Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Consolidated Financial Results for the Nine Months Ended November 30, 2021 (Based on Japanese GAAP)
January 13, 2022 | ||||||||||||||||||||||||||||||||||
Company name: | NARUMIYA INTERNATIONAL Co.,Ltd | |||||||||||||||||||||||||||||||||
Stock exchange listing: | Tokyo | |||||||||||||||||||||||||||||||||
Stock code: | 9275 | URL | https://www.narumiya-net.co.jp/ir/ | |||||||||||||||||||||||||||||||
Representative: | President, Representative Director and Chief | Toshiaki Ishii | ||||||||||||||||||||||||||||||||
Executive Officer | ||||||||||||||||||||||||||||||||||
Inquiries: | Financial Director | Yoshiari Sakano | TEL | 03-6430-3405 | ||||||||||||||||||||||||||||||
Scheduled date to file Quarterly Securities Report: | January 14, 2022 | |||||||||||||||||||||||||||||||||
Scheduled date to commence dividend payments: | - | |||||||||||||||||||||||||||||||||
Preparation of supplementary material on quarterly financial results: | No | |||||||||||||||||||||||||||||||||
Holding of quarterly financial results meeting: | No | |||||||||||||||||||||||||||||||||
(Amounts less than one million yen are rounded down) | ||||||||||||||||||||||||||||||||||
1. Consolidated financial results for the nine months ended November 30, 2021 (from March 1, 2021 to November 30, 2021) | ||||||||||||||||||||||||||||||||||
(1) Consolidated operating results (cumulative) | Percentages indicate year-on-year changes | |||||||||||||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||||||||||||||||||||
owners of parent | ||||||||||||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||||||||||||||||
Nine months ended November 30, 2021 | 21,642 | 7.0 | 713 | 180.1 | 665 | 171.7 | 372 | - | ||||||||||||||||||||||||||
Nine months ended November 30, 2020 | 20,231 | (13.1) | 254 | (77.2) | 244 | (77.0) | (77) | - | ||||||||||||||||||||||||||
Note: Comprehensive income | As of November 30, 2021: 345 million yen | As of November 30, 2020: (74) million yen | ||||||||||||||||||||||||||||||||
Earnings per share | Diluted earnings per share | |||||||||||||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||||||||||||
Nine months ended November 30, 2021 | 36.76 | - | ||||||||||||||||||||||||||||||||
Nine months ended November 30, 2020 | (7.65) | - | ||||||||||||||||||||||||||||||||
Note: Diluted earnings per share is not stated, | as there are no dilutive shares. | |||||||||||||||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||||||||||||||||||||||
As of November 30, 2021 | 15,372 | 4,448 | 28.9 | |||||||||||||||||||||||||||||||
As of February 28, 2021 | 14,636 | 4,407 | 30.1 | |||||||||||||||||||||||||||||||
Reference: Shareholders' equity | As of | November 30, 2021: 4,448 | million yen | As of February 28, 2021: 4,407 million yen | ||||||||||||||||||||||||||||||
2. Cash dividends | ||||||||||||||||||||||||||||||||||
Annual dividends per share | ||||||||||||||||||||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | ||||||||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||||||||||
Year ended February 28, 2021 | - | 0.00 | - | 31.00 | 31.00 | |||||||||||||||||||||||||||||
Year ending February 28, 2022 | - | 0.00 | - | |||||||||||||||||||||||||||||||
Year ending February 28, 2022 (Forecast) | 31.00 | 31.00 | ||||||||||||||||||||||||||||||||
Note: Revisions to the most recently announced dividend forecast: | None | |||||||||||||||||||||||||||||||||
3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022) | ||||||||||||||||||||||||||||||||||
Percentages indicate year-on-year changes | ||||||||||||||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | ||||||||||||||||||||||||||||||
owners of parent | ||||||||||||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||||||||||||||||||||||||
Full year | 34,500 | 16.9 | 1,720 | 65.9 | 1,682 | 67.2 | 1,002 | 152.6 | 98.99 | |||||||||||||||||||||||||
Note: Revision to the most recently announced consolidated forecast: None |
4. Notes
- Changes in significant subsidiaries during the nine months ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
- Application of special accounting methods for preparing quarterly consolidated financial statements:
No
No
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements | |
Changes in accounting policies due to revisions to accounting standards and other regulations: | No |
Changes in accounting policies due to other reasons: | No |
Changes in accounting estimates: | No |
Restatement of prior period financial statements: | No |
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2021 | 10,122,830 | shares | As of February 28, 2021 | 10,122,830 | shares | |
Number of treasury shares at the end of the period | ||||||
As of November 30, 2021 | 122 | shares | As of February 28, 2021 | 34 | shares | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||||
Nine months ended November 30, 2021 | 10,122,752 | shares | Nine months ended November 30, 2020 | 10,122,830 | shares |
Note1: The current quarterly financial report is not subject to quarterly review procedures by certified public accountants or auditing firms.
Note2: Explanation and other special notes concerning the appropriate use of business performance forecasts
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable, and are not promise by the Company regarding their achievement. Actual results may differ materially from the forecast depending on a range of factors.
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1. Qualitative Information on quarterly consolidated financial performance
(1) Explanation of Results of Operations
During the nine months ended November 30, 2021, movement of people gradually went back to normal as the state of emergency declared in response to the spread of the COVID-19 pandemic was canceled on September 30.
By the end of November, over 70% of the Japanese citizens received the second vaccination, and the Cabinet Office's most recent Consumer Confidence Survey indicated an overall assessment of consumer confidence continued to recover in November.
In the apparel industry, to which we belong, retail outlets operated as usual, except during a period until the end of September when they had to operate in reduced hours. As a result, there were increased opportunities for people to go out and consumer confidence was improving.
In the market for children's clothing, sales of products for the fall season got off to a slow start and we faced an uphill battle as school events, including school trips, and other events were downsized or canceled, temperature remained high in October in an impact from global warming, and bad weather prevailed throughout the country. After climate returned to seasonal levels starting in mid-October, however, store visitor numbers trended upward in November.
In such an environment, in the shopping center channel, the "PTPR" sets under our mainstay "petit main" brand maintained brisk sales, while products in collaboration with characters made a solid contribution to sales, although there was no rapid recovery in the number of store visitors. On the other hand, the "Lovetoxic" brand faced an uphill battle as school events were downsized or canceled and people's visits to shopping centers on weekends and holidays did not return to the previous levels of frequency.
In the department store channel, sales of occasion and gift products remained solid, which was not seen during the last year's pandemic period, as the number of customers visiting outlets with grandparents began to recover starting in mid-October.
On the other hand, sales through the e-commerce channel failed to achieve the levels seen last year as multiple shopping channels became available to customers after operation of physical stores returned to normal. Still, we completed the work to transfer operation to new logistic bases in September, which significantly increased operational efficiency and reduced the number of days required for us to ship products after we received orders from customers.
The photo studio business opened two new outlets in September, bringing the total number to 10. The business maintained relatively solid results in the nine months ended November 30, 2021, as the period fell in the shichi-go-san rite of passage and festival season.
During the period under review, we opened 11 stores at department stores, 6 at shopping centers, and an outlet store. Meanwhile, we closed 9 stores at department stores and 4 at shopping centers. (Note)
As a result of the above, in the nine months ended November 30, 2021, we recorded net sales of 21,642 million yen (up 7.0% from the same period of the previous fiscal year), an operating profit of 713 million yen (up 180.1% from the same period of the previous fiscal year), an ordinary profit of 665 million yen (up 171.7% from the same period of the previous fiscal year), and a profit attributable to owners of the parent of 372 million yen (a loss attributable to owners of the parent of 77 million yen was recorded in the same period of the previous fiscal year).
(Note) Because the number of stores at department stores is calculated by multiplying the number of places where things are sold by the number of brands, the number of stores opened and closed tends to increase.
-
Explanation of Financial Position Assets
Assets at the end of the 3Q of the current fiscal year were 15,372 million yen, an increase of 736 million yen from the end of the previous fiscal year. This was due mainly to a decrease of 138 million yen in cash and deposits, an increase of 282 million yen in notes and accounts receivable-trade, an increase of 580 million yen in merchandise, and a decrease of 172 million yen in goodwill.
Liabilities
Liabilities at the end of the 3Q of the current fiscal year were 10,924 million yen, an increase of 696 million yen from the end of the previous fiscal year. This was due mainly to an increase of 677 million yen in accounts payable-trade, an increase of 500 million yen in short-term borrowings, an increase of 3,412 million yen in current portion of long- term borrowings, an increase of 219 million yen in provision for bonuses, and a decrease of 3,781 million yen in
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long-term borrowings. Net Assets
Total net assets at the end of the 3Q of the current fiscal year amounted to 4,448 million yen, an increase of 40 million yen from the end of the previous fiscal year. This was due mainly to of a profit attributable to owners of parent of 372 million yen and the payment of dividends of 313 million yen.
-
Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information There are no changes to the full-year consolidated earnings forecasts announced on April 12, 2021.
The above forecasts were prepared based on information available as of the date of publication of this document and certain assumptions deemed to be reasonable. Actual results, etc. may differ from these forecasts due to a variety of factors going forward.
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Quarterly consolidated financial statements
Consolidated balance sheets
(Thousands of yen) | |||
As of February 28, 2021 | As of November 30, 2021 | ||
Assets | |||
Current assets | |||
Cash and deposits | 1,831,755 | 1,693,176 | |
Notes and accounts receivable - trade | 2,813,646 | 3,096,016 | |
Merchandise | 3,409,102 | 3,989,135 | |
Prepaid expenses | 68,311 | 124,953 | |
Other | 53,883 | 50,261 | |
Allowance for doubtful accounts | (12,690) | (10,540) | |
Total current assets | 8,164,008 | 8,943,003 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 1,375,313 | 1,437,756 | |
Accumulated depreciation | (1,104,705) | (1,178,205) | |
Buildings and structures, net | 270,608 | 259,551 | |
Tools, furniture and fixtures | 105,321 | 105,814 | |
Accumulated depreciation | (81,493) | (67,798) | |
Tools, furniture and fixtures, net | 23,828 | 38,016 | |
Land | 5,940 | 5,940 | |
Leased assets | 2,495,350 | 2,758,809 | |
Accumulated depreciation | (1,782,933) | (2,014,538) | |
Leased assets, net | 712,417 | 744,271 | |
Total property, plant and equipment | 1,012,794 | 1,047,778 | |
Intangible assets | |||
Goodwill | 3,192,406 | 3,019,481 | |
Software | 167,768 | 225,525 | |
Leased assets | 110,104 | 80,420 | |
Other | 606 | 546 | |
Total intangible assets | 3,470,886 | 3,325,975 | |
Investments and other assets | |||
Investment securities | 39,977 | 17,830 | |
Distressed receivables | 97,627 | 103,346 | |
Long-term prepaid expenses | 17,969 | 14,823 | |
Guarantee deposits | 1,168,137 | 1,214,427 | |
Deferred tax assets | 466,312 | 471,960 | |
Other | 271,982 | 311,007 | |
Allowance for doubtful accounts | (73,624) | (77,268) | |
Total investments and other assets | 1,988,383 | 2,056,127 | |
Total non-current assets | 6,472,063 | 6,429,880 | |
Total assets | 14,636,072 | 15,372,883 |
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Narumiya International Co. Ltd. published this content on 24 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 06:13:02 UTC.