First Quarter of Fiscal 2022 Supplementary Material
POLA ORBIS HOLDINGS INC.
Corporate Officer
PR, IR, CSR and Sustainability
Naotaka Hashi
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.
POLA ORBIS HOLDINGS INC. has applied Accounting Standard for Revenue Recognition
(ASBJ Statement No. 29, March 31, 2020), etc. from fiscal 2022.
Regarding the results for fiscal 2021:
The results for fiscal 2021 presented in this presentation have been calculated using the same accounting standards as those in fiscal 2022, and are shown as reference information (unaudited) for the purpose of comparison.
1. Highlights of Consolidated Performance
2. Segment Analysis
3. Forecasts for Fiscal 2022
4. Initiatives Going Forward & Appendices
Q1 Key Topics
Cosmetics Market
The scale of the Japanese cosmetics market (including exports) as a whole recovered during the first half of the first quarter, but a slowdown emerged from February onward.
The Japanese market was at a similar level to the previous year, due to the rapid spread of COVID-19 and the application of quasi-emergency measures.
In the overseas market, Mainland China and Hong Kong suffered lockdowns and restrictions on storefront operations.
Source: Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communications, Japan Tourism Agency,
Japan Department Stores Association, Intage SLI, and National Bureau of Statistics of China
Our Group
Consolidated revenue and income decreased, impacted by the performance
of POLA.
Medium-term Management Plan Indicators (FY2022 Q1)
In Japan, customer traffic continued to decline in POLA's consignment sales, but domestic e-commerce revenue grew for both POLA and ORBIS.
Overseas sales ratio
15.2% (-3.5 ppt*)
Revenue declined for POLA overseas, due to lockdowns, restrictions on storefront operations, and suppression on shipment to duty free stores in South Korea. (down ¥2.2 bil.)
Domestic e-commerce sales ratio
28.3% (+2.5 ppt*)
*vs Dec. 2021
In overseas brands, revenue rose and losses were ameliorated for Jurlique. The dissolution and liquidation of H2O PLUS were decided effective April 28.
YoY Change in Consolidated Monthly Net Sales
(same-standard basis)
Month by month Cumulative total
In Japan, quasi-emergency measures were applied, and the recovery in domestic storefront operations came to a standstill.
Overseas operations suffered restrictions on the flow of people, an impact on logistics, store shutdowns, etc. due to lockdowns.
Net sales for the first quarter presented a grimmer result than anticipated.
Consolidated P&L Changes Analysis Net Sales to Operating Income
Key Factors
Consol. net salesDecreased on a consolidated basis, mainly due to a decrease in revenue from POLA.
Cost of sales
Cost of sales ratio deteriorated due lower sales ratio from POLA.
Cost of sales ratio 2021Q1 : 16.5% ⇒ 2022Q1 : 18.1%
SG&A expenses
Labor expenses: up ¥162 mil. YoY
Sales commissions: down ¥1,293 mil. YoY ⇒ Decreased due to lower POLA consignment sales. Sales related expenses: down ¥834 mil. YoY Administrative expenses, etc.: down ¥714 mil. YoY ⇒ Decreased due to lower POLA overseas sales.
Operating income
Operating margin 2021Q1: 9.6% ⇒ 2022Q1: 5.1%
Note: FY2021 Q1 results are presented for reference only (unaudited).
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POLA ORBIS Holdings Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 06:14:38 UTC.