Summary of Financial Results
For the First Quarter of Fiscal Year Ending December 31, 2021 (Consolidated)
These financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan. The following English translation is based on the original Japanese-language document.
April 28, 2021 | ||
POLA ORBIS HOLDINGS INC. | ||
Listing: | Tokyo Stock Exchange, First Section (Code No.: 4927) | |
URL: | https://www.po-holdings.co.jp/ | |
Representative: | Satoshi Suzuki, Representative Director And President | |
Contact: | Akira Fujii, Director, Finance | Tel: +81-3-3563-5517 |
Filing Date of Quarterly Securities Report: | May 14, 2021 | |
Start of Cash Dividend Payment: | - | |
Supplemental Materials Prepared for Quarterly Financial Results: | Yes | |
Conference Presentation for Quarterly Financial Results: | Yes(for analysts) |
(Amounts less than one million yen have been truncated)
1. Consolidated Performance for the First Three Months of Fiscal 2021 (January 1, 2021-March31, 2021)
(1) Consolidated Operating Results
(Percentage figures indicate year-on-year change) | ||||||||
Net Sales | Operating Income | Ordinary Income | Profit Attributable to | |||||
Owners of Parent | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
FY2021 Three Months | 43,561 | 0.6 | 4,307 | 114.7 | 5,763 | - | 3,939 | - |
FY2020 Three Months | 43,316 | (17.4) | 2,006 | (70.4) | (154) | - | (1,246) | - |
Note: Comprehensive income: ¥3,274 million (-%) for the three months ended March 31, 2021; | ||||||||||||||||||
(¥1,245 million) (-%) for the three months ended March 31, 2020 | ||||||||||||||||||
Net Income | Diluted Net Income | |||||||||||||||||
Per Share | Per Share | |||||||||||||||||
Yen | Yen | |||||||||||||||||
FY2021 Three Months | 17.81 | 17.79 | ||||||||||||||||
FY2020 Three Months | (5.64) | - | ||||||||||||||||
(2) Consolidated Financial Position | Net Assets | |||||||||||||||||
Total Assets | Net Assets | Equity Ratio | ||||||||||||||||
Per Share | ||||||||||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||||||
FY2021 First Quarter | 203,373 | 169,820 | 83.3 | 765.79 | ||||||||||||||
FY2020 | 203,742 | 169,854 | 83.2 | 766.05 | ||||||||||||||
Reference: Equity capital: FY2021 First Quarter: ¥169,412 million; FY2020: ¥169,466 million | ||||||||||||||||||
2. Dividends | Annual Cash Dividends Per Share | |||||||||||||||||
Q1-end | Q2-end | Q3-end | Year-end | Total | ||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||
FY2020 | - | 35.00 | - | 15.00 | 50.00 | |||||||||||||
FY2021 | - | |||||||||||||||||
FY2021 (Forecast) | 20.00 | - | 31.00 | 51.00 |
Note: Revisions to the cash dividends forecast announced most recently: none
3. Consolidated Performance Forecast for Fiscal Year Ending December 31, 2021 (January 1, 2021-December31, 2021)
(Percentage figures indicate year-on-year change) | ||||||||||
Profit | Net Income | |||||||||
Net Sales | Operating Income | Ordinary Income | Attributable to | |||||||
Per Share | ||||||||||
Owners of Parent | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 190,000 | 7.8 | 19,000 | 38.2 | 19,000 | 51.0 | 11,300 | 144.0 | 51.08 |
Note: Revisions to the consolidated performance forecast announced most recently: none
Notes to Summary Information
(1) Changes in significant subsidiaries during the current period | |
(Changes in specific subsidiaries resulting in changes in the scope of consolidation) | : None |
- Application of special accounting methods for the preparation of the quarterly consolidated: None financial statements
- Changes in accounting policies, accounting estimates, and restatement
1) | Changes in accounting policies associated with revision of accounting standards | : None |
2) | Changes other than (3)-1) | : None |
3) | Changes in accounting estimates | : None |
4) | Restatements | : None |
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding at the end of each period (including treasury stock)
At March 31, 2021 | 229,136,156 shares | |
At December 31, 2020 | 229,136,156 shares | |
2) | Number of shares of treasury stock at the end of each period | |
At March 31, 2021 | 7,911,061 shares | |
At December 31, 2020 | 7,915,453 shares | |
3) | Average number of shares issued and outstanding in each period | |
Three months ended March 31, 2021 | 221,221,801 shares | |
Three months ended March 31, 2020 | 221,219,903 shares |
Information Regarding Quarterly Review Procedures
The quarterly financial results report is exempt from quarterly review by certified public accountants or accounting firms.
Explanation of Appropriate Use of Performance Forecast and Other Special Items
This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections resulting from changes in the economic environment and other risks and uncertainties. For performance projections, please refer to "1. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2021 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 5.
POLA ORBIS HOLDINGS INC. (4927) FY2021 Financial Summary | ||
Table of Contents | ||
1. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2021……………… | 2 | |
(1) | Explanation of Consolidated Operating Results ………………………………………………………… | 2 |
(2) | Explanation of Consolidated Financial Position ………………………………………………………… | 4 |
(3) | Explanation of Consolidated Performance Forecast and Other Predictive Information ……………… | 5 |
2. Quarterly Consolidated Financial Statements ………………………………………………………………… | 6 | |
(1) | Consolidated Balance Sheets ……………………………………………………………………………… | 6 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ………. | 8 |
(3) | Notes to Consolidated Financial Statements ……………………………………………………………… 10 | |
(Going concern Assumptions) ………………………………………………………………………………. 10 | ||
(Significant Changes in Shareholders' Equity) …………………………………………………………… | 10 | |
(Additional Information)……………………………………………………………………………………… 10 | ||
(Segment Information) …………………………………………………………………………………….... | 10 | |
(Subsequent Events) ………………………………………………………………………………………… | 11 |
1
POLA ORBIS HOLDINGS INC. (4927) FY2021 Financial Summary
1.Qualitative Information on Consolidated Performance for the Three Months of Fiscal 2021
(1) Explanation of Consolidated Operating Results
During the three months of fiscal 2021 (January 1-March 31, 2021), the future outlook of the Japanese economy remained uncertain due to restraints on economic activity caused by the re-expansion of COVID-19 (the novel coronavirus), which led to the re-declaration and extension of states of emergency in some regions and the suspension of economic measures which had been contributing to a resumption in consumer activity, such as the Go to Travel campaign, as well as the recent spread of COVID-19 variants. In the domestic cosmetics market, while it appears unlikely that there will be improvements in inbound demand and demand for face-to-face services, which have been declined due to COVID-19, the importance of e-commerce channels is increasing further, driven by the rise in "nesting" consumption. However, all companies are reinforcing their e-commerce channels through new initiatives such as live commerce and increasingly using digital technology to communicate with and provide services to customer online. This is intensifying competition, and the outcomes of e-commerce channel business strategies are expected to have a significant impact on domestic business results. For the overseas cosmetics market, as well, there are concerns of the impact of the global COVID-19 pandemic, but in the Chinese market, which the Group considers a key market, economic activity continues to normalize, and consumption has recovered to pre- COVID-19 levels. In particular, demand for live commerce and other e-commerce channels has risen even further, and this trend is expected to continue with the advancement of digital technologies.
Within this market environment, the POLA ORBIS Group (the "Group") has worked to achieve the key objectives-"evolving domestic direct sales," "growing overseas businesses profitably," "profit contribution from brands under development," "strengthening operations," and "expanding new brands and domains of 'beauty'." These objectives are in line with the new medium-term management plan (from 2021 to 2023) that started in fiscal 2021. As a result, the Group achieved the following consolidated operating results for the three months of fiscal 2021.
Consolidated net sales for the three months of fiscal 2021 increased 0.6% year on year to ¥43,561 million, driven by the overseas business of the flagship brand, POLA as a whole. Operating income increased 114.7% year on year to ¥4,307 million due to reduction in cost of sales and sales-related expenses, and ordinary income was ¥5,763 million (ordinary loss of ¥154 million for the corresponding period of the previous year) due to foreign exchange gains resulting from the weaker yen. As a result of the above, profit attributable to owners of parent was ¥3,939 million (loss of ¥1,246 million for the corresponding period of the previous year).
Operating Results Overview | (Millions of yen) | |||
Three Months Ended March 31 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Net Sales | ¥43,316 | ¥43,561 | ¥245 | 0.6 |
Operating Income | 2,006 | 4,307 | 2,301 | 114.7 |
Ordinary Income (Loss) | (154) | 5,763 | 5,917 | - |
Profit (Loss) Attributable | ¥(1,246) | ¥3,939 | ¥5,186 | - |
to Owners of Parent | ||||
2
POLA ORBIS HOLDINGS INC. (4927) FY2021 Financial Summary | ||||
Operating Results by Segment | ||||
Net Sales (Segment Sales to External Customers) | (Millions of yen) | |||
Three Months Ended March 31 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Beauty Care | ¥42,082 | ¥42,445 | ¥363 | 0.9 |
Real Estate | 636 | 530 | (106) | (16.7) |
Others | 597 | 585 | (11) | (2.0) |
Total | ¥43,316 | ¥43,561 | ¥245 | 0.6 |
Segment Profit (Loss) (Operating Income (Loss)) | (Millions of yen) | |||
Three Months Ended March 31 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Beauty Care | ¥1,700 | ¥4,190 | ¥2,490 | 146.5 |
Real Estate | 289 | 206 | (83) | (28.8) |
Others | 4 | 13 | 8 | 161.3 |
Reconciliations of Segment | 11 | (102) | (113) | - |
Profit (Note) | ||||
Total | ¥2,006 | ¥4,307 | ¥2,301 | 114.7 |
Note: Reconciliations of segment profit refer to elimination of profits arising from inter-company transactions and expenses not allocated to reportable segments. Please see note 2 in "1. Information about Net Sales and Profit (Loss) by Reportable Segment" on page 10 and 11 for the details of reconciliations of segment income during the period.
Beauty Care
The Beauty Care segment consists of the flagship brands POLA and ORBIS, the overseas brands Jurlique and H2O PLUS, and the brands under development THREE, DECENCIA, Amplitude, ITRIM, and FIVEISM ×
THREE.
POLA is seeking to further improve the value of its brand and strengthen its business foundation through efforts to launch highly functional products focused on the field of anti-aging and skin-brightening and to strengthen development of professional human resources who embody the value of the brand. In January, a renewed and improved serum was released in the Wrinkle Shot series of products, the first wrinkle improving quasi-drugs approved in Japan, and in March a renewed and improved skin-brightening serum was released in the White Shot product series. In Japan, e-commerce channel sales grew significantly, and POLA will continue to strengthen the e-commerce channel. In aesthetic salons and other locations providing face-to-face services, POLA has worked to recover store traffic among existing customers by implementing thorough in-store hygiene management and infection prevention measures, as well as by actively implementing live commerce, online consulting and other initiatives. Overseas, Chinese e-commerce and South Korean duty-free stores continue to grow at a high rate. In the key market of China, department stores, live commerce and other initiatives have proven successfully. While the re- expansion of COVID-19 continues to have an impact, POLA brand net sales and operating income rose year on year.
ORBIS is making efforts to enhance its presence through the creation of brand differentiation in order to re-grow into a highly profitable business. ORBIS is further strengthening its communications centered on products that embody the world view of the brand message, "Simply you. Simply beautiful." along with consistent marketing communication. Led by the ORBIS U anti-aging skincare series, ORBIS has sought to expand its skincare customer base, and has achieved a year-on-year increase in its number of customers who purchased its products by enhancing customer-specific communications. In March, ORBIS announced its "cocktail graphy" personalized skincare service which uses the "skin mirror" IoT device in advance of the April service launch. Overseas, while ORBIS worked to improve its brand recognition rate by expanding customer contact points in Asia, factors such as reduced store operation hours and a decline in makeup product demand due to the spread of COVID-19 caused spending per customer to fall, resulting in ORBIS brand net sales and operating income dropping below those of the corresponding period of the previous year.
For overseas brands, the Group took initiatives aimed at business growth in Australia and Asia for Jurlique and in the United States, where H2O PLUS originated. For Jurlique, while sales activities were significantly restricted in
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POLA ORBIS Holdings Inc. published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 06:10:04 UTC.