YAGEO Corporation (2327 TW) today announced its fourth-quarter results of 2022. Net consolidated sales reported NT$ 28.835 billion, down 6.4% q-o-q but up 12.2% y-o-y, respectively. Net consolidated profits after tax attributable to parent company achieved NT$ 4.163 billion, down 34.9% q-o-q and down 12.1% y-o-y, respectively, or earnings per share of NT$ 9.18.

4Q22 gross margin rate posted 36.5%, down 2.0 percentage point q-o-q and down 3.5 percentage point y-o-y, respectively. The operating profit reached NT$ 5.937 billion with 20.6% operating profit margin rate, down 4.3 percentage point q-o-q and down 5.1 percentage point y-o-y, respectively. Non-operating items posted a net gain of NT$ 506 million, mainly attributed to realized and unrealized net gain on foreign exchange of NT$ 355 million. In addition, one-off accrued M&A expenses was NT$ 394 million, which had the influence on EPS about -NT$ 0.94. Furthermore, in response to global tax planning and M&A funding, dividends repatriated from overseas resulted in a withholding tax of NT$ 1.572 billion, which had the influence on EPS about -NT$ 3.77.

Y2022 consolidated sales reported NT$ 121.087 billion, up 13.7 % y-o-y. Net consolidated profit after tax attribute to parent company achieved NT$ 22.732 billion, down 0.7% y-o-y, or earnings per share of NT$ 44.22 (it will be NT$53.68 if calculated by outstanding shares of 417.3 million after capital reduction). Gross margin rate posted 38.0%, down 2.4 percentage point y-o-y. The operating income reached NT$ 28.988 billion with 23.9% of operating profit margin rate, down 3.4 percentage point y-o-y. Non-operating items posted a net gain of NT$ 2.140 billion, mainly attributed to realized and unrealized net gain on foreign exchange of NT$ 1.942 billion.

Considering the funds required for future growth and global mergers and acquisitions, and maintaining a solid financial structure, the Board of Directors today adopted a dividend distribution proposal of NT$ 10 cash per common share to shareholders for Y2022.

Moving forward to 1H23, with many macro uncertainties such as market demand/supply, rising inflation, and international conflicts, YAGEO will closely monitor the market dynamic and stay prudently to its sales and operation outlook.