Itoki : Transcript of Financial Results Briefing for the first six months of FY ending December 31, 2023(1,269KB)
August 30, 2023 at 03:40 am
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Itoki Corporation
Transcript of Financial Results Briefing
for the first six months of FY ending December 31, 2023
This is a transcript of the financial results briefing of Itoki Corporation for the first six months of FY ending December 31, 2023.
【Speakers】
Mr. Koji Minato, President & Representative Director, Itoki Corporation
Mr. Yoshiaki Moriya, Director, Managing Executive Officer, and Head of Administrative Dept., Itoki Corporation
Mr. Yoshiaki Moriya: Thank you very much for joining us today. I'm Moriya serving as head of Administrative Department of Itoki Corporation. I'll report the financial results for the second quarter of the term ending December 2023, which were disclosed on August 7.
In summary, sales and profit grew considerably thanks to the continuous efforts to enhance the earning capacity and the favorable market environment. As a result, PBR improved to 1.
This slide shows the graphs of net sales and operating profit. As the V-shaped recovery continued, not only net sales and operating profit shown here, but also ordinary and net profits, etc. hit a record high in the first half.
I'll describe the results. Net sales were healthy and profit margin improved, so profit was better than expected. As every segment performed well, net sales grew 7% year on year to 68.1 billion yen. In addition, the revision to selling prices turned out to be effective, and gross profit margin improved to 39.6%.
Regarding SG&A expenses, there were expenses for marketing, but distribution costs were curtailed and the augmentation rate of SG&A expenses was less than sales growth rate. As a result, operating profit and operating profit margin improved to 7 billion yen and 10.3%, respectively. Operating profit rose considerably by about 60% from 2022.
Profit attributable to owners of parent was 4.7 billion yen. Despite the recoil from the posting of extraordinary profit in 2022, net profit rose about 28% year on year, marking a record high.
I'll describe assets and cash flows. Total assets decreased 3.6 billion yen. This is mainly because cash decreased through the payment of other accounts payable. Net assets increased 3.5 billion, exceeding 50 billion yen, because a profit was posted.
Capital-to-asset ratio was 47.7%. Some cash was required for paying tax, which augmented due to the profit growth, strategic expenditure for operating assets, and increasing the dividend amount, but we have secured sufficient assets.
This slide shows the factors in increasing or decreasing operating profit. Increased profit of 1.6 billion yen due to higher net sales was estimated under the assumption that gross profit margin was unchanged from the previous year. When combining increased profit by 1.1 billion yen due to the improvement in profit margin and the effects of structural reform and price rationalization, operating profit increased about 2.7 billion yen.
An increase in SG&A expenses was around 400 million yen, as we strategically spent funds for marketing. We kept considerably reducing distribution costs, which posed a problem, and this reduction increased operating profit by 300 million yen this term. The augmentation of SG&A expenses was nearly offset by the reduction of distribution costs, so operating profit grew significantly by 2.6 billion yen year on year. It seems that the pattern for improving earning rate has been established.
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Itoki Corporation published this content on 30 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 07:39:07 UTC.
ITOKI CORPORATION is a Japan-based company mainly engaged in the manufacture and sale of office furniture. The Company operates in two business segments. The Office Related segment is engaged in the manufacture and sale of workstations, tables, desk accessories and other office desks, office chairs, meeting chairs, system storage furniture, lockers and other storage furniture. It also provides project management (PM) services, including the repair, assembly and construction of offices, maintenance services and relocation services, as well as the maintenance, rental and recycling of office furniture. The Equipment segment is engaged in the manufacture and sale of storage shelves, office security equipment, building partitions, logistics equipment, commercial equipment, research equipment, powder equipment and others, as well as the provision of building materials and interior works. The Company is also engaged in the provision of household furniture, and the development of software.