Consolidated Financial Results for the Six Months Ended June 30, 2022 [IFRS] | |||
August 3, 2022 | |||
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, 2022 | |||
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, 2022 (from January 1, 2022 to June 30, 2022)
(1) | Consolidated operating results | ||||
(Percentages indicate year-on-year changes) | |||||
Six months ended | Six months ended | ||||
June 30, 2022 | % | June 30, 2021 | % | ||
Net sales | 733,901 | 8.7 | 675,179 | 1.2 | |
Operating income | 53,661 | (23.9) | 70,551 | (5.3) | |
Income before income taxes | 60,472 | (18.4) | 74,133 | 0.5 | |
Net income | 39,759 | (25.6) | 53,455 | 3.7 | |
Net income attributable to owners of the parent | 38,888 | (26.0) | 52,538 | 3.8 | |
Comprehensive income | 110,587 | 38.3 | 79,988 | 94.2 | |
Basic earnings per share (Yen) | 82.17 | 110.12 | |||
Diluted earnings per share (Yen) | 82.16 | 110.12 | |||
(2) | Consolidated financial position | ||||
June 30, 2022 | December 31, 2021 | ||||
Total assets | 1,761,180 | 1,704,007 | |||
Total equity | 1,039,738 | 983,877 | |||
Equity attributable to owners of the parent | 1,015,822 | 965,137 | |||
Ratio of equity attributable to owners | |||||
of the parent to total assets | 57.7% | 56.6% | |||
Equity attributable to owners of the | |||||
parent per share (Yen) | 2,163.56 | 2,036.66 | |||
2. | Dividends | ||||
Year ending | Year ending | Year ended | |||
December 31, 2022 | December 31, 2022 | December 31, 2021 | |||
(Forecast) | |||||
Annual cash dividends per share (Yen) | |||||
1st quarter end | - | - | |||
2nd quarter end | 74.00 | 72.00 | |||
3rd quarter end | - | - | |||
Fiscal year end | 74.00 | 72.00 | |||
Total | 148.00 | 144.00 | |||
Note: Revisions to the cash dividends forecast most recently announced: None |
Six Months Ended June 30, 2022
3. Forecast of consolidated operating results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
(Millions of yen, except per share amounts) | ||
(Percentages indicate year-on-year changes) | ||
Year ending | ||
December 31, 2022 | % | |
Net sales | 1,570,000 | 10.7 |
Operating income | 145,000 | 1.0 |
Income before income taxes | 156,000 | 4.0 |
Net income attributable to owners of the parent | 111,000 | 1.2 |
Basic earnings per share (Yen) | 236.53 | - |
Note: Revisions to the consolidated operating results forecast most recently announced: Yes | ||
4. Others |
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting principles required by IFRS: None
- Changes in accounting principles due to reasons other than 1): None
- Changes in accounting estimates: None
- Number of issued shares outstanding at the end of this period (ordinary shares)
June 30, 2022 | December 31, 2021 | |
Number of issued shares including treasury shares | 475,000,000 | 475,000,000 |
Number of treasury shares | 5,485,649 | 1,117,195 |
Six months ended | Six months ended | |
June 30, 2022 | June 30, 2021 | |
Weighted average number of shares outstanding | 473,275,863 | 477,079,090 |
during this period | ||
Notice regarding execution of quarterly review procedures | ||
This quarterly financial results report is exempt from quarterly review by certified public accountants or accounting firms. | ||
Explanation regarding the appropriate use of forecast of operating results and other special items | ||
Forward-looking statements such as earnings forecasts and other projections contained in this release are based on | ||
information available at the time of disclosure and assumptions that management believes to be reasonable, and do not | ||
constitute guarantees of future performance. Actual results may differ materially from expectations due to various | ||
factors. | ||
Please refer to page 7, "Qualitative Information on Financial Results for the Six Months Ended June 30, 2022 - 2. | ||
Description of Information on Outlook, Including Forecasts of Consolidated Results" for the suppositions that form the | ||
assumptions for earnings forecasts and cautions concerning the use of earnings forecasts. |
Six Months Ended June 30, 2022
Qualitative Information on Financial Results for the Six Months Ended June 30, 2022
Note: Changes and comparisons are all with the same period a year earlier unless otherwise noted. 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 | 2022 | 2021 | Growth |
Net sales | 733.9 | 675.2 | 8.7% |
Like-for-like: 4.2% | |||
Operating income | 53.7 | 70.6 | (23.9%) |
Operating margin (%) | 7.3 | 10.4 | - |
Income before income taxes | 60.5 | 74.1 | (18.4%) |
Net income | 39.8 | 53.5 | (25.6%) |
Net income attributable to owners of the parent | 38.9 | 52.5 | (26.0%) |
Basic earnings per share (Yen) | 82.17 | 110.12 | (25.4%) |
Although the global economy was on a recovery track, the business environment remained unclear, with factors including hikes in raw material prices and rapid exchange rate fluctuations, as well as the Russia- Ukraine crisis and the spread of variants of COVID-19. In particular, prices of petrochemical raw materials continued to rise to unprecedented levels.
According to retail sales and consumer purchasing survey data, the consumer products (household and personal care products and cosmetics) market in Japan, which is the Kao Group's key market, grew slightly during the period from January to June 2022, compared with the same period a year earlier.
Amid these circumstances, the Kao Group has been steadily advancing the management strategy announced in February 2022, including its capital allocation policy, brand management reform and adjustments to selling prices, among other factors.
Net sales increased 8.7% compared with the same period a year earlier to 733.9 billion yen. On a like- for-like basis, net sales increased 4.2%. Operating income was 53.7 billion yen, a decrease of 16.9 billion yen compared with the same period a year earlier, and income before income taxes was 60.5 billion yen, a decrease of 13.7 billion yen. Net income was 39.8 billion yen, a decrease of 13.7 billion yen.
To improve capital efficiency and further increase shareholders' returns, the Board of Directors of Kao Corporation (the "Company") resolved at a meeting held on May 11, 2022 to repurchase the Company's stock during the period from May 12 to August 31, up to a maximum of 12,000,000 shares or a total amount of 50.0 billion yen. As of June 30, 2022, the total number of repurchased shares was 4,398,000 at a total amount of 22.6 billion yen.
1
Six Months Ended June 30, 2022
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 | 116.30 (105.96) | 129.69 (109.47) |
Euro | 130.45 (127.74) | 138.14 (131.90) |
Chinese yuan | 18.32 (16.35) | 19.63 (16.95) |
Note: Figures in parentheses represent the exchange rates for the same period a year earlier.
Summary of Segment Information
Consolidated Results by Segment
(Remainder of page intentionally left blank.)
2
Six Months Ended June 30, 2022
Consolidated Net Sales Composition
Note: Figures for the Consumer Products Business present sales to external customers and figures for the Chemical Business include sales to the Consumer Products Business in addition to external customers. Sales by geographic region are classified based on the location of the sales recognized.
Net sales to foreign customers were 46.3% of net sales compared with 42.2% for the same period a year earlier.
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Kao Corporation published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 06:31:17 UTC.