TRANSLATION FOR REFERENCE PURPOSES ONLY
Unicharm Corporation (8113) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023
This notice has been translated from the original Japanese text of the timely disclosure statement dated August 4, 2023 and is for reference purposes only. In the event of any discrepancy between the original Japanese and this translation, the Japanese text shall prevail.
CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements, such as Unicharm Corporation's current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, economic circumstances in which Unicharm Corporation operates, competitive pressures, relevant regulations, changes in product development, and fluctuations in currency exchange rates.
Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending December 31, 2023; Flash Report
[IFRS]
August 4, 2023 | |
Listed Company Name: | Unicharm Corporation |
Listing: | Tokyo Stock Exchange |
Code Number: | 8113 |
URL: | https://www.unicharm.co.jp/ |
Company Representative: | Takahisa Takahara, Representative Director, President and Chief Executive |
Officer | |
Contact Person: | Hirotatsu Shimada, Managing Executive Officer, General Manager of |
Accounting Control and Finance Division | |
Telephone Number: | +81-3-3451-5111 |
Scheduled Date to Submit Quarterly Securities Report: August 7, 2023
Scheduled Date to Commence Dividend Payments: September 4, 2023
Preparation of Supplementary Material on Quarterly Financial Results: Yes
Holding of Quarterly Financial Results Presentation Meeting: Yes (Securities Analysts, Institutional Investors) (Amounts are rounded to the nearest million yen)
1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023 (January 1, 2023 through June 30, 2023)
(1) Consolidated financial results (Q2 cumulative total)
Net Sales
Millions of Yen
(Figures in percentage represent increases or decreases from the same period last year)
Core Operating | Profit for the | Profit Attributable | Total | |||||||
Profit Before Tax | to Owners of | Comprehensive | ||||||||
Income | Period | |||||||||
Parent | Income | |||||||||
% | Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % |
Yen | Yen | Yen | Yen | Yen |
Q2 of Fiscal Year Ending | 453,937 | 7.7 | 58,747 | 6.0 | 60,989 | 8.2 | 40,609 | 10.9 | 34,667 | 9.1 | 81,407 | (16.5) |
December 31, 2023 | ||||||||||||
Q2 of Fiscal Year Ended | 421,614 | 11.8 | 55,421 | (10.3) | 56,372 | (12.9) | 36,625 | (19.9) | 31,764 | (20.5) | 97,549 | 48.3 |
December 31, 2022 | ||||||||||||
(Note) Core operating income is calculated by deducting selling, general and administrative expenses from gross profit. | ||||||||||||
Basic Earnings | Diluted Earnings | |||||||||||
Per Share | Per Share | |||||||||||
Yen | Yen | |||||||||||
Q2 of Fiscal Year Ending | 58.47 | 58.47 | ||||||||||
December 31, 2023 | ||||||||||||
Q2 of Fiscal Year Ended | 53.26 | 53.25 | ||||||||||
December 31, 2022 | ||||||||||||
TRANSLATION FOR REFERENCE PURPOSES ONLY
Unicharm Corporation (8113) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023
(2) Consolidated financial position
Equity Attributable | Ratio of Equity | |||
Total Assets | Total Equity | Attributable to | ||
to Owners of Parent | ||||
Owners of Parent | ||||
Millions of Yen | Millions of Yen | Millions of Yen | % | |
As of June 30, 2023 | 1,102,237 | 749,721 | 661,221 | 60.0 |
As of December 31, 2022 | 1,049,218 | 708,613 | 618,883 | 59.0 |
2. Cash Dividends
Annual Dividends | |||||
1st Q-End | 2nd Q-End | 3rd Q-End | Year-End | Total | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal Year Ended | - | 19.00 | - | 19.00 | 38.00 |
December 31, 2022 | |||||
Fiscal Year Ending | - | 20.00 | |||
December 31, 2023 | |||||
Fiscal Year Ending | - | 20.00 | 40.00 | ||
December 31, 2023 (forecast) | |||||
(Note) Changes in dividend forecasts recently disclosed: None
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2023 (January 1, 2023 through December 31, 2023)
(Figures in percentage represent increases or decreases from the previous fiscal year) | |||||||||
Net Sales | Core Operating Income | Profit Before Tax | Profit Attributable to | Basic Earnings | |||||
Owners of Parent | Per Share | ||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Yen | |
Full Year | 963,500 | 7.3 | 141,000 | 17.9 | 137,500 | 18.8 | 80,900 | 19.7 | 136.78 |
(Note) Changes in results forecasts recently disclosed: None |
TRANSLATION FOR REFERENCE PURPOSES ONLY
Unicharm Corporation (8113) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023
* Notes
- Changes in major subsidiaries during the period (or any change of specified subsidiaries accompanying a change in the scope of consolidation): None
- Changes in accounting policies and accounting estimates
- Changes in accounting policies required by IFRS: Yes
- Changes in accounting policies other than item (i) above: None
- Changes in accounting estimates: None
(Note) For the details, please refer to "2. Condensed Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to the condensed consolidated financial statements, 2. Material accounting policies" section on page 13.
- Number of issued and outstanding shares (common shares)
- Number of issued and outstanding shares as of end of period (including treasury shares):
As of June 30, 2023: | 620,834,319 shares |
As of December 31, 2022: | 620,834,319 shares |
(ii) Number of treasury shares as of end of period: | |
As of June 30, 2023: | 29,369,967 shares |
As of December 31, 2022: | 27,560,827 shares |
(iii) Average number of shares during the period (accumulated total): | |
Q2 of Fiscal Year Ending December 31, 2023: | 592,902,991 shares |
Q2 of Fiscal Year Ended December 31, 2022: | 596,397,559 shares |
- The quarterly financial results report is exempt from quarterly review by certified public accountants or an auditing firm.
- Explanation regarding proper use of the forecasts of financial results and other notes
- While the core operating income disclosed by the Company is not an indicator defined in IFRS, the Company voluntarily discloses this as it is believed to be a valuable benchmark for measuring the Group's recurring business performance.
- Forecasts stated herein are based on the currently available information and the Company's assumptions that were judged to be valid as of the announcement date hereof, and are not intended to be a promise by the Company to achieve these forecasts. Therefore, actual results may differ for various factors. Please refer to "1. Qualitative Information on Financial Results, (3) Explanation of future estimate information such as forecast of consolidated financial results" section on page 5 for more information concerning the assumptions used for forecasts of financial results and other notes on proper use.
TRANSLATION FOR REFERENCE PURPOSES ONLY
Unicharm Corporation (8113) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023
Contents of Exhibit
- Qualitative Information on Financial Results ···············································································2
- Explanation of operating results ···························································································2
- Explanation of financial position ··························································································4
- Explanation of future estimate information such as forecast of consolidated financial results ···················5
- Condensed Consolidated Financial Statements and Significant Notes Thereto ········································6
- Condensed consolidated statement of financial position ·······························································6
- Condensed consolidated statement of income and Condensed consolidated statement of comprehensive income ·························································································································8
- Condensed consolidated statement of changes in equity····························································· 10
- Condensed consolidated statement of cash flows ····································································· 11
- Notes to the condensed consolidated financial statements ··························································· 13
- Notes regarding going concern assumptions ········································································ 13
- Material accounting policies··························································································· 13
- Segment information ··································································································· 13
- Investments accounted for using equity method···································································· 14
- Selling, general and administrative expenses ······································································· 15
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TRANSLATION FOR REFERENCE PURPOSES ONLY
Unicharm Corporation (8113) Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2023
1. Qualitative Information on Financial Results
-
Explanation of operating results
In the second quarter under review (January 1 to June 30, 2023), there was a gradual market recovery in the operating environment of the Group as the threat of COVID-19 subsided in Japan and other countries and regions. Still, the future outlook remains unpredictable due to persistent inflation owing to the impacts of mainly elevated resource prices and forex volatility since last year, as well as differences in the pace of economic recovery between countries/regions.
Overseas, with signs of a recovery from the economic deterioration caused by the spread of COVID-19 emerging in India, Indonesia, the Middle East, and other target markets, the Company proceeded to address rising costs by implementing value pass-through with product proposals that offer new added value to meet the needs of local customers.
In China, where the impacts of inventory reduction in distribution were felt from last year up until the first quarter of this fiscal year, the market recovered moderately, but the pace of that recovery still lacks vigor. In these circumstances, the Company has worked to ensure a stable supply of products and promoted the structural reform of the entire China business by stimulating demand for high value-added products and promoting the development of new channels.
In Japan, as business conditions continued to recover, the Company has maintained its high market share by continuing to propose new values to stimulate demand for high value-added products, including feminine care products, adult excretion care products and pet care products, while turning to pass-through.
In these environments and under the banner "we constantly provide the world's No. 1 and unprecedented products and services to everybody around the globe, and deliver comfort, impression, and satisfaction," the Company and its group companies have worked to create a "Cohesive Society" with social inclusion, as a society where people around the world are equal, unencumbered, respectful of each other's individuality, and support each other with kindness, making heart-to-heart connections.
As a result, net sales, core operating income, profit before tax, profit for the period, and profit attributable to owners of parent in the second quarter under review reached ¥453,937 million (up 7.7% year on year), ¥58,747 million (up 6.0% year on year), ¥60,989 million (up 8.2% year on year), ¥40,609 million (up 10.9% year on year), and ¥34,667 million (up 9.1% year on year), respectively.
Financial results by segment are as described below. - Personal Care Business
-
Wellness Care Business
In overseas markets, the Company continued to actively invest in marketing in China, where the population is aging even faster than in Japan and there is a large target market for adult excretion care products. Strong growth was achieved through efforts to drive awareness and promote the use of these products.
In addition, in regions such as India, Vietnam, and Indonesia, the Company has strived to expand its product lineup and promote the spread of the care model it has established in Japan in response to increasing demand for adult excretion care products, thereby achieving continued high net sales growth.
As for adult excretion care products in Japan, the Company continued to expand its extensive lineup of products in line with ADL*1 and managed to record strong growth in net sales and drive a market recovery as a result of steadily passing value along to customers with the rollout of new added-value products.
The Company also endeavored to revitalize the market with an enhanced lineup of the Cho-kaiteki and Cho- rittai brands to meet consumer needs in the mask category, a market that has grown significantly until last year. However, this market contracted in response to consumer awareness and sudden changes in the retail space owing to major changes in the operating environment for masks, including warmer weather and changes in the interpretation of the law*2 designed to prevent COVID-19 infections. The Company will continue to invigorate the market and expand its market share by continuously launching new products to meet consumer needs as the peak demand season of autumn and winter approaches.
*1 An abbreviation for Activities of Daily Living, an indicator of the level of nursing care provided to those being cared for, which represents the basic activities necessary for daily living, such as excretion, eating, and bathing
*2 Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases
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Unicharm Corporation published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 07:39:00 UTC.