Consolidated Financial Results
for the Three Months Ended May 31, 2021
[Japanese GAAP]
July 7, 2021
Company name: WELCIA HOLDINGS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3141
URL: https://www.welcia.co.jp/
Representative: Tadahisa Matsumoto, President and Representative Director
Contact: Norimasa Sato, Vice President, Director, Executive Officer and Chief Financial Officer
Phone: +81-3-5207-5878
Scheduled date of filing quarterly securities report: July 7, 2021
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 31, 2021 (March 1, 2021 - May 31, 2021)
(1) Consolidated Operating Results (cumulative) | (% indicates changes from the previous corresponding period.) | |||||||||||
Net sales | Operating income | Ordinary income | Net income | |||||||||
attributable to | ||||||||||||
owners of parent | ||||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
May 31, 2021 | 248,861 | 7.0 | 7,282 | (30.8) | 8,851 | (21.3) | 5,307 | (19.6) | ||||
May 31, 2020 | 232,502 | 10.5 | 10,526 | 29.4 | 11,253 | 27.5 | 6,602 | 21.3 | ||||
(Note) Comprehensive | income: Three months | ended May 31, 2021: | ¥5,279 million [(20.7) %] | |||||||||
Three months ended May 31, 2020: ¥6,661 million [24.3%] | ||||||||||||
Net income | Diluted net income | |||||||||||
per share | per share | |||||||||||
Three months ended | Yen | Yen | ||||||||||
May 31, 2021 | 25.50 | 25.48 | ||||||||||
May 31, 2020 | 31.60 | 31.57 |
(Note) A two-for-one stock split of the Company's common stock was executed on September 1, 2020. "Net income per share" and "diluted net income per share" are calculated assuming that the stock split was executed at the beginning of the fiscal year ended February 28, 2021.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of May 31, 2021 | 414,246 | 183,378 | 44.0 |
As of February 28, 2021 | 435,685 | 180,351 | 41.2 |
(Reference) Equity: As of May 31, 2021: ¥182,186 million As of February 28, 2021: ¥179,490 million
2. Dividends
Annual dividends | ||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | |||
- | 27.00 | - | 15.00 | - | ||||
February 28, 2021 | ||||||||
Fiscal year ending | - | |||||||
February 28, 2022 | ||||||||
Fiscal year ending | ||||||||
February 28, 2022 | 15.00 | - | 15.00 | 30.00 | ||||
(Forecast) |
(Notes) 1. Revision to the forecast for dividends announced most recently: None
2. A two-for-one stock split of the Company's common stock was executed on September 1, 2020. The figure for the "2nd quarter-end" of the fiscal year ended February 28, 2021 is the actual dividend amount paid before the stock split was executed. The annual dividend for the fiscal year ended February 28, 2021 is not presented, because it is impossible to simply aggregate the amounts for each quarter-end due to the stock split. In pre-split terms, the year-end dividend would come to ¥30, making the annual dividend for the year ¥57.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)
(% indicates changes from the previous corresponding period.)
Net income | Net income | ||||||||
Net sales | Operating income | Ordinary income | attributable to owners | ||||||
per share | |||||||||
of parent | |||||||||
First half | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
508,500 | 6.7 | 22,870 | (13.6) | 24,670 | (11.5) | 15,160 | (12.4) | 72.88 | |
(cumulative) | |||||||||
1,021,000 | 7.5 | 44,300 | 3.1 | 47,600 | 3.9 | 27,000 | (3.6) | 129.79 | |
Full year |
(Note) Revision to the financial results forecast announced most recently: None
* Notes: | ||
(1) Changes in significant subsidiaries during the period under review: None | ||
(Changes in specified subsidiaries resulting in changes in scope of consolidation): | ||
Newly included: - ( | ), Excluded: - ( | ) |
- Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of issued and outstanding shares (common shares)
- Total number of issued and outstanding shares at the end of the period (including treasury stock):
May 31, 2021: | 209,633,676 shares |
February 28, 2021: | 209,633,676 shares |
2) Total number of treasury stock at the end of the period: | |
May 31, 2021: | 1,451,532 shares |
February 28, 2021: | 1,606,772 shares |
3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):
Three months ended May 31, 2021: | 208,094,371 shares |
Three months ended May 31, 2020: | 208,933,672 shares |
(Notes) 1. The number of shares of the Company held in the Employees' Stock Ownership ESOP Trust (February 28, 2021: 1,050,200 shares; May 31, 2021: 937,200 shares) and the number of shares of the Company held in the Directors' Remuneration BIP Trust (February 28, 2021: 502,238 shares; May 31, 2021: 502,238 shares) were included in the total number of treasury stock at the end of the period. The number of shares of the Company held in the Employees' Stock Ownership ESOP Trust, was included in the number of treasury stock, which was to be deducted from the calculation of the average number of shares outstanding during the period (May 31, 2020: 641,932 shares; May 31, 2021: 1,502,114 shares).
2. A two-for-one stock split of the Company's common stock was executed on September 1, 2020. The figures for the "total number of issued and outstanding shares (common shares)" are calculated assuming that the stock split was executed at the beginning of the fiscal year ended February 28, 2021.
- These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
-
Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements provided herein are based on information available to the Company and certain assumptions deemed reasonable, and the Company does not promise the achievement of those forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. For the assumptions underlying the forecasts and the notes on the use of the forecasts, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 of the attached document.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results ......................................................................... | 2 | |
(1) | Explanation of Operating Results ........................................................................................................ | 2 |
(2) | Explanation of Financial Position ....................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-lookingInformation | ....4 |
2. Quarterly Consolidated Financial Statements and Principal Notes ......................................................... | 5 | |
(1) | Quarterly Consolidated Balance Sheets .............................................................................................. | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ...................................... | 7 |
Quarterly Consolidated Statements of Income | ||
Three Months Ended May 31 ...................................................................................................... | 7 | |
Quarterly Consolidated Statements of Comprehensive Income | ||
Three Months Ended May 31...................................................................................................... | 8 | |
(3) | Notes to Quarterly Consolidated Financial Statements ....................................................................... | 9 |
(Notes on going concern assumption) ............................................................................................ | 9 | |
(Notes in case of significant changes in shareholders' equity) ....................................................... | 9 |
1
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the three months ended May 31, 2021 (from March 1, 2021 to May 31, 2021), the Japanese economy continued in a state of sluggish personal spending as well as shrinking corporate activities due to the impact of the spread of the coronavirus disease (COVID-19). While measures were gradually being taken, most notably the commencement of COVID-19 vaccinations, the fourth wave of COVID-19 cases materialized in April, sending certain parts of the country into a state emergency, and uncertainty continued to prevail with no prospect in sight for the containment of the pandemic.
In the drugstore industry, the primary market for the Group's business, competition intensified, as the industry underwent reorganization even among the major players and entrants from other industries entered the market. Moreover, while in the previous fiscal year, demand grew for products to prevent infectious diseases reflecting the spread of COVID-19 as well as foods and other products stemming from the voluntary restraints on going out, in the three months ended May 31, 2021, such demand experienced a reactionary decline. Furthermore, the impact of the outbreak such as the sharp drop in demand for cosmetics in response to the proactive promotion of teleworking, fewer people catching colds as a result of regularly wearing masks and washing their hands, and people refraining from visiting doctors persists even in the current period.
Under such circumstances, the Group, despite shorter business hours at certain stores and other measures, made efforts to operate its business to provide products and services, while continuing to implement measures to prevent COVID-19 infections and thorough hygiene management. In terms of the sale of goods, the Cosmetics segment has not recovered the levels prior to COVID-19, while the Food Products segment reported a reactionary decline compared to the spike in special demand in the previous fiscal year, and in the Dispensing segment, net sales increased due primarily to the increase in the number of stores with dispensing pharmacies (1,688 stores as of May 31, 2021) and new store openings, despite the effects of the NHI drug price revision.
Additionally, the Group managed to optimize selling, general and administrative expenses, mainly in terms of its labor costs by thoroughly managing store man-hours through man-hour control and improving store operational efficiency through the promotion of automatic ordering, while at the same time continuing with the employment reinforcement measures from the previous fiscal year.
The Group also made efforts toward the improvement of business efficiency by carrying out an absorption- type merger, effective March 1, 2021, whereby Neo Pharma Co., Ltd. and Summit Co., Ltd., wholly-owned subsidiaries engaged in the dispensing business in Shikoku area mainly in Ehime Prefecture, were absorbed and WELCIA YAKKYOKU Co., Ltd., a consolidated subsidiary became the surviving company
As for store openings and closures, the Group as a whole opened 47 stores and closed seven stores, for a total of 2,258 stores Group-wide as of May 31, 2021.
(Unit: No. of Stores) | |||||||
No. of | Increase | Increase/ | No. of | ||||
resulting | decrease | ||||||
stores as of | stores as of | ||||||
from | resulting | Openings | Closures | ||||
February | May 31, | ||||||
transfer of | from | ||||||
28, 2021 | 2021 | ||||||
business | mergers | ||||||
WELCIAYAKKYOKU | 1,899 | 1 | 13 | 45 | 5 | 1,953 | |
(Note 1) | |||||||
Marudai Sakurai | 87 | - | - | 2 | - | 89 | |
Pharmacy | |||||||
SHIMIZU YAKUHIN | 62 | - | - | - | - | 62 | |
Marue Drug | 58 | - | - | - | 1 | 57 | |
YODOYA | 25 | - | - | - | - | 25 | |
Kanamitsu Yakuhin | 28 | - | - | - | - | 28 | |
MASAYA | 35 | - | - | - | - | 35 | |
Neo Pharma (Note 2) | 10 | - | (10) | - | - | - | |
2 |
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Welcia Holdings Co. Ltd. published this content on 14 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2021 06:02:03 UTC.