November 5, 2021
Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2022
(Six Months Ended September 30, 2021)
[Japanese GAAP]
Listings: TSE First Section
URL: https://www.aoki-hd.co.jp/
Tel: +81-45-941-1388
November 8, 2021
December 2, 2021
Yes
Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on November 5, 2021 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 - September 30, 2021)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||||
Sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Six months ended Sep. 30, 2021 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
62,382 | 11.5 | (3,094) | - | (3,436) | - | (3,776) | - | |||
Six months ended Sep. 30, 2020 | 55,952 | (32.4) | (11,885) | - | (12,397) | - | (9,661) | - | ||
Note: Comprehensive income (million yen) | Six months ended Sep. 30, 2021: | (3,732) | (-%) | |||||||
Six months ended Sep. 30, 2020: | (9,694) | (-%) | ||||||||
Net income per | Diluted net income per share | |||||||||
share | ||||||||||
Six months ended Sep. 30, 2021 | Yen | Yen | ||||||||
(44.51) | - | |||||||||
Six months ended Sep. 30, 2020 | (114.04) | - |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Million yen | Million yen | % | |||
As of Sep. 30, 2021 | 223,816 | 121,398 | 54.0 | ||
As of Mar. 31, 2021 | 237,260 | 125,850 | 52.9 | ||
Reference: Shareholders' equity (million yen) | As of Sep. 30, 2021: 120,936 | As of Mar. 31, 2021: 125,487 |
2. Dividends
Dividend per share | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
FY3/21 | - | 10.00 | - | 0.00 | 10.00 | ||
FY3/22 | - | 5.00 | |||||
FY3/22 (forecasts) | - | 5.00 | 10.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(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 | ||
156,500 | 9.3 | 5,000 | - | 4,100 | - | 1,300 | - | 15.32 |
Note: Revisions to the most recently announced consolidated forecast: Yes
The sales forecast has been revised. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 of the attachments for further information.
* 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: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
Note: Please refer to "Changes in Accounting Policies" on page 10 of the attachments for further information.
(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, 2021: | 87,649,504 shares | As of Mar. 31, 2021: | 90,649,504 shares | |
2) | Number of treasury shares at the end of the period | |||
As of Sep. 30, 2021: | 2,746,304 shares | As of Mar. 31, 2021: | 5,853,274 shares | |
3) Average number of shares outstanding during the period | ||||
Six months ended Sep. 30, 2021: | 84,842,039 shares | Six months ended Sep. 30, 2020: | 84,727,303 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 Friday, November 5, 2021.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by telephone conference on Friday, November 19, 2021. 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, 2022 | ||
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 | |
Changes in Accounting Policies | 10 | |
Additional Information | 11 | |
Segment Information | 11 |
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AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first half of the current fiscal year, the COVID-19 pandemic continued to have an impact on the Japanese economy. Extensions and expansions of states of emergency and measures to prevent infections restricted economic activity. Some businesses were required to suspend operations or reduce operating hours. Although the severity of the pandemic is currently declining as more people are vaccinated, the outlook for the economy remains uncertain due to the risk of another wave of infections.
Due to the activities explained in the following section that were accompanied by measures to prevent the spread of infections, the impact of the pandemic was less than one year earlier. Net sales increased 11.5% year-on-year to 62,382 million yen, and operating loss was 3,094 million yen compared with a loss of 11,885 million yen one year earlier. There was an ordinary loss of 3,436 million yen compared with a loss of 12,397 million yen one year earlier. Loss attributable to owners of parent was 3,776 million yen compared with a loss of 9,661 million yen one year earlier.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the current fiscal year. The application of this standard reduced first half net sales by 1,917 million yen and decreased operating loss and ordinary loss by 281 million yen each.
Operating results by segment are as follows.
Fashion Business
One major activity in this business was the expansion of the men's and women's lineups of pajama suits, which combing the comfort of pajamas and fashionable styling of suits. Pajama suits have been very popular since their launch. This business also expanded operations involving innerwear and other apparel associated with pajama suits. For working women, activities in this business focused on mix-and-match apparel sets, jackets and pants, which are comfortable as well as easy to wash, wrinkle resistant and stretchable. We also strengthened the lineup of innerwear items for many uses that can also be mixed and matched. During the first half of the fiscal year, one ORIHICA store was opened and six AOKI stores and four ORIHICA stores were closed to improve the efficiency of this business. There were 620 stores at the end of the first half (one combined AOKI/Size MAX store has been changed to counting each format separately) compared with 628 at the end of the previous fiscal year.
Although there were many activities during the fiscal year's first half in this business, performance was affected by states of emergency and other responses to the pandemic expanded to more areas of Japan. As a result, sales in this segment decreased 3.3% to 30,433 million yen and operating loss was 3,242 million yen, compared with a loss of 4,797 million yen one year earlier, mainly due to reduction in SG&A expenses.
Anniversaire and Bridal Business
At all locations in this business, employees continued to focus on rigorous activities to prevent infections. These activities made it possible for customers to hold weddings and receptions with confidence about the safety of these events. This business offers weddings and services to reflect new life styles. During the first half, the number of weddings held by this business since the start of operations in 1998 surpassed 100,000. To mark this accomplishment, Anniversaire started the "Kiseki" 100,000 couples appreciation fair. At the end of the first half, there were 11 locations in this business, down from 12 at the end of the previous fiscal year because the Tokyo Bay location closed in September due to the end of the lease at the building it occupied.
The performance of this segment improved because of these measures and the higher number of weddings during the first half compared to one year earlier when there were no weddings and receptions between April 7 and May 31, 2020. First half performance also benefited from a small decline in the negative effects of the pandemic. As a result, sales increased 156.2% to 4,302 million yen and there was an operating loss of 148 million yen compared with a 2,640 million yen loss one year earlier.
Entertainment Business
This business continued to operate while taking many steps to protect customers during the pandemic although some locations temporarily closed. KAIKATSU CLUB café complexes used numerous measures to attract a broader
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AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022
spectrum of customers and give people reasons to visit more frequently. Cafés continued to enlarge the types of content provided to customers and stepped up joint campaigns with other companies and public relations activities. FiT24 continued to open many new self-service fitness clubs. Growth is also backed by the ability to give customers access to KAIKATSU CLUB cafés, a benefit no other fitness club can match. During the first half, we opened 19 KAIKATSU CLUBs and 18 FiT24 locations. 17 KAIKATSU CLUBs and four COTE D'AZURs were closed for conversions and other measures to improve efficiency. As a result, there were 675 locations in this segment at the end of the first half compared with 659 at the end of the previous fiscal year.
The performance of this segment improved because of these measures and benefited from a decline in the negative effects of the pandemic. Sales in this segment increased 21.9% to 27,010 million yen and operating profit was 29 million yen compared with a loss of 4,984 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 9.8% to 2,120 million yen mainly because of an increase in the subleasing of stores and other facilities that were closed. Operating profit increased 16.5% to 433 million yen.
Information about the application of the accounting standard for revenue recognition, etc. and the effect of this standard for each business segment is shown in "Changes in Accounting Policies" on page 10 and "Segment Information, First six months of FY3/22, 3. Information related to revisions for reportable segments" on page 12.
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Explanation of Financial Position 1) Balance sheet position
Assets
Total assets at the end of the second quarter decreased 13,444 million yen from the end of the previous fiscal year to 223,816 million yen mainly due to seasonal factors.
Current assets decreased 14,183 million yen from the end of the previous fiscal year. There was a decrease of 6,910 million yen in accounts receivable-trade due to seasonal factors and 5,639 million yen in cash and deposits. Non-current assets increased 739 million yen from the end of the previous fiscal year as there was an increase in other under investments and other assets which includes deferred tax assets.
Liabilities
Current liabilities decreased 9,010 million yen from the end of the previous fiscal year. There was decreases of 4,935 million yen in accounts payable-trade mainly due to seasonal factors and electronically recorded obligations-operating of 2,660 million yen. Non-current liabilities increased 18 million yen. There was an increase of 431 million yen in long-term borrowings mainly due to a 9,000 million yen of long-term new loan and scheduled repayment.
Net assets
Net assets decreased 4,452 million yen from the end of the previous fiscal year. There was a decrease of 4,666 million yen in retained earnings due to a loss attributable to owners of parent and the application of the accounting standard for revenue recognition, etc.
2) Cash flow position
Cash and cash equivalents (hereafter "net cash") at the end of the second quarter decreased 5,639 million yen over the end of the previous fiscal year to 24,302 million yen.
Cash flows from operating activities
Net cash provided by operating activities was 1,202 million yen (compared with net cash used of 8,719 million yen one year earlier). The principal factors were loss before income taxes of 4,931 million yen and a decrease in trade payables of 4,935 million yen, while there were depreciation of 4,649 million yen and a decrease in trade receivables of 6,910 million yen.
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AOKI Holdings Inc. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 05:41:08 UTC.