April 30, 2021
Consolidated Financial Results for the First Three Months of Fiscal Year
Ending December 31, 2021 (Three Months Ended March 31, 2021)
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: May 12, 2021 | |||||||||||||
Scheduled date of dividend payments: - | |||||||||||||
Supplementary materials: Yes | Investors meeting: No | ||||||||||||
(Figures are rounded down to the nearest million yen) | |||||||||||||
1. Consolidated Financial Results for the Three Months Ended March 31, 2021 | |||||||||||||
(January 1, 2021 - March 31, 2021) | |||||||||||||
(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 | % | ||||||
Three months ended Mar. 31, 2021 | 46,017 | 24.6 | 6,009 | 33.4 | 6,083 | 35.0 | 4,240 | 33.9 | |||||
Three months ended Mar. 31, 2020 | 36,933 | 18.9 | 4,504 | 26.2 | 4,506 | 25.7 | 3,166 | 27.0 | |||||
Note: Comprehensive income: Three months ended Mar. 31, 2021: 4,336 million yen (45.8%) | |||||||||||||
Three months ended Mar. 31, 2020: 2,975 million yen (21.7%) | |||||||||||||
Net income per share | Diluted net income per share | ||||||||||||
Yen | Yen | ||||||||||||
Three months ended Mar. 31, 2021 | 8.54 | 8.53 | |||||||||||
Three months ended Mar. 31, 2020 | 6.37 | 6.37 |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share and diluted net income per share are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
As of Mar. 31, 2021 | 83,201 | 49,908 | 58.6 | ||
As of Dec. 31, 2020 | 81,263 | 47,658 | 57.5 | ||
Reference: Shareholders' equity | Mar. 31, 2021: 48,776 million yen | Dec. 31, 2020: 46,761 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, 2020 | - | 8.50 | - | 9.50 | 18.00 | |||
Year ending Dec. 31, 2021 | (actual) | - | ||||||
Year ending Dec. 31, 2021 | (forecast) | 5.75 | - | 5.75 | 11.50 |
Note: Amendments to dividend forecast compared with the most recent disclosure: None
The Company implemented a 2-for-1 share split effective on April 1, 2021, and the interim and year-end dividend for the year ended December 31, 2020 would be equivalent to 4.25 yen and 4.75 yen respectively, and the annual dividend would be 9.00 yen, on the assumption that the share split was implemented at the beginning of the previous fiscal year.
3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2021 (January 1, 2021 - December 31, 2021)
(Percentages show the change from the same period of previous fiscal year)
Net income | Net income per | ||||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||||
share | |||||||||||
owners of the parent | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Half year | 94,133 | 25.0 | 12,041 | 29.2 | 12,075 | 29.2 | 8,427 | 28.9 | 16.96 | ||
(accumulated) | |||||||||||
Full year | 194,220 | 23.4 | 24,678 | 25.9 | 24,738 | 25.8 | 17,273 | 25.4 | 34.77 |
Note: Revision of consolidated forecast during this quarter: None
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share is stated on the assumption that the share split was implemented at the beginning of the current fiscal year
4. Others
- Changes in the number of material subsidiaries resulting in changes in scope of consolidation during the three-month period ended March 31, 2021: 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)
Mar. 31, 2021: | 501,262,000 shares | Dec. 31, 2020: | 501,262,000 shares |
2) Number of treasury stock at the end of period | |||
Mar. 31, 2021: | 4,443,576 shares | Dec. 31, 2020: | 4,443,576shares |
3) Average number of shares outstanding during the period | |||
Three months ended Mar. 31, 2021: | 496,818,424 shares | Three months ended Mar. 31, 2020: | 496,844,424 shares |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and the respective numbers of shares above are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
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
- Qualitative Information Regarding Consolidated Results of Operations
The Japanese economy during the first three months of the fiscal year ending December 31, 2021 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) made the outlook for the future Japanese economy unpredictable.
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. 17 Spring Edition in late February, divided into 13 volumes with 180 thousand items and approximately 2.9 million issues available in total.
Furthermore, the total number of our product lineup reached approximately 18 million items in total and 489 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 three months of the fiscal year ending December 31, 2021. In addition, in order to strengthen the logistics base, "Ibaraki Chuo Satellite Center" (total floor area of about 49,000 m2), which has both a warehousing function for imported items and a shipping function for high-demand items, started its operation in March.
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 333,820 newly registered accounts for the first three months of the fiscal year ending December 31, 2021 and the number of registered accounts totaled 5,834,594 as of the end of the first three months of the fiscal year ending December 31, 2021.
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 46,017 million yen (24.6% increase from the same period of the previous fiscal year), operating income of 6,009 million yen (33.4% increase from the same period of the previous fiscal year), ordinary income of 6,083 million yen (35.0% increase from the same period of the previous fiscal year), and net income attributable to owners of the parent of 4,240 million yen, a corresponding 33.9% increase.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of March 31, 2021 (the end of the first three months of the fiscal year ending December 31, 2021) amounted to 83,201 million yen, an increase of 1,938 million yen from the end of the previous fiscal year. This was attributable to increases of 5,851 million yen, 2,564 million yen and 1,401 million yen in Buildings, notes and accounts receivable-trade and Machinery and equipment, respectively, despite a decrease of 8,855 million yen in cash and deposits.
On the other hand, total liabilities as of March 31, 2021 amounted to 33,293 million yen, a decrease of 311 million yen from the end of the previous fiscal year. This was due mainly to decreases of 2,328 million yen and 1,422 million yen in income taxes payable and accrued consumption taxes, respectively, despite increases of 2,852 million yen and 998 million yen in accounts payable-trade and accounts payable-other, respectively.
Total net assets amounted to 49,908 million yen, an increase of 2,249 million yen from the end of the previous fiscal year. This was largely due to net income attributable to owners of the parent of 4,240 million yen offset by dividend payments of 2,359 million yen for the first three months of the fiscal year ending December 31, 2021.
As a result, the equity ratio as of March 31, 2021 was 58.6%, up 1.1 percentage points from the end of the previous fiscal year.
(3) Forecast for the Fiscal Year Ending December 31, 2021
Our consolidated financial results for the first three months of this fiscal year were almost in line with our plan. Therefore, the consolidated forecast for the fiscal year ending December 31, 2021, disclosed on February 2, 2021, has not been changed at this time.
2. Consolidated Quarterly Financial Statements
(1) Consolidated quarterly balance sheets
Accounts | (In millions of yen) | |||||||||
As of Dec. 31, 2020 | As of Mar. 31, 2021 | |||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and deposits | 18,843 | 9,988 | ||||||||
Notes and accounts receivable-trade | 17,766 | 20,330 | ||||||||
Electronically recorded monetary claims | 501 | 144 | ||||||||
Merchandise | 11,445 | 11,973 | ||||||||
Goods in transit | 326 | 419 | ||||||||
Supplies | 102 | 200 | ||||||||
Accounts receivable-other | 4,901 | 4,701 | ||||||||
Other | 459 | 618 | ||||||||
Allowance for doubtful accounts | (82) | (82) | ||||||||
Total current assets | 54,264 | 48,294 | ||||||||
Noncurrent assets | ||||||||||
Property, plant and equipment | ||||||||||
Buildings, net | 4,285 | 10,136 | ||||||||
Leased assets, net | 3,792 | 3,658 | ||||||||
Other, net | 11,009 | 12,458 | ||||||||
Total property, plant and equipment | 19,086 | 26,253 | ||||||||
Intangible assets | ||||||||||
Goodwill | 803 | 817 | ||||||||
Other | 4,025 | 4,795 | ||||||||
Total intangible assets | 4,829 | 5,613 | ||||||||
Investments and other assets | ||||||||||
Guarantee deposits | 1,478 | 1,538 | ||||||||
Other | 1,652 | 1,547 | ||||||||
Allowance for doubtful accounts | (49) | (45) | ||||||||
Total investments and other assets | 3,081 | 3,040 | ||||||||
Total noncurrent assets | 26,998 | 34,907 | ||||||||
Total assets | 81,263 | 83,201 | ||||||||
Liabilities | ||||||||||
Current liabilities | ||||||||||
Accounts payable-trade | 11,643 | 14,496 | ||||||||
Lease obligations | 659 | 26 | ||||||||
Accounts payable-other | 3,931 | 4,929 | ||||||||
Income taxes payable | 4,185 | 1,856 | ||||||||
Provision for employees' bonuses | 104 | 250 | ||||||||
Provision for directors' bonuses | 45 | - | ||||||||
Provision for accident related loss | 9 | 9 | ||||||||
Other | 1,962 | 509 | ||||||||
Total current liabilities | 22,542 | 22,078 | ||||||||
Noncurrent liabilities | ||||||||||
Long-term loans payable | 9,000 | 9,000 | ||||||||
Lease obligations | 591 | 590 | ||||||||
Net defined benefit liability | 345 | 373 | ||||||||
Other | 1,124 | 1,251 | ||||||||
Total noncurrent liabilities | 11,062 | 11,214 | ||||||||
Total liabilities | 33,604 | 33,293 | ||||||||
Net assets | ||||||||||
Shareholders' equity | ||||||||||
Capital stock | 1,993 | 1,993 | ||||||||
Capital surplus | 816 | 816 | ||||||||
Retained earnings | 44,311 | 46,191 | ||||||||
Treasury stock | (315) | (315) | ||||||||
Total shareholders' equity | 46,805 | 48,686 | ||||||||
Accumulated other comprehensive income | ||||||||||
Foreign currency translation adjustment | (35) | 96 | ||||||||
Remeasurements of defined benefit plans | (7) | (6) | ||||||||
Total accumulated other comprehensive income | (43) | 90 | ||||||||
Subscription rights to shares | 72 | 84 | ||||||||
Non-controlling interests | 823 | 1,046 | ||||||||
Total net assets | 47,658 | 49,908 | ||||||||
Total liabilities and net assets | 81,263 | 83,201 |
(2) Consolidated quarterly statements of (comprehensive) income
(In millions of yen) | |||||||||||||
Accounts | Three months period | Three months period | |||||||||||
ended Mar. 31, 2020 | ended Mar. 31, 2021 | ||||||||||||
Net sales | 36,933 | 46,017 | |||||||||||
Cost of sales | 26,462 | 32,706 | |||||||||||
Gross profit | 10,470 | 13,311 | |||||||||||
Selling, general and administrative expenses | 5,965 | 7,301 | |||||||||||
Operating income | 4,504 | 6,009 | |||||||||||
Non-operating income | |||||||||||||
Interest income | 6 | 11 | |||||||||||
Foreign exchange gains | 7 | 37 | |||||||||||
Gain on sale of materials | 2 | 3 | |||||||||||
Differences in consumption taxes, etc. | - | 37 | |||||||||||
Other | 15 | 11 | |||||||||||
Total non-operating income | 31 | 101 | |||||||||||
Non-operating expenses | |||||||||||||
Interest expenses | 10 | 8 | |||||||||||
Loss on disposal of inventories | 7 | 10 | |||||||||||
Accident related loss | 6 | 3 | |||||||||||
Other | 5 | 4 | |||||||||||
Total non-operating expenses | 29 | 27 | |||||||||||
Ordinary income | 4,506 | 6,083 | |||||||||||
Extraordinary income | |||||||||||||
Gain on sales of fixed assets | 0 | 0 | |||||||||||
Total extraordinary income | 0 | 0 | |||||||||||
Extraordinary loss | |||||||||||||
Loss on disposal of fixed assets | 0 | 6 | |||||||||||
Total extraordinary losses | 0 | 6 | |||||||||||
Income before income taxes | 4,506 | 6,077 | |||||||||||
Income taxes-current | 1,363 | 1,776 | |||||||||||
-deferred | 39 | 105 | |||||||||||
Total income taxes | 1,403 | 1,881 | |||||||||||
Net income | 3,103 | 4,195 | |||||||||||
Net income attributable to: | |||||||||||||
owners of the parent | 3,166 | 4,240 | |||||||||||
non-controlling interests | (62) | (45) | |||||||||||
Other comprehensive income | |||||||||||||
Foreign currency translation adjustment | (125) | 140 | |||||||||||
Remeasurements of defined benefit plans | (2) | 1 | |||||||||||
Total other comprehensive income | (128) | 141 | |||||||||||
Comprehensive income | 2,975 | 4,336 | |||||||||||
Comprehensive income attributable to: | |||||||||||||
owners of the parent | 3,079 | 4,321 | |||||||||||
non-controlling interests | (104) | 15 |
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MonotaRO Co. Ltd. published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 06:03:22 UTC.