Consolidated Financial Results for the Fiscal Year Ended November 30,
2022 [Japanese GAAP]
January 13, 2023 | ||||||
Company name: | Morito Co., Ltd. | Stock exchange listing: | Tokyo Stock Exchange | |||
Code number: | 9837 | URL https://www.morito.co.jp | ||||
Representative: Takaki Ichitsubo, Representative Director, CEO | ||||||
Kiyomi Akui, Director, Senior Executive Officer, Division | +81-6-6252- | |||||
Contact: | Manager of Corporate Administrative Division and Division | (TEL) | ||||
3551 | ||||||
Manager of Business Management Division | ||||||
Scheduled date of Annual General | Scheduled date of commencing | |||||
Meeting of Shareholders: | February 24, 2023 dividend payments: | February 27, 2023 | ||||
Scheduled date of filing annual | February 27, 2023 | |||||
securities report: | ||||||
Availability of supplementary briefing material on annual financial results :Available | ||||||
Schedule of annual financial results briefing session : | Scheduled (for securities analysts and institutional | |||||
investors) |
(Amounts of less than 1 million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended November 30, 2022 (December 1, 2021 to November 30, 2022)
(1) Consolidated Operating Results
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||||||||||
owners of parent | ||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||
Fiscal year ended | 48,478 | 11.1 | 2,116 | 30.7 | 2,342 | 27.7 | 1,674 | 19.0 | ||||||||||||||||
November 30, 2022 | ||||||||||||||||||||||||
November 30, 2021 | 43,636 | 7.1 | 1,619 | 89.1 | 1,834 | 97.6 | 1,407 | 199.3 | ||||||||||||||||
(Note) Comprehensive income: | Fiscal year ended November 30, 2022: Fiscal year ended November 30, 2021: | |||||||||||||||||||||||
¥4,070 million yen [73.4%] | ¥2,346 million [-%] | |||||||||||||||||||||||
Basic earnings per | Diluted earnings | Return on equity | Ordinary profit to | Operating profit to | ||||||||||||||||||||
share | per share | total asset | net sales | |||||||||||||||||||||
Yen | Yen | % | % | % | ||||||||||||||||||||
Fiscal year ended | 62.23 | - | 4.8 | 4.9 | 4.4 | |||||||||||||||||||
November 30, 2022 | ||||||||||||||||||||||||
November 30, 2021 | 51.41 | - | 4.3 | 4.1 | 3.7 | |||||||||||||||||||
(Reference) Share of profit (loss) of entities | Fiscal year ended | |||||||||||||||||||||||
accounted for using equity method: November 30, 2022 | ¥73 million November 30, 2021 ¥65 million | |||||||||||||||||||||||
(2) | Consolidated Financial Position | |||||||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||||||||||||||
Million yen | Million yen | % | Yen | |||||||||||||||||||||
Fiscal year ended | 50,271 | 36,684 | 72.9 | 1,371.63 | ||||||||||||||||||||
November 30, 2022 | ||||||||||||||||||||||||
November 30, 2021 | 45,938 | 33,914 | 73.7 | 1,240.70 | ||||||||||||||||||||
(Reference) Equity: | Fiscal year ended November 30, 2022 | ¥36,628 million | November 30, 2021 ¥33,858 million | |||||||||||||||||||||
(3) | Consolidated Cash Flows | |||||||||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |||||||||||||||||||||
operating activities | investing activities | financing activities | at end of period | |||||||||||||||||||||
Million yen | Million yen | Million yen | Million yen | |||||||||||||||||||||
Fiscal year ended | 850 | (135) | (1,916) | 10,396 | ||||||||||||||||||||
November 30, 2022 | ||||||||||||||||||||||||
November 30, 2021 | 2,644 | (401) | (1,380) | 11,020 | ||||||||||||||||||||
2. | Dividends | |||||||||||||||||||||||
Annual dividends | Total | Payout ratio | Dividends to | |||||||||||||||||||||
net assets | ||||||||||||||||||||||||
1st quarter- | 2nd quarter- | 3rd quarter- | Year-end | Total | dividends | (consolidated) | ||||||||||||||||||
(consolidated) | ||||||||||||||||||||||||
end | end | end | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||||||||||||||||
November 30, 2021 | - | 9.00 | - | 17.00 | 26.00 | 724 | 50.6 | 2.2 | ||||||||||||||||
Fiscal year ended | - | 13.50 | - | 18.50 | 32.00 | 873 | 51.4 | 2.4 | ||||||||||||||||
November 30, 2022 | ||||||||||||||||||||||||
Fiscal year ending | ||||||||||||||||||||||||
November 30, 2023 | - | 27.00 | - | 27.00 | 54.00 | 80.1 | ||||||||||||||||||
(Forecast) |
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2023 (December 1, 2022 to November 30, 2023)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings per | ||||||
to owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 50,000 | 3.1 | 2,300 | 8.6 | 2,450 | 4.6 | 1,800 | 7.5 | 67.40 |
Notes:
(1) Changes in significant subsidiaries during the fiscal year under review (changes in : Nospecified subsidiaries resulting in changes in the scope of consolidation)
(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) | Changes in accounting policies due to the revision of accounting standards | : | Yes |
2) | Changes in accounting policies other than 1) above | : | No |
3) | Changes in accounting estimates | : | No |
4) | Retrospective restatement | : | No |
- Total number of issued shares (common shares)
-
Total number of issued shares at the end of the period (including treasury shares): Fiscal year ended November 30, 2022: 30,000,000
November 30, 2021: 30,800,000 - Total number of treasury shares at the end of the period: Fiscal year ended November 30, 2022: 3,295,500 November 30, 2021: 3,510,000
- Average number of shares during the period: Fiscal year ended November 30, 2022: 26,901,369 November 30, 2021: 27,372,477
-
Total number of issued shares at the end of the period (including treasury shares): Fiscal year ended November 30, 2022: 30,000,000
- These consolidated financial results are outside the scope of audit by certified public accountants or audit firms.
- Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available and certain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts due to a wide range of factors.
As for suppositions that form the assumptions for the forecast of financial results and cautionary notes concerning the use thereof, please refer to "1. Overview of Business Results, etc. (4) Future Outlook" on page 7.
The Company and some of the Morito Group companies have introduced the "Japanese version of the employee stock ownership plan (J-ESOP)" and the "officer remuneration board incentive plan (BIP) trust." Consequently, the shares of the Company held by Custody Bank of Japan, Ltd. (trust account E) and The Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust account), respectively, are included in treasury shares.
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Table of Contents
(3) | Overview of Cash Flows for the Period under Review | 6 | |
(4) | Future Outlook | 7 | |
(5) | Basic Dividend Policy and Payments for the Period under Review and the Next Period | 7 | |
2. | Overview of the Corporate Group | 8 | |
3. | Basic Stance Regarding Choice of Accounting Standards | 11 | |
4. | Consolidated Financial Statements and Primary Notes | 12 | |
(1) | Consolidated Balance Sheets | 12 | |
(2) | Consolidated Statements of Income and Comprehensive Income | 14 | |
(3) | Consolidated Statements of Changes in Equity | 17 | |
(4) | Consolidated Statements of Cash Flows | 19 | |
(5) | Notes to the Consolidated Financial Statements | 21 |
(Notes on Going Concern Assumption) | 21 | |
(Changes in Accounting Policies) | 21 | |
(Additional Information) | 22 | |
(Segment Information, Etc.) | 23 | |
(Per Share Information) | 26 | |
(Significant Subsequent Events) | 27 | |
5. | Other Information | 27 |
(1) | Changes in Officers | 27 |
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1. Overview of Business Results, Etc.
- Overview of Business Results for the Period under Review
The fiscal year under review (December 1, 2021 to November 30, 2022) saw signs of an economic recovery in the operating environment due to the shift to a new phase of the "living with COVID-19" policy. However, the outlook for the future remains uncertain due to a combination of various risks, such as soaring raw material costs associated with rising crude oil prices triggered by the situation in Ukraine and other factors as well as currency fluctuations caused by global monetary tightening.
The Morito Group (the "Group"), which is mainly engaged in apparel, product, and transportation businesses, faced a number of hurdles that kept profits low, including soaring prices and difficulties in procuring raw materials for its mainstay products, production cutbacks and stoppages by automakers due to semiconductor shortages, delays in marine transportation, and rising transportation costs. On the other hand, the Group enjoyed favorable sales of accessories and products with superior functionality, including medical wear and working wear, which are unaffected by trends, as well as yoga, fishing, and other sporting goods, and medical device-related products. Under its "Rideeco" initiative aimed at realizing a sustainable society, the Group moved forward with the development and sales of environmentally friendly products, using discarded fishing nets and fabric scraps from garment factories, with a focus on winning new business contracts. The Group has also made ongoing efforts to cut transportation and other costs, which has substantially improved its profitability.
As a result, for the fiscal year under review, net sales increased 11.1% year on year to ¥48,478 million. Operating profit was up 30.7% to ¥2,116 million, ordinary profit grew 27.7% to ¥2,342 million, and profit attributable to owners of the parent increased 19.0% to ¥1,674 million.
The Group has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. effective as of the beginning of the fiscal year under review. This change resulted in a decrease of ¥427 million in net sales and ¥46 million in operating profit, respectively, and resulted in an increase of ¥6 million in ordinary profit and profit attributable to owners of the parent, respectively, for the fiscal year under review.
Exchange rates used for the conversion of revenue and expenses of the Group's overseas subsidiaries during the preparation of consolidated financial statements for the fiscal year under review are as follows.
1Q | 2Q | 3Q | 4Q | |||||
USD | 113.71 | (104.51) | 116.34 | (106.09) | 129.73 | (109.52) | 138.28 | (110.10) |
EUR | 130.04 | (124.58) | 130.40 | (127.80) | 138.25 | (131.93) | 139.26 | (129.82) |
CNY | 17.78 | (15.81) | 18.31 | (16.38) | 19.60 | (16.96) | 20.18 | (17.02) |
HKD | 14.60 | (13.48) | 14.90 | (13.68) | 16.53 | (14.10) | 17.62 | (14.16) |
TWD | 4.09 | (3.67) | 4.16 | (3.78) | 4.41 | (3.91) | 4.55 | (3.95) |
VND | 0.0050 | (0.0045) | 0.0051 | (0.0046) | 0.0056 | (0.0048) | 0.0059 | (0.0048) |
THB | 3.41 | (3.42) | 3.52 | (3.50) | 3.77 | (3.50) | 3.80 | (3.35) |
MXN | 5.48 | (5.08) | 5.67 | (5.21) | 6.48 | (5.47) | 6.83 | (5.50) |
(Note) The exchange rate of the same period in the previous fiscal year is stated in parentheses.
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Business results by segment are as follows.
Japan
The Apparel Division saw increases in sales of accessories for working wear and medical wear sold in Europe and the U.S. as well as accessories for casual wear, sportswear, and athletic shoes.
The Product Division enjoyed increases in sales of medical device-related products, products for one-coin shops (like 100-yen stores), construction safety products, and snowboarding, surfing, and outdoor products.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers increased. As a result, net sales grew 10.9% year on year to total ¥33,516 million, and segment profit rose 17.7% year on year to reach ¥1,618 million.
Due to the adoption of the Accounting Standard for Revenue Recognition, etc., net sales and segment profit fell ¥427 million and ¥46 million respectively.
Asia
In China and Hong Kong apparel operations, sales of working wear accessories for the European and U.S. markets and accessories for casual wear were up while apparel operations in Vietnam enjoyed growing sales of athletic shoes accessories.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers decreased in China due to the semiconductor shortage.
As a result, net sales increased 3.5% year on year to total ¥8,340 million, and segment profit grew 73.7% year on year to reach ¥696 million.
Europe and the U.S.
In the Apparel Division, sales of accessories related to working wear and casual wear as well as accessories for high- end down wear increased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers decreased due to the semiconductor shortage.
As a result, net sales grew 23.7% year on year to total ¥6,621 million, and segment profit grew 82.7% year on year to reach ¥104 million.
(2) Overview of Financial Position for the Period under Review
Total assets for the fiscal year under review increased ¥4,333 million from the previous fiscal year-end to ¥50,271 million.
Current assets grew ¥3,523 million from the previous fiscal year-end to ¥30,481 million. This was mainly due to an increase of ¥1,569 million in merchandise and finished goods, an increase of ¥892 million in notes and accounts receivable, an increase of ¥687 million in raw materials and supplies, an increase of ¥561 million in electronically recorded monetary claims, and a decrease of ¥703 million in cash and deposits.
Non-current assets were up ¥810 million from the previous fiscal year-end to ¥19,790 million. This was mainly due to an increase of ¥280 million in goodwill, an increase of ¥168 million in machinery and equipment, and an increase of ¥137 million in trademark rights included in other intangible assets.
Current liabilities increased ¥1,801 million from the previous fiscal year-end to ¥9,309 million. This was mainly due to an increase of ¥1,084 million in notes and accounts payable - trade, an increase of ¥259 million in liabilities related to chargeable subcontracting included in other, an increase of ¥113 million in accrued expenses included in other, an increase of ¥106 million in provision for bonuses, and a decrease of ¥114 million in the current portion of long-term borrowings.
Non-current liabilities decreased ¥237 million from the previous fiscal year-end to ¥4,278 million. This was mainly due to a decrease of ¥280 million in long-term borrowings.
Net assets increased ¥2,769 million from the previous fiscal year-end to ¥36,684 million.
The shareholders' equity ratio decreased 0.8 percentage points to 72.9% from 73.7% in the previous fiscal year.
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Morito Co. Ltd. published this content on 13 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2023 15:20:08 UTC.