Consolidated Financial Results
for the Three Months Ended JUNE 30, 2023
(Under Japanese GAAP)
August 8, 2023 | |||
Company name: | SEIKO GROUP CORPORATION | Listing: Tokyo | |
Securities code: | 8050 | URL: https://www.seiko.co.jp/en/ | |
Representative: | Shuji Takahashi, President | ||
Inquiries: | Masanobu Minami, General Manager, Accounting Department | Telephone: +81-3-3563-2111 |
Scheduled date to file quarterly securities report: | August 10, 2023 (in Japanese) | ||||||||
Scheduled date to commence dividend payments: | - | ||||||||
Preparation of supplementary material on quarterly financial results: | Available | ||||||||
Holding of quarterly financial results briefing: | Scheduled (for institutional investors and analysts) | ||||||||
(Yen amounts are rounded down to millions, unless otherwise noted.) | |||||||||
1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023) | |||||||||
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | owners of parent | ||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
June 30, 2023 | 62,949 | 1.4 | 2,823 | (9.1) | 3,732 | (8.0) | 2,411 | 41.2 | |
June 30, 2022 | 62,078 | 13.7 | 3,105 | 105.3 | 4,056 | 126.4 | 1,707 | - |
Note: Comprehensive income | For the three months ended June 30, 2023: | 9,130 | million | [33.5%] | |||
For the three months ended June 30, 2022: | 6,837 | million | [263.3%] | ||||
Basic earnings | Diluted earnings | ||||||
per share | per share | ||||||
June 30, 2023 | 58.43 | - | |||||
June 30, 2022 | 41.40 | 41.40 | |||||
(2) Consolidated financial position | |||||||
Total assets | Net assets | Equity-to-asset ratio | |||||
As of | Millions of yen | Millions of yen | % | ||||
June 30, 2023 | 367,533 | 139,361 | 37.3 | ||||
March 31, 2023 | 355,915 | 131,748 | 36.5 | ||||
Reference: Equity | As of June 30, 2023: | million | |||||
As of March 31, 2023: | 129,792 million |
2. Cash dividends
Annual dividends per share | |||||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | ||||
March 31, 2023 | - | 37.50 | - | 37.50 | 75.00 | ||||
Fiscal year ending | |||||||||
March 31, 2024 | - | ||||||||
Fiscal year ending | |||||||||
March 31, 2024 | 37.50 | - | 37.50 | 75.00 | |||||
(Forecast) | |||||||||
Note: Revisions to the forecast of cash dividends most recently announced: None | |||||||||
3. Consolidated financial forecast for the fiscal 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 | ||||||||
Fiscal year ending | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
March 31, 2024 | 268,000 | 2.9 | 12,000 | 6.8 | 12,000 | 7.5 | 8,000 | 59.1 | 193.75 |
Note: Revision to the financial forecast most recently announced: None |
* Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaies resulting in the change in scope of consolidation): Not applicable
Newly included: Not applicable | Excluded: Not applicable |
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Not applicable
- Changes in accounting policies, changes in accounting estimates, and restatement
i) Changes in accounting policies due to revisions to acounting standards and other regulations | : Not applicable |
ii) Changes in accounting policies due to other reasons | : Not applicable |
iii) Changes in accounting estimates | : Not applicable |
iv) Restatement | : Not applicable |
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023 | 41,404,261 | shares / | As of March 31, 2023 | 41,404,261 | shares | |
ii) Number of treasury shares at the end of period | ||||||
As of June 30, 2023 | 108,122 | shares / | As of March 31, 2023 | 132,337 | shares | |
iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) | ||||||
Three months ended June 30, 2023 | 41,275,959 | shares | ||||
Three months ended June 30, 2022 | 41,245,268 | shares |
(Note) For the purpose of calculating the number of treasury shares at the end of period and the average numbers of shares outstanding during the period, treasury shares held in the Board Benefit Trust (BBT) are included in the treasury shares deducted in the calculation.
- 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
(Cautionary statements with respect to financial forecast)
The financial forecasts which appear in this report have been prepared based solely on the information which was available to the Company as of the date on which the report was released and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ significantly from the forecasted figures due to a number of factors. For assumptions used in the financial forecasts and instructions to use the financial forecasts, refer to (3) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (FY2023), 1. Business Results, for detail.
SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2023
Page 3/15
Contents
1. Business Results
(1) | Overview | 4 |
(2) | Financial Condition | 6 |
(3) | Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 | |
(FY2023) | 7 |
2. Quarterly Consolidated Financial Statements and Major Notes
(1) | Quarterly Consolidated Balance Sheets | 8 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 11 |
(3) | Notes to Quarterly Consolidated Financial Statements | 13 |
(Going concern assumption) | 13 | |
(Significant changes in shareholder's equity) | 13 | |
(Segment information) | 14 |
SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2023
Page 4/15
1. Business Results
(1) Overview
During the three-month period ended June 30, 2023, the world economic growth has slowed after a post-coronavirus recovery period, due to continuation of monetary tightening caused by continuous high inflation, especially in Europe and the U.S. In China, while the economy recovered from the slowdown at the end of last year, which was due to severe activity restrictions under the government's "zero-COVID" policy and the spread of infection, the outlook remains uncertain with a continued decline in real estate investment.
The Japanese economy is on a recovery trend, mainly in metropolitan area, due to the downgrading of the legal status of the novel coronavirus to Class V and a drastic recovery in consumption by Japan- bound tourists.
(Millions of yen) | |||||
3M FY2021 | 3M FY2022 | 3M FY2023 | Variance | Variance | |
(a) | (b) | ① | ① - (a) | ① - (b) | |
Net sales | 54,609 | 62,078 | 62,949 | 8,340 | 870 |
Operating profit | 1,512 | 3,105 | 2,823 | 1,311 | (281) |
% | 2.8% | 5.0% | 4.5% | 1.7pt | (0.5pt) |
Ordinary profit | 1,791 | 4,056 | 3,732 | 1,940 | (324) |
% | 3.3% | 6.5% | 5.9% | 2.6pt | (0.6pt) |
Profit attributable to owners of parent | 53 | 1,707 | 2,411 | 2,358 | 703 |
% | 0.1% | 2.8% | 3.8% | 3.7pt | 1.0pt |
Exchange rate (v. JPY) | |||||
USD | 109.5 | 129.7 | 137.5 | 28.0 | 7.8 |
EUR | 131.9 | 138.3 | 149.6 | 17.7 | 11.3 |
Amid these circumstances, in the "Emotional Value Solutions Business (EVS Business)," the Watches Business and WAKO Business for the Japanese market recorded significant net sales growth against the backdrop of demand from inbound tourists. In the Watches Business for overseas markets, mainly in Europe and Asia, net sales were also higher year on year. In the "Devices Solutions Business (DS Business)," net sales were significantly lower year on year amid an uncertain recovery of the business environment, which had deteriorated since the third quarter of the previous fiscal year due to factors such as the sluggish Chinese economy, HDD inventory adjustments, and weak semiconductor market conditions. In the "Systems Solutions Business (SS Business)," net sales were higher year on year, thanks to ongoing successful efforts to diversify business and expand the stock business. As a result, for the three-month period ended June 30, 2023, the Group reported consolidated net sales of 62.9 billion yen, a year-on-year increase of 1.4%.
SEIKO GROUP CORPORATION
Consolidated Financial Statements: 3M FY2023
Page 5/15
On an overall consolidated basis, domestic net sales came to 32.8 billion yen (a year-on-year increase of 6.3%), and overseas net sales were 30.1 billion yen (a year-on-year decrease of 3.4%). Net sales in overseas comprised 47.9% of net sales overall.
Advertising and promotion expenses for the three-month period ended June 30, 2023 increased by approximately 9% from the same period of previous fiscal year, resulting in selling, general and administrative expenses were a year-on-year increase of 1.5 billion yen. Operating profit was 2.8 billion yen (a year-on-year decrease of 9.1%), a deterioration of 0.2 billion yen year on year, due to deceleration of the DS Business. Non-operating income and expenses deteriorated year on year due to factors including a decrease in foreign exchange gains, and ordinary profit decreased by 0.3 billion yen year on year to 3.7 billion yen (a year-on-year decrease of 8.0%). Profit attributable to owners of parent increased by 0.7 billion yen to 2.4 billion yen (a year-on-year increase of 41.2%), due to a decrease in loss on the spread of infectious disease and income taxes - deferred, which were posted in the previous fiscal year.
The average exchange rates for the three-month period ended June 30, 2023 were 137.5 yen to 1 US dollar and 149.6 yen to 1 euro.
Results by Segment
Results for each segment are as follows:
a. Emotional Value Solutions Business (EVS Business)
Net sales under the EVS Business came to 42.3 billion yen, a year-on-year increase of 3.2 billion yen, or 8.4%.
Net sales of completed watches in Japan grew year on year due to favorable performance of new products of Global Brands such as Grand Seiko and Seiko Prospex against the background of demand from inbound tourists, which showed a clear recovery trend. Overseas, net sales increased year on year as Global Brands grew in the U.S., Europe, and Asia, especially for Seiko Prospex and Seiko 5 Sports, despite a delayed recovery in China. In the watch movements business, net sales decreased year on year due to the sluggish Chinese economy.
Net sales in the WAKO Business grew significantly year on year with the recovery of demand from inbound tourists. However, net sales of the clocks business for overseas markets declined year on year due to the sluggish Chinese economy.
Operating profit increased by 1.0 billion yen year on year, resulting in operating profit of 3.4 billion yen (a year-on-year increase of 45.0%).
b. Devices Solutions Business (DS Business)
Net sales under the DS Business came to 13.9 billion yen, a year-on-year decrease of 15.8%. Operating profit was 0.1 billion yen, a year-on-year decrease of 90.3%.
Net sales and operating profit decreased significantly year on year due to the sluggish Chinese
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Seiko Holdings Corporation published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 14:55:05 UTC.