Consolidated Financial Results
for the Fiscal Year Ended February 28, 2023
[Japanese GAAP]
April 6, 2023
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/en/
Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Managing Director in charge of Finance, Accounting, Investor Relations
Phone: +81-3-4512-1030
Scheduled date of Annual General Meeting of Shareholders: May 25, 2023
Scheduled date of commencing dividend payments: May 26, 2023
Scheduled date of filing annual securities report: May 26, 2023
Availability of supplementary materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Fiscal Year Ended February 28, 2023 (March 1, 2022 - February 28, 2023)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating profit | Recurring profit | Profit attributable to | ||||||
owners of parent | |||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
February 28, 2023 | 176,072 | 4.5 | 5,214 | - | 5,319 | 948.7 | 3,061 | (64.3) | |
February 28, 2022 | 168,453 | (4.2) | (1,079) | - | 507 | - | 8,566 | - |
(Note) Comprehensive income: Fiscal year ended February 28, 2023: 10,767 million yen [(7.6)%] Fiscal year ended February 28, 2022: 11,657 million yen [-%]
Basic earnings | Diluted | Return on | Ratio of | Ratio of | |
earnings | recurring profit | operating profit | |||
per share | equity | ||||
per share | to total assets | to net sales | |||
Fiscal year ended | Yen | Yen | % | % | % |
February 28, 2023 | 22.57 | 22.53 | 4.3 | 3.4 | 3.0 |
February 28, 2022 | 63.17 | 63.04 | 13.9 | 0.3 | (0.6) |
(Reference) | Share of profit (loss) of entities accounted for using equity method: | ||||||||
Fiscal year ended February 28, 2023: (46) million yen | |||||||||
Fiscal year ended February 28, 2022: (73) million yen | |||||||||
EBITDA (operating profit + depreciation and amortization): | |||||||||
Fiscal year ended February 28, 2023: 10,373 million yen [165.0%] | |||||||||
Fiscal year ended February 28, 2022: 3,915 million yen [-%] | |||||||||
(2) Consolidated Financial Position | |||||||||
Total assets | Net assets | Shareholders' | Net assets per share | ||||||
equity ratio | |||||||||
Million yen | Million yen | % | Yen | ||||||
As of February 28, 2023 | 159,198 | 85,073 | 47.0 | 550.76 | |||||
As of February 28, 2022 | 157,727 | 77,257 | 42.4 | 493.14 | |||||
(Reference) | Shareholders' | equity: As of February | 28, 2023: 74,747 million yen | ||||||
As of February 28, 2022: 66,886 million yen |
(3) Consolidated Cash Flows | |||||||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||||||||||||||||||
equivalents | |||||||||||||||||||||
operating activities | investing activities | financing activities | |||||||||||||||||||
at end of period | |||||||||||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | |||||||||||||||||
February 28, 2023 | 5,685 | 4,390 | (11,955) | 13,795 | |||||||||||||||||
February 28, 2022 | 7,814 | 21,685 | (36,173) | 15,199 | |||||||||||||||||
2. Dividends | |||||||||||||||||||||
Annual dividends per share | Total | Payout ratio | Ratio of | ||||||||||||||||||
dividends to | |||||||||||||||||||||
1st | 2nd | 3rd | Year- | dividends | |||||||||||||||||
Total | (consolidated) | net assets | |||||||||||||||||||
quarter- | quarter- | quarter- | end | (annual) | |||||||||||||||||
end | end | end | (consolidated) | ||||||||||||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||||||||||||
- | - | - | 12.00 | 12.00 | 1,627 | 19.0 | 2.4 | ||||||||||||||
February 28, | |||||||||||||||||||||
2022 | |||||||||||||||||||||
Fiscal year ended | - | - | - | 12.00 | 12.00 | 1,628 | 53.2 | 2.0 | |||||||||||||
February 28, | |||||||||||||||||||||
2023 | |||||||||||||||||||||
Fiscal year ending | |||||||||||||||||||||
February 29, | - | - | - | 14.00 | 14.00 | 47.5 | |||||||||||||||
2024 (Forecast) |
3. Consolidated Performance Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 - February 29, 2024)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Recurring profit | Profit attributable | Basic | |||||
to owners of | earnings per | ||||||||
parent | share | ||||||||
1H (cumulative) | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
86,200 | 4.9 | 1,000 | 416.4 | 700 | 6.9 | 1,400 | 193.9 | 10.32 | |
Full year | 185,000 | 5.1 | 7,000 | 34.2 | 6,300 | 18.4 | 4,000 | 30.7 | 29.49 |
(Reference) EBITDA (operating profit + depreciation and amortization): | |||||||||
Full year ending February 29, 2024 (forecast):12,100million yen [16.6%] | |||||||||
Full year ended February 28, 2023: 10,373 million yen [165.0%] |
* Notes:
(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly included: - (Company name:)
Excluded: One company (Company name: Onward Beach Resort Guam, Inc.)
(2) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
-
Total number of issued shares (common stock)
1) Total number of issued shares at the end of the period (including treasury shares):
As of February 28, 2023: | 157,921,669 shares |
As of February 28, 2022: | 157,921,669 shares |
2) Total number of treasury shares at the end of the period: | |
As of February 28, 2023: | 22,204,488 shares |
As of February 28, 2022: | 22,287,771 shares |
3) Average number of shares outstanding during the period: | |
Fiscal year ended February 28, 2023: | 135,655,390 shares |
Fiscal year ended February 28, 2022: | 135,619,330 shares |
(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2023 (March 1, 2022 - February
28, 2023) | |||||||||||||
(1) Non-consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||||
Net sales | Operating profit | Recurring profit | Net income | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
February 28, 2023 | 11,082 | (23.5) | 7,012 | (35.1) | 2,173 | (59.3) | 2,542 | (70.2) | |||||
February 28, 2022 | 14,478 | 27.5 | 10,799 | 54.5 | 5,345 | - | 8,525 | - | |||||
Basic earnings | Diluted earnings | ||||||||||||
per share | per share | ||||||||||||
Fiscal year ended | Yen | Yen | |||||||||||
February 28, 2023 | 18.74 | 18.71 | |||||||||||
February 28, 2022 | 62.87 | 62.74 | |||||||||||
(2) Non-consolidated Financial Position | |||||||||||||
Total assets | Net assets | Shareholders' | Net assets per share | ||||||||||
equity ratio | |||||||||||||
Million yen | Million yen | % | Yen | ||||||||||
As of February 28, 2023 | 136,058 | 83,502 | 61.3 | 614.66 | |||||||||
As of February 28, 2022 | 134,198 | 78,861 | 58.6 | 580.53 |
(Reference) Shareholders' equity: As of February 28, 2023: 83,419 million yen As of February 28, 2022: 78,739 million yen
- These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
-
Explanation of the proper use of performance forecast and other notes
The performance outlook and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that have been deemed reasonable. Actual performance may differ significantly from these forecasts due to a wide range of factors. For conditions used as the assumptions for the performance forecast and notes on the use of performance forecast, please refer to "1. Overview of Operating Results, etc." on page 2 of the Attachments.
Note:
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Table of Contents - Attachments | ||
1. Overview of Operating Results, etc. .................................................................................................... 2 | ||
(1) | Overview of Operating Results for the Fiscal Year under Review | 2 |
(2) | Overview of Financial Position for the Fiscal Year under Review | 2 |
(3) | Overview of Cash Flows for the Fiscal Year under Review | 3 |
(4) | Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next | |
Fiscal Year | 4 | |
(5) | Future Outlook | 4 |
2. Basic Policy on Selection of Accounting Standards | 4 | |
3. Consolidated Financial Statements and Principal Notes | 5 | |
(1) | Consolidated Balance Sheets | 5 |
(2) | Consolidated Statements of Income and Comprehensive Income | 7 |
(3) | Consolidated Statements of Changes in Equity | 9 |
(4) | Consolidated Statements of Cash Flows | 13 |
(5) | Notes to Consolidated Financial Statements | 15 |
(Uncertainties of entity's ability to continue as going concern) | 15 | |
(Significant accounting policies for preparation of Consolidated Financial Statements) | 15 | |
(Changes in accounting policies) | 19 | |
(Changes in the presentation method) | 20 | |
(Notes to Consolidated Statements of Income) | 20 | |
(Notes to Consolidated Statements of Comprehensive Income) | 21 | |
(Notes to Consolidated Statements of Changes in Equity) | 22 | |
(Notes to Consolidated Statements of Cash Flows) | 24 | |
(Segment information, etc.) | 25 | |
(Per share information) | 30 | |
(Significant events after reporting period) | 31 |
1
1. Overview of Operating Results, etc.
-
Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review (from March 1, 2022 to February 28, 2023), the Japanese economy showed signs of recovery as economic activities normalized due to the relaxation of restrictions on activities related to COVID-19. However, due to rising inflation on the back of soaring resource prices and raw material prices, the depreciation of the yen, and other factors, the outlook remains uncertain.
In these circumstances, the Group has been striving to evolve towards "customer-centric management that leverages the diverse individual qualities of our employees." To achieve the medium- to long-term management vision ONWARD VISION 2030 established in April 2021, in our core Apparel Business, we have been actively pursuing e-commerce strategies through our group e-commerce site ONWARD CROSSET in addition to managing physical stores. In particular, we have bolstered the development of OMO (Online Merges with Offline)-type stores that integrate services offered in our physical stores and online store, leading to a high number of users and contributing to increased sales in our physical stores. Furthermore, as a result of our global business reforms and efforts to limit discount sales, our gross profit margin improved by 2.9 pp, and our SG&A ratio decreased by 0.7 pp. Consequently, we achieved profitability at all profit levels, including operating profit. It should be noted that profit attributable to owners of parent decreased compared to that of the previous fiscal year, which included gain on sale of real estate.
As a result of the above, consolidated net sales amounted to 176,072 million yen (a 4.5% increase year on year), a consolidated operating profit was recorded at 5,214 million yen (an operating loss of 1,079 million yen for the previous fiscal year), a consolidated recurring profit was recorded at 5,319 million yen (a 948.7% increase year on year), and profit attributable to owners of parent amounted to 3,061 million yen (a 64.3% decrease year on year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as a management indicator with the purpose of enabling convenient comparisons between companies regardless of differences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion of business foundations that utilize creation of new businesses, M&As, etc.
EBITDA for the fiscal year under review was 10,373 million yen (a 165.0% increase year on year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, the number of visitors to physical stores increased with the relaxation of restrictions on activities related to COVID-19, sales were favorable in the key brands of our core operating company, Onward Kashiyama Co., Ltd., namely Nijyusanku, ICB, and Jiyuku, among others, and the D2C brand UNFILO created hit products, contributing to sales growth. Sales also increased at Onward Personal Style Co., Ltd., which develops the KASHIYAMA brand, as the company accelerated the development of franchise stores in addition to directly-managed stores.
In the overseas business, the profitability of existing businesses improved significantly, mainly due to the withdrawal from unprofitable businesses under global business reforms.
As a result, sales expanded, with a significant return to profitability in the Apparel Business as a whole.
[Lifestyle Business]
Chacott Co., Ltd., which operates a wellness business, saw strong performance of products in its mainstay ballet and fitness wear merchandise line, as well as Chacott COSMETICS and Chacott BALANCE, with sales recovering to pre-pandemic levels. Creative Yoko Co., Ltd., which operates a pet and home life business, posted strong sales as its strategy of opening physical stores proved successful.
As a result, both sales and profit increased in the Lifestyle Business as a whole.
- Overview of Financial Position for the Fiscal Year under Review 2
Attachments
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Disclaimer
Onward Holdings Co. Ltd. published this content on 06 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 April 2023 11:23:03 UTC.