Consolidated Financial Results
First Quarter of the Fiscal Year Ending March 2024
(April 1-June 30, 2023)
August 4, 2023
Listed Company Name: Rinnai Corporation
Listings: Prime Section of the Tokyo Stock Exchange, and Premiere Section of Nagoya Stock
Exchange (Securities Code: 5947)
Website: https://www.rinnai.co.jp
Representative: Hiroyasu Naito, President
Contact: Takuya Ogawa, Managing Executive Officer, General Manager of Corporate Planning Headquarters
TEL: +81 (52) 361-8211
Scheduled date for release of quarterly securities report: August 9, 2023
Anticipated date to begin distributing dividends: ―
Supplemental information sheets of quarterly results: Yes
Information meeting of quarterly results: None
I. Performance in the First Quarter of the Fiscal Year Ending March 31, 2024
(April 1- June 30, 2023; amounts less than one million yen are omitted)
-
Consolidated Operating Results
Percentage figures in parentheses indicate increase or decrease from the previous term.
(¥ millions; %) | ||||
Net income | ||||
Net Sales | Operating | Ordinary | attributable to | |
Income | Income | owners of the | ||
parent company | ||||
First Quarter to | ¥89,853 [-5.4%] | ¥3,113 [-69.1%] | ¥5,895 [-48.4%] | ¥3,288 [-53.1%] |
June 2023 | ||||
First Quarter to | ¥95,006 [+12.4%] | ¥10,079 [+9.8%] | ¥11,437 [+15.2%] | ¥7,014 [+13.3%] |
June 2022 | ||||
Notes: Comprehensive income: First quarter of the year ending March 31, 2024; ¥7,873 million [-57.3%] First quarter of the year ended March 31, 2023; ¥18,452 million [+49.3%]
(¥)
Net Income | Fully Diluted Net | |
per Share | Income per Share | |
First Quarter to June 2023 | ¥22.49 | - |
First Quarter to June 2022 | 46.99 | - |
Note: On April 1, 2023, the Corporation conducted a 3-for-1 stock split of shares of common stock. The above figure for "Net income per share" is for after the stock split.
(2) Consolidated Financial Position
(¥ millions; %) | |||
Total Assets | Net Assets | Equity Ratio (%) | |
June 30, 2023 | ¥539,062 | ¥404,044 | 67.2% |
March 31, 2023 | 547,114 | 407,199 | 66.6 |
(Reference) Equity capital: First quarter of the year ending March 31, 2024: ¥362,397 million Year ended March 31, 2023: ¥364,151 million
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II. Dividends
Dividend per Share | ||||||||||||||
1st Quarter | Interim | 3rd Quarter | Fiscal | Full Year | ||||||||||
Year-End | ||||||||||||||
(¥) | (¥) | (¥) | (¥) | |||||||||||
(¥) | ||||||||||||||
March 2023 | - | ¥ 75.00 | - | ¥85.00 | ¥160.00 | |||||||||
June 2023 | - | |||||||||||||
March 2024 | 30.00 | - | 30.00 | 60.00 | ||||||||||
(anticipated) | ||||||||||||||
Notes: 1. Revision of dividend forecast in period under review: None |
2. On April 1, 2023, the Corporation conducted a 3-for-1 stock split of shares of common stock. The above figures for "Dividends" in the fiscal years ended March 31, 2023 are actual dividends declared before the stock split. The figure for the year ending March 31, 2024 (forecast) is for after the stock split.
- Forecast for the Fiscal Year Ending March 31, 2024 (Consolidated)
(April 1, 2023, to March 31, 2024) | (¥ millions/%) | |||||
Net income | ||||||
Operating | Ordinary | attributable to | Net Income | |||
Net Sales | owners of the | per Share | ||||
Income | Income | |||||
parent | (¥) | |||||
company | ||||||
First half | ¥190,000 [-2.2%] | ¥10,000 [-47.6%] | ¥14,000 [-37.0%] | ¥7,500 [-44.0%] | ¥51.54 | |
Full year | 440,000 [+3.5] | 39,000 [-5.8] | 44,000 [-1.3] | 25,000 [-4.2] | 172.96 |
Note: Percentage figures in parentheses indicate increase or decrease from the previous fiscal year.
Notes: 1. Revision of fiscal year forecast in period under review: Yes
2. As its meeting held on May 10, 2023, the Board of Directors resolved to undertake a share buyback. The above forecasts for "Net income per share" take into account this buyback.
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* Notes
-
Changes in scope of consolidation of major subsidiaries during the period: None
Newly included - (Company name: -): Excluded - (Company name: -) - Application of special accounting method for quarterly consolidated financial reporting: None
- Changes in accounting policies; changes in accounting estimates; retrospective restatement
- Changes due to revision of accounting standard: None
- Other changes than (a): None
- Changes in the rules for the accounting estimates: None
- Retrospective restatement: None
- Number of Outstanding Shares (Common Stock)
-
Number of outstanding shares at term-end (including treasury stock)
June 30, 2023: 150,063,171 shares
March 31, 2023: 150,063,171 shares - Number of treasury stock shares at term-end
June 30, 2023: 4,788,520 shares
March 31, 2023: 3,676,692 shares
(c) Average number of shares during the term
First quarter of the fiscal year ending March 2023: 146,234,057 shares
First quarter of the fiscal year ended March 2023: 149,277,960 shares
Note: On April 1, 2023, the Corporation conducted a 3-for-1 stock split of shares of common stock. The above figures for "Number of outstanding shares at term-end," "Number of treasury stock shares at term-end," and "Average number of shares during the term" are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
- This report is exempt from a quarterly review process.
- Note on appropriate use of performance forecasts, and other specified notes Performance forecasts contained in this document are based on information currently available and certain judgments deemed by the Corporation to be reasonable. No intent is implied of promise by the Corporation to achieve such forward-looking statements. Actual results may differ significantly from such forecasts due to various factors. For more information, please refer to "1. Consolidated Performance, (3) Consolidated Performance Forecasts" on page 6 of this report.
Supplemental information sheets of quarterly results:
Please refer to Supplemental information sheets of quarterly results, which will be posted on the Corporation's website on Friday, August 4, 2023.
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1. Consolidated Performance
(1) Operating Results
In the first quarter under review, world economic conditions remained difficult as global price hikesincreasesand monetary tightening cause business confidence to deteriorate, while the situation in Ukraine became more protracted. In Japan, consumer spending and corporate earnings showed signs of recovery thanks to easing of restrictions on economic and social activities to address COVID-19. However, prices continue to rise against a backdrop of soaring raw material and energy costs and rapid exchange rate fluctuations, making the situation unpredictable.
In the domestic housing-related industry, new housing starts remained weak, especially for owner-occupied housing, which continued to decline slowly, and the household appliance sector showed signs of stagnation in both the new construction and renovation categories.
Under these circumstances, the Rinnai Group pursued three key strategies under its medium-term business plan, New ERA 2025: "Advancement in addressing social challenges," "Expansion of business scale," and "Revolution of corporate structure." During the period under review, we sought to improve quality of life and help protect the global environment. For example, we undertook a full model change of our Kantakun Deluxe gas clothes dryers and expanded our ECO ONE X5 lineup of hybrid water heaters with heating systems. In these and other ways, we made steady progress in fulfilling our promise to our customers ("Creating a healthier way of living") and achieving sustainable and solid long-term growth.
For the quarter, we reported a decline in net sales compared with the previous corresponding period, when revenue was bolstered by efforts to resolve supply delays. Sales were also affected by a slowdown in demand due to rising prices and interest rates. On the earnings side, we posted a year-on-year decrease in operating income due to the decline in sales volume and a slowdown in sales of high-value-added products. This was despite a lull in raw material price and other cost increases.
As a result, consolidated net sales for the period amounted to ¥89,853 million, down 5.4% from the previous corresponding period. Operating income fell 69.1%, to ¥3,113 million, and ordinary income declined 48.4%, to ¥5,895 million. Net income attributable to owners of the parent company fell 53.1%, to ¥3,288 million.
Our results by geographical segment were as follows:
Japan
Sales of all products, especially water heaters, declined compared with the previous year, when production and sales were bolstered by efforts to resolve supply delays. As a result, sales in Japan were down 6.8% year on year, to ¥42,146 million. The decline in sales volume, as well as a slowdown in sales of high-value-added products, and high prices of raw materials and parts, resulted in a 71.4% fall in operating income, to ¥1,818 million.
United States
The market for tankless water heaters remained sluggish as rising interest rates caused slowdowns in both new housing construction and large-scale renovations. Despite a decline in sales of mainstay water heaters, mainly high-efficiency models, our performance benefited from foreign exchange movements. As result, sales in the United States increased 12.8%, to ¥12,555 million. However, increasing logistics and storage costs associated with an expansion of inventories, as well as a deteriorating product mix, resulted in an operating loss of ¥1,748 million.
Australia
In Australia, we reported growth in sales of mainstay gas tankless water heaters compared with the previous year, when sales were affected by supply delays from Japan, while sales of electric tank-based water heaters and heat-pump-based water heaters also rose. Thanks also to increased sales of high-value-added products, sales in Australia climbed 19.5%, to
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¥6,770 million, and operating income surged 408.8%, to ¥214 million.
China
In China, sales of various products, particularly water heaters, declined as a result of inventory adjustments due to a drop in consumer confidence caused by the weakening economy and an increase in distribution inventories. In addition, sales and production activities were temporarily restricted due to the rapid spread COVID-19 after the government's zero-COVID policy was lifted. As a result, sales in China declined 23.8%, to ¥9,994 million, and operating income fell 36.7%, to ¥1,427 million.
South Korea
In South Korea, business confidence continued to deteriorate amid rising prices and interest rates, while housing transactions and personal consumption remained sluggish, leading to declines in sales of mainstay boilers and kitchen appliances. Moreover, the market slowdown caused competition to intensify. As a result, sales in South Korea decreased 7.6%, to ¥8,004 million, and operating income fell 81.7%, to ¥133 million.
Indonesia
Due to contraction of the market for mainstay tabletop stoves caused by sluggish personal consumption associated with rising prices, sales in Indonesia were down 13.4%, to ¥3,322 million. However, cost reductions and other operational improvements, as well as firm demand for built-in products (which have high added value) and a lull in raw material price hikes, led to a 15.2% increase in operating income, to ¥529 million.
(For references 1)
Sales Composition by Business Segment
(¥ millions; %)
First Quarter to | First Quarter to | Change | Year to | |||||
June 30, 2022 | June 30, 2023 | March 31, 2023 | ||||||
Amount | Amount | Amount | % of | Amount | % | Amount | % of | |
total | total | |||||||
Water heaters | ¥55,565 | 58.5% | ¥53,722 | 59.8% | ¥(1,843) | (3.3)% | ¥258,658 | 60.8% |
Kitchen appliances | 22,167 | 23.3 | 20,336 | 22.6 | (1,831) | (8.3) | 91,780 | 21.6 |
Air conditioning | 3,543 | 3.7 | 3,587 | 4.0 | 43 | 1.2 | 21,941 | 5.2 |
appliances | ||||||||
Commercial-use | 2,427 | 2.6 | 2,506 | 2.8 | 78 | 3.2 | 10,669 | 2.5 |
equipment | ||||||||
Others | 11,301 | 11.9 | 9,701 | 10.8 | (1,600) | (14.2) | 42,179 | 9.9 |
Total | ¥95,006 | 100.0% | ¥89,853 | 100.0% | ¥(5,153) | (5.4)% | ¥425,229 | 100.0% |
(For references 2)
Overseas Sales
(¥ millions; %)
First Quarter to | First Quarter to | |||||||||
June 30, 2022 | June 30, 2023 | |||||||||
Asia | Others | Total | Asia | Others | Total | |||||
I. Overseas sales | ¥30,853 | ¥21,054 | ¥51,908 | ¥26,516 | ¥23,004 | ¥49,520 | ||||
II. Consolidated net sales | - | - | 95,006 | - | - | 89,853 | ||||
III. Composition ratio of | ||||||||||
overseas sales to | 32.5% | 22.2% | 54.6% | 29.5% | 25.6% | 55.1% | ||||
consolidated net sales |
Note: Above indicates sales of the Corporation and consolidated subsidiaries in overseas countries or regions.
(2) Financial Position
As of June 30, 2023, Rinnai had total assets of ¥539,062 million, down ¥8,052 million from March 31, 2023. Total liabilities decreased ¥4,896 million, to ¥135,017 million. Net assets were down ¥3,155 million, to ¥404,044 million. The equity ratio at the end of the period was 67.2%.
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Rinnai Corporation published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 07:53:01 UTC.