Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
November 10, 2023
Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name: | Konoike Transport Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 9025 |
URL: | https://www.konoike.net/ |
Representative: | Tadahiko Konoike, Representative Director, Chairman, President and Chief Executive Officer |
Inquiries: | Yoshihito Nakanishi, Executive Officer, Executive General Manager, Finance/Accounting |
Division | |
Telephone: | +81-6-6227-4600 |
Scheduled date to file Quarterly Securities Report: | November 10, 2023 |
Scheduled date to commence dividend payments: | December 1, 2023 |
Preparation of supplementary material on quarterly financial results: Yes | |
Holding of quarterly financial results briefing: | Yes (for institutional investors and analysts) |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
September 30, 2023 | 155,542 | (0.0) | 8,180 | 10.9 | 8,712 | 4.6 | 5,532 | 7.5 | ||||
September 30, 2022 | 155,560 | 7.0 | 7,378 | 38.5 | 8,326 | 36.1 | 5,144 | 17.2 | ||||
Note: Comprehensive income | For the six months ended September 30, 2023: | ¥9,081 million | [1.3%] | |||||||||
For the six months ended September 30, 2022: | ¥8,961 million | [58.9%] | ||||||||||
Basic earnings | Diluted earnings | |||||||||||
per share | per share | |||||||||||
Six months ended | Yen | Yen | ||||||||||
September 30, 2023 | 104.37 | - | ||||||||||
September 30, 2022 | 97.19 | - | ||||||||||
(2) Consolidated financial position
Total assets | Net assets | ||
As of | Millions of yen | Millions of yen | |
September 30, 2023 | 275,287 | 131,758 | |
March 31, 2023 | 266,022 | 123,793 | |
Reference: Equity | |||
As of September 30, 2023: | ¥129,077 million | ||
As of March 31, 2023: | ¥121,295 million |
Equity-to-asset ratio
%
46.9
45.6
Net assets per share
Yen
2,433.73
2,289.00
2. Cash dividends
Annual dividends per share | ||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended | - | 18.00 | - | 24.00 | 42.00 | |||
March 31, 2023 | ||||||||
Fiscal year ending | - | 24.00 | ||||||
March 31, 2024 | ||||||||
Fiscal year ending | ||||||||
March 31, 2024 | - | 27.00 | 51.00 | |||||
(Forecast) | ||||||||
Note: Revisions to the forecast of cash dividends most recently announced: Yes
3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
(Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Yen | ||
yen | yen | yen | yen | |||||||
Full year | 311,000 | (0.3) | 14,300 | 8.0 | 14,800 | 3.6 | 9,000 | 8.4 | 169.80 | |
Note: Revisions to the forecast of financial results most recently announced: Yes |
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
Newly included: - companies (Company name)
Excluded: - companies (Company name) - Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023
As of March 31, 2023
56,952,442 shares
56,952,442 shares
(ii) Number of treasury shares at the end of the period
As of September 30, 2023
As of March 31, 2023
3,915,506 shares
3,961,817 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023
Six months ended September 30, 2022
53,004,030 shares
52,937,383 shares
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors. For the suppositions that form the assumptions for the forecast of financial results and cautions concerning the use thereof, please refer to the section of "(3) Explanation of the forecast of consolidated financial results and other forward-looking statements" of "1. Qualitative information on financial results for the period" on page 4 of the attached materials.
(How to obtain supplementary material on quarterly financial results and content of quarterly financial results briefing)
The Company plans to hold an online financial results briefing for institutional investors and analysts on Friday, November 24, 2023. The supplementary material on quarterly financial results to be used on the day will be posted to the Company's website on Friday, November 24, 2023.
- Table of contents of attached materials
Index | ||
1. Qualitative information on financial results for the period | 2 | |
(1) | Explanation of operating results | 2 |
(2) | Explanation of financial position | 3 |
(3) | Explanation of the forecast of consolidated financial results and other forward-looking statements 4 | |
(4) | Basic policy for profit allocation, and dividends for the current fiscal year | 5 |
2. Quarterly consolidated financial statements and significant notes thereto | 6 | |
(1) | Quarterly consolidated balance sheets | 6 |
(2) | Quarterly consolidated statements of income and comprehensive income | 8 |
Quarterly consolidated statements of income (cumulative) | 8 | |
Quarterly consolidated statements of comprehensive income (cumulative) | 9 | |
(3) | Quarterly consolidated statements of cash flows | 10 |
(4) | Notes to quarterly consolidated financial statements | 12 |
(Notes on premise of going concern) | 12 | |
(Notes on significant changes in the amount of shareholders' equity) | 12 | |
(Additional information) | 12 | |
(Segment information) | 13 |
- 1 -
1. Qualitative information on financial results for the period
Forward-looking statements presented in this report reflect judgments made as of the end of the current quarterly accounting period and accordingly are not guarantees of future performance.
-
Explanation of operating results
During the six months ended September 30, 2023, the Japanese economy as a whole was on a gradual recovery trend. This was due to noticeable factors of boosting the economy such as progress in normalization of economic and social activity, as well as a resurgence in demand from inbound travelers, as a result of the relaxation of preventive measures against COVID-19, despite concerns about the future like aggravated manpower shortage, escalating personnel expenses, persistently high raw material prices, and rising prices against a backdrop of yen depreciation.
In this business environment, the Group has embarked on the second year of its medium-term management plan concluding in the fiscal year ending March 31, 2025, and has accordingly newly established contracting and logistics strategy committees, which are to serve as advisory bodies to the Board of Directors effective from April 2023. The Group strives to expand business and enhance profitability through addressing the so-called 2024 problem in Japan's logistics industry and other prevailing Company-wide challenges, providing high value-added services, clarifying medium- to long-term contracting and logistics strategies including development of new business models, and optimally devoting management resources. In addition, the airport-related business faced a severe operating environment due to a considerable reduction in international passenger flights, but finally has been entering a recovery phase as a result of a rebound in international passenger flights in conjunction with the end of border control measures. The Group will endeavor to reinforce the structure and expand its domain for further resumption of international passenger flights in the future and sustained development of the ground handling business.
With respect to financial results for the six months ended September 30, 2023, net sales decreased to ¥155,542 million (0.0% decrease year on year). This result was attributable to the significant impact from a downturn in demand for maritime and air cargo along with a decrease in freight rates, despite factors that include gains in transaction volume due to resumption of international passenger flights in the airport-related business, unit price hikes mainly in production contract work, recovering production among the Company's customers, a production boost by its customers because of extreme heat, and orders for large projects in the engineering-related business.
In terms of profits, the Company reported operating profit of ¥8,180 million (10.9% increase), ordinary profit of ¥8,712 million (4.6% increase), and profit attributable to owners of parent of ¥5,532 million (7.5% increase), despite having encountered persistently soaring fuel prices and high electricity fees. The increases in profits were partially attributable to effects of higher net sales centered on the airport- related business, and also attributable to progress achieved with ongoing efforts to improve profitability, which constitutes a basic policy under the New Medium-Term Management Plan FY3/2023 - FY3/2025, launched in April 2022, as well as progress achieved in receiving appropriate unit prices and streamlining operations.
Financial results by segment are as follows. Note that segment profit represents operating profit before deducting general and administrative expenses. - Integrated Solutions Business
Net sales increased 7.1% year on year to ¥100,671 million due to contributions from the resumption of international passenger flights in its airport-related business, unit price hikes associated with production contract work and ongoing acquisition of major spot work in its steel- related business, orders for large-scale construction projects in its engineering-related business, increases in transaction volume resulting from a production boost by the Company's customers because of extreme heat as well as operations at new business sites in its food products-related business, although earthquake reconstruction work was completed in September 2022.
Profit rose 16.9% year on year to ¥8,304 million due to the effects of the increase in net sales as well as due to our efforts to increase profitability by receiving appropriate unit prices and thorough operational streamlining, despite having encountered further hikes in fuel prices and persistently - 2 -
- Integrated Solutions Business
high electricity fees and having incurred expenses for substantial repairs of a distribution center warehouse.
-
Domestic Logistics Business
Net sales increased 2.7% year on year to ¥26,663 million due in part to higher transaction volume in the food-related (temperature controlled) business largely associated with operations of new temperature-controlled warehouses, and also due to higher transaction volume in the life-related business particularly with respect to gas appliances and souvenirs.
Profit rose 0.5% year on year to ¥1,576 million due to having encountered further hikes in fuel prices and persistently high electricity fees, despite the effects of the increase in net sales as well as our efforts to increase profitability by receiving appropriate unit prices and thorough operational streamlining. - International Logistics Business
Net sales decreased 20.7% year on year to ¥28,197 million, due to a downturn in demand for maritime and air cargo and a large impact from freight rates, despite higher warehousing and transportation volume in the United States, India, Thailand and elsewhere.
Profit decreased 17.5% year on year to ¥1,532 million in part due to lower transaction volume.
- Explanation of financial position I. Assets, liabilities and net assets
- Total assets
As of September 30, 2023, total assets amounted to ¥275,287 million, an increase of ¥9,265 million in comparison with total assets as of March 31, 2023. - Current assets
As of September 30, 2023, current assets amounted to ¥137,999 million, an increase of ¥5,744 million compared to current assets as of March 31, 2023. This result is mainly attributable to an increase of ¥3,705 million in notes and accounts receivable - trade, and contract assets, an increase of ¥1,440 million in cash and deposits, and an increase of ¥401 million in other current assets. - Non-currentassets
As of September 30, 2023, non-current assets amounted to ¥137,287 million, an increase of ¥3,520 million in comparison with non-current assets as of March 31, 2023. This result is mainly attributable to an increase of ¥1,504 million in investment securities, an increase of ¥1,416 million in construction in progress, and an increase of ¥857 million in land. - Current liabilities
As of September 30, 2023, current liabilities amounted to ¥53,809 million, an increase of ¥1,282 million compared to current liabilities as of March 31, 2023. This result is mainly attributable to an increase of ¥1,908 million in other current liabilities, an increase of ¥1,670 million in accrued expenses, a decrease of ¥1,609 million in notes and accounts payable - trade, a decrease of ¥367 million in current portion of long-term borrowings, and a decrease of ¥335 million in income taxes payable. - 3 -
-
Non-currentliabilities
As of September 30, 2023, non-current liabilities amounted to ¥89,719 million, an increase of ¥18 million compared to non-current liabilities as of March 31, 2023. This result is mainly attributable to an increase of ¥210 million in retirement benefit liability, an increase of ¥97 million in other non-current liabilities, a decrease of ¥237 million in long-term borrowings, and a decrease of ¥45 million in retirement allowance for directors. - Net assets
As of September 30, 2023, net assets amounted to ¥131,758 million, an increase of ¥7,964 million in comparison with net assets as of March 31, 2023. This result is mainly attributable to an increase of ¥4,375 million in retained earnings, an increase of ¥2,370 million in foreign currency translation adjustment, and an increase of ¥867 million in valuation difference on available-for-sale securities.
- Cash flows
(Cash flows from operating activities)
Net cash provided by operating activities during the six months ended September 30, 2023 was
¥6,087 million, an increase of ¥303 million in net cash provided year on year. This result is mainly attributable to profit before income taxes of ¥8,702 million and depreciation of ¥3,945 million, despite increase in trade receivables of ¥3,222 million, income taxes paid of ¥3,112 million and decrease in trade payables of ¥1,346 million.
(Cash flows from investing activities)
Net cash used in investing activities during the six months ended September 30, 2023 was ¥3,718 million, an increase of ¥385 million in net cash used year on year. This result is mainly attributable to purchase of property, plant and equipment of ¥2,817 million.
(Cash flows from financing activities)
Net cash used in financing activities during the six months ended September 30, 2023 was ¥1,951 million, an increase of ¥357 million in net cash used year on year. This result is mainly attributable to dividends paid of ¥1,271 million and repayments of finance lease liabilities of ¥355 million.
With the increase of ¥642 million due to exchange fluctuations taken into account in addition to the above results, cash and cash equivalents as of September 30, 2023 increased by ¥1,060 million to ¥68,709 million compared to the amount as of March 31, 2023. This also includes the addition of ¥68 million in increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation.
- Cash flows
- Explanation of the forecast of consolidated financial results and other forward-looking statements
With respect to the forecast of consolidated financial results for the fiscal year ending March 31, 2024, the first half of the fiscal year saw reduced revenues but increased profit. Although net sales were impacted by a downturn in demand for maritime and air cargo along with a decrease in freight rates, there was a higher percentage resumption of international passenger flights than expected. Looking ahead to the second half of the fiscal year, although the Company expects the percentage resumption for international passenger flights to settle within the expected range, the Company not only anticipates a continuation of the downturn in demand for maritime and air cargo along with a decrease in freight rates but also expects operating results to differ from the previously announced forecasts due to the occurrence of costs related to research and development tied to next generation strategies aimed at - 4 -
realizing the 2030 vision and those related to infrastructure. Accordingly, the Company has revised figures in the forecast of consolidated financial results for the fiscal year.
For details, please refer to the "Notice Concerning Revisions to Forecast of Financial Results and Dividend Forecast" (in Japanese) announced today (November 10, 2023).
-
Basic policy for profit allocation, and dividends for the current fiscal year
The Company's basic policy is to aim to realize dividends in a continuous and stable manner and in response to financial results and earnings conditions while enhancing internal reserves, comprehensively taking into account financial results in each fiscal year, strengthening of financial structure, medium- to long-term business strategies, and other matters. Based on this policy, the Company plans to pay dividends of ¥51 (consisting of ¥24 in interim dividend and ¥27 in year-end dividend) per share for the fiscal year ending March 31, 2024.
- 5 -
2. Quarterly consolidated financial statements and significant notes thereto
(1) Quarterly consolidated balance sheets
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Assets | |||
Current assets | |||
Cash and deposits | 69,381 | 70,821 | |
Notes and accounts receivable - trade, and contract | 57,586 | 61,291 | |
assets | |||
Costs on construction contracts in progress | 91 | 159 | |
Supplies | 1,843 | 1,983 | |
Other | 3,576 | 3,978 | |
Allowance for doubtful accounts | (224) | (235) | |
Total current assets | 132,254 | 137,999 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 119,509 | 121,354 | |
Accumulated depreciation | (76,114) | (78,356) | |
Buildings and structures, net | 43,394 | 42,998 | |
Machinery, equipment and vehicles | 52,757 | 53,901 | |
Accumulated depreciation | (41,547) | (42,494) | |
Machinery, equipment and vehicles, net | 11,209 | 11,406 | |
Land | 41,798 | 42,655 | |
Leased assets | 5,471 | 5,780 | |
Accumulated depreciation | (2,741) | (2,939) | |
Leased assets, net | 2,729 | 2,840 | |
Construction in progress | 869 | 2,286 | |
Other | 9,686 | 9,941 | |
Accumulated depreciation | (7,798) | (7,916) | |
Other, net | 1,887 | 2,025 | |
Total property, plant and equipment | 101,889 | 104,213 | |
Intangible assets | |||
Goodwill | 1,568 | 1,452 | |
Other | 4,528 | 4,258 | |
Total intangible assets | 6,097 | 5,711 | |
Investments and other assets | |||
Investment securities | 12,610 | 14,115 | |
Long-term loans receivable | 304 | 286 | |
Deferred tax assets | 5,593 | 5,251 | |
Retirement benefit asset | 147 | 170 | |
Other | 7,280 | 7,695 | |
Allowance for doubtful accounts | (155) | (155) | |
Total investments and other assets | 25,781 | 27,363 | |
Total non-current assets | 133,767 | 137,287 | |
Total assets | 266,022 | 275,287 |
- 6 -
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 15,110 | 13,500 | |
Short-term borrowings | 6,636 | 6,930 | |
Current portion of long-term borrowings | 3,869 | 3,501 | |
Provision for bonuses for directors (and other | 387 | 109 | |
officers) | |||
Accrued expenses | 11,875 | 13,546 | |
Income taxes payable | 3,501 | 3,166 | |
Other | 11,145 | 13,053 | |
Total current liabilities | 52,526 | 53,809 | |
Non-current liabilities | |||
Bonds payable | 55,000 | 55,000 | |
Long-term borrowings | 5,737 | 5,500 | |
Lease liabilities | 2,488 | 2,453 | |
Deferred tax liabilities | 581 | 619 | |
Deferred tax liabilities for land revaluation | 1,087 | 1,087 | |
Retirement benefit liability | 21,244 | 21,454 | |
Retirement allowance for directors | 118 | 73 | |
Long-term accounts payable - other | 640 | 631 | |
Other | 2,802 | 2,899 | |
Total non-current liabilities | 89,701 | 89,719 | |
Total liabilities | 142,228 | 143,528 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 1,723 | 1,723 | |
Capital surplus | 1,908 | 1,914 | |
Retained earnings | 121,235 | 125,611 | |
Treasury shares | (6,475) | (6,400) | |
Total shareholders' equity | 118,391 | 122,849 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 4,284 | 5,152 | |
Revaluation reserve for land | (5,482) | (5,482) | |
Foreign currency translation adjustment | 4,086 | 6,456 | |
Remeasurements of defined benefit plans | 14 | 101 | |
Total accumulated other comprehensive income | 2,903 | 6,228 | |
Non-controlling interests | 2,498 | 2,680 | |
Total net assets | 123,793 | 131,758 | |
Total liabilities and net assets | 266,022 | 275,287 |
- 7 -
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Konoike Transport Co. Ltd. published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 13:56:39 UTC.