Summary of Financial Results
For the Nine Months of the 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.
November 1, 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: | November 12, 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 Nine Months of Fiscal 2021 (January 1, 2021-September30, 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 Nine Months | 131,164 | 4.3 | 12,241 | 32.7 | 13,432 | 72.8 | 8,661 | 453.1 | |||||||||||||
FY2020 Nine Months | 125,814 (24.0) | 9,222 | (63.7) | 7,775 | (68.1) | 1,565 | (90.2) | ||||||||||||||
Note: Comprehensive income: ¥8,437 million (471.5%) for the nine months ended September 30, 2021; | |||||||||||||||||||||
¥1,476 million (-90.9%) for the nine months ended September 30, 2020; | |||||||||||||||||||||
Net Income | Diluted Net Income | ||||||||||||||||||||
Per Share | Per Share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
FY2021 Nine Months | 39.15 | 39.11 | |||||||||||||||||||
FY2020 Nine Months | 7.08 | 7.07 | |||||||||||||||||||
(2) Consolidated Financial Position | Net Assets | ||||||||||||||||||||
Total Assets | Net Assets | Equity Ratio | |||||||||||||||||||
Per Share | |||||||||||||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||||||||||
FY2021 Third Quarter | 201,462 | 170,570 | 84.5 | 769.05 | |||||||||||||||||
FY2020 | 203,742 | 169,854 | 83.2 | 766.05 | |||||||||||||||||
Reference: Equity capital: FY2021 Third Quarter: ¥170,136 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 | - | 20.00 | - | ||||||||||||||||||
FY2021 (Forecast) | 31.00 | 51.00 |
Note1: 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 September 30, 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 September 30, 2021 | 7,907,561 shares | |
At December 31, 2020 | 7,915,453 shares | |
3) | Average number of shares issued and outstanding in each period | |
Nine months ended September 30, 2021 | 221,225,877 shares | |
Nine months ended September 30, 2020 | 221,220,063 shares |
Note: The number of shares of treasury stock at September 30, 2021 includes the Company's shares held by the officer compensation Board Incentive Plan (BIP) trust (244,708 shares). The Company's shares held by the officer compensation BIP trust are included in shares of treasury stock that are deducted in the calculation of the average number of shares of treasury stock during the period.
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 Nine Months of Fiscal 2021 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 5.
POLA ORBIS HOLDINGS INC. (4927) FY2021 Nine Months Financial Summary | ||
Table of Contents | ||
1. Qualitative Information on Consolidated Performance for the Nine Months 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
1
POLA ORBIS HOLDINGS INC. (4927) FY2021 Nine Months Financial Summary
1. Qualitative Information on Consolidated Performance for the Nine Months of Fiscal 2021
(1) Explanation of Consolidated Operating Results
During the nine months of fiscal 2021 (January 1-September 30, 2021), the Japanese economy continued to experience difficult circumstances, with limited economic activity. This was due to the rapid spread of COVID-19 (the novel coronavirus) as well as an outbreak of highly infectious variants, which led to repeated declarations of a state of emergency accompanied by additional measures, such as expanding the target regions and extending the periods of declarations. In terms of personal consumption, consumer sentiment continues to be affected by trends in the number of COVID-19 cases. Currently, the vaccination rate is rising and restrictions are being relaxed, and the number of new cases has begun to decrease. If this trend continues, it is expected to stimulate a recovery of the economy and consumption. However, it is not yet possible to predict when COVID-19 will be contained, so the future outlook remains uncertain.
The domestic cosmetics market has been affected by restrictions on economic activity and a resulting decline in consumer sentiment. Furthermore, competition has intensified in the mail order business including e-commerce, which has driven the market in the COVID-19 pandemic. Particularly with respect to the acquisition of new customers, competition is expected to intensify further leading to a rapid rise in acquisition costs. In the overseas cosmetics market, the COVID-19 pandemic has spread worldwide, and is continuing to run rampant. In the Chinese market, which the Group has designated as a priority area, the spread of COVID-19 has been confirmed in some regions, but remains relatively sedated in China, as a whole. Since the full resumption of economic activity, personal consumption has continued to exceed the level of the previous year. In contrast, the pandemic is continuing to spread on a global scale with no end in sight, and serious concerns regarding the spread of COVID-19 from abroad still remain. Accordingly, it will be necessary to continue to monitor the pandemic in the future.
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 nine months of fiscal 2021.
Consolidated net sales for the nine months of fiscal 2021 increased 4.3% year on year to ¥131,164 million driven by the growth on the overseas of POLA as a flagship brand. Operating income increased 32.7% year on year to ¥12,241 million due to an increase in gross profit resulting from an improvement on cost of sales ratio. Ordinary income increased 72.8% year on year to ¥13,432 million due to the recording of foreign exchange gains due to yen depreciation. As a result of the factors noted above, profit attributable to owners of parent increased 453.1% year on year to ¥8,661 million.
Operating Results Overview | (Millions of yen) | |||
Nine Months Ended September 30 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Net Sales | ¥125,814 | ¥131,164 | ¥5,349 | 4.3 |
Operating Income | 9,222 | 12,241 | 3,018 | 32.7 |
Ordinary Income | 7,775 | 13,432 | 5,656 | 72.8 |
Profit Attributable to | ¥1,565 | ¥8,661 | ¥7,095 | 453.1 |
Owners of Parent | ||||
2
POLA ORBIS HOLDINGS INC. (4927) FY2021 Nine Months Financial Summary | ||||
Operating Results by Segment | ||||
Net Sales (Segment Sales to External Customers) | (Millions of yen) | |||
Nine Months Ended September 30 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Beauty Care | ¥122,295 | ¥127,834 | ¥5,539 | 4.5 |
Real Estate | 1,763 | 1,581 | (182) | (10.3) |
Others | 1,755 | 1,748 | (7) | (0.4) |
Total | ¥125,814 | ¥131,164 | ¥5,349 | 4.3 |
Segment Profit (Loss) (Operating Income (Loss)) | (Millions of yen) | |||
Nine Months Ended September 30 | ||||
2020 | 2021 | Year-on-Year | ||
Amount Change | Percent Change (%) | |||
Beauty Care | ¥8,423 | ¥12,271 | ¥3,848 | 45.7 |
Real Estate | 669 | 382 | (286) | (42.8) |
Others | 37 | 26 | (11) | (30.6) |
Reconciliations of Segment | 92 | (439) | (531) | - |
Profit (Note) | ||||
Total | ¥9,222 | ¥12,241 | ¥3,018 | 32.7 |
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, FIVEISM × THREE and
FUJIMI.
POLA is seeking to further improve the value of its brand and establish its customer foundation over the medium to long term, through efforts to launch highly functional products focused on the field of anti-aging and skin- brightening, increase its contact points in the growth markets of China and travel retail, and strengthen online consulting to improve communication during the COVID-19 pandemic. POLA has renewed and improved major products, including the wrinkle-improvingquasi-drug Wrinkle Shot, a new skin-brightening serum from the White Shot series, and Base Make from the B.A series. POLA has also accelerated its online consulting initiatives in the midst of the COVID-19 pandemic to increase the number of customers and maximize the annual life time value (LTV). In addition, its Customer Relations Office is focused on responding to changes in the environment, which led to receive the highest evaluation from third-party organizations. The e-commerce channel has also continued to show strong performance. Overseas, POLA has steadily expanded its business mainly in China and in travel retail, which has largely driven the POLA brand as a whole. As a result, while the impact of COVID-19 still remains, 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. ORBIS is also expanding its skincare customer base, with a focus on the ORBIS U anti-aging skincare series, as well as the sunscreen, Wrinkle White UV Protector, which improves wrinkles and brightens skin, and ORBIS DEFENCERA, the only FOSHU (Food for Specified Health Uses) in Japan with recognized skincare functions. Furthermore, there is an increasing number of users of the subscription service, which was launched with the aim of improving its customer retention rate. ORBIS will continue working to make this service more convenient. Overseas, while ORBIS worked to improve its brand recognition rate by expanding customer contact points in Asia, due to the COVID-19 pandemic, a state near to lockdown has continued in Taiwan, which constitutes a high proportion of our overseas business. Similarly, in Japan, due to slow recovery of demand in makeup product, as well as investment in new businesses, resulted in ORBIS brand net sales and operating income dropping below those of the corresponding period of the previous year.
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POLA ORBIS Holdings Inc. published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2021 06:16:04 UTC.