July 30, 2021
Summary of Financial Results for the First Quarter of Fiscal Year Ending December 31, 2021
(Three Months Ended June 30, 2021)
[Japanese GAAP] | |||
Company name: | KOSÉ Corporation | Stock listing: Tokyo Stock Exchange, First Section | |
Stock code: | 4922 | URL: https://www.kose.co.jp/ | |
President & CEO: | Kazutoshi Kobayashi | ||
Contact: | Hitonori Nakata, General Manager of IR | Tel: +81- (0) 3-3273-1511 |
Department
Scheduled date of filing of Quarterly Report: August 10, 2021
Scheduled date of dividend payment: Undecided
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes
(Rounded down to million yen)
1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021)
(1) Consolidated financial results | (YoY change % represents changes from the previous fiscal year) | |||||||
Net sales | YoY | Operating | YoY | Ordinary | YoY | Profit attributable to | YoY | |
change | profit | change | profit | change | owners of parent | change | ||
(Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | |
1Q FY12/2021 | 58,770 | - | 3,456 | - | 3,733 | - | 2,378 | - |
1Q FY03/2021 | 60,057 | (26.5) | 1,113 | (91.6) | 1,563 | (88.0) | 1,591 | (81.1) |
Note: Comprehensive income (million yen) | 1Q FY12/2021: 5,899 (-%) | 1Q FY03/2021: (213) (-%) |
Reference
The percentages below (adjusted comparisons) are comparisons with the first quarter of the previous fiscal year (April 1 to June 30, 2020) after retroactively applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) to that quarter's financial statements.
Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent | ||||||
(Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | ||
57,228 | 2.7 | 1,109 | 211.6 | 1,558 | 139.6 | 1,588 | 49.8 | ||
Net income per share Net income per share | |||||||||
(basic) | (diluted) | ||||||||
(Yen) | (Yen) | ||||||||
1Q FY12/2021 | 41.69 | - | |||||||
1Q FY03/2021 | 27.90 | - |
Note: Beginning with the first quarter of the fiscal period ending on December 31, 2021, KOSÉ is applying Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures for the first quarter incorporate this accounting standard and comparisons with the first quarter of the previous fiscal year are omitted.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
(Million yen) | (Million yen) | (%) | (Yen) | |
1Q FY12/2021 | 305,697 | 243,587 | 74.5 | 3,994.11 |
FY03/2021 | 308,386 | 241,299 | 73.1 | 3,952.94 |
Ref.: Shareholders' equity (million yen) | 1Q FY12/2021: 227,854 | FY03/2021: 225,506 |
2. Dividends
Dividend per share | ||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||||
(Yen) | (Yen) | (Yen) | (Yen) | (Yen) | ||||||
FY03/2021 | - | 60.00 | - | 60.00 | 120.00 | |||||
FY12/2021 | - | |||||||||
FY12/2021 (forecast) | 70.00 | - | 70.00 | 140.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecast for the Fiscal Year Ending December 31, 2021 (April 1, 2021 - December 31, 2021)
(YoY change % represents changes from the previous fiscal year)
YoY | Operating | YoY | Ordinary | YoY | Profit attributable | YoY | Net income | ||
Net sales | to owners of | ||||||||
change | profit | change | profit | change | change | per share | |||
parent | |||||||||
(Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | (Yen) | |
Full year | 238,000 | - | 20,000 | - | 20,500 | - | 14,200 | - | 248.92 |
Note: Revisions to the most recently announced consolidated forecast: None |
Reference
The percentages below (adjusted comparisons) are the differences between the forecast for KOSÉ and its consolidated subsidiaries in Japan that have a March 31 fiscal year end for the nine-month fiscal period from April 1, 2021 to December 31, 2021 and results of operations for these same companies in the nine-month period from April 1, 2020 to December 31, 2020.
Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent | ||||
(Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) | (Million yen) | (%) |
213,438 | 11.5 | 16,557 | 20.8 | 19,095 | 7.4 | 13,985 | 1.5 |
* Notes
(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: - | Excluded: - |
- Application of special accounting methods for presenting consolidated quarterly 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 "2. Consolidated Quarterly Financial Statements and Notes, (3) Notes to Consolidated Quarterly Financial Statements, Changes in Accounting Policies" on page 9 of the attachments for further information.
(4) Number of shares outstanding (common stock)
1) Number of shares outstanding (incl. treasury shares) at end of the period
As of June 30, 2021: | 60,592,541 shares |
As of March 31, 2021: | 60,592,541 shares |
2) Number of treasury shares at end of the period
As of June 30, 2021: | 3,544,841 shares |
As of March 31, 2021: | 3,544,841 shares |
3) Average number of shares outstanding during the period
1Q FY12/2021: | 57,047,700 shares |
1Q FY03/2021: | 57,043,438 shares |
Note 1: The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
These materials contain forward-looking statements and statements of this nature based on assumptions judged to be valid and information available to KOSÉ as of the announcement date of the summary. These statements are not promises by KOSÉ regarding future performance. As such, actual results may differ significantly from these projections resulting from changes in the economic environment and other risks and uncertainties. For discussion of the assumptions and other factors considered by KOSÉ in preparing the above projections, please refer to the section "1. Qualitative Information on Consolidated Quarterly Financial Performance, (2) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 of the attachments.
KOSÉ Corporation (4922) Financial Results for the First Quarter of FY12/2021 | ||
Contents of Attachments | ||
1. Qualitative Information on Consolidated Quarterly Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 4 |
2. Consolidated Quarterly Financial Statements and Notes | 5 | |
(1) | Consolidated Quarterly Balance Sheet | 5 |
(2) | Consolidated Quarterly Statements of Income and Comprehensive Income | 7 |
Consolidated Quarterly Statement of Income | ||
(For the Three-month Period) | 7 | |
Consolidated Quarterly Statement of Comprehensive Income | ||
(For the Three-month Period) | 8 | |
(3) | Notes to Consolidated Quarterly Financial Statements | 9 |
Going Concern Assumption | 9 | |
Precaution Concerning Significant Changes in Shareholders' Equity | 9 | |
Changes in Accounting Policies | 9 | |
Additional Information | 9 | |
Segment and Other Information | 10 | |
Information concerning Revenue Recognition | 12 |
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KOSÉ Corporation (4922) Financial Results for the First Quarter of FY12/2021
1. Qualitative Information on Consolidated Quarterly Financial Performance
(1) Explanation of Results of Operations
Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021) | Millions of yen, % | ||||||||||||||||||
1Q FY03/2021 | YoY change | ||||||||||||||||||
1Q FY03/2021 | 1Q FY12/2021 | (Adjusted | |||||||||||||||||
Operating | (Adjusted) | ||||||||||||||||||
comparisons) | |||||||||||||||||||
segment | |||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||
comp. | comp. | comp. | |||||||||||||||||
Cosmetics | 47,867 | 79.7 | 46,266 | 80.8 | 48,607 | 82.7 | 2,341 | 5.1 | |||||||||||
Cosmetaries | 11,702 | 19.5 | 10,475 | 18.3 | 9,867 | 16.8 | (608) | (5.8) | |||||||||||
Other | 486 | 0.8 | 486 | 0.9 | 295 | 0.5 | (190) | (39.2) | |||||||||||
Total net sales | 60,057 | 100.0 | 57,228 | 100.0 | 58,770 | 100.0 | 1,541 | 2.7 | |||||||||||
1Q FY03/2021 | YoY change | ||||||||||||||||||
1Q FY03/2021 | 1Q FY12/2021 | (Adjusted | |||||||||||||||||
(Adjusted) | |||||||||||||||||||
comparisons) | |||||||||||||||||||
Amount | % of sales | Amount | % of sales | Amount | % of sales | Amount | % | ||||||||||||
Operating profit | 1,113 | 1.9 | 1,109 | 1.9 | 3,456 | 5.9 | 2,347 | 211.6 | |||||||||||
Ordinary profit | 1,563 | 2.6 | 1,558 | 2.7 | 3,733 | 6.4 | 2,175 | 139.6 | |||||||||||
Profit attributable to | 1,591 | 2.6 | 1,588 | 2.8 | 2,378 | 4.0 | 790 | 49.8 | |||||||||||
owners of parent | |||||||||||||||||||
Note: The YoY change in the adjusted column are comparisons with the first quarter of the previous fiscal year (April 1 to June 30, 2020) after retroactively applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) to that quarter's financial statements.
In the first quarter (April 1, 2021 to June 30, 2021) of the current fiscal year, the Japanese economy continued to recover even though the COVID-19 crisis was still having a severe impact on economic activity.
Overseas, the primary markets for the KOSÉ Group are Asia and North America. In these regions, from January 1, 2021 to March 31, 2021, the economies of China are slowly recovering. In other Asian countries, economies are weak but staging a recovery and the downturn appears to have ended. In the United States, the economy is steadily improving as economic activity resumes despite challenges created by the pandemic.
In the Japanese cosmetics market, sales are recovering slowly despite the declining interest in buying cosmetics among Japanese consumers because of the need to limit outings during the COVID-19 crisis.
In China, strong growth of cosmetics sales continued, mainly in the e-commerce and duty-free channels. In other Asian countries, the business climate is still difficult. In the United States, cosmetics sales are recovering steadily because of vaccinations and a decline in the severity of the COVID-19 pandemic.
The KOSÉ Group has a history of responding to difficulties by transforming challenges into opportunities. Backed by this experience and know-how, many activities are under way to deal with a variety of issues with the goal of becoming even more resilient to risk in order to continue global and borderless growth.
In the first quarter, net sales increased 2.7% (based on adjusted prior-year results of operations, same hereafter) to 58,770 million yen (up 2.4% after excluding the effects of changes in foreign exchange rates). Sales in Japan and China were higher compared with one year earlier when the pandemic caused sales to fall. Overseas sales were 42.5% of total sales.
Earnings increased because of the sales growth and cost control measures. Operating profit increased 211.6% to 3,456 million yen and ordinary profit increased 139.6% to 3,733 million yen. Profit attributable to owners of parent increased 49.8% to 2,378 million yen.
In the cosmetics business, sales of DECORTÉ products remained strong in China in all sales channels. In
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KOSÉ Corporation (4922) Financial Results for the First Quarter of FY12/2021
Japan, sales of makeup brands were slow but sales of ALBION and major brands such as DECORTÉ and SEKKISEI recovered. In addition, Carté HD skin care products continued to post strong sales. As a result, sales in the cosmetics business increased 5.1% to 48,607 million yen and operating profit increased 5.8% to 6,338 million yen.
In the cosmetaries business, sales of STEPHEN KNOLL NEW YORK hair care products and the SUNCUT and softymo brands of KOSÉ Cosmeport Corp. increased. However, sales were affected by the return of products in association with the update of the COSMENIENCE brand. As a result, sales in the cosmetaries business decreased 5.8% to 9,867 million yen and operating loss was 1,681 million yen (compared with a loss of 2,511 million yen one year earlier).
Sales of amenity products and orders for the manufacture of OEM products declined. As a result, sales decreased 39.2% to 295 million yen and operating profit increased 134.9% to 70 million yen due to cost reduction measures.
Net Sales by Region (Sales to Third Parties) | Millions of yen, % | ||||||||
1Q FY03/2021 | 1Q FY03/2021 | 1Q FY12/2021 | YoY change | ||||||
(Adjusted) | |||||||||
Amount | % comp. | Amount | % comp. Amount | % | Amount | % | |||
comp. | |||||||||
Japan | 34,814 | 58.0 | 32,042 | 56.0 | 33,788 | 57.5 | 1,746 | 5.4 | |
Asia | 16,704 | 27.8 | 16,647 | 29.1 | 17,874 | 30.4 | 1,227 | 7.4 | |
North America | 7,639 | 12.7 | 7,639 | 13.4 | 6,447 | 11.0 | (1,191) | (15.6) | |
Other | 898 | 1.5 | 898 | 1.5 | 659 | 1.1 | (239) | (26.6) | |
Total net sales | 60,057 | 100.0 | 57,228 | 100.0 | 58,770 | 100.0 | 1,541 | 2.7 | |
Japan
Sales of major brands recovered at department stores and specialty stores from the downturn in 2020. E- commerce sales remained brisk, mainly for Maison KOSÉ. As a result, sales in Japan increased 5.4% to 33,788 million yen.
Asia
In China, which quickly ended the COVID-19 outbreak, sales were strong in all sales channels. Sales in South Korea were low in January and February but started to recover in March. In Taiwan, sales are recovering from the 2020 downturn. As a result, sales in Asia increased 7.4% to 17,874 million yen.
North America
At the U.S. company Tarte, Inc., stores reopened and e-commerce sales continued to grow. However, the pandemic continued to impact sales, particularly sales stores in urban locations and shopping malls. As a result, sales in North America decreased 15.6% to 6,447 million yen.
Other
Tarte e-commerce sales have been strong in Europe just as in the United States. Furthermore, almost all stores have reopened. However, sales were down, particularly at stores where tourists account for a large share of sales because of the pandemic. As a result, sales decreased 26.6% to 659 million yen.
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Kosé Corporation published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 06:08:19 UTC.