Consolidated Financial Results for the Six Months Ended June 30, 2021
[Japanese GAAP]
August 6, 2021 | |||
Name of registrant: | Milbon Co., Ltd. | Tokyo Stock Exchange, First Section | |
Code No.: | 4919 | URL http://www.milbon.co.jp | |
Representative: | Ryuji Sato, President and CEO | ||
Inquiries: | Masahiro Murai, Managing Director | TEL: +81-3-3517-3915 |
Scheduled filing date for quarterly report: August 11, 2021
Scheduled starting date of dividend payments: August 16, 2021
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (For institutional investors and analysts)
(Amounts of less than one million yen have been omitted.)
1. Consolidated financial results for the six months ended June 30, 2021 (January 1, 2021 - June 30, 2021)
(1) Consolidated operating results | (Percentages show year-on-year changes.) | |||||||||||||||||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to owners | |||||||||||||||||||||||||
of parent | ||||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||||
Six months ended June 30, 2021 | 19,558 | 23.3 | 3,659 | 53.2 | 3,355 | 59.5 | 2,413 | 66.3 | ||||||||||||||||||||
Six months ended June 30, 2020 | 15,869 | (8.0) | 2,388 | (22.7) | 2,102 | (25.6) | 1,451 | (27.4) | ||||||||||||||||||||
(Note) Comprehensive income | Six months ended June 30, 2021: 2,875 million yen [458.0%] | Six months ended June 30, 2020: 515 million yen [(72.9)%] | ||||||||||||||||||||||||||
Basic earnings per share | Diluted earnings per share | |||||||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||||||
Six months ended June 30, 2021 | 74.24 | - | ||||||||||||||||||||||||||
Six months ended June 30, 2020 | 44.57 | - | ||||||||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||||||
Million yen | Million yen | % | ||||||||||||||||||||||||||
As of June 30, 2021 | 45,858 | 38,296 | 83.5 | |||||||||||||||||||||||||
As of December 31, 2020 | 43,075 | 36,308 | 84.3 | |||||||||||||||||||||||||
(Reference) | Equity | As of June 30, 2021: 38,296 million yen | As of December 31, 2020: 36,308 million yen | |||||||||||||||||||||||||
2. Payment of dividends | ||||||||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||||||
End of 1st quarter | End of 2nd quarter | End of 3rd quarter | End of fiscal year | Total | ||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||||
Year ended December 31, 2020 | - | 27.00 | - | 29.00 | 56.00 | |||||||||||||||||||||||
Year ended December 31, 2021 | - | 30.00 | ||||||||||||||||||||||||||
Year ended December 31, 2021 | - | 33.00 | 63.00 | |||||||||||||||||||||||||
(forecast) | ||||||||||||||||||||||||||||
(Note) Changes to latest dividends forecast: Yes
For details, please refer to "Notice of Revisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced on August 6, 2021.
3. Consolidated operating forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 - December 31, 2021)
(Percentages show year-on-year changes.)
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings per share | ||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Year ending December 31, 2021 | 40,600 | 13.6 | 7,800 | 22.0 | 7,120 | 22.9 | 5,100 | 21.3 | 156.89 | |
(Note) Changes to latest performance forecast: Yes
For details, please refer to "Notice of Revisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced on August 6, 2021.
*Notes | ||
(1) Significant changes in subsidiaries during the period | ||
(changes in specified subsidiaries resulting in the change in the scope of consolidation) | : None | |
New: 0 companies (Company name: ) | Exclude: 0 companies (Company name: ) |
- Application of accounting methods specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatements
1) | Changes in accounting policies due to amendment to the | ||
accounting standards, etc. | : | None | |
2) | Changes in accounting policies other than those in 1) above | : | None |
3) | Changes in accounting estimates | : | None |
4) | Retrospective restatements | : | None |
(4) Number of shares issued (common stock) | ||||
1) Number of shares issued at the end of the period | As of | 33,117,234 shares | As of | 33,117,234 shares |
(including treasury shares) | June 30, 2021 | December 31, 2020 | ||
2) Number of treasury shares at the end of the period | As of | 605,747 shares | As of | 614,837 shares |
June 30, 2021 | December 31, 2020 | |||
3) Average number of shares during the period | Six months ended | 32,506,423 shares | Six months ended | 32,556,981 shares |
June 30, 2021 | June 30, 2020 | |||
*These financial statements are not subject to the review of the quarterly financial statements by a certified public accountant or an audit corporation.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.
Contents of supplementary materials | ||
1. Qualitative Information on Consolidated Results for the Current Period ............................................................................. | 2 | |
(1) | Explanation on operating results ................................................................................................................................. | 2 |
(2) | Explanation on financial position ............................................................................................................................... | 3 |
(3) | Explanation on forward-looking statements including consolidated operating forecasts ............................................ | 3 |
2. Quarterly Consolidated Financial Statements and Main Notes ............................................................................................ | 4 | |
(1) | Quarterly Consolidated Balance Sheets ...................................................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ................ | 6 |
Quarterly Consolidated Statements of Earnings | ||
Six Months Ended June 30, 2020 and 2021 .......................................................................................................... | 6 | |
Quarterly Consolidated Statements of Comprehensive Income | ||
Six Months Ended June 30, 2020 and 2021 .......................................................................................................... | 7 | |
(3) | Quarterly Consolidated Statements of Cash Flows ..................................................................................................... | 8 |
(4) | Notes regarding quarterly consolidated financial statements ...................................................................................... | 9 |
Notes regarding going concern assumption ................................................................................................................. | 9 | |
Notes in case of any significant changes in shareholders' equity ................................................................................. | 9 | |
Segment information, etc. ............................................................................................................................................ | 9 | |
Significant subsequent events ...................................................................................................................................... | 9 |
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1.Qualitative Information on Consolidated Results for the Current Period
(1)Explanation on operating results
In the second quarter of the current fiscal year, the Japanese economy continued to face severe conditions as socioeconomic activities were severely restricted due to the launch of the second and third emergency declarations accompanying the re- expansion of the pandemic COVID-19 viral infectious diseases. Going forward, although economic recovery is expected due to the popularization of vaccines, we still cannot be optimistic about the impact of the launch of the fourth emergency declaration. In the beauty salon industry, customers have begun to return to salons despite the impact of COVID-19. However, in some urban beauty salons, customers have not returned enough, and the situation continues to be unpredictable.
Under these circumstances, in Fiscal Year 2021, we are working on "Change the Stage 18 Month Missions!" in order to lead us to a new stage of growth from Fiscal Year 2022.
In the second quarter of the fiscal year under review, in the domestic market, amidst the COVID-19 crisis, field activities combining online and brick-and-mortar sales to salons have been highly evaluated. In the hair care products segment, sales of premium brands Aujua and Global Milbon were strong, due in part to the introduction of new products. In the hair coloring products business, sales of the fashion color Addicthy continue to be steady. In overseas markets, sales in China and South Korea continued to be steady, and sales in the U.S. also grew significantly due to the lifting of lockdowns and the popularization of vaccines.
As a result, consolidated net sales increased 23.3% year-on-year to 19,558 million yen, operating income increased 53.2% to 3,659 million yen, ordinary income increased 59.5% to 3,355 million yen, and net income attributable to owners of parent increased 66.3% to 2,413 million yen.
Breakdown of net sales by product category and breakdown of net sales into domestic and overseas sales are shown below: [Breakdown of consolidated net sales by product category]
(Unit: Million yen) | ||||||||
Six months ended June 30, | Six months ended June 30, | Increase | ||||||
2020 | 2021 | Year-on-year | ||||||
Product category | (decrease) | |||||||
change (%) | ||||||||
Amount | Ratio (%) | Amount | Ratio (%) | amount | ||||
Hair care products | 9,391 | 59.2 | 11,288 | 57.7 | 1,896 | 20.2 | ||
Hair coloring products | 5,594 | 35.3 | 7,124 | 36.4 | 1,529 | 27.3 | ||
Permanent wave products | 660 | 4.1 | 740 | 3.8 | 79 | 12.0 | ||
Cosmetic products | 136 | 0.9 | 293 | 1.5 | 156 | 114.6 | ||
Other | 85 | 0.5 | 111 | 0.6 | 26 | 31.3 | ||
Total | 15,869 | 100.0 | 19,558 | 100.0 | 3,689 | 23.3 | ||
[Breakdown of net sales into domestic and overseas sales]
(Unit: Million yen) | ||||||||
Six months ended June 30, | Six months ended June 30, | Increase | ||||||
2020 | 2021 | Year-on-year | ||||||
(decrease) | ||||||||
change (%) | ||||||||
Amount | Ratio (%) | Amount | Ratio (%) | amount | ||||
Domestic sales | 13,373 | 84.3 | 15,742 | 80.5 | 2,368 | 17.7 | ||
Overseas sales | 2,495 | 15.7 | 3,816 | 19.5 | 1,321 | 52.9 | ||
Total | 15,869 | 100.0 | 19,558 | 100.0 | 3,689 | 23.3 | ||
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(2)Explanation on financial position
- Assets, liabilities and net assets
Total assets at the end of the second quarter under review increased 2,782 million yen from the end of the previous fiscal year, to 45,858 million yen.
Current assets increased by 894 million yen from the end of the previous fiscal year to 23,017 million yen. The main factors for the change were decreases of 231 million yen in cash and deposits, and increases of 561 million yen in merchandise and finished goods, 194 million yen in raw materials and supplies, and 167 million yen in notes and accounts receivable-trade.
Non-current assets increased by 1,887 million yen from the end of the previous fiscal year to 22,841 million yen. This was mainly due to an increase of 1,346 million yen in construction in progress, including the partial advance payment for the construction of a new factory in China and the expansion of a factory in Milbon Thailand.
Current liabilities increased by 735 million yen from the end of the previous fiscal year to 6,836 million yen. The main factors for the change were increases of 531 million yen in accounts payable-trade and 344 million yen in accounts payable-other.Non-current liabilities increased by 59 million yen from the end of the previous fiscal year to 725 million yen.
Net assets increased 1,987 million yen from the end of the previous fiscal year to 38,296 million yen. The main factors for the change were increases respectively in retained earnings of 1,470 million yen and foreign currency translation adjustments of 336 million yen due to the depreciation of the yen.
As a result, the equity ratio changed from 84.3% at the end of the previous fiscal year to 83.5%. Net assets per share based on the total number of shares issued at the end of the period were 1,177.93 yen, compared to 1,117.10 yen at the end of the previous fiscal year.
- Cash flows
Cash and cash equivalents (hereinafter called "net cash") at the end of the second quarter of the current fiscal year decreased by 231 million yen from the end of the previous fiscal year to 12,075 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 2,589 million yen. This was mainly attributable to quarterly profit before income taxes of 3,374 million yen, depreciation of 856 million yen, an increase in inventories of 704 million yen, an increase in notes and accounts receivable-trade of 163 million yen, an increase in notes and accounts payable-trade of 515 million yen, and income taxes paid of 1,049 million yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 2,086 million yen. This was mainly due to purchase of property, plant and equipment of 1,635 million yen, purchase of intangible assets of 305 million yen, and payments of loans receivable of 148 million yen.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 936 million yen. This was mainly due to the cash dividends paid to shareholders of 935 million yen.
(3)Explanation on forward-looking statements including consolidated operating forecasts
In the consolidated cumulative second quarter under review, both the domestic and overseas markets performed better than expected despite the impact of COVID-19. Although we cannot predict the status of infections with COVID-19 from the third quarter onward, we have revised our earnings forecasts and dividend forecasts assuming that regulations will not be strengthened in the future, such as requests to suspend operations due to the spread of infections. For details, please refer to "Notice of Revisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced today (August 6, 2021).
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Milbon Co. Ltd. published this content on 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 02:03:03 UTC.