First Quarter of Fiscal 2024
Supplementary Material
POLA ORBIS HOLDINGS INC.
Corporate Officer
PR, IR, CSR and Sustainability
Naotaka Hashi
- This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections resulting from changes in the economic environment and other risks and uncertainties.
- POLA ORBIS HOLDINGS INC. has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from fiscal 2022. The results for fiscal 2021 in this presentation have been calculated using the same accounting standards as those in fiscal 2022, and are shown as reference information (unaudited) for the purpose of comparison.
- Highlights of Consolidated Performance
- Segment Analysis
- Initiatives Going Forward
- Forecasts for Fiscal 2024
- Appendices
1
Q1 Key Topics
Cosmetics Market
- The scale of the Japanese cosmetics market as a whole showed steady growth.
- The cosmetics market in mainland China showed weak cosmetics consumption trends due to uncertainty concerning economic conditions.
Source: Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communications, Japan Tourism Agency, Japan Department Stores Association, Intage SLI, and National Bureau of Statistics of China
Our Group
- Due to the impact of POLA's performance, consolidated net sales decreased (down 0% YoY in Japan, down 17% YoY in overseas), as did consolidated operating income.
- Despite growth in department stores and e-commerce, POLA's revenue from consignment sales channel declined in Japan. Revenue in mainland China fell due to a deterioration in business sentiment and hurdles from the previous year.
- ORBIS recorded double-digit growth in revenue and income with results outperforming plans. The direct selling channel grew in terms of the number of both new and existing customers.
- Jurlique saw increased revenues, with growth centered on mainland China and Australia.
- Losses from brands under development were ameliorated.
60,000
Quarterly Consolidated Sales
Quarterly Operating Income |
6,000 |
4,549 |
40,000
20,000
37,662
42,13640,886
4,000 | 3,357 | ||||||
2,000 | 1,912 | ||||||
0 | |||||||
(mil. yen)
2022 | 2023 | 2024 |
(mil. yen) | 2022 | 2023 | 2024 |
2 |
Consolidated P&L Changes Analysis
Net Sales to Operating Income
FY2023 | FY2024 | YoY Change | |||
(mil. yen) | Q1 Results | Q1 Results | Amount | % | |
Consolidated net sales | 42,136 | 40,886 | (1,249) | (3.0%) | |
Cost of sales | 7,748 | 7,360 | (387) | (5.0%) | |
Gross profit | 34,387 | 33,525 | (862) | (2.5%) | |
SG&A expenses | 29,838 | 30,168 | 329 | 1.1% | |
Operating income | 4,549 | 3,357 | (1,191) | (26.2%) | |
Key Factors | |||
Revenue decreased, mainly due to lower revenue at POLA. | |||
■ Consol. net sales | |||
Excluding the impact of the liquidation of the H2O PLUS, Amplitude, and ITRIM | |||
brand businesses in FY2023, net sales were in line with the previous year. | |||
■ Cost of sales | Cost of sales ratio 2023Q1: 18.4% ⇒ 2024Q1: 18.0% | ||
■ SG&A expenses | Labor expenses: up ¥62 mil. YoY | ||
Sales commissions: down ¥421 mil. YoY | |||
Sales related expenses: up ¥101 mil. YoY | |||
Administrative expenses, etc.: up ¥588 mil. YoY | |||
■ Operating income | Operating margin 2023Q1: 10.8% ⇒ 2024Q1: 8.2% |
3
Consolidated P&L Changes Analysis
Operating Income to Profit Attributable to Owners of Parent
(mil. yen)
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary losses
Profit before income taxes
Income taxes etc.
Profit attributable to non- controlling interests
Profit attributable to owners of parent
FY2023 | FY2024 | YoY Change | |
Q1 Results | Q1 Results | Amount | % |
4,549 | 3,357 | (1,191) | (26.2%) |
385 | 1,423 | 1,037 | 269.2% |
103 | 105 | 2 | 2.5% |
4,832 | 4,675 | (156) | (3.2%) |
- | - | - | - |
620 | 112 | (507) | (81.8%) |
4,211 | 4,562 | 350 | 8.3% |
1,454 | 1,426 | (28) | (1.9%) |
13 | 9 | (4) | (32.0%) |
2,743 | 3,126 | 383 | 14.0% |
Key Factors
- Non-operatingincome: Foreign exchange gain of ¥1,220 mil.
- Extraordinary losses: Recorded ¥399 mil. in extraordinary losses in the same period of FY2023 due to the liquidation of Amplitude and ITRIM.
4
Factors Impacting Profit Attributable to Owners of Parent
Despite a decrease in gross profit due to lower revenue, profit attributable to owners of
parent increased by ¥383 mil. YoY due to the impact of foreign exchange rates.
(mil. yen)
Positive impact | Negative impact |
4,000
3,500
32 3,126
3,000 | |||||||||||||||||
2,743 | 507 | ||||||||||||||||
2,500 | |||||||||||||||||
1,019 | 1,035 | ||||||||||||||||
421 | |||||||||||||||||
2,000 | 157 | 101 | 588 | ||||||||||||||
1,500 | 62 | ||||||||||||||||
1,000
500
0
FY2023 Q1 | Decrease | Improved | Labor | Sales | Sales- | Admin. | Non- | Extraordinary | Income | FY2024 Q1 | |
Profit | in gross | cost of | expenses commissions | related | expenses, | operating | income | taxes, | Profit | ||
attributable | profit | sales ratio | expenses | etc. | income | and loss | etc. | attributable | |||
to owners | and loss | to owners | |||||||||
of parent | of parent | 5 | |||||||||
- Highlights of Consolidated Performance
- Segment Analysis
- Initiatives Going Forward
- Forecasts for Fiscal 2024
- Appendices
6
Segment Results
FY2023 | FY2024 | YoY Change | ||
(mil. yen) | Q1 Results | Q1 Results | Amount | % |
Consolidated net sales | 42,136 | 40,886 | (1,249) | (3.0%) |
Beauty care | 40,950 | 39,552 | (1,398) | (3.4%) |
Real estate | 518 | 499 | (18) | (3.7%) |
Others | 666 | 834 | 168 | 25.2% |
Operating income | 4,549 | 3,357 | (1,191) | (26.2%) |
Beauty care | 4,359 | 3,575 | (784) | (18.0%) |
Real estate | 161 | 52 | (109) | (67.4%) |
Others | 2 | 51 | 49 | - |
Reconciliations | 26 | (322) | (348) | - |
Segment Results Summary
- Beauty care: Net sales decreased YoY, primarily due to a decrease in revenue from POLA, and operating income decreased, mainly due to a decrease in gross profit.
7
Beauty Care Business Results by Brands
(mil. yen)
Beauty care net sales
POLA
ORBIS
Jurlique
Brands under development
Beauty care operating income
POLA
ORBIS
Jurlique
Brands under development
FY2023 | FY2024 | YoY Change | |
Q1 Results | Q1 Results | Amount | % |
40,950 | 39,552 | (1,398) | (3.4%) |
24,183 | 22,161 | (2,022) | (8.4%) |
9,977 | 11,446 | 1,468 | 14.7% |
1,908 | 2,270 | 361 | 19.0% |
4,217 | 3,673 | (544) | (12.9%) |
4,359 | 3,575 | (784) | (18.0%) |
3,501 | 2,305 | (1,196) | (34.2%) |
1,449 | 1,962 | 513 | 35.4% |
(579) | (645) | (65) | - |
(152) | (46) | 105 | - |
Note: Consolidated operating income and loss for each brand are shown for reference purposes only (figures are unaudited). | |
注 Totals for the beauty care business in FY2023 include results for the H2O PLUS brand (liquidation completed in December 2023). | 8 |
Brand Analysis (1)
Q1 Result
- Department stores and e-commerce continued to perform strongly.
- Revenue declined in Japan overall due to lower revenue in the consignment sales channel, but Online Merges with Offline (OMO) progressed as e-commerce customers also purchase through other channels.
- Mainland China struggled with reduced store traffic.
Topics
- Launch of renewed skin-brightening serum (February), strong initial sales performance
POLA WHITE SHOT FACIAL SERUM
Q1 | Results (mil. yen) | YoY Change | Quarterly net sales (mil. yen) | |
Net sales | 22,161 | (8.4%) | 30,000 | |||
Operating income | 2,305 | (34.2%) | 24,183 | |||
Key indicators | ||||||
21,229 | 22,161 | |||||
Sales ratio | Domestic | 83.7% | 20,000 | |||
Consignment sales | 60.1% | |||||
E-commerce | 7.8% | 10,000 | ||||
Dept. store, B2B(1) etc. | 15.8% | |||||
2022 1Q | 2023 1Q | 2024 1Q | ||||
Overseas | 16.3% | |||||
Sales growth(2) | Domestic | down 7.1% | Quarterly operating income (mil. yen) | |||
Consignment sales | down 12.2% | |||||
E-commerce | up 5.8% | 4,000 | 3,501 | |||
Dept. store, B2B etc. | up 10.8% | 2,305 | ||||
Overseas | down 14.5% | |||||
2,000 | 1,611 | |||||
Domestic business | Purchase per customer(2)/ | down 5.2% / | ||||
# of customers(2) | down 3.6% | |||||
# of stores domestic(3) | 2,647 (down 19) | 0 | ||||
# of stores overseas(3) | 159 (down 3) | 2022 1Q | 2023 1Q | 2024 1Q | ||
(1) Hotel amenities business (2) YoY basis (3) vs Dec. 2023 | 9 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
POLA ORBIS Holdings Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:04:07 UTC.