||||||||||
Guarantee deposits | 1,371 | 1,367 | ||||||||||
Other | 1,470 | 1,491 | ||||||||||
Allowance for doubtful accounts | (54) | (53) | ||||||||||
Total investments and other assets | 2,787 | 2,806 | ||||||||||
Total noncurrent assets | 17,920 | 20,422 | ||||||||||
Total assets | 59,691 | 65,407 | ||||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable-trade | 9,829 | 11,479 | ||||||||||
Current portion of long-term loans payable | 2,498 | 1,498 | ||||||||||
Lease obligations | 625 | 639 | ||||||||||
Accounts payable-other | 3,142 | 3,602 | ||||||||||
Income taxes payable | 2,766 | 3,120 | ||||||||||
Provision for employees' bonuses | 97 | 100 | ||||||||||
Provision for directors' bonuses | 28 | 45 | ||||||||||
Provision for accident related loss | 110 | 9 | ||||||||||
Other | 873 | 1,238 | ||||||||||
Total current liabilities | 19,973 | 21,733 | ||||||||||
Noncurrent liabilities | ||||||||||||
Lease obligations | 1,225 | 597 | ||||||||||
Net defined benefit liability | 292 | 328 | ||||||||||
Other | 687 | 792 | ||||||||||
Total noncurrent liabilities | 2,205 | 1,718 | ||||||||||
Total liabilities | 22,179 | 23,451 | ||||||||||
Net assets | ||||||||||||
Shareholders' equity | ||||||||||||
Capital stock | 1,986 | 1,990 | ||||||||||
Capital surplus | 809 | 813 | ||||||||||
Retained earnings | 34,513 | 39,191 | ||||||||||
Treasury stock | (247) | (315) | ||||||||||
Total shareholders' equity | 37,062 | 41,679 | ||||||||||
Accumulated other comprehensive income | ||||||||||||
Foreign currency translation adjustment | (15) | (60) | ||||||||||
Remeasurements of defined benefit plans | 4 | 2 | ||||||||||
Total accumulated other comprehensive income | (10) | (57) | ||||||||||
Subscription rights to shares | 44 | 53 | ||||||||||
Non-controlling interests | 416 | 279 | ||||||||||
Total net assets | 37,512 | 41,955 | ||||||||||
Total liabilities and net assets | 59,691 | 65,407 |
(2) Consolidated quarterly statements of (comprehensive) income
Accounts
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income Non-operating income
Interest income Foreign exchange gains Gain on sale of materials Other
Total non-operating income Non-operating expenses
Interest expenses
Loss on disposal of inventories Other
Total non-operating expenses Ordinary income Extraordinary income
Gain on sales of fixed assets Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets Total extraordinary losses Income before income taxes
Income taxes-current-deferred
Total income taxes Net income
Net income attributable to: owners of the parent non-controlling interests
Other comprehensive income
Foreign currency translation adjustment Remeasurements of defined benefit plans
Total other comprehensive income Comprehensive income
Comprehensive income attributable to: owners of the parent non-controlling interests
(In millions of yen) | |||||||
Six months period | Six months period | ||||||
ended Jun. 30, 2019 | ended Jun. 30, 2020 | ||||||
62,970 | 75,281 | ||||||
45,102 | 54,039 | ||||||
17,867 | 21,241 | ||||||
10,270 | 11,922 | ||||||
7,597 | 9,318 | ||||||
12 | 11 | ||||||
30 | 31 | ||||||
8 | 5 | ||||||
32 | 24 | ||||||
83 | 73 | ||||||
40 | 18 | ||||||
19 | 15 | ||||||
14 | 15 | ||||||
74 | 49 | ||||||
7,607 | 9,342 | ||||||
1 | 1 | ||||||
1 | 1 | ||||||
0 | 0 | ||||||
0 | 0 | ||||||
7,608 | 9,343 | ||||||
2,399 | 2,925 | ||||||
17 | 0 | ||||||
2,416 | 2,924 | ||||||
5,191 | 6,419 | ||||||
5,302 | 6,540 | ||||||
(110) | (121) | ||||||
(41) | (60) | ||||||
0 | (1) | ||||||
(40) | (62) | ||||||
5,151 | 6,357 | ||||||
5,252 | 6,493 | ||||||
(100) | (136) |
(3) Consolidated statements of cash flows
(In millions of yen) | |||||||||
Accounts | Six months period | Six months period | |||||||
ended Jun. 30, 2019 | ended Jun. 30, 2020 | ||||||||
Net cash provided by (used in) operating activities | |||||||||
Income before income taxes and minority interests | 7,608 | 9,343 | |||||||
Depreciation and amortization | 644 | 747 | |||||||
Increase (decrease) in allowance for doubtful accounts | 12 | 5 | |||||||
Increase (decrease) in provision for bonuses | (19) | 3 | |||||||
Increase (decrease) in provision for directors' bonuses | 8 | 16 | |||||||
Increase (decrease) in net defined benefit liability | 31 | 36 | |||||||
Interest income | (12) | (11) | |||||||
Interest expenses | 40 | 18 | |||||||
Decrease (increase) in notes and accounts receivable-trade | (1,706) | (2,977) | |||||||
Decrease (increase) in inventories | (1,038) | (662) | |||||||
Decrease (increase) in accounts receivable-other | 70 | 164 | |||||||
Increase (decrease) in notes and accounts payable-trade | 526 | 1,668 | |||||||
Increase (decrease) in accounts payable-other | 312 | 372 | |||||||
Other, net | (439) | 367 | |||||||
Subtotal | 6,038 | 9,092 | |||||||
Interest income received | 13 | 13 | |||||||
Interest expenses paid | (49) | (44) | |||||||
Income taxes paid | (2,721) | (2,632) | |||||||
Payments for accident related loss | - | (103) | |||||||
Net cash provided by (used in) operating activities | 3,280 | 6,325 | |||||||
Net cash provided by (used in) investment activities | |||||||||
Payments into time deposits | (236) | (191) | |||||||
Proceeds from withdrawal of time deposits | 380 | 393 | |||||||
Purchase of property, plant and equipment | (466) | (2,368) | |||||||
Purchase of intangible assets | (754) | (665) | |||||||
Other, net | (18) | (0) | |||||||
Net cash provided by (used in) investment activities | (1,094) | (2,831) | |||||||
Net cash provided by (used in) financing activities | |||||||||
Repayments of long-term loans payable | (1,000) | (1,000) | |||||||
Proceeds from exercise of stock option | 0 | 0 | |||||||
Purchase of treasury stock | (21) | (68) | |||||||
Cash dividends paid | (1,613) | (1,864) | |||||||
Proceeds from share issuance to non-controlling shareholders | 222 | - | |||||||
Repayments of lease obligations | (2,140) | (661) | |||||||
Net cash provided by (used in) financing activities | (4,553) | (3,594) | |||||||
Effect of exchange rate change on cash and cash equivalents | (35) | (35) | |||||||
Net increase (decrease) in cash and cash equivalents | (2,402) | (135) | |||||||
Cash and cash equivalents at beginning of period | 12,040 | 10,746 | |||||||
Cash and cash equivalents at end of period | 9,637 | 10,610 |
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MonotaRO Co. Ltd. published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 06:05:20 UTC