November 10, 2022
Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2023
(Six Months Ended September 30, 2022)
[Japanese GAAP]
Listings: Tokyo Stock Exchange
URL: https://www.aoki-hd.co.jp/
Tel: +81-45-941-1388
November 11, 2022
December 2, 2022
Yes
Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on November 10, 2022 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 - September 30, 2022)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Six months ended Sep. 30, 2022 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
75,595 | 21.2 | 2,017 | - | 1,676 | - | 586 | - | ||
Six months ended Sep. 30, 2021 | 62,382 | 11.5 | (3,094) | - | (3,436) | - | (3,776) | - |
Note: Comprehensive income (million yen) | Six months ended Sep. 30, 2022: | 724 | (-%) | |||
Six months ended Sep. 30, 2021: | (3,732) | (-%) | ||||
Net income per | Diluted net income | |||||
share | per share | |||||
Six months ended Sep. 30, 2022 | Yen | Yen | ||||
6.91 | - | |||||
Six months ended Sep. 30, 2021 | (44.51) | - |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Million yen | Million yen | % | |||
As of Sep. 30, 2022 | 220,765 | 127,989 | 57.7 | ||
As of Mar. 31, 2022 | 233,008 | 127,641 | 54.5 | ||
Reference: Shareholders' equity (million yen) | As of Sep. 30, 2022: 127,343 | As of Mar. 31, 2022: 127,082 |
2. Dividends
Dividend per share | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
FY3/22 | - | 5.00 | - | 5.00 | 10.00 | ||
FY3/23 | - | 7.00 | |||||
FY3/23 (forecasts) | - | 10.00 | 17.00 |
Note: Revisions to the most recently announced dividend forecast: Yes
For more information, please see "Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal Year Ending March 31, 2023" that was announced today (November 10, 2022).
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)
(Percentages represent year-on-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | |||||||
owners of parent | share | ||||||||||
Full year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
172,700 | 11.5 | 8,800 | 61.7 | 8,150 | 86.9 | 4,100 | 59.9 | 48.29 |
Note: Revisions to the most recently announced consolidated forecast: Yes
For more information, please see "Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal Year Ending March 31, 2023" that was announced today (November 10, 2022).
* Notes
- Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | None |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
(4) Number of shares outstanding (common shares)
1) | Number of shares outstanding (including treasury shares) at the end of the period | |||
As of Sep. 30, 2022: | 87,649,504 shares | As of Mar. 31, 2022: | 87,649,504 shares | |
2) | Number of treasury shares at the end of the period | |||
As of Sep. 30, 2022: | 2,746,746 shares | As of Mar. 31, 2022: | 2,746,514 shares | |
3) Average number of shares outstanding during the period | ||||
Six months ended Sep. 30, 2022: | 84,902,871 shares | Six months ended Sep. 30, 2021: | 84,842,039 shares |
Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forecasts and other matters Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 of the attachments regarding preconditions or other related matters for the forecast shown above.
Supplementary materials for quarterly financial results
Supplementary materials for quarterly financial results will be available on the Company's website immediately after the earnings announcement on Thursday, November 10, 2022.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by telephone conference on Thursday, November 24, 2022. Materials to be distributed at this event will be available on the Company's website on the morning of the meeting.
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023 | ||
Contents of Attachments | ||
Pages | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 4 |
2. Quarterly Consolidated Financial Statements and Notes | 5 | |
(1) | Quarterly Consolidated Balance Sheet | 5 |
(2) | Quarterly Consolidated Statement of Income and | |
Quarterly Consolidated Statement of Comprehensive Income | 7 | |
Quarterly Consolidated Statement of Income | 7 | |
Quarterly Consolidated Statement of Comprehensive Income | 8 | |
(3) | Quarterly Consolidated Statement of Cash Flows | 9 |
(4) | Notes to Quarterly Consolidated Financial Statements | 10 |
Going Concern Assumption | 10 | |
Significant Changes in Shareholders' Equity | 10 | |
Additional Information | 10 | |
Segment Information | 10 |
1
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first half of the current fiscal year, the recovery of the Japanese economy continued primarily with the support of consumer spending. The main reasons are the absence of any restrictions on economic activity despite a rapid increase in COVID-19 cases that started in July and the subsequent decline in the number of cases that started in September. However, the outlook for the economy remains uncertain because of the negative impact on household budgets of the yen's rapid depreciation and inflation, the increase in the cost of raw materials, and other events.
Due to the measures of the AOKI Holdings Group explained in the following sections, net sales increased 21.2% from one year earlier to 75,595 million yen, and operating profit was 2,017 million yen compared with a loss of 3,094 million yen one year earlier. There was an ordinary profit of 1,676 million yen compared with a loss of 3,436 million yen one year earlier and profit attributable to owners of parent was 586 million yen compared with a loss of 3,776 million yen one year earlier.
Operating results by segment are as follows.
Fashion Business
There were many activities to strengthen the lineups of casual apparel. These activities included Cool Biz apparel, which is designed for comfort on hot summer days, Pajama Suits, Active Work Suits and T-shirts with Business Suit Tailoring. In the women's apparel category, there were measures to further enlarge selections of apparel that are comfortable for work as well as leisure activities. One significant event was the launch of an office casual set-up apparel created by fashion designer Akiko Ogawa as part of AOKI's MeWORK Project for supporting working women. During the first half, seven AOKI stores and six ORIHICA stores were closed to improve the efficiency of store operations. As a result, the number of stores decreased from 610 at the end of the previous fiscal year to 597 at the end of the first half.
All of these measures generated strong sales of summer formal and other Cool Biz apparel and women's and casual apparel. Furthermore, the number of customers visiting stores has increased because of the easing of pandemic restrictions. As a result, sales increased 18.9% year on year to 36,190 million yen and there was an operating profit of 218 million yen compared with a loss of 3,242 million yen one year earlier.
Anniversaire and Bridal Business
There are many activities in this business that utilize the internet and social networking services for efficiently attracting customers as one way to make sales activities even more effective. This business is also holding bridal fairs. In addition, by listening to the wishes of customers, this business upgraded wedding styles and items for chapel weddings, family weddings, photo-only weddings and other types of weddings.
Sales declined 2.2% year on year to 4,208 million yen and there was an operating loss of 29 million yen compared with a loss of 148 million yen one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes continued to provide guests with original Terashima Bunko videos and promote the "An Office Anywhere in Japan" project, which includes free access to the e-versions of selected newspapers and other content that is useful for business activities. For new menu items, cafés launched a new KAIKATSU Autumn Gourmet menu, added "abura soba (oiled ramen noodles)" by Mita Seimenjo, and used other measures. COTE D'AZUR karaoke facilities upgraded services for families with measures such as all-you-can-eat soft serve ice cream and a special campaign for children. FiT24 continued to add new locations as planned, chiefly fitness gyms that are not combined with other AOKI Group businesses. RUNSYSTEM CO., LTD., a new consolidated subsidiary, is continuing to work on fully automated self-service store systems and sharing many other types of know-how. During the first half, KAIKATSU CLUB opened four cafés and FiT24 opened 20 gyms. In addition, due to format conversions and measures to improve efficiency, six KAIKATSU CLUB cafés and eight COTE D'AZUR karaoke facilities were closed. As a result, including the 120 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 63 franchised stores), the number of locations in this business increased from 708 at the end of the previous fiscal year to 838 at the end of the first half.
2
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023
Segment sales and earnings increased because of these measures and benefited from a decline in the negative effects of the pandemic. Sales in this segment increased 27.9% to 34,555 million yen and operating profit was 1,846 million yen compared with a profit of 29 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 11.4% to 2,362 million yen mainly because of an increase in the cost of some subleasing stores and other facilities. Operating profit decreased 6.1% to 407 million yen.
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Explanation of Financial Position 1) Balance sheet position
Assets
Total assets at the end of the second quarter decreased 12,243 million yen from the end of the previous fiscal year to 220,765 million yen primarily because of seasonal and other factors.
Current assets decreased 11,251 million yen mainly due to decreases of 6,690 million yen in accounts receivable-trade caused by seasonal and other factors and 4,119 million yen in cash and deposits. Non-current assets decreased 992 million yen as property, plant and equipment decreased 712 million yen mainly due to depreciation.
Liabilities
Current liabilities decreased 5,368 million yen from the end of the previous fiscal year. There were decreases of 4,677 million yen in accounts payable-trade mainly due to seasonal factors and 1,944 million yen in accrued income taxes due to the payment of income taxes. Non-current liabilities decreased 7,222 million yen due to a decrease of 6,947 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets increased 347 million yen from the end of the previous fiscal year due to an increase of 259 million yen in valuation difference on available-for-sale securities.
2) Cash flow position
Cash and cash equivalents (hereafter "net cash") at the end of the second quarter decreased 4,119 million yen from the end of the previous fiscal year to 33,817 million yen.
Cash flows from operating activities
Net cash provided by operating activities increased 2,006 million yen from one year earlier to 3,208 million yen. The principal factors were profit before income taxes of 1,296 million yen, depreciation of 4,577 million yen, and income taxes paid of 2,703 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 4,596 million yen from one year earlier to 606 million yen. This was mainly due to the payments of 2,403 million yen for the purchase of property, plant and equipment for new store openings, renewals and other activities and proceeds from collections of leasehold and guarantee deposits and other proceeds of 1,582 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 5,082 million yen from one year earlier to 6,721 million yen. This was mainly due to a net increase in short-term borrowings of 2,899 million yen and scheduled repayments of long-term borrowings of 7,996 million yen and repayments of lease obligations of 1,070 million yen.
3
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AOKI Holdings Inc. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 06:46:04 UTC.