Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 28, 2023
April 13, 2023 | |
Listed Company Name: Lawson, Inc. | Tokyo Stock Exchange |
Code No.: 2651 | (URL https://www.lawson.jp/en/ir/) |
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director, Chairman of the Board
Contact: Tomoki Takanishi, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for the ordinary general meeting of shareholders: May 24, 2023
Scheduled date for submission of annual securities report: May 25, 2023
Scheduled date for payment of dividend: May 25, 2023
Supplementary materials for annual financial results: Yes
Holding of presentation of annual results: Yes (for institutional investors and analysts)
(Amounts less than one million yen are truncated)
1. Consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)
- Consolidated operating results
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating | Profit | ||||||||||||||||||||
Operating income | Ordinary income | attributable to | |||||||||||||||||||
revenue | |||||||||||||||||||||
owners of parent | |||||||||||||||||||||
For the fiscal year ended | Millions | % | Millions | % | Millions | % | Millions | % | |||||||||||||
of yen | of yen | of yen | of yen | ||||||||||||||||||
February 28, 2023 | 988,621 | 41.6 | 55,056 | 16.9 | 53,453 | 12.4 | 24,689 | 37.9 | |||||||||||||
February 28, 2022 | 698,371 | 4.9 | 47,096 | 15.2 | 47,571 | 26.5 | 17,900 | 106.0 | |||||||||||||
Note: Comprehensive income: | Fiscal year ended February 28, 2023 | 27,498 million yen | 33.4 % | ||||||||||||||||||
Fiscal year ended February 28, 2022 | 20,613 million yen | 105.2 % | |||||||||||||||||||
Profit per | Diluted | Ratio of ordinary | Ratio of | ||||||||||||||||||
Return on | operating income to | ||||||||||||||||||||
share | profit per | equity | income to total | gross operating | |||||||||||||||||
share | assets | ||||||||||||||||||||
revenue | |||||||||||||||||||||
For the fiscal year ended | Yen | Yen | % | % | % | ||||||||||||||||
February 28, 2023 | 246.70 | 246.49 | 8.9 | 4.0 | 5.6 | ||||||||||||||||
February 28, 2022 | 178.87 | 178.71 | 6.6 | 3.5 | 6.7 | ||||||||||||||||
Reference: Share of profit of entities accounted for using equity method: | |||||||||||||||||||||
Fiscal year ended February 28, 2023 | 302 million yen | ||||||||||||||||||||
Fiscal year ended February 28, 2022 | 50 million yen |
Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) and other standards are applied from the beginning of the first quarter of the fiscal year ended February 28, 2023.
(2) Consolidated financial position
Total assets | Net assets | Shareholders' | Net assets per | ||
equity ratio | share | ||||
As of | Millions of yen | Millions of yen | % | Yen | |
February 28, 2023 | 1,366,166 | 287,099 | 20.6 | 2,810.33 | |
February 28, 2022 | 1,337,245 | 278,473 | 20.4 | 2,726.97 | |
Reference: Shareholders' equity: | As of February 28, 2023 | 281,249 million yen | |||
As of February 28, 2022 | 272,891 million yen |
(3) Consolidated cash flows
Net cash provided | Net cash provided | Net cash provided | Cash and cash | |||||||||||||||||||
by (used in) | by (used in) | by (used in) | equivalents at end | |||||||||||||||||||
operating activities | investing activities | financing activities | of period | |||||||||||||||||||
For the fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen | ||||||||||||||||||
February 28, 2023 | 176,045 | (45,626) | (124,028) | 396,958 | ||||||||||||||||||
February 28, 2022 | 146,644 | (51,781) | (109,516) | 388,444 | ||||||||||||||||||
2. Dividends | ||||||||||||||||||||||
Annual dividends per share | Total | Ratio of | ||||||||||||||||||||
Payout | dividends to | |||||||||||||||||||||
dividends | ||||||||||||||||||||||
1Q | 1H | 3Q | Year-end | Total | ratio | shareholders' | ||||||||||||||||
for the year | ||||||||||||||||||||||
equity | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of | % | % | |||||||||||||||
yen | ||||||||||||||||||||||
2021 fiscal year | - | 75.00 | - | 75.00 | 150.00 | 15,010 | 83.9 | 5.6 | ||||||||||||||
2022 fiscal year | - | 75.00 | - | 75.00 | 150.00 | 15,011 | 60.8 | 5.4 | ||||||||||||||
2023 fiscal year | - | 100.00 | - | 100.00 | 200.00 | 69.0 | ||||||||||||||||
(forecast) | ||||||||||||||||||||||
3. Forecast of consolidated operating results for 2023 fiscal year (Under IFRS) (from March 1, 2023 to February 29, 2024)
Profit attributable to owners of parent | Basic earnings per | ||
share | |||
Millions of yen | % | Yen | |
1H of 2023 fiscal year | 17,500 | - | 174.86 |
2023 fiscal year | 29,000 | - | 289.77 |
Note: Since the Group has decided to voluntarily apply International Financial Reporting Standards (IFRS) for the consolidated financial statements in its Annual Securities Report effective from the fiscal year ended February 2023, "Forecast of consolidated operating results for 2023 fiscal year" is based on figures after applying "IFRS," and the percentage changes from the results of the fiscal year ended February 28, 2023 are not provided.
Furthermore, financial forecasts for the fiscal year ending February 29, 2024 other than the Profit attributable to owners of parent based on "IFRS" will be provided in the flash report(Under IFRS) scheduled to be issued on May 25, 2023.
4. Notes
- Change in significant subsidiaries during the fiscal year (Changes in certain specified subsidiaries resulting in changes in scope of consolidation): Yes
Added: Yes | Excluded: None |
Lawson Philippines, Inc. |
- Changes in accounting policies, changes in accounting estimates or restatements
- Changes in accounting policies associated with revision in accounting standards: Yes
- Changes in accounting policies other than 1. above: None
- Changes in accounting estimates: None
- Retrospective restatements: None
- Number of shares outstanding (common stock)
- Number of shares outstanding at the end of year (including treasury shares)
As of February 28, 2023: | 100,300,000 | As of February 28, 2022: | 100,300,000 |
2. Number of treasury shares at the end of year | |||
As of February 28, 2023: | 222,962 | As of February 28, 2022: | 228,807 |
3. Average number of shares during the year
As of February 28, 2023: | 100,076,025 | As of February 28, 2022: | 100,070,561 |
Reference: Non-consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023) Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating | Operating | Profit | ||||||||
Ordinary income | attributable to | |||||||||
revenue | income | |||||||||
owners of parent | ||||||||||
For the fiscal year ended | Millions | % | Millions | % | Millions | % | Millions | % | ||
of yen | of yen | of yen | of yen | |||||||
February 28, 2023 | 357,571 | 0.7 | 35,188 | 36.0 | 40,618 | 18.5 | 22,595 | 67.7 | ||
February 28, 2022 | 355,102 | 0.1 | 25,870 | (1.1) | 34,278 | 1.7 | 13,470 | (15.3) |
Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes Forward-looking statements presented herein such as financial forecasts are based on currently available information and certain presumptions deemed to be reasonable as of the date of announcement. The achievement of said forecasts cannot be guaranteed. Actual results may be materially different from those in the forecast as a result of various factors. For preconditions of these financial forecasts and notes concerning their use, please refer to "1. Overview of Operating Results, (4) Future Outlook" on page 13.
Contents | ||
1. Overview of Operating Results | 2 | |
(1) Overview of Operating Results for the Fiscal Year under Review | 2 | |
(2) | Profit and Loss | 12 |
(3) | Overview of Financial Position for the Fiscal Year under Review | 12 |
(4) | Future Outlook | 13 |
2. Basic Approach to Selection of Accounting Standards | 14 | |
3. Consolidated Financial Statements and Main Notes | 15 | |
(1) | Consolidated Balance Sheet | 15 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 17 |
Consolidated Statement of Income | 17 | |
Consolidated Statement of Comprehensive Income | 18 | |
(3) | Consolidated Statement of Changes in Equity | 19 |
(4) | Consolidated Statement of Cash Flows | 21 |
(5) | Notes to Consolidated Financial Statements | 23 |
(Going Concern Assumption) | 23 | |
(Accounting Policies for the Preparation of Consolidated Financial Statements) | 23 | |
(Changes in Accounting Policies) | 27 | |
(Changes in Presentation) | 28 | |
(Notes to Consolidated Balance Sheet) | 29 | |
(Notes to Consolidated Statement of Income) | 31 | |
(Notes to Consolidated Statement of Comprehensive Income) | 33 | |
(Notes to Consolidated Statement of Changes in Equity) | 34 | |
(Notes to Consolidated Statement of Cash Flows) | 36 | |
(Segment Information) | 37 | |
(Per Share Information) | 43 | |
(Significant Subsequent Events) | 43 |
1
1.Overview of Operating Results
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, or fiscal 2022 ended February 28, 2023, we continued to take rigorous prevention measures against the infection of the novel coronavirus and responded to new normal demand by exerting concerted Group-wide efforts. Specifically, under the leadership of our Lawson Group Sweeping Transformation Executive Committee, which was launched in September 2020 to realize "Challenge 2025" formulated for 2025, the 50th anniversary of our foundation, we renovated our stores and revamped our product lineups in Domestic Convenience Store Business in response to changes in the business environment, and the whole Lawson Group endeavored to resolve medium- to long-term issues for sustainable growth, acquire new revenue opportunities and foster job satisfaction. Fiscal 2022 was a year in which we took concrete actions. Upholding a strategic concept of focusing on community, individual customers, and individual stores, we introduced an area company system in the Hokkaido and Kinki regions ahead of other regions. Under the new system, the roles and scope of discretion assigned to the headquarters and areas were reviewed, and greater authority and discretion were delegated to the respective areas so as to expedite decision-making and speed up the hypothesis/verification cycle.
As a result, for fiscal 2022 on a consolidated basis, gross operating revenue increased to 988,621 million yen (up 41.6% from previous fiscal year), operating income increased to 55,056 million yen (up 16.9% from previous fiscal year) and ordinary income increased to 53,453 million yen (up 12.4% from previous fiscal year). Profit attributable to owners of parent was 24,689 million yen (up 37.9% from previous fiscal year).
The Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the fiscal year ended February 28, 2023. Therefore, year-on-year comparative figures for the fiscal year represent amounts based on the previously adopted accounting policies. For information on the changes in relation to the application of the new accounting standards, please refer to "3. Consolidated Financial Statements and Main Notes (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)."
We also focused on improving our group-wide internal control system and addressing operating risks based on the 2022 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal control going forward.
Operating results by business segment were as follows.
(Domestic Convenience Store Business)
During the fiscal year under review, the state of quasi-emergency declaration was lifted in March 2022, there have been repeated waves of new COVID-19 cases during the fiscal year under review, but an overall rising trend was seen in the movement of people.
Amid such drastic shifts in the business landscape, Lawson has been proceeding with store renovations considering the characteristics/situation of each store, helping them expand their merchandise assortment of frozen foods and other daily necessities to adapt to changes in customers' lifestyles and better address customer needs. By the end of fiscal year 2022, we had completed the renovation of some 2,985 stores, and the total
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Lawson Inc. published this content on 13 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2023 06:24:04 UTC.