financial overview for the first quarter of fiscal … › english › ir › overview › pdf ›...

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Financial Overview for the First Quarter of Fiscal Year Ending

December 31, 2020 (January 1, 2020 to March 31, 2020)

April 28, 2020

111/15Summary of Financial Results Net sales increased year-on-year (100.7% of the previous year). Operating income decreased year-on-year (94.7% of the previous year).

However, the decrease was attributable to the change of the depreciation method for and change in service life of property, plant and equipment (down 0.74 billion yen). If such negative impact is excluded, operating income grew year-on-year, 109.1% of the previous year in real terms.

Main factors for changes in net sales(1) Spread of new coronavirus infections (impact on the Domestic Business)

• Increase in demand mainly for disinfectant products and sanitary products (up 1.7 billion yen)

• Decrease in inbound demand (down 1.1 billion yen)(2) Spread of new coronavirus infections (impact on the International Business)

• Increase in demand for Netsusama Sheet and Glasses Cleaner in each country (up 0.2 billion yen)

• Sluggish sales at stores in China (down 0.2 billion yen)• Steady sales in Mainland China EC (up 0.1 billion yen)

(3) Poor sales of body warmers overseas due to mild winter (down 0.5 billion yen)

(4) Uphill battle in the Direct Marketing Business (down 0.2 billion yen)

222/15

Results for Jan. to Mar. 2020 Results for Jan. to Mar.

2019 *2Published results In real terms*1

Amount

(million yen)

Margin

(%)

Percentage

(%)

Amount

(million yen)

Margin

(%)

Percentage

(%)

Amount

(million yen)

Net sales 31,911 – 100.7% 31,911 – 100.7% 31,677

Operating

income4,875 15.3% 94.7% 5,618 17.6% 109.1% 5,149

Ordinary

income5,042 15.8% 96.6% 5,788 18.1% 110.9% 5,219

Net income 3,742 11.7% 101.6% 4,251 13.3% 115.4% 3,683

Consolidated Financial Results for the First Quarter

of Fiscal Year Ending December 31, 2020

*1: Figures after excluding the impact of full amortization due to the change in service life of and change of depreciation method

for property, plant and equipment

*2: The Accounting Standard for Revenue Recognition has been applied from FY2020. For comparison purposes, results for

FY2019 were prepared based on the new standard.

333/15Changes in Consolidated Net Sales and

Gross Profit Ratio

226 234

226

266 258

268

290

316 316 319

58.1 57.9

55.1

51.853.4 53.1

59.0 59.0 59.057.1

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

150

170

190

210

230

250

270

290

310

330

350

Jan. toMar.2011

Jan. toMar.2012

Jan. toMar.2013

Jan. toMar.2014

Jan. toMar.2015

Jan. toMar.2016

Jan. toMar.2017

Jan. toMar.2018

Jan. toMar.2019

Jan. toMar.2020

Net sales

Gross profit ratio

(Unit: 100 million yen)

(Unit: %)

59.1% in real terms,

excluding the impact

of full amortization

444/15

25

18

25

19 19

13

48

54 51

48

11.37.9

11.17.3 7.5

5.0

16.6 17.1 16.3 15.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

0

10

20

30

40

50

60

Jan. toMar.2011

Jan. toMar.2012

Jan. toMar.2013

Jan. toMar.2014

Jan. toMar.2015

Jan. toMar.2016

Jan. toMar.2017

Jan. toMar.2018

Jan. toMar.2019

Jan. toMar.2020

Operating income

Operating margin

Changes in Operating Income and Operating Margin


(Unit: %)

17.6% in real terms,

excluding the impact

of full amortization

Operating income in real terms, excluding the impact of full amortization 56

555/15

51.4

48.7

+1.6

+2.7+1.0

0.5 0.51.1

1.6

7.4

+1.5 +0.3 +0.5

0.3 0.5

+1.6

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Jan

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Jan

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Mar

. 202

0

56.1

Factors for Changes in Consolidated Operating Income

- - - Factor for increase

- - - Factor for decrease

Production costs SGA expenses


Operating income decreased by 740 million yen (production costs: 630 million yen, SGA expenses:

110 million yen) due to full amortization at the beginning of the fiscal term in association with the

change of the depreciation method and shortening of service life. Operating income stood at

109.1% of the previous year in real terms, excluding the impact of full amortization.

Year-on-year

percentage

94.7%

Year-on-year percentage

in real terms

109.1%

Impact of production costs: 6.3

Impact of SGA expenses: 1.1

666/15

Net sales Operating incomeFactors for changes

Amount

(million yen)

Percentage

(%)

Amount

(million yen)

Percentage

(%)

Domestic

Business24,774 104.5% 4,381 103.2%

+ Sanitary products (+0.8 billion yen)

+ Household articles (+0.2 billion yen)

+ Skin care products (+0.1 billion yen)

Pharmaceuticals (0.1 billion yen)

Food (0.1 billion yen)

International

Business4,763 91.0% 362 51.2%

+ Australia (+0.1 billion yen)

China and Hong Kong (0.2 billion

yen)

Taiwan (0.1 billion yen)

U.K. (0.1 billion yen)

Direct

Marketing

Business2,170 89.0% 16 －

Financial Results for the First Quarter of FY2020 by Segment

Sales in the Domestic Business increased due to a rise in demand related to the spread of new

coronavirus infections. However, sales in the International Business decreased due to sluggish

sales of body warmers caused by the mild winter.

777/15Domestic Business (Impact of Spread of New Coronavirus Infections)

Around the middle of January, demand increased for disinfectant and sanitary products,

mainly masks. However, demand for some products decreased in March in reaction to

the rise in the preceding months. Net sales grew by 1.7 billion yen.

Ranking ItemPercentage

(%)

1 Nodonool Nure Mask 142%

2 Nodonool Spray 153%

3 Netsusama Sheet 129%

4 Sarasaty 118%

5 Ekitai Bluelet Jokin 128%

6 Hananoa 132%

7 Glasses Cleaner 146%

8 Eau de Muge 129%

9 Eyebon 107%

10 Dusmock 136%

11 Kantansenjomaru 122%

12 Toilet Seat Disinfectant Cleaner 156%

13 Sneaker Mist 129%

14 Sabotta Ring 135%

15 Nightmin Nasal Respiration Tape 108%

<Ranking by sales growth rate>Jan. to Mar. 2020

* The effectiveness of these disinfectant and sanitary products against the new coronavirus has not been proved yet.

888/15

<Estimated inbound-related sales>

Inbound-related sales decreased to 1.1 billion yen due to a fall in the number of

foreign visitors to Japan. (Jan.: 97% of 2019, Feb.: 41% of 2019, Mar.: 19% of

2019)

Ranking Item Percentage (%)

1 Nodonool Spray 85%

2 Inochi no Haha 37%

3 Ammeltz 67%

4 SakamuCare 38%

5 Nodonool Nure Mask 123%

6 BreathCare 30%

7 Eyebon 36%

8 Glasses Cleaner 61%

9 Harenurse 54%

10 Nattokinase 45%

<Sales ranking by brand>Jan. to Mar. 2020

Domestic Business (Inbound Demand)

7 10

13

23 22

11

2.74.1 4.4

7.3 7.0

3.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

25

Jan. toMar. 2015

Jan. toMar. 2016

Jan. toMar. 2017

Jan. toMar. 2018

Jan. toMar. 2019

Jan. toMar. 2020

Net sales

Sales ratio


(Unit: %)

999/15Domestic Business (Sales Breakdown by Business Category)

Sales of healthcare products were sluggish due to a fall in inbound-related sales.Sales of household products grew sharply due to a rise in demand related to the spread of new coronavirus infections.Sales of body warmers remained weak due to the mild winter, but the extent of the decrease became smaller owing to the reduction of returns.

Net salesResults for Jan. to Mar. 2020

Results for Jan.

to Mar. 2019 *1

Amount

(million yen)Percentage (%)

Amount

(million yen)

Healthcare products 12,316 98.1% 12,558

Household products 10,457 113.4% 9,224

Skin care products 1,540 105.8% 1,456

Body warmers 459 96.9% 473

Total 24,774 104.5% 23,712

*1: The Accounting Standard for Revenue Recognition has been applied from FY2020. For comparison purposes,

results for FY2019 were prepared based on the new standard.

101010/15International Business(Sales Breakdown by Region)

In each country, demand for Netsusama Sheet and Glasses Cleaner increased due to the spread

of new coronavirus infections. However, overall sales decreased from the previous year because

of sluggish sales of body warmers due to the mild winter.

Net salesResults for Jan. to Mar. 2020

Results for Jan. to

Mar. 2019 *1

Amount

(million yen)Percentage (%)

Amount

(million yen)

U.S. 1,255 99.2% 1,265

China (mainland) 1,396 92.4% 1,510

(Hong Kong) 401 75.3% 533

Southeast Asia 1,078 82.6% 1,305

Other 631 102.1% 619

Total 4,763 91.0% 5,233*1: The Accounting Standard for Revenue Recognition has been applied from FY2020. For comparison purposes,

results for FY2019 were prepared based on the new standard.

111111/15

3.1

1.5 1.7

3.1

1.6

3.0

Jan. Feb. Mar.

FY2019 FY2020

Overall sales were sluggish due to the restriction on travel and stagnation of the distribution network

caused by the spread of new coronavirus infections. In particular, sales via stores plunged since the

number of closed stores increased. Meanwhile, sales via EC grew sharply in March, although sales

growth remained moderate in January and February since product distribution was paralyzed.

Chinese Business (Stores and EC)

5.3

1.02.2

4.3

0.7 1.1

Jan. Feb. Mar.

FY2019 FY2020

<Sales via stores> <Sales via EC (Mainland and Cross-border)>(Unit: 100 million yen) (Unit: 100 million yen)

8.6

6.2

Jan. to Mar.

Sales by month Total

6.47.7

Jan. to Mar.

Sales by month Total

121212/15

Sales of body warmers and Netsusama Sheet, which are sold mainly via stores, decreased from

the previous year. Sales of Netsusama Sheet were also affected by the temporary restriction of

sales via pharmacies (*). Sluggish sales of body warmers were due to the mild winter. Meanwhile,

other products, which are mainly marketed via EC, grew sharply.

5.2 5.3 4.5

3.1 4.1

6.6

カイロ熱さまシートその他日用品FY2019 FY2020

<Net sales (Jan. to Mar.)>(Unit: 100 million yen)

Percentage

(%)

145%

Percentage

(%)

78%

Percentage

(%)

61%

FY2019 FY2020

Body warmers Netsusama Sheet Other

Chinese Business (by Item)

* The government restricted sales of “goods that lower body temperature” via pharmacies. Netsusama Sheet was included in

the goods. The government aimed to prevent the spread of new coronavirus infections by restricting the use of over-the-

counter medicines, etc. that help to lower body temperature and cure a disease without going to see a doctor.

FY2019 FY2020

131313/15Chinese Business (Boosting the Business)

In FY2019, sales increased greatly since we aggressively promoted sales of BreathCare

and Shoshugen. In China, we will try not only to increase the selection of these products

but also to market new products and new lines of existing products soon after they are

launched in Japan.

<Net sales (Jan. to Dec.)>

2.8

0.4 0.4

5.2

2.0 2.9

ランジェリー洗剤ブレスケアその他日用品


FY2018 FY2019 FY2018 FY2019 FY2018 FY2019

Detergents for lingerie

1.8 times

BreathCare Shoshugen

5 times 7 times

141414/15Forecast of Consolidated Results for Year Ending December 2020

We have not changed our forecast of consolidated results for the year ending

December 2020 that was announced at the beginning of FY2020 since it is difficult for

us to predict how long the new coronavirus outbreak will last at the present moment.

FY2020 forecast (Jan. to Dec. 2020)

FY2019 results

(Jan. to Dec. 2019)

(under new standards)

Amount

(million yen)Margin (%) Percentage (%)

Amount

(million yen)

Net sales 165,000 – 104.2% 158,318

Operating

income26,400 16.0% 102.9% 25,658

Ordinary income 28,000 17.0% 100.5% 27,851

Net income 20,000 12.1% 104.5% 19,139

EPS 255.88 yen – 104.8% 244.08 yen

ROE 11.3% – – 11.3%

151515/15

Net sales

Amount

(million yen)

Percentage

(%)

Domestic

Business 127,600 103.7%

International

Business 26,200 107.5%

Direct Marketing

Business 10,000 102.4%

Forecast of Consolidated Results for Year Ending December 2020

16

<Note>

Of the Company’s current business performance, plans, and strategies included in this

material, items that are not historical facts are outlooks on future performance, which are

based on the judgment of the Company’s management according to currently available

information. Therefore, please note that actual performance may differ significantly from

the future outlook described in this material due to changes in various factors.

17

Reference

1818

(Unit: 100 million yen)Jan. to Mar.

2020

Percentage

(%)

Jan. to Mar.

2019

Net sales 319 100.7% 316

Gross profit 182 97.4% 187

Margin 57.1% 59.0%

Operating income 48 94.7% 51

Margin 15.3% 16.3%

Ordinary income 50 96.6% 52

Margin 15.8% 16.5%

Net income 37 101.6% 36

Margin 11.7% 11.6%

Consolidated Income Statement 1

1919

(Unit: 100 million yen) End of Mar. 2020 End of Dec. 2019

Current assets 1,563 1,630

Cash and deposits 793 755

Notes and accounts

receivable-trade411 541

Short-term investment

securities154 149

Inventories 177 153

Non-current assets 655 706

Property, plant and equipment 200 211

Intangible assets 30 31

Investment and other assets 424 463

Total assets 2,218 2,337

Consolidated Balance Sheet (1) 2

2020

(Unit: 100 million yen) End of Mar. 2020 End of Dec. 2019

Current liabilities 458 537

Notes and accounts payable-

trade81 79

Short-term loans payable 0 0

Accounts payable-other 182 241

Non-current liabilities 55 73

Total net assets 1,704 1,726

Capital surplus 41 41

Retained earnings 1,742 1,736

Treasury stock 197 197

Total liabilities and net assets 2,218 2,337

3Consolidated Balance Sheet (2)

2121Results by Segment (Domestic Business)


2020Percentage (%)

Jan. to Mar.

2019

Net sales 247 104.5% 237


Margin 56.7% 58.9%


Margin 17.7% 17.9%

Advertising expenses 29 100.2% 29

Percentage 11.9% 12.4%

Sales promotion

expenses3 109.8% 2


4

2222

Net sales


Jan. to Mar.

2020

Percentage

(%)

Jan. to Mar.

2019

Healthcare products 123 98.1% 125

Pharmaceuticals 71 98.5% 72

Food 15 90.2% 16

Oral care products 37 100.8% 36

Household products 104 113.4% 92

Sanitary products 35 129.2% 27

Deodorizing air

fresheners57 102.5% 56

Household articles 10 133.8% 8

Skin care products 15 105.8% 14

Body warmers 4 96.9% 4

Results by Segment (Domestic Business) 5

2323Results by Segment (International Business)


2020Percentage (%)

Jan. to Mar.

2019

Net sales 47 91.0% 52


Margin 50.4% 52.4%


Margin 7.6% 13.5%



Sales promotion

expenses2 62.0% 3


6

2424

Net sales

(Unit: 100 million yen)Jan. to Mar. 2020 Percentage (%) Jan. to Mar. 2019

U.S. 12.5 99.2% 12.6

China and Hong Kong 17.9 88.0% 20.4

China 13.9 92.4% 15.1

(Stores) 6.2 71.5% 8.6

(Mainland EC) 5.9 120.6% 4.9

(Cross-border EC) 1.8 121.1% 1.5

Hong Kong 4.0 75.3% 5.3

Southeast Asia 10.7 82.6% 13.0

Singapore 0.5 60.5% 0.8

Malaysia 3.7 84.3% 4.4

Thailand 2.5 99.2% 2.5

Indonesia 0.8 112.0% 0.7

Philippines 1.4 94.7% 1.5

Taiwan 1.7 59.0% 3.0

Other 6.3 102.1% 6.1

7Results by Segment (International Business)

2525Results by Segment

(Direct Marketing Business)


2020Percentage (%)

Jan. to Mar.

2019

Net sales 21 89.0% 24


Margin 70.7% 69.7%

Operating income 0.1 – 0.7

Margin – 3.2%



Sales promotion

expenses

1 76.3% 1


8

financial overview for the first quarter of fiscal … › english › ir › overview › pdf ›...

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