FY2023 Q3
Financial Results
(April 1 to December 31, 2023)
Feb. 13, 2024
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.
1. FY2023 Q3 Summary
Economic Market Trends
- The global economy has seen price levels remain high despite a slowdown in inflation and central banks in various countries maintaining their monetary tightening measures, but it is beginning to shift to a phase in which interest rates are expected to be lowered. In addition, Russia's prolonged aggression in Ukraine has continued for two years and military clashes between Israel and Hamas have erupted, leaving the global economy in an uncertain situation, with slowing and stagnant growth. Although the increase in transport costs caused by the rapid recovery phase out of the COVID-19 pandemic has subsided since the beginning of the period under review, inflation is driving higher labor costs and higher costs in a wide range of areas. In Japan and overseas, this is having a growing impact.
- The domestic market for material handling equipment remained firm at pre-COVID-19 levels. Overseas, though temporary special demand following COVID-19 has leveled off in the Americas, the market has remained firm based on stable logistics needs. In Europe, despite the easing of inflationary pressures, the economy has not yet recovered, and after shrinking following the post-COVID-19 rebound demand, the economy has stagnated. In Asia, as in the Americas, while special demand following COVID-19 has subsided, demand for material handling equipment remains firm. However, in China, despite a temporary recovery trend due to the lifting of the zero-COVID-19 policy, the economy has slowed due in part to the deterioration of the real estate market, and the future of the market for material handling equipment is a concern.
- The longer lead times due to delays in the supply of various components is gradually abating but high costs persist. The Group as a whole secured sufficient orders and worked on accelerating shipments by achieving production improvements through the elimination of the components shortages in Japan and overseas. As a result, the effects of price optimization have effectively expanded, and the economic impact of the yen depreciation has acted as a tailwind so far.
Summary of FY2023 Q3 Results
- Net sales increased by 18.1% YoY due to an increase in units sold over the previous year, mainly in the Americas, the effects of price optimization, and the impact of yen depreciation.
- Operating profit before amortization of goodwill increased 186.1% YoY despite the persistent high-cost environment, due to the contribution of accelerating shipments in the Americas and the expanded effects of price optimization in Japan and overseas.
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2. Financial Highlights
Unit: Hundred million JPY | ||||||||
Profit and Loss | ||||||||
FY2022 Q3(*) | FY2023 Q3 | YoY Change | ||||||
Statement | ||||||||
Net Sales | 4,409.5 | 5,209.5 | +799.9 | +18.1% | ||||
Operating Profit | 152.5 | 436.4 | +283.8 | +186.1% | ||||
(Before amortization of goodwill) | (3.5%) | (8.4%) | ||||||
(Operating profit margin) | ||||||||
Amortization of | 78.2 | 76.6 | ― | ― | ||||
Goodwill | ||||||||
Operating Profit | 74.3 | 359.7 | +285.4 | +384.1% | ||||
(Operating profit margin) | (1.7%) | (6.9%) | ||||||
Ordinary Profit | 60.6 | 328.4 | +267.8 | +441.3% | ||||
(Ordinary profit margin) | (1.4%) | (6.3%) | ||||||
Profit Attributable to | 27.6 | 245.8 | +218.2 | +790.2% | ||||
Owners of Parent | ||||||||
(0.6%) | (4.7%) | |||||||
(Net income margin) | ||||||||
* At the end of the fiscal year ended March 31, 2023, we finalized the provisional | FY2022 Q3 actual FX rates: USD=JPY136.51 EUR=JPY140.59 CNY=JPY19.88 | |||||||
accounting treatment related with past M&A activity in United States. The figures | FY2023 Q3 actual FX rates: USD=JPY143.29 EUR=JPY155.29 CNY=JPY19.98 | |||||||
(goodwill, etc.) for the six months ended December 31, 2023 reflect the detailed | ||||||||
finalization of the provisional accounting treatment. | ||||||||
Balance Sheet | FY2022 Q4 | FY2023 Q3 | Change | |||||
Total Assets | 4,754.3 | 5,099.3 | +345.0 | +7.3% | ||||
Total Liabilities | 3,994.0 | 4,038.7 | +44.6 | +1.1% | ||||
Net Assets | 760.2 | 1,060.6 | +300.3 | +39.5% |
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved. | End of FY2022 Q4 FX rates: USD=JPY133.53 EUR=JPY145.72 CNY=JPY19.42 | 3 |
End of FY2023 Q3 FX rates: USD=JPY141.83 EUR=JPY157.12 CNY=JPY19.93 | ||
3. Business Results by Segment
Net Sales
- Net sales increased by 18.1% YoY due to an increase in units sold mainly in the Americas, the contribution from the effects of price optimization, and the tailwind from the economic impact of yen depreciation.
Unit: | FY2023 Q3 Sales by Region | |||||||
Hundred million JPY | Japan | Overseas | ||||||
China& | ||||||||
6,000 | Increased | 5,209.5 | ||||||
Europe | Asia | |||||||
5,000 | 4,409.5 | +799.9 | 5.3% Japan | |||||
(+18.1%) | 14.8% | |||||||
4,000 | (6.7%)27.2% | |||||||
3,000 | 3,794.2 | (17.0%) | (28.8%) | |||||
3,138.3 | ||||||||
2,000 | Americas | |||||||
1,000 | 1,415.2 | |||||||
1,271.2 | 52.7% | |||||||
0 | ||||||||
(47.5%) | ||||||||
FY2022 Q3 | FY2023 Q3 | |||||||
() = the same period last year
Operating Profit*
- Operating profit increased by 186.1% YoY due to the expanded effects of price optimization, the settling of increase in marine transportation costs, and the impact of yen depreciation.
Unit: | Japan Overseas | FY2023 Q3 Operating Profit by Segment | |||
Hundred million JPY | 436.4 | ||||
500 | Increased | Japan | |||
400 | |||||
+283.8 | |||||
300 | (+186.1%) | 21.6% | |||
342.2 | (22.0%) | ||||
152.5 | |||||
200 | Overseas | ||||
100 | 119.0 | ||||
94.2 | 78.4% | ||||
0 | 33.5 | (78.0%) | |||
FY2022 Q3 | FY2023 Q3 |
* Operating profit before amortization of goodwill | () = the same period last year |
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4. Net Sales by Region (including FX impacts)
Japan | ||||
(Unit: Hundred million JPY) | Increased 1,415.2 | |||
1,500 | 1,271.2 | |||
+144.0 | ||||
(+11.3%) | 486.3 | |||
1,000 | 467.9 | |||
500 | 803.2 | 928.8 | ||
0 | ||||
FY2022 Q3 | FY2023 Q3 | |||
Q1 + Q2 | Q3 | |||
Europe | ||||
(Unit: Hundred million JPY) | FX impact | |||
Increased | 66.2 | |||
1,000 | ||||
751.0 | +20.5 | 771.6 | ||
800 | (+2.7%) | |||
600 | 264.0 | 262.0 | ||
400 | ||||
200 | 486.9 | 509.5 | ||
0 | ||||
FY2022 Q3 | FY2023 Q3 | |||
Q1 + Q2 | Q3 |
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.
Americas | FX impact | |||
(Unit: Hundred million JPY) | 129.9 | |||
Increased | 2,745.3 | |||
3,000 | ||||
+652.5 | ||||
2,092.7 | (+31.2%) | 934.4 | ||
2,000 | ||||
784.3 | ||||
1,000 | 1,810.9 | |||
1,308.4 | ||||
0 | ||||
FY2022 Q3 | FY2023 Q3 | |||
Q1 + Q2 | Q3 | |||
China & Asia | FX impact | |||
(Unit: Hundred million JPY) | ||||
1.7 | ||||
294.5 | Decreased | 277.3 | ||
300 | ||||
-17.2 | ||||
97.2 | (-5.8%) | 88.9 | ||
200 | ||||
100 | 197.3 | 188.4 | ||
0 | ||||
FY2022 Q3 | FY2023 Q3 | |||
Q1 + Q2 | Q3 | |||
5 |
5. Net Sales - FY2022 Q3 vs FY2023 Q3
◼ Japan: | Net sales increased as components shortages have been abating and the effects of |
price optimization are also starting to contribute. |
- Overseas: Net sales increased due to the contribution of accelerating shipments in the Americas, the expanded effects of price optimization, and the impact of yen depreciation. However, net sales in Europe and China & Asia regions decreased.
(Unit: Hundred million JPY)
Americas | Europe | China & | |||
Asia | |||||
FX | Japan | ||||
impacts | +144.0 | +522.6 | -45.6 | -18.9 | |
+197.8 | |||||
5,209.5
4,409.5 | Net Sales increased |
by 799 (+18.1%) |
FY2022 Q3 | FY2023 Q3 |
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6. Operating Profit - FY2022 Q3 vs FY2023 Q3
- Material costs remain high in Japan but are improving in Europe and the Americas. Labor costs also remain high due to inflation.
- Operating profit before amortization of goodwill increased 186.1% YoY due to higher sales, the effects of price optimization, and the settling of increase in marine transportation costs.
FX | (Unit: Hundred million JPY) | |
impacts, | ||
Effects of | etc. | |
U.S. tariffs |
price optimization
Operating profit
(before amortization of goodwill)
Amortization
of goodwill
increased by 283 (+186.1%)
Sales increase and
mix optimization
Decrease in
transport | ||||||
-78.2 | Increase in | costs | ||||
material costs | ||||||
Amortization | ||||||
of goodwill | ||||||
Increase in | Including: | |||||
labor costs, etc. | Decrease in transport costs | +69.8 | FY2023 Q3 | FY2023 Q3 | ||
FY2022 Q3 | FY2022 Q3 | Increase in volume | -5.3 | |||
(before amortization | (before amortization | |||||
of goodwill) | of goodwill) |
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7. Consolidated Balance Sheet
- Net assets increased due to an increase in retained earnings from net profit and an increase in foreign currency translation adjustment. The capital adequacy ratio improved from 15.9% to 20.7%.
Assets
Liabilities/ Net Assets
4,7545,099
2,6452,857
Assets | ||||||
increased | ||||||
2,108 | by 345 | 2,241 | ||||
FY2022 Q4 | FY2023 Q3 | |||||
Non-current assets | Current assets | |||||
4,754 | 5,099 | |
Liabilities | ||
increased | ||
3,994 | by 44 | 4,038 |
Net assets | ||
increased | ||
760 | by 300 | 1,060 |
FY2022 Q4 | FY2023 Q3 |
Net assets Liabilities
(Unit: Hundred million JPY) | |||
Item | FY2022 | FY2023 | Change |
Q4 | Q3 | ||
Current assets | 2,645 | 2,857 | +212 |
Property, plant and equipment | 1,489 | 1,649 | +160 |
Intangible assets | 411 | 350 | -60 |
Inv estments and | 208 | 241 | +33 |
other assets | |||
Total non-current assets | 2,108 | 2,241 | +132 |
Total assets | 4,754 | 5,099 | +345 |
Current assets: Increased
Increased due to exchange rate conversion effects, cash and deposits, and inventories, etc.
Non-current assets: Increased
Increased due to exchange rate conversion effects, and property, plant and equipment, etc.
Item | FY2022 | FY2023 | Change |
Q4 | Q3 | ||
Current liabilities | 2,087 | 2,016 | -70 |
Non-current liabilities | 1,906 | 2,022 | +115 |
Total liabilities | 3,994 | 4,038 | +44 |
Total net assets | 760 | 1,060 | +300 |
Total liabilities and net assets | 4,754 | 5,099 | +345 |
Liabilities: increased
Exchange rate conversion effects and decrease in accounts payable, etc.
Net assets: Increased
Increased due to an increase in retained earnings and the foreign currency translation adjustment.
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8. Cash Flow
- C/F from operating activities increased 41.4 B JPY (3.4 B → 44.9 B) YoY due to an increase in profit before income taxes.
- C/F from investing activities decreased 20.5 B JPY (-23.5 B → -44.0 B) YoY due to a shift from collection of short-term loans to deposits in FY2023 (impact: -13.3 B JPY) and an increase in acquisition of property, plant and equipment.
- Free C/F increased 20.9 B JPY (-20.1 B → 0.8 B) YoY due to improved C/F from operating activities (+34.3 B JPY YoY if the above short-term loan impact is factored in).
Amortization
of
Depreciation goodwill expenses
Fund procurement
by sales and leaseback
176.5
(Unit: Hundred million JPY)
Profit before | Other | ||||||||
income taxes | |||||||||
operating | |||||||||
C/F | |||||||||
Sales of | Increase in | ||||||||
other financial | |||||||||
property, plant | |||||||||
transactions | |||||||||
and equipment | |||||||||
132.4 | |||||||||
Cash | Other | ||||||||
Acquisition of | |||||||||
dividend | |||||||||
Increase in | financial | ||||||||
property, plant | Other Decrease in | ||||||||
Decrease in | payment | C/F | |||||||
and equipment | short-terminvestingshort-term | ||||||||
loans | C/F | long-term | |||||||
End of | borrowings borrowings | ||||||||
FY2022 | Cash and cash equivalents increased 85.7 | ||||||||
Cash | C/F from operating activities | C/F from investing activities | C/F from financing activities | ||||||
44.9 B JPY | -44.0 B JPY | 7.1 B JPY | |||||||
(3.4 B JPY in the same | (-23.5 B JPY in the same | (28.0 B JPY in the same | |||||||
period last year) | period last year) | period last year) |
Free C/F 0.8 B JPY
(-20.1 B JPY in the same period last year)
FX
effects, 218.2 etc.
End of
FY2023 Q3
Cash
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9. Upward Revision of FY2023 Forecast
- Net sales are expected to be in line with the forecast announced in November 2023.
- Profits are expected to exceed the previous forecast in all profit categories, due to accelerated shipments in the Americas, mitigation of cost increases in Japan and overseas, and the expanded effects of price optimization, despite deteriorating market conditions in Europe and other regions.
FY2023 Forecast | FY2023 Revised Forecast | Change | |||
(Unit: Hundred million JPY) | (Published in Nov. 2023) | (Published in Feb. 2024) | Compared to Previous Forecasts | ||
Units Sold | 115,000 units | 115,000 units | - | - | |
Net Sales | 6,900.0 | 6,900.0 | - | - | |
Operating Profit | 500.0 | 550.0 | +50.0 | +10.0% | |
(Before amortization of goodwill) | (7.2%) | (8.0%) | |||
(Operating profit margin) | |||||
Amortization of | 100.0 | 100.0 | - | - | |
Goodwill | |||||
Operating Profit | 400.0 | 450.0 | +50.0 | +12.5% | |
(Operating profit margin) | (5.8%) | (6.5%) | |||
Ordinary Profit | 360.0 | 400.0 | +40.0 | +11.1% | |
(Ordinary profit margin) | (5.2%) | (5.8%) | |||
Profit Attributable to | 230.0 | 290.0 | +60.0 | +26.1% | |
Owners of Parent | |||||
(3.3%) | (4.2%) | ||||
(Net income margin) | |||||
Dividend per Share | 19 JPY | 20 JPY | +1 JPY | - | |
FY2023 initial plan FX rates: USD=JPY130.00 EUR=JPY140.00 CNY=JPY20.00
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.FY2023 Q3 actual FX rates: USD=JPY143.29 EUR=JPY155.29 CNY=JPY19.98 10FY2023 Q4 plan FX rates: USD=JPY140.00 EUR=JPY150.00 CNY=JPY19.70
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Mitsubishi Logisnext Co. Ltd. published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 05:59:06 UTC.