February 3, 2022
Consolidated Financial Results for the Fiscal Year Ended December 31, 2021
Company name: MonotaRO Co., Ltd. | Listing: Tokyo Stock Exchange, First Section | ||||||||||||||||||
Stock code: | 3064 | URL: https://www.monotaro.com | |||||||||||||||||
Representative: | Masaya Suzuki, President & CEO | ||||||||||||||||||
Contact: | Tetsuya Koda, Senior Executive Officer, General Manager of Admin. Dept. | Tel: +81-6-4869-7190 | |||||||||||||||||
Scheduled date of Annual General Shareholders' Meeting: March 29, 2022 | |||||||||||||||||||
Scheduled date to commence dividend payment: March 30, 2022 | |||||||||||||||||||
Scheduled date to file Securities Report: March 30, 2022 | |||||||||||||||||||
Supplementary materials: Yes | Investors meeting: Yes | ||||||||||||||||||
(Figures are rounded down to the nearest million yen) | |||||||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 | |||||||||||||||||||
(January 1, 2021 - December 31, 2021) | |||||||||||||||||||
(1) Consolidated results of operations | (Percentages show the change from the previous fiscal year) | ||||||||||||||||||
Net income | |||||||||||||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||||||||||||
owners of the parent | |||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||
Year ended Dec. 31, 2021 | 189,731 | 20.6 | 24,129 | 23.1 | 24,302 | 23.5 | 17,552 | 27.5 | |||||||||||
Year ended Dec. 31, 2020 | 157,337 | 19.7 | 19,607 | 23.8 | 19,671 | 23.8 | 13,771 | 25.4 | |||||||||||
Note: Comprehensive income: Year ended Dec. 31, 2021: 17,591 million yen (31.1%) | |||||||||||||||||||
Year ended Dec. 31, 2020: 13,422 million yen (25.3%) | |||||||||||||||||||
Net income per | Diluted net | Return on equity | Ordinary income | Operating income | |||||||||||||||
share | income per share | on total assets | on net sales | ||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||
Year ended Dec. 31, 2021 | 35.33 | 35.32 | 33.1 | 27.5 | 12.7 | ||||||||||||||
Year ended Dec. 31, 2020 | 27.72 | 27.71 | 32.9 | 27.9 | 12.5 |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share and diluted net income per share are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Millions of yen | Millions of yen | % | Yen | |
As of Dec. 31, 2021 | 95,789 | 60,283 | 61.9 | 119.93 |
As of Dec. 31, 2020 | 81,263 | 47,658 | 57.5 | 94.12 |
Reference: Shareholders' equity | Dec. 31, 2021: | 59,286 million yen | Dec. 31, 2020: 46,761 million yen |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net assets per share is stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(3) Consolidated cash flow position
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Year ended Dec. 31, 2021 | 12,258 | (14,290) | (5,766) | 11,068 |
Year ended Dec. 31, 2020 | 15,269 | (9,015) | 1,773 | 18,767 |
2. Dividends
Dividend per share | Total | Dividend | Dividend on | |||||||||
dividends | payout ratio | equity | ||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||||||
(Consolidated) | (Consolidated) | |||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of | % | % | |||||
yen | ||||||||||||
Year ended Dec. 31, 2020 | - | 8.50 | - | 9.50 | 18.00 | 4,471 | 32.4 | 10.7 | ||||
Year ended Dec. 31, 2021 | - | 5.75 | - | 5.75 | 11.50 | 5,713 | 32.5 | 10.8 | ||||
Year ending Dec. 31, 2022 | - | 6.50 | - | 7.00 | 13.50 | 39.3 | ||||||
(forecast) | ||||||||||||
The Company implemented a 2-for-1 share split effective on April 1, 2021, and the interim and year-end dividend for the year ended December 31, 2020 would be equivalent to 4.25 yen and 4.75 yen respectively, and the annual dividend would be 9.00 yen, on the assumption that the share split was implemented at the beginning of the previous fiscal year.
3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2022 (January 1, 2022 - December 31, 2022)
(Percentages show the change from the previous fiscal year)
Net income | Net | ||||||||||
Net sales | Operating income | Ordinary income | attributable to owners | income | |||||||
of the parent | per share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Half year | 108,983 | 18.6 | 11,702 | (1.6) | 11,713 | (2.2) | 8,204 | (1.7) | 16.51 | ||
(accumulated) | |||||||||||
Full year | 226,073 | 19.2 | 24,380 | 1.0 | 24,392 | 0.4 | 17,067 | (2.8) | 34.35 |
4. Others
-
Changes in the number of material subsidiaries resulting in changes in scope of consolidation during the fiscal year period ended December 31, 2021: Yes
Excluded: 1 company (Zoro Shanghai Co., Ltd.) - Application of special accounting methods for the preparation of consolidated financial statements: None
- Changes in accounting principles and estimates, or retrospective restatements:
- Changes in accounting principles caused by the revision of accounting standards: None
- Changes in accounting principles other than mentioned in 1): None
- Changes in estimates: None
- Retrospective restatements: None
- Number of shares outstanding (common shares)
- Number of shares outstanding at the end of period (including treasury stock)
Dec. 31, 2021: | 501,275,000 shares | Dec. 31, 2020: | 501,262,000 shares |
2) Number of treasury stock at the end of period | |||
Dec. 31, 2021: | 4,443,812 shares | Dec. 31, 2020: | 4,443,576 shares |
3) Average number of shares outstanding during the period | |||
Year ended Dec. 31, 2021: | 496,826,914 shares | Year ended Dec.31, 2020: | 496,823,541 shares |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and the respective numbers of shares above are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(Reference) Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2021
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2021 (January 1, 2021 - December 31, 2021)
(1) Results of operations | (Percentages show the change from the previous fiscal year) | ||||||||||
Net sales | Operating income | Ordinary income | Net income | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
Year ended Dec. 31, 2021 | 182,472 | 20.2 | 24,533 | 21.8 | 24,647 | 22.0 | 17,701 | 34.7 | |||
Year ended Dec. 31, 2020 | 151,798 | 20.0 | 20,149 | 22.6 | 20,194 | 22.8 | 13,139 | 16.2 | |||
Net income per share | Diluted net income per share | ||||||||||
Yen | Yen | ||||||||||
Year ended Dec. 31, 2021 | 35.63 | 35.62 | |||||||||
Year ended Dec. 31, 2020 | 26.45 | 26.44 |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net income per share and diluted net income per share are stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
(2) Financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Millions of yen | Millions of yen | % | Yen | |
As of Dec. 31, 2021 | 95,154 | 60,661 | 63.6 | 121.90 |
As of Dec. 31, 2020 | 80,962 | 48,138 | 59.4 | 96.75 |
Reference: Shareholders' equity | Dec. 31, 2021: | 60,561 million yen | Dec. 31, 2020: 48,066 | million yen |
The Company implemented a 2-for-1 share split effective on April 1, 2021 and net assets per share is stated on the assumption that the share split was implemented at the beginning of the previous fiscal year.
2. Non-consolidated Forecasts for the Fiscal Year Ending December 31, 2022 (January 1, 2022 - December 31, 2022)
(Percentages show the change from the previous fiscal year)
Net | |||||||||||
Net sales | Operating income | Ordinary income | Net income | income | |||||||
per share | |||||||||||
Half year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
104,617 | 18.3 | 12,037 | (0.3) | 12,028 | (0.8) | 8,349 | (0.6) | 16.80 | |||
(accumulated) | |||||||||||
Full year | 216,505 | 18.7 | 25,018 | 2.0 | 24,998 | 1.4 | 17,321 | (2.1) | 34.86 |
These financial results are out of scope from audit review procedures conducted by independent auditors.
* Cautionary statement with respect to forward-looking statements
The forecasts above are based on the judgments made in accordance with information currently available. Forecasts therefore include risks and uncertainties. Actual figures may differ from these forecasts due to subsequent changes in the circumstances.
1. Qualitative Information on the Consolidated Financial Statements
(1) Qualitative Information Regarding Consolidated Results of Operations
The Japanese economy during the fiscal year ended December 31, 2021 generally continued to be weak with government economic and fiscal policies providing some support, while concerns about the global rebound of the novel coronavirus infectious disease (COVID-19) and the impact on the economy of shortages in the supply of semiconductors and other components made the outlook for the future Japanese economy unpredictable.
In this economic environment, we have continually concentrated on acquiring new customers aggressively mainly through internet advertisements (paid listings) and internet search engine optimization (SEO), which can improve our website's position on the search engines. We also conducted promotion activities including direct mail using e-mail and mail flyers, daily special prices, the publication and distribution of catalogs. In terms of catalogs, we newly published REDBOOK vol. 17 Spring Edition in late February, divided into 13 volumes with 180 thousand items and approximately 2.9 million issues available in total and we also published REDBOOK vol. 17 Autumn Edition in late September, divided into 10 volumes with 266 thousand items and approximately 2.8 million issues available in total. In addition, we broadcasted TV commercials throughout Japan during the fiscal year to enhance our visibility much further.
Furthermore, the total number of our product lineup reached approximately 18 million items in total and 497 thousand items in stock which are available for the same day shipment to meet the increase in demand corresponding to the expansion of our customer base as of the end of the fiscal year ended December 31, 2021. In addition, in order to strengthen the logistics base, "Ibaraki Chuo Satellite Center" (total floor area of about 49,000 m2), which has both a warehousing function for imported items and a shipping function for high-demand items, started its operation in March.
In addition, in relation to the sales of MRO products to large customers through the integrated purchase systems, both the number of customers and the amount of sales steadily increased.
Consequently, we have successfully obtained 1,278,545 newly registered accounts for the fiscal year ended December 31, 2021 and the number of registered accounts totaled 6,779,319 as of the end of the fiscal year ended December 31, 2021.
In addition, NAVIMRO, which is our Korean subsidiary, also aggressively engaged in acquiring new customers mainly through paid listings and focused on increasing both its product lineup and the number of products in stock in order to expand its customer base.
All of our efforts mentioned above resulted in net sales of 189,731 million yen (20.6% increase from the previous fiscal year), operating income of 24,129 million yen (23.1% increase from the previous fiscal year), ordinary income of 24,302 million yen (23.5% increase from the previous fiscal year), and net income attributable to owners of the parent of 17,552 million yen, a corresponding 27.5% increase.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of December 31, 2021 (the end of the fiscal year) amounted to 95,789 million yen, an increase of 14,526 million yen from the end of the previous fiscal year. This was attributable to increases of 5,537 million yen and 3,899 million yen in construction in progress and notes and accounts receivable-trade, respectively, despite a decrease of 6,463 million yen in cash and deposits.
On the other hand, total liabilities as of December 31, 2021 amounted to 35,505 million yen, an increase of 1,900 million yen from the end of the previous fiscal year. This was due mainly to increases of 2,918 million yen and 781 million yen in accounts payable-trade and asset retirement obligations, respectively, despite a decrease of 1,373 million yen in other current liabilities. Total net assets amounted to 60,283 million yen, an increase of 12,625 million yen from the end of the previous fiscal year. This was largely due to net income attributable to owners of the parent of 17,552 million yen offset by dividend payments of 5,216 million yen for the fiscal year ended December 31, 2021.
As a result, the equity ratio as of December 31, 2021 was 61.9%, up 4.4 percentage points from the end of the previous fiscal year.
(3) Forecast for the Fiscal Year Ending December 31, 2022
During the fiscal year ending December 31, 2022, we will continue aggressive promotional activities to gain new customers mainly using internet advertisements (paid listings) and internet search engine optimization (SEO).
In addition, we plan to engage actively in sales promotion activities with existing customers with a focus on expanding our available product lineup corresponding to the growth of our customer base, conducting promotion activities based on highly precise data science tools, improving website design in order for customers to use it and place orders more easily, expanding the product lineup for the same day shipment including both goods in stock and drop shipment goods from suppliers and enhancing speedy and efficient delivery networks. Furthermore, we plan to start operations of the Inagawa Distribution Center (Kawabe County, Hyogo Prefecture, total floor space of about 189,000 m2) in April 2022. Although we expect to incur onetime expenses and a temporary increase in the fixed cost ratio as a result, we will work to further expand our shipping capacity and upgrade our supply chain.
Also, NAVIMRO Co., Ltd., PT MONOTARO INDONESIA and IB MONOTARO PRIVATE LIMITED will continuously engage in acquiring new customers mainly through paid listings and focus on increasing each of their respective product lineups and the number of products in stock in order to expand their customer base.
In view of the implementation of the plan above, our current forecast estimates of net sales, operating income, ordinary income and net income attributable to owners of the parent for the fiscal year ending December 31, 2022 are 226,073 million yen, 24,380 million yen, 24,392 million yen and 17,067 million yen, respectively.
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MonotaRO Co. Ltd. published this content on 03 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2022 06:08:13 UTC.