Consolidated Financial Results
First Two Quarters of the Fiscal Year ending March 2023
(April 1, 2022 to September 30, 2022)
November 4, 2022
Listed Company Name: Rinnai Corporation
Listings: Prime Section of the Tokyo Stock Exchange, and Premiere Section of Nagoya Stock Exchange
(Securities Code: 5947)
Website: https://www.rinnai.co.jp
Representative: Hiroyasu Naito, President
Contact: Takuya Ogawa, Senior Executive Officer, General Manager of Corporate Planning Headquarters
TEL: +81 (52) 361-8211
Anticipated date for releasing quarterly securities report: November 11, 2022
Anticipated date to begin distributing dividends: December 5, 2022
Supplemental information sheets of quarterly results: Yes
Information meeting of quarterly results: Yes (for analyst and institutional investors)
1. Performance for the Six Months Ended September 30, 2022
(April 1, 2022 - September 30, 2022; amounts less than one million are omitted)
-
Consolidated Operating Results
Percentage figures in parentheses indicate increase or decrease from the previous term.
(¥ millions; %) | ||||
Net income | ||||
Net Sales | Operating | Ordinary Income | attributable to | |
Income | owners of the | |||
(% change) | (% change) | |||
(% change) | parent company | |||
(% change) | ||||
Two-quarter total at | ¥194,347 (+8.1) | ¥19,084 (-5.1) | ¥22,213 (+2.4) | ¥13,382 (+1.0) |
September 2022 | ||||
Two-quarter total at | 179,721 (+20.7) | 20,107 (+55.2) | 21,687 (+55.8) | 13,247 (+32.1) |
September 2021 | ||||
Note: Comprehensive Income: Six months ended September 30, 2022; ¥34,653 million (+58.0%) Six months ended September 30, 2021; ¥21,936 million (+201.5%)
(¥) | ||
Net Income | Fully Diluted Net | |
per Share | Income per Share | |
Two-quarter total at | ¥270.41 | - |
September 2022 | ||
Two-quarter total at | 259.38 | - |
September 2021 | ||
Note: Percentage figures in net sales, operating income, ordinary income and net income columns indicate increase or decrease from the previous term.
(2) Consolidated Financial Position
(¥ millions; %) | ||||
Total Assets | Net Assets | Equity Ratio (%) | ||
Two-quarter total at | ¥544,290 | ¥398,725 | 65.6 | |
September 2022 | ||||
Full-year at | 512,867 | 378,856 | 66.9 | |
March 2022 | ||||
(Reference) Equity capital: Six months ended September 30, 2022; ¥357,144 million | ||||
Year ended March 31, 2022; ¥343,120 million |
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2. Dividends
Dividend per Share | |||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | Fiscal Year- | Full Year | |||||||||
(¥) | (¥) | (¥) | End | (¥) | |||||||||
(¥) | |||||||||||||
March 2022 | - | ¥70.00 | - | ¥70.00 | ¥140.00 | ||||||||
March 2023 | - | 75.00 | - | - | - | ||||||||
March 2023 | - | - | - | 75.00 | 150.00 | ||||||||
(anticipated) | |||||||||||||
Note: Changes on the forecast in period under review: None |
3. Forecast for the Fiscal Year Ending March 31, 2023
(April 1, 2022, to March 31, 2023) | (¥ millions) | ||||
Net income | |||||
Operating | Ordinary | attributable to | Net Income | ||
Net Sales | owners of the | ||||
Income | Income | per Share | |||
(% change) | parent | ||||
(% change) | (% change) | (¥) | |||
company | |||||
(% change) | |||||
Full year | ¥425,000 (+16.1) | ¥44,000 (+22.7) | ¥48,500 (+24.2) | ¥29,500 (+24.2) | ¥599.96 |
Note:Percentage figures in parentheses indicate increase or decrease from the previous fiscal year.
Note: Revision of fiscal year forecast in period under review: Yes
Regarding consolidated performance forecasts, please refer to "Notice Regarding Differences between Forecast and Actual Consolidated Business Results for the First Half of the Fiscal Year Ending March 31, 2023 and Revision of Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2023" released today.
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* Notes
(1)Changes in scope of consolidation of major subsidiaries during the period: None Newly included - (Company name: -): Excluded - (Company name: -)
- Application of special accounting method for quarterly consolidated financial reporting: None
- Changes in accounting policies; changes in accounting estimates; retrospective restatement
- Changes due to revision of accounting standard: Yes
- Other changes than (a): None
- Changes in the rules for the accounting estimates: None
- Retrospective restatement: None
Note: For more information, please refer to "2. Consolidated Financial Statements and Main Notes,
- Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies) on page
12 of this report.
- Number of Outstanding Shares (Common Stock)
-
Number of outstanding shares at term-end (including treasury stock)
September 30, 2022: 50,021,057 shares
March 31, 2022: 50,021,057 shares - Number of treasury stock shares at term-end
September 30, 2022: 1,225,301 shares
March 31, 2022: 219,577 shares
(c) Average number of shares during the term
First two quarters of the fiscal year ending March 2023: 49,489,995 shares
First two quarters of the fiscal year ended March 2022: 51,074,670 shares
- This report is exempt from a quarterly review process by certified public accountant or audit corporation.
- Note on appropriate use of performance forecasts
Performance forecasts contained in this document are based on information currently available and certain judgments deemed by the Corporation to be reasonable. No intent is implied of promise by the Corporation to achieve such forward-looking statements. Actual results may differ significantly from such forecasts due to various factors. For more information, please refer to "1. Consolidated Performance, (3) Explanation about Consolidated Performance Forecasts" on page 6 of this report.
- Supplemental information sheets of financial results are posted on the Corporation's website on Friday, November 4, 2022.
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1. Consolidated Performance
(1) Operating Results
In the first two quarters under review, the global economy faced increasing uncertainty due to the ongoing sharp rises in raw material and energy prices, supply chain disruptions, the protracted situation in Ukraine, inflation, and rising interest rates. This was despite easing of restrictions aimed at preventing the spread of COVID-19. In Japan, consumer spending and corporate earnings showed signs of recovery, but the rapid depreciation of the yen and concerns about further price hikes made the situation unpredictable.
In the domestic housing-related industry, the number of new housing starts showed signs of weakness, but the household appliance sector remained firm, particularly in the renovation category. Under these circumstances, the Rinnai Group pursued three key strategies under its medium-term business plan, New ERA 2025: "Advancement in addressing social challenges," "Expansion of business scale," and "Revolution of corporate structure." During the period under review, for example, we developed an ultrafine-bubble water heater that helps improve people's quality of life, as well as a gas water heater with a built-ininstant-heating unit. We also commissioned a new plant in the United States and otherwise worked to expand our business in the growing U.S. market. In these and other ways, we made steady progress in fulfilling our promise to our customers, "Creating a healthier way of living," and achieving sustainable and solid long-term growth.
For the period, overseas sales weakened due to delays in product supply from Japan and activity restrictions caused by lockdowns in China. However, domestic sales increased thanks to strong demand, especially for water heaters, and the Rinnai Group reported a year-on-year increase in net sales. On the earnings side, we posted a decrease in operating income due to rises in raw material and distribution costs, and increased expenses for the operation of a new plant in united states.
As a result, consolidated net sales for the period amounted to ¥194,347 million, up 8.1% from the previous corresponding period. Operating income declined 5.1%, to ¥19,084 million, while ordinary income climbed 2.4%, to ¥22,213 million, thanks to an increase in foreign exchange gain. Net income attributable to owners of the parent company edged up 1.0%, to ¥13,382 million.
Our results by geographical segment were as follows:
Japan
In Japan, sales of mainstay water heaters grew substantially as we worked to strengthen our production system to eliminate supply delays. Despite soaring raw material prices and distribution costs, our business benefited from higher sales and the yen's depreciation. Sales in Japan increased 11.0% year on year, to ¥93,982 million, and operating income jumped 29.5%, to ¥13,200 million.
United States
In the United States, sales in local-currency terms declined due to disruptions in international logistics and tight parts procurement conditions, which caused delays in the supply of finished tankless water heaters and knockdown parts from Japan. Nevertheless, sales in yen terms increased 9.6%, to ¥23,325 million, thanks to foreign exchange factors. Due to higher expenses for the operation of a new plant, however, we reported a segment operating loss of ¥1,179 million.
Australia
Sales in Australia declined due to tight parts procurement conditions, which affected supplies of tankless water heaters and heating equipment from Japan. Due also to surging raw material prices and logistics costs, sales decreased 1.3% year on year, to ¥13,613 million, and operating income fell 66.4%, to ¥460 million.
China
Production and sales activities in China were constrained by lockdowns in Shanghai due to the spread of COVID-19. As a result, sales in China edged down 0.9% year on year, to ¥24,971 million. Due to decreases in sales promotion expenses and provision for doubtful accounts, however, operating
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income rose 22.0%, to ¥3,810 million.
South Korea
Sales of mainstay boilers declined amid weakening business confidence due to rising prices and interest rates. Accordingly, sales in South Korea slipped 0.5%, to ¥15,596 million, and operating income declined 9.8%, to ¥885 million.
Indonesia
Despite weak sales of mainstay tabletop stoves, sales of built-in hobs (stovetops) and range hoods increased on the back of sales promotion activities. Consequently, sales in Indonesia rose 19.1%, to ¥8,043 million. Due to soaring raw material prices, however, operating income fell 36.8%, to ¥955 million.
References 1: Net sales by product
(¥ millions; %)
First two quarters | First two quarters | Year ended | |||||||
for the year ended | for the year ending | ||||||||
March 31, 2022 | |||||||||
March 31, 2022 | March 31, 2023 | Change | |||||||
(April 1, 2021, | |||||||||
(April 1, 2021, | (April 1, 2022, | ||||||||
to March 31, 2022) | |||||||||
to Sept. 30, 2021) | to Sept. 30, 2022) | ||||||||
Amount | % of | Amount | % of | Amount | (%) | Amount | % of | ||
total | total | total | |||||||
Water heaters | ¥103,207 | 57.4 | ¥112,581 | 57.9 | ¥9,374 | 9.1 | ¥211,026 | 57.6 | |
Kitchen | 43,002 | 23.9 | 44,251 | 22.8 | 1,249 | 2.9 | 85,531 | 23.4 | |
appliances | |||||||||
Air conditioning | 10,347 | 5.8 | 10,228 | 5.3 | (119) | (1.2) | 21,109 | 5.8 | |
appliances | |||||||||
Commercial-use | 4,351 | 2.4 | 5,160 | 2.7 | 808 | 18.6 | 9,007 | 2.5 | |
equipment | |||||||||
Others | 18,811 | 10.5 | 22,124 | 11.4 | 3,312 | 17.6 | 39,509 | 10.8 | |
Total | ¥179,721 | 100.0 | ¥194,347 | 100.0 | ¥14,626 | 8.1 | ¥366,185 | 100.0 | |
References 2: Overseas sales
(¥ millions; %) | ||||||||
First two quarters for the year ended | First two quarters for the year ending | |||||||
March 31, 2022 | March 31, 2023 | |||||||
(April 1, 2021, to Sept. 30, 2021) | (April 1, 2022, to Sept. 30, 2022) | |||||||
Asia | Other | Total | Asia | Other | Total | |||
regions | regions | |||||||
I. Overseas sales | ¥56,704 | ¥42,536 | ¥ 99,240 | ¥59,424 | ¥45,979 | ¥105,403 | ||
II. Consolidated net sales | - | - | 179,721 | - | - | 194,347 | ||
III. Composition ratio of overseas sales | 31.6% | 23.7% | 55.2% | 30.6% | 23.7% | 54.2% | ||
to consolidated net sales | ||||||||
Note: Above indicates sales of the Corporation and consolidated subsidiaries in overseas countries or regions.
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Rinnai Corporation published this content on 04 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2022 08:18:04 UTC.