Consolidated Financial Statements for the
Third Quarter of the Fiscal Year
Ending March 31, 2022
April 1, 2021 to December 31, 2021
This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ materially depending on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new product launches, and pricing and product initiatives of competitors.
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SUMMARY OF FINANCIAL STATEMENTS (consolidated)
Results for the Nine-Month Period of the Fiscal Year Ending March 31, 2022
FANCL CORPORATION | January 28, 2022 |
Stock exchange listings: Tokyo 1st section, code number 4921
https://www.fancl.jp/en/Contact:Yuhei Komine
Deputy Executive Officer, General Manager, Corporate Planning Office
Telephone: +81-45-226-1200
CEO, President, Representative Director: Kazuyuki Shimada
Scheduled date for submission of third quarter hokokusho (securities report): February 10, 2022
Scheduled date for distribution of dividends: --
Availability of supplementary explanatory material for the third quarter results: Available
Presentation meeting for the third quarter results: Scheduled (for institutional investors and analysts)
1) Consolidated results for the nine-month period (April 1, 2021 to December 31, 2021) of the fiscal year ending March 31, 2022
(1) Consolidated Operating Results
Nine months ended | Nine months ended | ||||||||
December 31, 2021 | December 31, 2020 | ||||||||
% change | % change | ||||||||
..........................................................Net sales | 78,916 | (8.3) | 86,095 | (12.8) | |||||
.............................................Operating income | 8,426 | (3.0) | 8,686 | (30.4) | |||||
...............................................Ordinary income | 8,888 | 0.5 | 8,844 | (29.9) | |||||
Net income attributable to owners of the | 6,492 | 5.4 | |||||||
parent company.............................................. | 6,159 | (28.9) | |||||||
Earnings per share (¥)...................................... | 53.80 | -- | 51.06 | -- | |||||
........................Earnings per share (diluted) (¥) | 53.58 | -- | 50.85 | -- |
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
- Comprehensive income: Nine months ended December 31, 2021: ¥6,633 million (8.8%) Nine months ended December 31, 2020: ¥6,096 million (-29.4%)
- From the beginning of the first quarter period, the Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. As a result, net sales are ¥6,824 million lower, and operating income and ordinary income are each ¥203 million higher. If the figures for the fiscal year ended March 2021 were estimated on the same basis, net sales would be 0.3% lower year-on-year.
(2) Consolidated Financial Position | (Millions of yen, rounded down) | ||||||
As of December 31, 2021 | As of March 31, 2021 | ||||||
.....................................................Total assets | 97,580 | 97,533 | |||||
.......................................................Net assets | 73,143 | 71,215 | |||||
..............Shareholders' equity/total assets (%) | 74.3 | 72.3 | |||||
Shareholders' equity: As of December 31, 2021: ¥72,503 million | |||||||
As of March 31, 2021: ¥70,544 million | |||||||
2) Dividends per share | |||||||
FY ended | FY ending | ||||||
March 31, 2021 | March 31, 2022 | ||||||
Interim period .................................................. | 17.00 | 17.00 | |||||
Year-end ......................................................... | 17.00 | 17.00 (forecast) | |||||
.............................................................Annual | 34.00 | 34.00 (forecast) | |||||
Notes: 1. Changes to dividend forecasts during the period under review: None | |||||||
3) Consolidated forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022) | |||||||
Millions of yen | |||||||
FY Ending | |||||||
March 31, 2022 | |||||||
Change % | |||||||
Net sales | |||||||
106,500 | (7.3) | ||||||
...........................................................Operating income | 12,000 | 3.7 | |||||
Ordinary income | |||||||
12,200 | 3.5 | ||||||
Profit (loss) attributable to owners of parent | |||||||
8,100 | 1.0 | ||||||
Net income per share (¥) | |||||||
67.12 | -- | ||||||
Notes: 1. Percentage figures for sales, operating income, etc. represent changes compared to the previous fiscal year.
- Changes to the Consolidated forecasts during the period under review: No
- As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. has been adopted from the beginning of the first quarter of the fiscal year ending March 31, 2022, the above consolidated forecast reflects the application of this accounting standard. If the same standard is applied to the fiscal year ended March 31, 2021, net sales would be 1.3% higher year on year. There is no change in the operating income, ordinary income and net income forecasts before and after the application of the new accounting standard.
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- Other
- Transfer of important subsidiaries during the period: None
Note: Indicates transfers of specified subsidiaries resulting in changes in the scope of consolidation during the period under review.
- Use of simplified accounting methods or special accounting procedures: None
- Changes in accounting policy, changes in accounting estimates, and restatements:
- Changes following revisions to accounting standards: Yes
- Other changes: None
- Changes in accounting estimates: None
- Restatements: None
- Number of outstanding shares (common stock)
- Number of shares outstanding (including treasury shares)
- Number of treasury shares
- Average number of shares during the nine-month period
December 31, 2021 | 130,353,200 shares | March 31, 2021 | 130,353,200 shares |
December 31, 2021 | 9,677,443 shares | March 31, 2021 | 9,690,356 shares |
Nine months to | 120,672,368 shares | Nine months to | 120,631,856 shares |
December 31, 2021 | December 31, 2020 | ||
Note: The number of treasury shares at the end of the period includes shares held by the Officer Compensation BIP (Board Incentive Plan) Trust Account (211,500 shares as of December 31, 2021). Furthermore, the treasury shares held by the Officer Compensation BIP Trust Account are included in the treasury stock deducted in the calculation of the average number of shares outstanding during the period.
*This quarterly financial report is not subject to audit procedures by a certified public accountant or auditor.
* Appropriate use of financial forecasts:
(Cautionary note regarding forward-looking statements)
Forecasts, etc., recorded in this document include forward-looking statements that are based on management's estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. For further detail, please see Page 7: 1. Operating Results, Section 3, Forecasts for the fiscal year ending March 31, 2022.
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Contents
1. Operating Results | ||
(1) | Summary of business performance…………………………………………………….…………… | 5 |
(2) | Summary of consolidated financial position………………………………………………………… | 7 |
(3) | Forecasts for the fiscal year ending March 31, 2022…………………………….………………… | 7 |
2. Consolidated Financial Statements
- Consolidated balance sheets………….…………………………………………………………….. 8
- Consolidated statement of income and Consolidated statement of comprehensive income…. 10 Consolidated statement of income…………………………………..………………………………. 10 Consolidated statement of comprehensive income……………..…………………………………. 11
-
Notes to the consolidated financial statements…………………………………………………….. 12
Items related to going concern……………………………………………………………………….. 12
Note on significant change in shareholders' equity………………………………….…………….. | 12 |
Changes in accounting policy………………………………….…………….. ……………………… | 12 |
Additional information………………………………….…………….. ……………………………… | 12 |
Segment information………………………………………………………………………………….. | 13 |
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1. Operating Results
(1) Summary of business performance (consolidated)
(All comparisons are with the nine-month period of the previous fiscal year, unless stated otherwise.)
During the nine-month period under review, consolidated sales decreased 8.3% to ¥78,916 million, operating income decreased 3.0% to ¥8,426 million, ordinary income increased 0.5% to ¥8,888 million, and net income attributable to owners of the parent company increased 5.4% to ¥6,492 million.
From the beginning of the first quarter period, the Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. (hereafter "Accounting Standard for Revenue Recognition"). As a result, sales are ¥6,824 million lower, and operating income and ordinary income are each ¥203 million higher.
To provide a more realistic analysis of the operating results, the results of the same period of the previous fiscal year have been reclassified to reflect the adoption of this new accounting standard (hereafter "after reclassification").
During the nine-month period under review, although sales in the core cosmetics and nutritional supplements businesses increased, overall sales declined 0.3% to ¥78,916 million due to a decline in sales in other businesses resulting from factors including the absence of sales of non-woven masks that were sold in the previous comparable period. Operating income decreased 3.0% to ¥8,426 million due to an increase in depreciation expenses following the launch of operations at the Kansai Logistics Center and the effect of the recording of personnel expenses associated with store closures as an extraordinary loss in the same period of the previous fiscal year, which outweighed an increase in gross profit resulting from an improvement in the cost of sales ratio. Ordinary income increased 0.5% to ¥8,888 million, and net income attributable to owners of the parent company increased 5.4% to ¥6,492 million.
Segment results are as follows:
-
Cosmetics Business Sales
Sales from the Cosmetics business increased 1.4% to ¥44,611 million.
(Millions of yen, rounded down)
Nine months ended | Nine months ended | ||||
December 31, 2021 | December 31, 2020 | ||||
(After reclassification) | Change (%) | ||||
Amount in | Percent of | Amount in | Percent of | ||
¥ million | total | ¥ million | total | ||
FANCL Cosmetics | 32,436 | 72.7 | 32,704 | 74.4 | (0.8) |
ATTENIR Cosmetics | 10,583 | 23.7 | 9,132 | 20.8 | 15.9 |
boscia | 794 | 1.8 | 1,628 | 3.7 | (51.2) |
Others | 797 | 1.8 | 509 | 1.1 | 56.4 |
Totals | 44,611 | 100.0 | 43,975 | 100.0 | 1.4 |
Nine months ended | Nine months ended | ||||
December 31, 2021 | December 31, 2020 | ||||
(After reclassification) | Change (%) | ||||
Amount in | Percent of | Amount in | Percent of | ||
¥ million | total | ¥ million | total | ||
Online and catalogue sales | 23,045 | 51.7 | 23,698 | 53.9 | (2.8) |
Direct store sales | 10,121 | 22.7 | 9,488 | 21.6 | 6.7 |
Wholesales and others | 6,391 | 14.3 | 5,742 | 13.0 | 11.3 |
Overseas sales | 5,053 | 11.3 | 5,045 | 11.5 | 0.1 |
Totals | 44,611 | 100.0 | 43,975 | 100.0 | 1.4 |
Sales of FANCL Cosmetics decreased 0.8% to ¥32,436 million due to factors including a slowdown in sales of makeup and special care products, which outweighed a strong trend in sales of MILD CLEANSING OIL, which was subject to renewal.
Sales of ATTENIR Cosmetics increased 15.9% to ¥10,583 million, due to contributions from Dress snow basic skin care which launched in April, and cross-bordere-commerce sales to China.
Sales of boscia decreased 51.2% to ¥794 million due to sluggish wholesale sales to real stores.
Results by sales channels were: online and catalogue sales decreased 2.8% to ¥23,045 million, direct store sales increased 6.7% to ¥10,121 million, wholesale sales through other sales channels increased 11.3% to ¥6,391 million, and overseas sales increased 0.1% to ¥5,053 million.
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FANCL Corporation published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 06:25:35 UTC.