Consolidated Financial Results for the Six Months Ended June 30, 2021 [IFRS]
August 3, 2021 | |||
Company name: | Kao Corporation | Tokyo Stock Exchange in Japan | |
Stock code: | 4452 | (URL: www.kao.com/global/en/investor-relations/library/results/) | |
Representative: | Yoshihiro Hasebe, President and CEO | ||
Contact person: | Mitsuhiro Watanabe, Vice President, Investor Relations | E-mail: ir@kao.co.jp |
Scheduled starting date of the dividend payments: September 1, 2021
Supplementary documents of the financial results: Yes
Financial results information meeting: Yes (for institutional investors and analysts)
(Millions of yen, except per share amounts) (Amounts less than one million yen are rounded)
1. Consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
(1) | Consolidated operating results | |||||||||||||
(Percentages indicate year-on-year changes) | ||||||||||||||
Six months ended | Six months ended | |||||||||||||
June 30, 2021 | % | June 30, 2020 | % | |||||||||||
Net sales | 675,179 | 1.2 | 667,158 | (7.5) | ||||||||||
Operating income | 70,551 | (5.3) | 74,484 | (13.8) | ||||||||||
Income before income taxes | 74,133 | 0.5 | 73,730 | (13.8) | ||||||||||
Net income | 53,455 | 3.7 | 51,543 | (11.5) | ||||||||||
Net income attributable to owners of the parent | 52,538 | 3.8 | 50,600 | (11.7) | ||||||||||
Comprehensive income | 79,988 | 94.2 | 41,191 | (18.0) | ||||||||||
Basic earnings per share (Yen) | 110.12 | 105.21 | ||||||||||||
Diluted earnings per share (Yen) | 110.12 | 105.20 | ||||||||||||
(2) | Consolidated financial position | |||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||
Total assets | 1,620,608 | 1,665,616 | ||||||||||||
Total equity | 932,673 | 938,194 | ||||||||||||
Equity attributable to owners of the parent | 915,770 | 923,687 | ||||||||||||
Ratio of equity attributable to owners | ||||||||||||||
of the parent to total assets | 56.5% | 55.5% | ||||||||||||
Equity attributable to owners of the | ||||||||||||||
parent per share (Yen) | 1,932.50 | 1,920.56 | ||||||||||||
2. | Dividends | |||||||||||||
Year ending | Year ending | Year ended | ||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2020 | ||||||||||||
(Forecast) | ||||||||||||||
Annual cash dividends per share (Yen) | ||||||||||||||
1st quarter end | - | - | ||||||||||||
2nd quarter end | 72.00 | 70.00 | ||||||||||||
3rd quarter end | - | - | ||||||||||||
Fiscal year end | 72.00 | 70.00 | ||||||||||||
Total | 144.00 | 140.00 |
Note: Revisions to the cash dividends forecast most recently announced: None
Six Months Ended June 30, 2021
3. Forecast of consolidated operating results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
(Millions of yen, except per share amounts) | ||||||||
(Percentages indicate year-on-year changes) | ||||||||
Year ending | ||||||||
December 31, 2021 | % | |||||||
Net sales | 1,430,000 | 3.5 | ||||||
Operating income | 177,000 | 0.8 | ||||||
Income before income taxes | 177,000 | 1.7 | ||||||
Net income attributable to owners of the parent | 127,000 | 0.7 | ||||||
Basic earnings per share (Yen) | 267.11 | - | ||||||
Note: Revisions to the consolidated operating results forecast most recently announced: None | ||||||||
4. | Others | |||||||
(1) | Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of | |||||||
consolidation): None | ||||||||
(2) | Changes in accounting policies and changes in accounting estimates | |||||||
1) Changes in accounting principles required by IFRS: None | ||||||||
2) Changes in accounting principles due to reasons other than 1): None | ||||||||
3) Changes in accounting estimates: None | ||||||||
(3) | Number of issued shares outstanding at the end of this period (ordinary shares) | |||||||
June 30, 2021 | December 31, 2020 | |||||||
Number of issued shares including treasury shares | 475,000,000 | 482,000,000 | ||||||
Number of treasury shares | 1,121,651 | 1,054,019 | ||||||
Six months ended | Six months ended | |||||||
June 30, 2021 | June 30, 2020 | |||||||
Weighted average number of shares outstanding | 477,079,090 | 480,918,350 | ||||||
during this period | ||||||||
Six Months Ended June 30, 2021
Qualitative Information on Financial Results for the Six Months Ended June 30, 2021
Note: Like-for-like growth rates below exclude the effect of translation of local currencies into Japanese yen.
1. Description of Operating Results
(Billions of yen, except operating margin and per share amounts)
Six months ended June 30 | 2021 | 2020 | Growth |
Net sales | 675.2 | 667.2 | 1.2% |
Like-for-like: (0.6%) | |||
Operating income | 70.6 | 74.5 | (5.3%) |
Operating margin (%) | 10.4 | 11.2 | - |
Income before income taxes | 74.1 | 73.7 | 0.5% |
Net income | 53.5 | 51.5 | 3.7% |
Net income attributable to owners of the parent | 52.5 | 50.6 | 3.8% |
Basic earnings per share (Yen) | 110.12 | 105.21 | 4.7% |
The novel coronavirus (COVID-19) pandemic continued to have a major impact on social and economic activities and the lives of people around the world. Even as more people were being vaccinated in countries around the world, the number of infections continue to fluctuate, and the business environment remained unclear.
During the period from January to June 2021, the household and personal care products market in Japan, which is the Kao Group's key market, shrank compared with the same period a year earlier, reflecting the absence of the increase in demand, mainly for hygiene-related products, that arose in the previous year due to the pandemic, but grew compared with the same period two years before. On the other hand, the cosmetics market shrank compared with the same period a year earlier and has not recovered due to the substantial impact of factors including the declaration of a state of emergency, which continued in various regions.
Amid these circumstances, net sales increased 1.2% compared with the same period a year earlier to 675.2 billion yen. On a like-for-like basis, net sales decreased 0.6%. Operating income was 70.6 billion yen, a decrease of 3.9 billion yen compared with the same period a year earlier, and income before income taxes was 74.1 billion yen, an increase of 0.4 billion yen. Net income was 53.5 billion yen, an increase of 1.9 billion yen.
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Six Months Ended June 30, 2021
The main exchange rates used for translating the financial statement items (income and expenses) of foreign consolidated subsidiaries and associates were as shown below.
First quarter | Second quarter | ||
Jan. - Mar. | Apr. - Jun. | ||
U.S. dollar | 105.96 | (108.95) | 109.47 (107.54) |
Euro | 127.74 | (120.18) | 131.90 (118.41) |
Chinese yuan | 16.35 | (15.61) | 16.95 (15.18) |
Note: Figures in parentheses represent the exchange rates for the same period a year earlier.
Summary of Segment Information
The following is an overview of changes in reportable segments implemented as of the three months ended March 31, 2021 (Reference: Page 14, "1. Segment Information" in "Notes to Condensed Consolidated Financial Statements").
- The Hygiene and Living Care Business has been newly established and incorporates sanitary products from the former Human Health Care Business in addition to fabric care products and home care products, which were previously classified in the Fabric and Home Care Business.
- The Health and Beauty Care Business has been newly established and incorporates personal health products, which were previously classified in the Human Health Care Business, in addition to skin care products and hair care products, which were previously classified in the Skin Care and Hair Care Business.
- The Life Care Business has been newly established and incorporates health drinks, which were previously classified in the Human Health Care Business, in addition to commercial-use hygiene products, which were previously classified in the Fabric and Home Care Business.
- Due to the reorganization of segments described in 1 to 3 above, sales and operating income for the same period a year earlier have been restated.
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Six Months Ended June 30, 2021
Consolidated Results by Segment
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Kao Corporation published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 09:55:19 UTC.