H1 Results for the Fiscal Year Ending March 31, 2021 (IFRS)
(From April 1, 2020, to September 30, 2020)
TSE Code: 5938
LIXIL Group Corporation
October 30, 2020
Copyright © LIXIL Group Corporation. All rights reserved.
LIXIL GROUP HAS TRANSITIONED TO IFRS FROM FYE2016 | ||||
CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN BELOW | ||||
JGAAP | IFRS (LIXIL Group Financial Reporting) | |||
Continuing Operations | ||||
Net sales | Revenue | |||
Cost of sales | Cost of sales | |||
Gross profit | Gross Profit | |||
SG&A | SG&A | |||
Operating profit | Core earnings (CE) | |||
Non-operating income/expenses | Other income/expenses | |||
Ordinary income | Operating profit | |||
Extraordinary income/losses | Finance income/costs | |||
Share of profit (loss) for using the equity method | ||||
Profit before income taxes | Profit before tax | |||
Net profit for Continuing Operations | ||||
Discontinued Operations | ||||
Net Profit for Discontinued Operations | ||||
Net profit attributable to | Net profit attributable to | |||
Non-controlling interests | Owners of the parent | |||
Owners of the parent | Non-controlling interests |
"Core earnings" in IFRS is equivalent to JGAAP's "Operating profit"
As disclosed in "Notice of Transfer of Consolidated Subsidiary (Share Transfer)" on May 1 and June 9, 2020, business operations of | |
Permasteelisa S.p.A. and its subsidiaries and LIXIL VIVA are classified as "discontinued operations". The same period in the previous | 2 |
year is restated for comparison purposes. |
KEY HIGHLIGHTS
All business segments rebound in Q2. However, H1 revenue and profit down year- on-year due to the absence of demand after the consumption tax hike last fiscal year and impact of COVID-19
Revenue: JPY 660.5 billion, decreased 13% year-on-year
Vs H1 FYE2020: Decreased 14% in Japan and 9% in international markets (decreased 8% on local currency basis)
Vs Q1 (3 month): Increased 5% in Japan and 36% in international markets
Core earnings: JPY 15.4 billion, decreased JPY 18.6 billion year-on-year Returned to black from loss of JPY 2.6 billion in Q1 due to recovery of international demand led by Americas and Europe and improvement of SG&A expenses
Net profit for the first half (1) : JPY 10.9 billion, decreased JPY 12.3 billion year-on-year Decreased primarily due to the decrease in core earnings
Forecast for FYE2021
Core earnings forecast revised upward from JPY 25 billion to JPY 40 billion based on H1 results and current business environment. No change in annual dividend forecast of 70 yen, interim dividend of 35 yen was resolved
STATUS OF SHARE TRANSFER OF CONSOLIDATED SUBSIDIARIES
- Permasteelisa: Share transfer completed on September 30(2)
- LIXIL VIVA : Scheduled to be completed in early November
(1) | Net profit for the first half = Profit attributable to owners of the parent for the quarter | 3 |
(2) | See "Notice of Transfer of Consolidated Subsidiary (Share Transfer)" announced on September 30, 2020 |
IMPACT OF COVID-19
Status of Operations (as of Oct 23, 2020(1)) | Monthly sales status (YoY) by region | |||||
Production | ||||||
20% | Apr | May Jun | Jul | Aug Sep | ||
All factories operational | 13% | |||||
Procurement | ||||||
12% | ||||||
No significant issues | 10% | |||||
Sales | 0% | 1% | ||||
International | ||||||
Recovery led by Europe and Americas since June | ||||||
The status by region is described later in "RESULTS BY | -10% | |||||
BUSINESS SEGMENT" | ||||||
Japan | -20% | -17% | ||||
Bottomed out in September (YoY) and shows signs of | ||||||
recovery since October | -30% | -25% | ||||
Continue to carefully monitor the spread of COVID-19 | ||||||
infection in Europe and the United States since late October | -40% | |||||
Japan | Americas | EMEA | ||||
China | Asia Pacific | |||||
Apr-Sep: Results (on a management basis) |
(1) Updated from "Notification Regarding the Schedule for Announcement of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020, and LIXIL Group's Response to the Spread of COVID-19" announced on May 1, 2020, and "Q1 Results for the Fiscal Year Ending March 4 31, 2021(IFRS) " announced on August 6, 2020
H1 FYE2021 CONSOLIDATED BUSINESS RESULTS
Continuing Operations
JPY billion
Revenue Gross Profit
(%)
SG&A
Core Earnings(1)
(%)
H1 FYE2020 | H1 FYE2021 | YoY | ||
6 months | 6 months | vs Results | ||
After retroactive | Results | Increase/ | % | |
restatement(4) | decrease | |||
759.5 | 660.5 | -99.0 | -13.0% | |
254.9 | 217.7 | -37.3 | -14.6% | |
33.6% | 33.0% | -0.6pp | - | |
220.9 | 202.3 | -18.6 | -8.4% | |
34.0 | 15.4 | -18.6 | -54.8% | |
4.5% | 2.3% | -2.2pp | - |
Discontinued | |
Including | Operations |
Net Profit for the first half including Discontinued Operations (2)
EPS (Yen)
23.1 | 10.9 | -12.3 | - |
79.75 | 37.47 | -42.28 | - |
Continuing Operations | EBITDA(3) | 75.0 | 55.9 | -19.1 | - |
(%) | 9.9% | 8.5% | -1.4pp | - | |
- Core earnings ratio improved 3.2pp compared to Q1 but deteriorated by 2.2pp compared to H1 FYE2020 (Gross profit margin deteriorated by 0.6pp and SG&A ratio increased by 1.5pp in H1)
- Deterioration of gross profit margin and core earnings ratio due to a decline in factory utilization rates in response to lowering demand
- However, overall SG&A expenses improved by JPY 18.6 billion for H1 (Q1: 9.1bn, Q2: 9.5bn)
(1) | Equivalent to "Operating profit" of JGAAP | (4) Business results from Permasteelisa S.p.A and its subsidiaries and LIXIL | 5 |
(2) | Profit attributable to owners of the parent for the quarter | VIVA are presented in both current and previous reporting period | |
(3) | EBITDA=Core earnings + Depreciation | under "Discontinued Operations" due to the decision of divestment |
H1 FYE2021 BUSINESS RESULTS BY SEGMENT | ||||||||||||
LIXIL Water Technology revenue and profit supported by strong recovery led by Americas | ||||||||||||
and Europe in Q2 | JPY billion | |||||||||||
H1 6 months | Q2 3 months | |||||||||||
[A] | [B] | [B]-[A] | Q2 | |||||||||
H1FYE2020 Results | H1 | Increase/ | ||||||||||
Amount | FYE2021 | |||||||||||
after retroactive | FYE2021 | decrease | ||||||||||
restatement(1) | Results | Results | ||||||||||
LWT | Revenue | 410.8 | 365.6 | -45.2 | 200.2 | -14.3 | ||||||
CE | 33.3 | 19.9 | -13.5 | 16.9 | -3.0 | |||||||
LHT | Revenue | 279.1 | 235.6 | -43.5 | 118.2 | -25.1 | ||||||
CE | 18.2 | 13.6 | -4.6 | 8.4 | -2.4 | |||||||
LBT | Revenue | 54.4 | 46.3 | -8.1 | 25.0 | -5.6 | ||||||
CE | 0.7 | 0.4 | -0.3 | 1.3 | -0.8 | |||||||
H&S | Revenue | 26.8 | 22.9 | -3.9 | 11.6 | -2.1 | ||||||
CE | 1.8 | 1.0 | -0.8 | 0.6 | -0.3 | |||||||
Consolidation,Revenue | -11.6 | -9.9 | 1.7 | -5.0 | 1.2 | |||||||
adj. | -20.0 | -19.5 | 0.5 | -9.1 | 1.0 | |||||||
& otherCE | ||||||||||||
LIXIL Group | Revenue | 759.5 | 660.5 | -99.0 | 350.0 | -45.8 | ||||||
CE | 34.0 | 15.4 | -18.6 | 18.0 | -5.5 | |||||||
LWT (by region) 3 months YoY(2)︓ Americas Q1: -15%, Q2: +10%, EMEA Q1: -20%, Q2: +13%, Greater China Q1: -7%, Q2: -4%, | ||||||||||||
Asia Pacific Q1: -31%, Q2: -14%,Japan Q1: -11%, Q2: -15% | ||||||||||||
(1) Business results from Permasteelisa S.p.A and its subsidiaries and LIXIL VIVA are presented in both current and previous reporting period | 6 | |||||||||||
under "Discontinued Operations" due to the decision of divestment | ||||||||||||
(2) | ||||||||||||
Local currency basis |
Q2 (3 MONTHS) FYE2021 BUSINESS RESULTS FOR CORE SEGMENTS
Core business segments significantly improve compared to Q1. Revenue and profit for LWT in international markets increased year-on-year in Q2 three-month period
JPY billion | LWT Japan | LWT International | LHT Japan | |||||||||
1500 | Revenue | CE | 1500 | Revenue | CE | 1500 | Revenue | CE | ||||
200 | 200 | 115.8 | 116.9 | 200 | ||||||||
Q2 | 98.7 | 150 | 1000 | 101.5 | 150 | 1000 | 150 | |||||
1000 | 91.3 | 74.2 | ||||||||||
100 | 11.9 | 100 | 8.8 | 100 | ||||||||
vs | 500 | 5.0 | 500 | 500 | 5.5 | |||||||
Q1 | 2.9 | 50 | 50 | 50 | ||||||||
0.1 | ||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | |||||||
FYE21 Q1 | FYE21 Q2 | FYE21 Q1 | FYE21 Q2 | FYE21 Q1 | FYE21 Q2 | |||||||
LWT Japan | LWT International | LHT Japan |
1500 | Revenue | CE | 1500 | Revenue | CE | 1500 | 141.0 | Revenue | CE | |||
months) | 116.2 | 200 | 200 | 116.9 | 200 | |||||||
1000 | 98.7 | 150 | 1000 | 98.2 | 101.5 | 150 | 1000 | 150 | ||||
11.9 | 10.7 | |||||||||||
10.2 | 100 | 9.7 | 100 | 8.8 | 100 | |||||||
500 | 500 | 500 | ||||||||||
5.0 | ||||||||||||
(3 | 50 | 50 | 50 | |||||||||
Q2 | 0 | FYE20 Q2 | FYE21 Q2 | 0 | 0 | FYE20 Q2 | FYE21 Q2 | 0 | 0 | FYE20 Q2 | FYE21 Q2 | 0 |
7 |
FORECAST FOR FYE2021
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LIXIL Group Corporation published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 03:09:00 UTC