Wakita : Summary of Financial Results 2024 (207KB)

Consolidated Financial Results

for the Fiscal Year ended February 29, 2024

(Japanese GAAP)

April 12, 2024

Company Name: Wakita & Co., LTD.

Code Number: 8125

(URL: https://www.wakita.co.jp/)

Stock Exchange Listing: Tokyo Stock Exchange Prime Market

Representative: Teiji Wakita, President and Representative Director

Contact: Atsuhiko Nariyama, Executive Officer, General Manager of General Affairs Division

Phone: [phone]

Scheduled date of Ordinary General Shareholders' Meeting: May 23, 2024

Scheduled date to commence dividend payment: May 24, 2024

Scheduled date to submit the Securities Report: May 27, 2024

Supplementary information for financial results: Available

Organization of financial results briefing: Available (for institutional investors)

(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for Fiscal 2024 (From March 1, 2023 to February 29, 2024)

(1) Consolidated Results of Operations			(Percentage figures indicate changes from the previous year)
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
Fiscal 2024	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
88,654	12.4	5,541	(3.9)	5,712	(2.9)	3,158	(19.0)
Fiscal 2023	78,870	5.2	5,765	4.7	5,880	3.9	3,901	9.2

(Note) Comprehensive income: Fiscal 2024: ¥4,255 million [7.3%]
	Fiscal 2023: ¥3,965 million [1.5%]
	Profit per share	Fully diluted profit	Rate of return on	Ordinary profit to	Operating profit to
	per share		equity	total assets	net sales
	Yen		Yen	%	%	%
Fiscal 2024	63.45		-	3.2	4.0	6.3
Fiscal 2023	76.44		-	4.0	4.2	7.3

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal 2024: ¥ - million Fiscal 2023: ¥ - million

(2) Consolidated Financial Position

		Total assets	Net assets	Equity ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen
Fiscal 2024		143,944	100,847	69.4	2,023.45
Fiscal 2023		138,652	99,574	71.2	1,968.96
(Reference) Equity:	Fiscal 2024: ¥99,880 million
	Fiscal 2023: ¥98,709 million

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end of
	operating activities	investing activities	financing activities
	the period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal 2024	12,785	(6,773)	(10,468)	18,938
Fiscal 2023	4,168	(5,555)	(9,214)	23,142

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2. Dividends

		Cash dividends per share
	End of 1Q	End of 2Q	End of 3Q	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal 2023	-	0.00	-	38.00	38.00
Fiscal 2024	-	0.00	-	62.00	62.00
Fiscal 2025 (Forecast)	-	0.00	-	70.00	70.00

Total dividends

paid (total)

Millions of yen

1,909

3,066

Payout ratio		Dividends to
	net assets
(consolidated)
	(consolidated)
%	%
49.7	2.0
97.7	3.1
100.2

3. Forecast of Consolidated Financial Results for Fiscal 2025 (From March 1, 2024 to February 28, 2025)

(Percentage figures indicate changes from the previous year)

	Net sales		Operating profit	Ordinary profit
	Millions of yen	%	Millions of yen	%	Millions of yen	%
Full year	94,000	6.0	5,800	4.7	5,950	4.2

Profit attributable to owners of	Profit per share
parent
Millions of yen	%	Yen
3,450		9.2	69.89

* Notes

1. Significant changes of subsidiaries during the period under review (affecting specific subsidiaries due to changes in scope of consolidation): None
   Companies added to the scope: None
   Companies removed from the scope: None
2. Changes in accounting policies, changes in accounting estimates and restatements
3. 1. Changes in accounting policies due to the revision of accounting standards, etc.: Applicable
   2. Any changes in accounting policies other than 1) above: Not applicable
   3. Changes in accounting estimates: Not applicable
   4. Restatements: Not applicable
4. Number of shares issued (common shares)
5. 1. Number of shares issued at the end of period (including treasury shares):

Fiscal 2024: 52,021,297 shares

Fiscal 2023: 52,021,297 shares

1. Number of treasury shares at the end of period: Fiscal 2024: 2,659,758 shares
   Fiscal 2023: 1,888,341 shares
2. Average number of shares during the period: Fiscal 2024: 49,782,729 shares
   Fiscal 2023: 51,046,848 shares

2

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for Fiscal 2024 (From March 1, 2023 to February 29, 2024)

(1) Non-consolidated Results of Operations			(Percentage figures indicate changes from the previous year)
		Net sales		Operating profit	Ordinary profit		Profit
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Fiscal 2024		58,267	8.5	4,496	(5.6)	4,834	(5.6)	3,156	(19.4)
Fiscal 2023		53,682	0.5	4,761	5.1	5,120	4.2	3,916	3.1
		Profit per share	Fully diluted profit
		per share
			Yen		Yen
Fiscal 2024			63.40		-
Fiscal 2023			76.71		-
(2) Non-consolidated Financial Position
		Total assets	Net assets		Equity ratio		Net assets per share
		Millions of yen	Millions of yen		%		Yen
Fiscal 2024			130,600		98,992		75.8		2,005.46
Fiscal 2023			126,074		97,914		77.7		1,953.10
(Reference) Equity: Fiscal	2024: ¥98,992 million
	Fiscal 2023: ¥97,914 million

2. Forecast of Non-consolidated Financial Results for Fiscal 2025 (From March 1, 2024 to February 28, 2025)

(Percentage figures indicate changes from the previous year)

	Net sales		Ordinary profit		Profit		Profit per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	60,500	3.8	4,700	(2.8)	3,200	1.4	64.83

*These Consolidated Financial Results are not subject to audits by certified public accountants or an auditing firm.

*Explanation for the appropriate use of performance forecasts and other special notes:

The performance forecasts and other descriptions on future events presented in this material are based on information that was available at the time of preparation of this material and based on certain assumptions considered to be reasonable, and not intended to guarantee their achievement. The actual performance, etc. may differ materially from these forecasts due to various factors.

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Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of yen)
		As of February 28, 2023	As of February 29, 2024
Assets
	Current assets
	Cash and deposits	20,210	18,338
	Notes and accounts receivable - trade	20,182	20,265
	Lease receivables and investments in leases, net	-	1,349
	Securities	3,713	600
	Merchandise	5,305	-
	Merchandise and finished goods	-	5,965
	Supplies	150	-
	Work in process	-	186
	Raw materials and supplies	-	182
	Other	975	1,050
	Allowance for doubtful accounts	(69)	(72)
	Total current assets	50,467	47,866
	Non-current assets
	Property, plant and equipment
	Assets for rent	43,942	45,934
	Accumulated depreciation	(31,484)	(33,022)
	Assets for rent, net	12,457	12,911
	Real estate for rent
	Buildings and accompanying facilities for rent	33,355	32,445
	Accumulated depreciation	(11,262)	(11,930)
	Buildings and accompanying facilities for rent, net	22,092	20,515
	Land for rent	20,585	19,515
	Buildings and structures	13,836	16,921
	Accumulated depreciation	(7,231)	(8,037)
	Buildings and structures, net	6,604	8,883
	Land	11,079	11,564
	Leased assets	125	97
	Accumulated depreciation	(86)	(59)
	Leased assets, net	38	37
	Other	4,915	5,190
	Accumulated depreciation	(2,057)	(2,511)
	Other, net	2,858	2,679
	Total property, plant and equipment	75,716	76,108
	Intangible assets
	Goodwill	6,070	6,959
	Customer-related intangible assets	-	4,192
	Other	636	820
	Total intangible assets	6,706	11,973

4

		(Millions of yen)
	As of February 28, 2023	As of February 29, 2024
Investments and other assets
Investment securities	2,991	5,019
Retirement benefit asset	787	1,014
Deferred tax assets	223	180
Other	2,260	2,371
Allowance for doubtful accounts	(503)	(588)
Total investments and other assets	5,761	7,996
Total non-current assets	88,184	96,078
Total assets	138,652	143,944

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(Millions of yen)

As of February 28, 2023 As of February 29, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

Short-term borrowings

Current portion of long-term borrowings

Lease liabilities

Income taxes payable

Provision for bonuses

Provision for product warranties

Provision for shareholder benefit program

Other

Total current liabilities

Non-current liabilities

Long-term borrowings

Lease liabilities

Deferred tax liabilities

Deferred tax liabilities for land revaluation

Provision for share based compensation expenses for directors

Provision for retirement benefits for directors (and other officers)

Retirement benefit liability

Long-term accounts payable - facilities

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income

Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Revaluation reserve for land

Remeasurements of defined benefit plans

10,626	10,192
920	490
122	169
20	29
1,201	1,183
405	481
-	9
-	350
7,552	8,612
20,848	21,519
543	424
22	78
814	2,426
435	435
106	93
21	51
283	361
11,969	13,709
4,032	3,996
18,229	21,578
39,078	43,097
13,821	13,821
16,627	16,627
71,092	72,383
(2,154)	(3,268)
99,386	99,563
1,086	2,041
185	176
(2,144)	(2,144)
195	243

Total accumulated other comprehensive income	(676)	317
Non-controlling interests	864	966
Total net assets	99,574	100,847
Total liabilities and net assets	138,652	143,944

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(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

			(Millions of yen)
		Fiscal 2023	Fiscal 2024
		(From March 1, 2022	(From March 1, 2023
		to February 28, 2023)	to February 29, 2024)
Net sales		78,870	88,654
Cost of sales	57,374	63,791
Gross profit		21,495	24,863
Selling, general and administrative expenses		15,730	19,321
Operating profit		5,765	5,541

Non-operating income

Interest income

Dividend income

Purchase discounts

Foreign exchange gains

Gain on investments in investment partnerships Other

Total non-operating income

Non-operating expenses

Interest expenses

Compensation for damage

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sale of non-current assets

Gain on sale of investment securities

Total extraordinary income

Extraordinary losses

Loss on retirement of non-current assets Impairment losses

Other

	5		1
	136	132
	38	40
	53	54
	31	30
	81	119
	347	379
	144	190
	61		-
	26	17
	231	208
	5,880	5,712
	29	14
	410		-
	440	14
	8	160
	25		-
	1	1

	Total extraordinary losses	35	162
	Profit before income taxes	6,285	5,565
	Income taxes - current	2,407	2,368
	Income taxes - deferred	(145)	(66)
	Total income taxes	2,262	2,301
	Profit	4,023	3,263
	Profit attributable to non-controlling interests	121	104
	Profit attributable to owners of parent	3,901	3,158

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Consolidated Statements of Comprehensive Income

					(Millions of yen)
				Fiscal 2023	Fiscal 2024
				(From March 1, 2022	(From March 1, 2023
				to February 28, 2023)	to February 29, 2024)
	Profit		4,023	3,263
	Other comprehensive income
		Valuation difference on available-for-sale securities		(202)	955
		Deferred gains or losses on hedges	113	(11)
		Remeasurements of defined benefit plans, net of tax		30	48
		Total other comprehensive income		(57)	991
	Comprehensive income		3,965	4,255
	Comprehensive income attributable to
		Comprehensive income attributable to owners of parent		3,821	4,152
		Comprehensive income attributable to non-controlling	144	102
		interests

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(3) Consolidated Statements of Changes in Net Assets

Fiscal 2023 (From March 1, 2022 to February 28, 2023)

				Shareholders' equity
		Share capital	Capital surplus	Retained earnings
Balance at beginning of	13,821	16,627	68,675
period
Cumulative effects of
changes in accounting				231
policies
Restated balance	13,821	16,627	68,906
Changes during period
Dividends of surplus				(1,716)
Profit attributable to				3,901
owners of parent
Purchase of treasury
shares
Disposal of treasury			(0)
shares
Net increase (decrease)
in surplus by change of
consolidated scope
Net changes in items
other than shareholders'
equity
Total changes during		―	(0)	2,185
period
Balance at end of period	13,821	16,627	71,092

Treasury shares

(154)

(154)

(2,000)

0

(2,000)

(2,154)

(Millions of yen)

Total shareholders'

equity

98,969

231

99,201

(1,716)

3,901

(2,000)

0

―

185

99,386

		Accumulated other comprehensive income
	Valuation				Total	Non-controlling	Total net assets
			Remeasurements	accumulated
	difference on	Deferred gains or	Revaluation	interests
	of defined	other
	available-for-sale	losses on hedges	reserve for land
	benefit plans	comprehensive
	securities
				income
Balance at beginning of	1,288	94	(2,144)	164	(596)	720	99,093
period
Cumulative effects of
changes in accounting						0	231
policies
Restated balance	1,288	94	(2,144)	164	(596)	720	99,324
Changes during period
Dividends of surplus							(1,716)
Profit attributable to							3,901
owners of parent
Purchase of treasury							(2,000)
shares
Disposal of treasury							0
shares
Net increase (decrease)
in surplus by change of							―
consolidated scope
Net changes in items
other than shareholders'	(202)	91	―	30	(80)	144	64
equity
Total changes during	(202)	91	―	30	(80)	144	249
period
Balance at end of period	1,086	185	(2,144)	195	(676)	864	99,574

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Fiscal 2024 (From March 1, 2023 to February 29, 2024)

				Shareholders' equity
		Share capital	Capital surplus	Retained earnings
Balance at beginning of	13,821	16,627	71,092
period
Cumulative effects of
changes in accounting
policies
Restated balance	13,821	16,627	71,092
Changes during period
Dividends of surplus				(1,909)
Profit attributable to				3,158
owners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Net increase (decrease)
in surplus by change of				41
consolidated scope
Net changes in items
other than shareholders'
equity
Total changes during		―	―	1,291
period
Balance at end of period	13,821	16,627	72,383

Treasury shares

(2,154)

(2,154)

(1,143)

29

(1,114)

(3,268)

(Millions of yen)

Total shareholders'

equity

99,386

―

99,386

(1,909)

3,158

(1,143)

29

41

176

99,563

		Accumulated other comprehensive income
	Valuation				Total	Non-controlling	Total net assets
	Deferred gains or	Revaluation	Remeasurements	accumulated
	difference on	interests
	of defined	other
	available-for-sale	losses on hedges	reserve for land
	benefit plans	comprehensive
	securities
				income
Balance at beginning of	1,086	185	(2,144)	195	(676)	864	99,574
period
Cumulative effects of
changes in accounting							―
policies
Restated balance	1,086	185	(2,144)	195	(676)	864	99,574
Changes during period
Dividends of surplus							(1,909)
Profit attributable to							3,158
owners of parent
Purchase of treasury							(1,143)
shares
Disposal of treasury							29
shares
Net increase (decrease)
in surplus by change of							41
consolidated scope
Net changes in items
other than shareholders'	955	(9)	―	48	994	102	1,096
equity
Total changes during	955	(9)	―	48	994	102	1,273
period
Balance at end of period	2,041	176	(2,144)	243	317	966	100,847

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