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 6, 2023
Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name: | Mitsubishi Logisnext Co., Ltd. |
Listing: | Tokyo Stock Exchange |
Securities code: | 7105 |
URL: | https://www.logisnext.com/en/ |
Representative: | Yuichi Mano, Representative Director and President |
Inquiries: | Hiroki Mochizuki, Division Head, General Manager, Corporate Finance and |
Accounting Division, Corporate Finance and Accounting Headquarters | |
Telephone: | +81-75-951-7171 |
Scheduled date to file quarterly securities report: | November 14, 2023 |
Scheduled date to commence dividend payments: | - |
Preparation of supplementary material on quarterly financial results: None | |
Holding of quarterly financial results briefing: | Yes (for analysts) |
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
(1) Consolidated operating results (cumulative)
Net sales | Operating profit | ||||
Six months ended | Millions of yen | % | Millions of yen | % | |
September 30, 2023 | 343,772 | 23.0 | 22,737 | - | |
September 30, 2022 | 279,595 | 29.4 | 963 | (38.3) |
(Percentages indicate year-on-year changes.)
Ordinary profit | Profit attributable to | ||
owners of parent | |||
Millions of yen | % | Millions of yen | % |
21,060 | - | 16,562 | - |
909 | (36.5) | (1,426) | - |
Note: Comprehensive income | For the six months ended September 30, 2023: | ¥28,420 million | [160.2%] | |||
For the six months ended September 30, 2022: | ¥10,923 million | [771.1%] | ||||
Basic earnings | Diluted earnings | |||||
per share | per share | |||||
Six months ended | Yen | Yen | ||||
September 30, 2023 | 155.31 | 154.81 | ||||
September 30, 2022 | (13.38) | - | ||||
Reference: Operating profit before amortization of goodwill | ||||||
For the six months ended September 30, 2023: | ¥27,811 million | [347.3%] | ||||
For the six months ended September 30, 2022: | ¥6,217 million | [(1.4)%] |
Mitsubishi Logisnext Co., Ltd. (the "Company") uses operating profit before amortization of goodwill as a key management indicator.
Notes: 1. At the end of the fiscal year ended March 31, 2023, the Company finalized the provisional accounting treatment for the business combination, and the figures for the six months ended September 30, 2022 reflect the details of the finalization of the provisional accounting treatment.
2. The year-on-year changes in operating profit and ordinary profit for the six months ended September 30, 2023 are 2,259.3% and 2,214.7%, respectively, and shown as "-" because they exceed 1,000%.
(2) Consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | |||
As of | Millions of yen | Millions of yen | % | ||
September 30, 2023 | 519,898 | 103,404 | 19.8 | ||
March 31, 2023 | 475,432 | 76,027 | 15.9 | ||
Reference: Equity | As of September 30, 2023: | ¥102,802 million | |||
As of March 31, 2023: | ¥75,455 million |
Net assets per share
Yen
964.10
707.19
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 | - | - | - | 9.00 | 9.00 | |
March 31, 2023 | ||||||
Fiscal year ending | - | - | ||||
March 31, 2024 | ||||||
Fiscal year ending | - | 19.00 | 19.00 | |||
March 31, 2024 | ||||||
(Forecast) | ||||||
Note: Revisions to the forecast of cash dividends most recently announced: Yes
Regarding revisions to the forecast of cash dividends, please refer to the "Notice Concerning Revisions to Full-Year Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 and Revisions to the Forecasts of Cash Dividends" (in Japanese only) announced today (November 6, 2023).
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (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 yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Fiscal year ending | 690,000 | 12.1 | 40,000 | 171.9 | 36,000 | 209.1 | 23,000 | 232.7 | 215.68 | |
March 31, 2024 | ||||||||||
Note: Revisions to the earnings forecasts most recently announced: Yes
Regarding revisions to the consolidated earnings forecasts, please refer to the "Notice Concerning Revisions to Full- Year Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 and Revisions to the Forecasts of Cash Dividends" (in Japanese only) announced today (November 6, 2023).
Reference: Operating profit before amortization of goodwill | ¥50,000 million [100.0%] |
* Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes
Excluded: | 1 company (Mitsubishi Logisnext Americas (Marengo) Inc.) |
- 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 stock)
- Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2023
As of March 31, 2023
106,712,013 shares
106,705,013 shares
(ii) Number of treasury stock at the end of the period
As of September 30, 2023
As of March 31, 2023
81,242 shares
7,216 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
106,641,686 shares
106,644,083 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-lookingstatements
The forward-looking statements, including the financial forecasts shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially from these forecasts due to various factors. For matters related to the earnings forecasts, please see "1. Qualitative information regarding financial results for the first six months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 4 of the attached material.
Mitsubishi Logisnext Co., Ltd. | ||
Attached Material | ||
Index | ||
1. Qualitative information regarding financial results for the first six months | 2 | |
(1) | Explanation of operating results | 2 |
(2) | Explanation of financial position | 4 |
(3) | Explanation of consolidated earnings forecasts and other forward-looking statements | 4 |
2. Quarterly consolidated financial statements and significant notes thereto | 5 | |
(1) | Quarterly consolidated balance sheet | 5 |
(2) | Quarterly consolidated statement of income and quarterly consolidated statement of | |
comprehensive income | 7 | |
Quarterly consolidated statement of income (cumulative) | 7 | |
Quarterly consolidated statement of comprehensive income (cumulative) | 8 | |
(3) | Notes to quarterly consolidated financial statements | 9 |
Notes on premise of going concern | 9 | |
Notes on significant changes in the amount of shareholders' equity | 9 | |
Segment information | 9 | |
3. Other | 11 |
- 1 -
Mitsubishi Logisnext Co., Ltd.
1. Qualitative information regarding financial results for the first six months
-
Explanation of operating results
The global economy in the six months ended September 30, 2023, has seen central banks in various countries maintain their monetary tightening measures in response to a persistently high level of inflation, although the increase in prices has been slowing, and with Russia's prolonged aggression in Ukraine showing no end in sight, economic growth is slowing down at a faster pace. Although the increase in transport costs caused by the rapid recovery phase out of the COVID-19 pandemic has subsided, inflation is driving not only higher labor costs but also higher costs in a wide range of areas including fuel and components. In Japan and overseas, this is having a growing impact.
Against this backdrop, the domestic market for forklifts and other material handling equipment remained firm at pre-COVID-19 levels. Overseas, though demand in the Americas is on a downward trend as buyers take a wait-and-see approach due to a sense of economic slowdown, demand continues to exceed pre-COVID-19 levels, as it did in the previous fiscal year, due to stable logistics needs. On the other hand, Europe's economic stagnation has become prolonged, in part due to the impact of inflation, with demand slumping after shrinking from a temporary rebound. In addition, although Asia was relatively unaffected by the situation in Ukraine, the market has weakened slightly because of inflation and interest rate hikes. China was showing signs of recovery due to the lifting of the zero- COVID policy, but its economy then slowed due to deterioration in the real estate market, and the market for material handling equipment has not yet recovered to expected levels.
At the Company, the major challenge of longer lead times due to delays in the supply of various components is gradually abating but high costs persist. Despite these circumstances, the Group as a whole secured sufficient orders. In addition, the Group worked on achieving production improvements by eliminating the components shortages in Japan and overseas, accelerating shipments. As a result, the effects of price optimization have effectively expanded. However, given the high levels of inflation and deteriorating conditions in the Middle East, the outlook for the global economy remains unclear and unpredictable.
Under these circumstances, net sales for the period under review totaled ¥343,772 million (up 23.0% year on year).
Profits were affected by high costs, but net sales increased due to contribution of the acceleration of shipments mostly in the Americas at a pace exceeding the plan and the expanded effect of price optimization, consequently operating profit was ¥22,737 million (up 2,259.3% year on year), ordinary profit was ¥21,060 million (up 2,214.7% year on year), and, with the decrease in tax expenses due to the reversal of valuation allowance, profit attributable to owners of parent was ¥16,562 million (compared to a loss of ¥1,426 million in the same period of the previous fiscal year).
Operating profit before amortization of goodwill was ¥27,811 million (up 347.3% year on year), and the operating profit margin was 8.1% (up 5.9 percentage points year on year).
Six months ended | Six months ended | Change | ||
(Billions of yen) | September 30, 2022 | September 30, 2023 | (Billions of yen) | (%) |
Net sales | 279.59 | 343.77 | 64.17 | 23.0 |
Operating profit before | 6.21 | 27.81 | 21.59 | 347.3 |
amortization of goodwill | ||||
(%) | 2.2 | 8.1 | ||
Operating profit | 0.96 | 22.73 | 21.77 | 2,259.3 |
(%) | 0.3 | 6.6 | ||
Ordinary profit | 0.9 | 21.06 | 20.15 | 2,214.7 |
(%) | 0.3 | 6.1 | ||
Profit (loss) attributable to | (1.42) | 16.56 | 17.98 | - |
owners of parent | ||||
(%) | - | 4.8 |
- 2 -
Mitsubishi Logisnext Co., Ltd.
Operating results by segment are as follows.
Japan
Net sales in Japan were ¥92,887 million (up 15.6% year on year) as orders remained steady, components shortages have been abating, and the effects of price optimization are also starting to contribute. Segment profit was ¥3,133 million (compared to a loss of ¥1,500 million in the same period of the previous fiscal year) due to the increase in net sales, the settling of increase in marine transportation costs and the impact of yen depreciation in the export business despite the persistent high-cost environment.
Segment profit before amortization of goodwill was ¥5,554 million (up 506.8% year on year).
Japan | Six months ended | Six months ended | Change | |
(Billions of yen) | September 30, 2022 | September 30, 2023 | (Billions of yen) | (%) |
Net sales | 80.32 | 92.88 | 12.56 | 15.6 |
Operating profit before | 0.91 | 5.55 | 4.63 | 506.8 |
amortization of goodwill | ||||
(%) | 1.1 | 6.0 | ||
Operating profit (loss) | (1.50) | 3.13 | 4.63 | - |
(%) | - | 3.4 |
Overseas
Net sales in Overseas were ¥250,885 million (up 25.9% year on year) due to the expanded effects of price optimization in line with an increase in units sold in the Americas at a pace exceeding the plan, and the tailwind from the economic impact of yen depreciation. Segment profit was ¥19,603 million (up 695.7% year on year) due largely to the increase in net sales.
Segment profit before amortization of goodwill was ¥22,257 million (up 319.8% year on year).
Especially in the same period of the previous fiscal year in Overseas, price optimization had not been able to cover the higher costs in the inflationary environment post-COVID-19. Since then, the gradual elimination of components shortages has led to increased production, accelerated shipments, and net sales and segment profit in Overseas increased significantly.
Overseas | Six months ended | Six months ended | Change | |
(Billions of yen) | September 30, 2022 | September 30, 2023 | (Billions of yen) | (%) |
Net sales | 199.27 | 250.88 | 51.61 | 25.9 |
Operating profit before | 5.30 | 22.25 | 16.95 | 319.8 |
amortization of goodwill | ||||
(%) | 2.7 | 8.9 | ||
Operating profit | 2.46 | 19.60 | 17.14 | 695.7 |
(%) | 1.2 | 7.8 |
- 3 -
Mitsubishi Logisnext Co., Ltd.
-
Explanation of financial position
As of September 30, 2023, total assets were ¥519,898 million, an increase of ¥44,466 million from the end of the previous fiscal year. Current assets increased by ¥25,681 million due to the impact of yen depreciation and an increase in inventories. Non-current assets increased by ¥18,784 million due to the impact of yen depreciation and an increase in machinery, equipment and vehicles.
Total liabilities were ¥416,494 million, an increase of ¥17,088 million from the end of the previous fiscal year, due to an increase in foreign exchange translated amounts mainly from the impact of yen depreciation.
Net assets, excluding share acquisition rights and non-controlling interests, were ¥102,802 million, an increase of ¥27,347 million from the end of the previous fiscal year. The main factors were an increase in retained earnings from profit attributable to owners of parent and an increase in foreign currency translation adjustment. - Explanation of consolidated earnings forecasts and other forward-looking statements
Regarding our consolidated earnings forecasts, based on our performance through the six months ended September 30, 2023, we have revised our full-year earnings forecasts and our forecasts of cash dividends. For details, please refer to the "Notice Concerning Revisions to Full-Year Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 and Revisions to the Forecasts of Cash Dividends" (in Japanese only) announced today (November 6, 2023).
- 4 -
Mitsubishi Logisnext Co., Ltd.
2. Quarterly consolidated financial statements and significant notes thereto
(1) Quarterly consolidated balance sheet
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Assets | |||
Current assets | |||
Cash and deposits | 13,245 | 18,001 | |
Notes and accounts receivable - trade, and contract | 101,148 | 106,479 | |
assets | |||
Electronically recorded monetary claims - operating | 2,507 | 2,207 | |
Merchandise and finished goods | 62,840 | 75,135 | |
Work in process | 14,805 | 13,950 | |
Raw materials and supplies | 30,646 | 33,634 | |
Other | 40,749 | 42,606 | |
Allowance for doubtful accounts | (1,383) | (1,772) | |
Total current assets | 264,561 | 290,242 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 21,803 | 22,666 | |
Machinery, equipment and vehicles, net | 72,685 | 87,674 | |
Land | 22,133 | 22,067 | |
Leased assets, net | 27,758 | 28,906 | |
Other, net | 4,551 | 4,737 | |
Total property, plant and equipment | 148,933 | 166,054 | |
Intangible assets | |||
Goodwill | 25,473 | 23,143 | |
Other | 15,664 | 15,734 | |
Total intangible assets | 41,137 | 38,877 | |
Investments and other assets | |||
Investment securities | 7,152 | 7,893 | |
Other | 13,698 | 16,869 | |
Allowance for doubtful accounts | (50) | (39) | |
Total investments and other assets | 20,800 | 24,724 | |
Total non-current assets | 210,871 | 229,655 | |
Total assets | 475,432 | 519,898 |
- 5 -
Mitsubishi Logisnext Co., Ltd. | |||
(Millions of yen) | |||
As of March 31, 2023 | As of September 30, 2023 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 86,240 | 80,901 | |
Electronically recorded obligations - operating | 15 | - | |
Short-term borrowings | 51,344 | 55,293 | |
Lease liabilities | 7,199 | 7,669 | |
Income taxes payable | 3,313 | 4,193 | |
Provision for bonuses | 4,798 | 4,779 | |
Provision for bonuses for directors (and other | 94 | 46 | |
officers) | |||
Provision for product warranties | 4,215 | 4,400 | |
Provision for loss on liquidation of subsidiaries and | 75 | 75 | |
associates | |||
Other | 51,411 | 56,164 | |
Total current liabilities | 208,709 | 213,523 | |
Non-current liabilities | |||
Long-term borrowings | 124,281 | 127,135 | |
Lease liabilities | 20,332 | 20,968 | |
Provision for product warranties | 2,561 | 438 | |
Provision for retirement benefits for directors (and | 7 | 7 | |
other officers) | |||
Retirement benefit liability | 16,263 | 16,644 | |
Other | 27,248 | 37,775 | |
Total non-current liabilities | 190,695 | 202,970 | |
Total liabilities | 399,405 | 416,494 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 4,938 | 4,940 | |
Capital surplus | 34,775 | 34,785 | |
Retained earnings | 16,704 | 32,307 | |
Treasury shares | (2) | (92) | |
Total shareholders' equity | 56,415 | 71,940 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 2,387 | 2,521 | |
Foreign currency translation adjustment | 17,019 | 28,696 | |
Remeasurements of defined benefit plans | (367) | (355) | |
Total accumulated other comprehensive income | 19,040 | 30,862 | |
Share acquisition rights | 277 | 272 | |
Non-controlling interests | 294 | 329 | |
Total net assets | 76,027 | 103,404 | |
Total liabilities and net assets | 475,432 | 519,898 |
- 6 -
Mitsubishi Logisnext Co., Ltd.
-
Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2022 | September 30, 2023 | ||
Net sales | 279,595 | 343,772 | |
Cost of sales | 219,470 | 255,292 | |
Gross profit | 60,124 | 88,480 | |
Selling, general and administrative expenses | 59,161 | 65,742 | |
Operating profit | 963 | 22,737 | |
Non-operating income | |||
Interest income | 340 | 542 | |
Dividend income | 155 | 55 | |
Share of profit of entities accounted for using equity | 49 | 76 | |
method | |||
Foreign exchange gains | 596 | 432 | |
Other | 188 | 166 | |
Total non-operating income | 1,330 | 1,272 | |
Non-operating expenses | |||
Interest expenses | 1,270 | 2,876 | |
Other | 114 | 72 | |
Total non-operating expenses | 1,384 | 2,949 | |
Ordinary profit | 909 | 21,060 | |
Extraordinary income | |||
Gain on sale of non-current assets | 118 | 345 | |
Gain on sale of investment securities | 4 | 1 | |
Insurance claim income | - | 60 | |
Total extraordinary income | 123 | 407 | |
Extraordinary losses | |||
Loss on disposal of non-current assets | 67 | 57 | |
Impairment losses | - | 29 | |
Loss on sale of investment securities | 0 | - | |
Loss on valuation of investment securities | 13 | - | |
Loss on liquidation of subsidiaries and associates | 399 | - | |
Loss on disaster | 0 | - | |
Business restructuring expenses | - | 107 | |
Other | 91 | - | |
Total extraordinary losses | 572 | 194 | |
Profit before income taxes | 460 | 21,273 | |
Income taxes - current | 751 | 7,478 | |
Income taxes - deferred | 1,150 | (2,792) | |
Total income taxes | 1,902 | 4,686 | |
Profit (loss) | (1,441) | 16,587 | |
Profit (loss) attributable to non-controlling interests | (15) | 24 | |
Profit (loss) attributable to owners of parent | (1,426) | 16,562 |
- 7 -
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Mitsubishi Logisnext Co. Ltd. published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 05:00:17 UTC.