Financial Results for the First Quarter

of the Fiscal Year Ending June 30, 2022 [IFRS] (Consolidated)

November 12, 2021

Company name:

QB Net Holdings Co., Ltd.

Listed on: Tokyo Stock Exchange

Code number:

6571

URL: http://www.qbnet.jp/

Representative:

Yasuo Kitano, President CEO

Contact:

Osamu Matsumoto, Director and General Manager of Administration Department

Tel.: +81-3-6418-9190

Scheduled date of quarterly report submission: November 12, 2021

Scheduled date for commencement of dividend payment: -

Supplementary explanatory materials for quarterly financial results: Yes

Quarterly financial results briefings: No

(Rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending June 30, 2022 (July 1, 2021 to September 30, 2021)

(1) Consolidated Operating Results (Cumulative)

(Percentages indicate changes from the same period of the previous fiscal year.)

Profit attributable

Total

Revenue

Operating profit

Profit before tax

Profit

to owners of

comprehensive

parent

income

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

Q1 FYE June 2022

5,052

9.5

432

(2.9)

392

(1.5)

262

(7.7)

262

(7.7)

273

2.7

Q1 FYE June 2021

4,615

(18.8)

445

(41.9)

398

(45.6)

284

(41.7)

284

(41.7)

266

(44.2)

Basic earnings per

Diluted earnings per

share

share

yen

yen

Q1 FYE June 2022

20.44

19.63

Q1 FYE June 2021

22.31

21.29

(2) Consolidated Financial Position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners

owners of parent

of parent

million yen

million yen

million yen

%

Q1 FYE June 2022

30,516

10,451

10,451

34.2

FYE June 2021

30,634

10,156

10,156

33.2

2. Dividends

Annual dividends

End-Q1

End-Q2

End-Q3

Year-end

Total

yen

yen

yen

yen

yen

FYE June 2021

0.00

0.00

0.00

FYE June 2022

FYE June 2022

(Forecast)

0.00

(Note)

Revision from the last announcement of dividend forecast: No

The forecast of the year-end dividend for the fiscal year ending June 30, 2022 has not yet been determined.

3. Consolidated Earnings Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)

(Percentages indicate changes from the same period of the previous fiscal year.)

Profit

Revenue

Operating profit

Profit before tax

Profit

attributable to

Basic earnings

owners of

per share

parent

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

yen

First six months

10,140

9.0

480

33.9

390

46.2

270

17.9

270

17.9

21.02

Full year

20,840

10.1

1,100

137.3

920

221.2

640

162.4

640

162.4

49.09

(Note)

Revision from the last announcement of earnings forecast: No

- 1 -

* Notes

  1. Changes in significant subsidiaries during the period: No
    (Changes in specific subsidiaries with changes in the scope of consolidation)
    Newly consolidated - companies (Company names) -, Excluded - companies (Company names) -
  2. Changes in accounting policies and accounting estimates
    1. Changes in accounting policies required by IFRS: No
    2. Changes in accounting policies other than (i): No
    3. Changes in accounting estimates: No
  3. Number of shares outstanding (common stock)
  1. Number of shares outstanding at the

end of the period (including treasury

Q1 FYE June 2022

12,857,200

shares

FYE June 2021

12,820,900

shares

shares)

(ii)

Number of treasury shares at the

Q1 FYE June 2022

123

shares

FYE June 2021

123

shares

end of the period

(iii)

Average number of shares

outstanding during the period

Q1 FYE June 2022

12,835,970

shares

Q1 FYE June 2021

12,748,297

shares

(cumulative)

  • Quarterly financial results are not subject to quarterly review by certified public accountants or audit firms.
  • Explanation on the appropriate use of earnings forecasts and other special notes (Notes on forward-looking statements)
    Forward-looking statements and others included in this document, including earnings forecasts, are based on information currently available to and certain premises deemed to be rational by the Company, and it is not committed to achieving such. Actual earnings and others may differ due to various factors.
    (How to obtain supplementary explanatory materials for financial results)
    Supplementary explanatory materials for financial results were disclosed on TDnet on the same day. They will also be posted on the Company website.

- 2 -

  • Table of Contents for the Attachment

1. Qualitative Information Regarding the Quarterly Financial Results Under Review ...........................................................

4

(1)

Explanation of Operating Results..............................................................................................................................

4

(2)

Explanation of Financial Position ..............................................................................................................................

5

(3)

Explanation of Information on Future Forecasts Including Consolidated Earnings Forecast ....................................

6

2.Condensed Quarterly Consolidated Financial Statements and Main Notes......................................................................

7

(1)

Condensed Quarterly Consolidated Statement of Financial Position ........................................................................

7

(2)

Condensed Quarterly Consolidated Statement of Profit or Loss ...............................................................................

8

(3)

Condensed Quarterly Consolidated Statement of Comprehensive Income ..............................................................

9

(4)

Condensed Quarterly Consolidated Statement of Changes in Equity .....................................................................

10

(5)

Condensed Quarterly Consolidated Statement of Cash Flows ...............................................................................

12

(6)

Notes on the Condensed Quarterly Consolidated Financial Statements.................................................................

13

- 3 -

1. Qualitative Information Regarding the Quarterly Financial Results Under Review

(1) Explanation of Operating Results

During the consolidated first three months of the fiscal year under review (from July 1, 2021 to September 30, 2021), the Company Group has operated its stores while taking all possible measures to prevent infections amid the impact of new coronavirus infections (hereinafter referred to as "COVID-19") persisting for a long time.

Revenue increased by 437 million yen year on year to 5,052 million yen despite the impact of COVID-19. The status of COVID-19 and its impact on revenue in each country is as described below.

(Million yen)

Cumulative Q1 of

Cumulative Q1 of

Changes

(Excluding

previous fiscal year

current fiscal year

Changes

foreign

(From July 1, 2020 to

(From July 1, 2021 to

exchange

September 30, 2020)

September 30, 2021)

effects)

Domestic

3,832

4,201

368

operations

Overseas

782

851

68

23

operations

Hong Kong

436

486

49

29

Singapore

196

206

9

(2)

Taiwan

129

116

(13)

(25)

United States

19

42

23

22

Consolidated

4,615

5,052

437

23

(Note) Amounts are after deducting intercompany transactions among group companies.

During the state of emergency declared in July 2021, with the exception of some stores that were temporarily closed or opened for shorter business hours due to the decision of the facilities that housed them, we managed to continue business with thorough measures against infections in place. As a result, we saw the number of customers visiting our stores on a recovery path although that number was below the level prior to the spread of COVID-19. Revenue increased by 368 million yen year on year.

With the situation of infections settling down, the number of customers visiting all our stores including new ones has recovered to the level before the spread of COVID-19. Revenue increased by 49 million yen year on year including foreign exchange effects.

As the number of newly infected patients increased, government agencies continued to take measures to prevent infections. As a result, revenue was generally unchanged year on year, including foreign exchange effects.

Revenue decreased by 13 million yen year on year mainly due to preventive measures taken by government agencies as the number of new infections surged in the middle of May 2021.

Although new infections continue to occur, the number of customers visiting our stores is recovering partly due to an easing of preventive measures taken by government agencies. Revenue increased by 23 million yen year on year partly due to price revisions including foreign exchange effects.

Cost of sales decreased by 48 million yen year on year to 4,043 million yen. The main changes are as follows.

(Million yen)

Item

Changes

Main reasons for change

Personnel expenses

(36)

A decrease in the number of store stylists due to the optimization

of personnel

Outsourcing fees

34

An increase in revenue at consigned salons

Consumables

(24)

A decrease in the purchase number due to the start of the reuse

of combs

- 4 -

Selling, general and administrative expenses decreased by 74 million yen year on year to 583 million yen. The main changes are as follows.

(Million yen)

Item

Changes

Main reasons for change

Provision for bonuses

(29)

A decrease in provision for performance-based pay, etc.

Personnel expenses

(24)

A decrease in in-house haircut school trainees and staff in the

head office

Recruitment

(13)

The Company aired help-wanted ads in TV commercials during

expenses

the previous quarter.

Other operating income decreased by 579 million yen from the same period of the previous fiscal year, when we recorded income from employment adjustment subsidies in Japan, to 10 million yen. Other operating expenses decreased by 6 million yen year on year to 4 million yen.

As a result, consolidated earnings in the first three months of the fiscal year under review were as follows: Revenue amounted to 5,052 million yen (up 9.5% year on year), operating profit was 432 million yen (down 2.9% year on year), profit before tax was 392 million yen (down 1.5% year on year), and profit attributable to owners of parent came to 262 million yen (down 7.7% year on year).

In terms of our store network, we opened five stores. The breakdown is four stores in Japan and one overseas, in Hong Kong. Moreover, since we closed three stores mainly due to redevelopment work of railway stations, we had 716 stores as of the end of the first quarter of the fiscal year under review, an increase of two stores from the end of the previous fiscal year.

The description by segment is omitted because the Company Group engages in a single segment of the haircutting business.

(2) Explanation of Financial Position

(i) Assets, liabilities and equity

Assets, liabilities and equity at the end of the first quarter under review were as follows:

Current assets increased by 132 million yen from the end of the previous fiscal year to 5,773 million yen. This was mainly due to an increase of 146 million yen in cash and cash equivalents and an increase of 31 million yen in other current assets. Non-current assets decreased by 250 million yen from the end of the previous fiscal year to 24,742 million yen. This was mainly due to a decrease of 31 million yen in property, plant and equipment and a decrease of 225 million yen in right-of-use assets. As a result, assets decreased by 118 million yen from the end of the previous fiscal year to 30,516 million yen.

Current liabilities decreased by 134 million yen from the end of the previous fiscal year to 7,565 million yen. This was mainly due to a decrease of 110 million yen in lease obligations and a decrease of 82 million yen in other current liabilities. Non-current liabilities decreased by 278 million yen from the end of the previous fiscal year to 12,499 million yen. This was mainly due to a decrease of 171 million yen in borrowings and a decrease of 115 million yen in lease obligations. As a result, liabilities decreased by 412 million yen from the end of the previous fiscal year to 20,065 million yen.

Equity increased by 294 million yen from the end of the previous fiscal year to 10,451 million yen. This was mainly due to an increase of 262 million yen in retained earnings.

(ii) Cash flows

Cash and cash equivalents (hereinafter referred to as "cash") at the end of the first quarter under review increased by 146 million yen from the end of the previous fiscal year to 4,748 million yen. Individual cash flows for the first three months of the fiscal year under review and the factors behind them were as follows:

(Cash flows from operating activities)

Cash provided by operating activities was 1,027 million yen (1,118 million yen provided in the same period of the previous fiscal year). This was mainly attributable to factors causing an increase in cash, such as the recording of profit before tax of 392 million yen and depreciation and amortization of 787 million yen, in contrast to decreasing factors, such as interest paid of 39 million yen and income taxes paid of 38 million yen.

(Cash flows from investing activities)

Cash used in investing activities was 84 million yen (135 million yen used in the same period of the previous fiscal year). This was mainly attributable to factors causing a decrease in cash, such as purchase of property, plant and equipment of 68 million yen and payments of guarantee deposits of 17 million yen.

- 5 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

QB Net Holdings Co. Ltd. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 04:40:07 UTC.