Consolidated Financial Results
for the Nine Months Ended May 31, 2022
[Japanese GAAP]
July 13, 2022
Company name: JINS HOLDINGS Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3046
URL: https://jinsholdings.com
Representative: Hitoshi Tanaka, CEO and Representative Director
Contact: Mikiya Yamawaki, Executive Officer and General Manager, Investor Relations Division
Phone: +81-3-5275-7001
Scheduled date of filing quarterly securities report: July 14, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended May 31, 2022 (September 1, 2021 to May 31,
2022) | |||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Nine months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
May 31, 2022 | 49,916 | 4.6 | 2,758 | (30.9) | 3,141 | (21.0) | 1,026 | (62.6) | |
May 31, 2021 | 47,741 | 14.2 | 3,990 | 48.0 | 3,976 | 51.0 | 2,744 | - |
(Note) Comprehensive income: Nine months ended May 31, 2022: ¥1,238 million [(59.0)%] Nine months ended May 31, 2021: ¥3,019 million [- %]
Earnings | Diluted earnings | |
per share | per share | |
Nine months ended | Yen | Yen |
May 31, 2022 | 43.97 | 38.69 |
May 31, 2021 | 117.61 | 106.43 |
(2) Consolidated Financial Position | ||||||||||
Total assets | Net assets | Equity ratio | ||||||||
Million yen | Million yen | % | ||||||||
As of May 31, 2022 | 54,331 | 20,581 | 37.9 | |||||||
As of August 31, 2021 | 53,007 | 20,219 | 38.1 | |||||||
(Reference) Equity: As of May 31, 2022: ¥20,581 million | ||||||||||
As of August 31, 2021: ¥20,219 million | ||||||||||
2. Dividends | ||||||||||
Annual dividends | ||||||||||
1st | 2nd | 3rd | Year-end | Total | ||||||
quarter-end | quarter-end | quarter-end | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended August 31, 2021 | − | 25.00 | − | 20.00 | 45.00 | |||||
Fiscal year ending August 31, 2022 | − | 17.00 | − | |||||||
Fiscal year ending August 31, 2022 | 0.00 | 17.00 | ||||||||
(Forecast) | ||||||||||
(Note) Revision to the forecast for | dividends announced most recently: Yes |
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending August 31, 2022 (September 1, 2021 to August 31, 2022)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Earnings | |||||
to owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 66,916 | 4.7 | 3,758 | (25.6) | 4,041 | (19.5) | 926 | (71.9) | 39.68 |
(Note) Revision to the financial results forecast announced most recently: Yes
* Notes:
- Changes in significant subsidiaries during the nine months ended May 31, 2022 (changes in specified subsidiaries resulting in changes in scope of consolidation): None
- Accounting policies adopted specially 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: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: Yes
- Retrospective restatement: None
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury stock):
May 31, 2022: 23,980,000 shares
August 31, 2021: 23,980,000 shares
-
Total number of treasury stock at the end of the period: May 31, 2022: 639,784 shares
August 31, 2021: 639,784 shares - Average number of shares during the period (Accumulated total of the quarter): Nine months ended May 31, 2022: 23,340,216 shares
Nine months ended May 31, 2021: 23,340,216 shares
*This quarterly financial report is 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
Forward-looking statements in this document, such as the financial results forecast, are based on information currently available to the Group and certain assumptions that the Group has deemed reasonable. These statements are not intended as the Group's commitment to achieve them, and actual performance may differ significantly due to various factors. For the assumptions for financial results forecast and precautions for using financial results forecast, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 of the attached document.
.
Table of Contents | ||
1. Qualitative Information on Quarterly Financial Results for the Period under Review | ......................... 2 | |
(1) | Explanation of Business Results ....................................................................................................... | 2 |
(2) | Explanation of Financial Position ..................................................................................................... | 4 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information . 4 | |
2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................ | 5 | |
(1) | Quarterly Consolidated Balance Sheets ............................................................................................ | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income .................................... | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements..................................................................... | 9 |
(Notes on going concern assumption) ............................................................................................. | 9 | |
(Notes in the case of significant changes in shareholders' equity) .................................................. | 9 | |
(Changes in accounting policies)....................................................................................................... | 9 | |
(Changes in accounting estimates) .................................................................................................. | 10 | |
(Segment information) ................................................................................................................... | 10 | |
(Additional information) ................................................................................................................ | 11 |
1
1. Qualitative Information on Quarterly Financial Results for the Period under Review
(1) Explanation of Business Results
During the nine months ended May 31, 2022 (September 1, 2021 to May 31, 2022), the Japanese economy experienced the continued seesawing impact of the novel coronavirus disease (COVID-19) on personal consumption as semi-emergency coronavirus measures were declared again in mid-January due to the prevalence of variants despite the complete lifting from October onward of the state of emergency, etc., which had been declared due to the spread of COVID-19, mainly in urban areas. Currently, as the number of persons infected by COVID-19 has decreased, the impact on personal consumption is on a recovery trend. There are also concerns about impact on the economic conditions due to inflation caused by a surge in crude oil price and currency movement. Looking at the global economy, infection prevention measures, including travel restrictions, remain in place in some regions partly owing to the impact of COVID-19 variants. Particularly in China, urban areas have been intermittently locked down under the zero-Covid policy, leading to concerns about the impact on economic conditions. In addition, there are concerns about a possible worsening of economic conditions as the economic impact of the Russian invasion of Ukraine should be carefully watched and global inflation has become more apparent due to the rising price of crude oil and raw materials.
The domestic retail eyewear market (eyeglasses for vision correction) continues to experience ups and downs versus the same period of the previous year owing to the impact of COVID-19.
Under this market environment, in the eyewear business, the Company and its consolidated subsidiaries (collectively, the "Group") took such initiatives as promoting digital transformation, and strengthening development of innovative products, which they identified as management issues. We have been working to offer consumers a more convenient purchasing experience, including introducing "JINS BRAIN2," a service that uses AI to assess the extent to which pairs of glasses will suit customers with an enhanced level of accuracy, as an initiative to seamlessly connect online and in-store experiences, making it easier for customers to select glasses and creating a more convenient purchasing experience. With regard to product development, as part of our initiatives to realize "the world free from myopia," we conducted a joint project to develop an eyeglass-shaped,violet-light-emitting medical device designed to suppress progress of myopia, and total research and development expenses were ¥155 million for the nine months ended May 31, 2022.
In terms of store development, the number of eyewear stores as of May 31, 2022, was 696, including 463 stores in Japan and 233 stores overseas (172 in China, 49 in Taiwan, 6 in Hong Kong, and 6 in the United States).
As a result, for the nine months ended May 31, 2022, the Company posted net sales of ¥49,916 million (up 4.6% year-on-year) partly thanks to the impact of new store openings despite the impact of COVID-19. Operating profit was ¥2,758 million (down 30.9% year-on-year) partly owing to a rise in the cost of goods ratio with an increase in the number of sales. Ordinary profit was ¥3,141 million (down 21.0% year-on-year), and profit attributable to owners of parent was ¥1,026 million (down 62.6% year-on-year), partly due to the recording of provision of allowance for business structure reform expenses in the United States and provision of allowance for office relocation expenses related to relocation of the Tokyo head office in extraordinary losses.
Business results by segment are as follows.
Net sales by business segment
For the nine months ended | |||
Segment | May 31, 2022 | Percentage to the | Year-on-year |
(September 1, 2021 to May | Company's net sales | change | |
31, 2022) | |||
Domestic eyewear business | ¥39,319 million | 78.8% | 3.2% |
Overseas eyewear business | ¥10,596 million | 21.2% | 10.1% |
Total | ¥49,916 million | 100.0% | 4.6% |
2
In the domestic eyewear business, the second release of the JINS Pokémon model, in which we incorporated Pokémon to eyewear designs through JINS' unique point of view, was well-received. Sales were also driven by high-value-added products, including "Airframe Hingeless," for which we eliminated the hinges connecting the front of the frame with the temples, creating a unique new fit and comfort for users. In addition, membership of the JINS app reached approximately 10.71 million people as of the end of May 2022, up 2.01 million people from the end of the previous fiscal year. Also, sales of contact lenses, which provide JINS 1DAY, have grown as planned, thanks to an increase in regular purchases. Regarding the impact of COVID-19, customer traffic decreased as semi-emergency coronavirus measures were declared mainly in urban areas in mid-January due to the prevalence of COVID-19 variants and since April in which the measures were lifted, it has been on a recovery trend. However, footfall has not yet returned to the pre-COVID-19 level.
In terms of store development, the number of stores in Japan was 463 (34 openings and 5 closures) as of the end of the period under review.
As a result, net sales of the domestic eyewear business were ¥39,319 million (up 3.2% year-on-year), and segment operating profit was ¥2,959 million (down 19.2% year-on-year).
In the overseas eyewear business, profit significantly decreased in China as personal consumption stalled, owing partly to intermittent lockdowns of cities amid the continued strengthening of restrictions on individual movement imposed by the government as a measure to combat COVID-19, in addition to the impact of factors such as a fallback from the previous year, when there were exemptions to social security fees.
In Taiwan, profit increased as performance recovered steadily from the impact of COVID-19 infections, though our business was impacted by factors such as an increase in personnel expenses to secure opticians as required by the Optometric Personnel Act.
In Hong Kong, the number of persons infected by COVID-19 rapidly increased, reaching the peak in early March and customer traffic decreased, which adversely affected operating results.
In the United States, although we have reopened all of our brick-and-mortar stores, which had been closed due to the impact of COVID-19, footfall significantly decreased partly due to the impact of the deteriorated environment surrounding our flagship store in San Francisco. In accordance with this, we have decided to promote business structure reform aimed at expanding the scale of business, centered on the EC business.
In terms of store development, the total number of stores overseas was 233 as of the end of the period under review, including 172 stores in China (11 openings and 9 closures), 49 in Taiwan (11 openings and no closures), 6 in Hong Kong (no openings or closures), and 6 in the United States (no openings or closures).
As a result, net sales of the overseas eyewear business were ¥10,596 million (up 10.1% year-on-year), and segment operating loss was ¥200 million (segment operating profit was ¥329 million for the same period of the previous year).
3
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Jins Inc. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 04:29:04 UTC.