Financial Results for the Fiscal Year Ended June 2021 [IFRS] (Consolidated)
August 13, 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 the Ordinary General Meeting of Shareholders: September 22, 2021
Scheduled date for commencement of dividend payment: -
Scheduled date for securities report submission: September 24, 2021
Supplementary explanatory materials for financial results: Yes
Financial results briefings: Yes
(Rounded down to the nearest million yen)
Consolidated Financial Results for the Fiscal Year ended June 30, 2021 (July 1, 2020 to June 30, 2021)
(1) Consolidated Operating Results | (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 | % | ||||||||||||||||||||
FYE June 2021 | 18,933 | (0.8) | 463 | 93.5 | 286 | 191.9 | 243 | 133.5 | 243 | 133.5 | 311 | 209.7 | |||||||||||||||||||
FYE June 2020 | 19,089 | (8.5) | 239 | (87.8) | 98 | (94.8) | 104 | (91.8) | 104 | (91.8) | 100 | (91.8) | |||||||||||||||||||
Basic earnings per | Diluted earnings per | Return on equity | Profit before tax to | Operating profit | |||||||||||||||||||||||||||
attributable to owners | |||||||||||||||||||||||||||||||
share | share | total assets ratio | margin | ||||||||||||||||||||||||||||
of parent | |||||||||||||||||||||||||||||||
yen | yen | % | % | % | |||||||||||||||||||||||||||
FYE June 2021 | 19.09 | 18.27 | 2.4 | 0.9 | 2.4 | ||||||||||||||||||||||||||
FYE June 2020 | 8.29 | 7.81 | 1.1 | 0.3 | 1.3 | ||||||||||||||||||||||||||
(Reference) Share of profit (loss) of entities accounted for using equity method FYE June 2021 - million yen | FYE June 2020 - million yen | ||||||||||||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||||||||||||
Equity attributable to | Ratio of equity | Equity attributable to | |||||||||||||||||||||||||||||
Total assets | Total equity | attributable to owners | owners of parent | ||||||||||||||||||||||||||||
owners of parent | |||||||||||||||||||||||||||||||
of parent | per share | ||||||||||||||||||||||||||||||
million yen | million yen | million yen | % | yen | |||||||||||||||||||||||||||
FYE June 2021 | 30,634 | 10,156 | 10,156 | 33.2 | 792.22 | ||||||||||||||||||||||||||
FYE June 2020 | 32,721 | 9,786 | 9,786 | 29.9 | 768.46 | ||||||||||||||||||||||||||
(3) Cash flows | |||||||||||||||||||||||||||||||
Cash flows from operating | Cash flows from investing | Cash flows from financing | Cash and cash equivalents | ||||||||||||||||||||||||||||
activities | activities | activities | at end of period | ||||||||||||||||||||||||||||
million yen | million yen | million yen | million yen | ||||||||||||||||||||||||||||
FYE June 2021 | 4,050 | (393) | (4,216) | 4,601 | |||||||||||||||||||||||||||
FYE June 2020 | 2,747 | (838) | 721 | 5,117 | |||||||||||||||||||||||||||
2. Dividends | |||||||||||||||||||||||||||||||
Annual dividends | Dividend | ||||||||||||||||||||||||||||||
Dividend | payout ratio | ||||||||||||||||||||||||||||||
Total amount | to equity | ||||||||||||||||||||||||||||||
payout ratio | attributable to | ||||||||||||||||||||||||||||||
End-Q1 | End-Q2 | End-Q3 | Year-end | Total | of dividends | (Consolidated) | owners of | ||||||||||||||||||||||||
parent | |||||||||||||||||||||||||||||||
(Consolidated) | |||||||||||||||||||||||||||||||
yen | yen | yen | yen | yen | million yen | % | % | ||||||||||||||||||||||||
FYE June 2020 | - | 0.00 | - | 0.00 | 0.00 | - | - | - | |||||||||||||||||||||||
FYE June 2021 | - | 0.00 | - | 0.00 | 0.00 | - | - | - | |||||||||||||||||||||||
FYE June 2022 | |||||||||||||||||||||||||||||||
(forecast) | - | 0.00 | - | - | - | - | |||||||||||||||||||||||||
(Note) | The forecast of the year-end dividend for the fiscal year ending June 30, 2022 has not yet been determined. | ||||||||||||||||||||||||||||||
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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 |
*Notes
-
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) - - Changes in accounting policies and accounting estimates
- Changes in accounting policies required by IFRS: No
- Changes in accounting policies other than (i): Yes
- Changes in accounting estimates: No
(Note) For details, please refer to "3. Consolidated Financial Statements and Main Notes, (6) Notes on the Consolidated Financial Statements (Change in accounting policies)" on page 12 of the Attachment.
- Number of shares outstanding (common stock)
- Number of shares outstanding at
the end of the period (including treasury shares)
(ii) Number of treasury shares at the end of the period
(iii) Average number of shares outstanding during the period
12,820,900 | shares | FYE June 2020 | 12,735,300 | shares |
123 | shares | FYE June 2020 | 123 | shares |
12,771,218 | shares | FYE June 2020 | 12,598,525 | shares |
- Financial results are not subject to audit 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. For information on earnings forecasts, please refer to
"1. Overview of Operating Results, (4) Forecasts" on page 4 of the Attachment.
(How to obtain supplementary explanatory materials for financial results and the content of the financial results briefing) From the perspective of preventing the spread of the novel coronavirus, the Company will post a video explaining its financial results on the Company website on August 19, 2021, instead of holding the conventional financial results briefing. Supplementary explanatory materials used for this video will also be posted on the Company website on the same day.
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QB Net Holdings Co., Ltd. (6571) Financial Results for the Fiscal Year Ended June 2021 [IFRS] (Consolidated)
- Table of Contents for the Attachment
(2) | Overview of Financial Position for the Fiscal Year Ended June 30, 2021 .................................................................... | 6 | |
(3) | Overview of Cash Flows for the Fiscal Year Ended June 30, 2021 ............................................................................. | 6 | |
(4) | Forecasts ..................................................................................................................................................................... | 6 | |
2. | Basic Approach to the Selection of Accounting Standards ............................................................................................... | 7 | |
3. | Consolidated Financial Statements and Main Notes......................................................................................................... | 8 | |
(1) | Consolidated Statement of Financial Position .............................................................................................................. | 8 | |
(2) | Consolidated Statement of Profit or Loss..................................................................................................................... | 9 | |
(3) | Consolidated Statement of Comprehensive Income .................................................................................................. | 10 | |
(4) | Consolidated Statement of Changes in Equity ........................................................................................................... | 11 | |
(5) | Consolidated Statement of Cash Flows ..................................................................................................................... | 13 | |
(6) | Notes on the Consolidated Financial Statements ...................................................................................................... | 14 |
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QB Net Holdings Co., Ltd. (6571) Financial Results for the Fiscal Year Ended June 2021 [IFRS] (Consolidated)
1. Overview of Operating Results
(1) Overview of Operating Results for the Fiscal Year Ended June 30, 2021
During the fiscal year under review (July 1, 2020 to June 30, 2021), quarantine measures taken by administrative bodies in countries in the world remained in place due to the effect of the prolonged novel coronavirus (hereinafter referred to as "COVID-19"), causing a decrease in the number of customers visiting stores as people teleworked and refrained from going out.
Under these circumstances, the Company Group has proceeded with efforts from three viewpoints: the pandemic period, the post-pandemic period and the promotion of SDGs.
(Efforts during the pandemic period)
The Company Group took all possible measures to prevent infections to ensure the safety of customers and employees. To this end, the Group strove to ensure a system in which it could offer services, and customers could use its services with a sense of security continuously under the declaration of a state of emergency except stores that suspended business due to the temporary closure of the facilities that housed them. In addition, the Group reduced fixed costs through measures such as optimizing recruitment and lowering rents, and actively engaged in the integration and abolition of unprofitable stores. This successfully led to an improvement in its earning capacity.
(Efforts with an eye set on the post-pandemic period)
The Company Group has worked to improve customer convenience and satisfaction in anticipation of a recovery stage after COVID-19 is contained. The Company Group sought to enhance the accuracy and efficiency of hair cutting techniques by expanding and strengthening its unique technique training curriculum for beginners who have no prior experience in hair cutting, which the Group had put efforts into for years, and providing the opportunity for existing salon stylists to relearn the basics. Additionally, as part of service improvement, such as shortening waiting time, the Group developed a new app that allowed customers to make a reservation and advance payment and has introduced the app in salons of FaSS and QB PREMIUM. Going forward, the Group will continue endeavoring to further improve functions that help enhance convenience.
(Efforts to promote SDGs)
Based on the idea of avoiding any waste by specializing in hair cutting services, the Company has, since its founding, stuck to the stance of using no water resources for washing hair by replacing shampoo with suction devices (air washers). On the other hand, new combs had been used for each customer during hair treatment. However, as an approach to the recent plastic waste problem, the Company has changed to reusing combs after appropriately disinfecting them. Through this measure, the Company expects to save more than 15 million plastic combs each year.
In terms of our store network, we opened 25 stores. The breakdown is 15 stores in Japan, and overseas, one in Singapore, four in Hong Kong, and five in Taiwan. Moreover, since we closed 26 stores mainly due to integration and abolition of non-profitable stores, we had 714 stores as of the end of the fiscal year under review, a reduction of one store from the end of the previous fiscal year.
Revenue decreased by 155 million yen year on year to 18,933 million yen mainly due to a decline in the number of customers visiting our stores caused by the impact of COVID-19. The status of COVID-19 and its impact on revenue in each country is as described below.
(Million yen) | ||||
Changes | ||||
Previous fiscal year | Current fiscal year | (Excluding | ||
(From July 1, 2019 | (From July 1, 2020 | Changes | foreign | |
to June 30, 2020) | to June 30, 2021) | exchange | ||
effects) | ||||
Domestic | 15,798 | 15,705 | (93) | - |
operations | ||||
Overseas | 3,290 | 3,228 | (62) | (74) |
operations | ||||
Hong Kong | ||||
1,848 | 1,769 | (79) | (56) | |
Singapore | 836 | 836 | 0 | (10) |
Taiwan | 489 | 513 | 24 | (1) |
Americas | 116 | 108 | (7) | (5) |
Consolidated | ||||
19,089 | 18,933 | (155) | (74) |
(Note) Amounts are after deducting intercompany transactions among group companies.
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QB Net Holdings Co., Ltd. (6571) Financial Results for the Fiscal Year Ended June 2021 [IFRS] (Consolidated)
New infections continue to occur, causing us to remain taking measures such as teleworking and self-restraint from going out. During the first declaration of a state of emergency (from April to May 2020), all domestic stores were temporarily closed, resulting in a significant decrease in revenue. In the subsequent declarations of a state of emergency, 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 infection in place. As a result, we were able to report positive revenue in a stable manner, though on a level lower than the period prior to the spread of COVID-19. After bottoming out in January 2021 (January is an off-season each year), revenue has been on a recovery trend as the temperatures rise. On a full-year basis, revenue decreased by 93 million yen year on year.
Revenue declined year on year due in part to the effects of teleworking and self-restraint in going out against the background of quarantine measures taken by administrative bodies in response to an increase in new infections. Most recently, revenue reached a monthly record high in May 2021 and is on a recovery path. For the full year, revenue fell by 79 million yen including foreign exchange effects.
Revenue declined year on year due in part to the effects of teleworking and self-restraint in going out against the background of quarantine measures taken by administrative bodies in response to an increase in new infections. For the full year, revenue was generally unchanged from the same period of the previous fiscal year including foreign exchange effects.
Until mid-May 2021, the occurrence of newly infections was contained, and revenue outperformed the same period of the previous fiscal year. However, as the number of new cases surged in mid-May 2021, administrative bodies tightened quarantine measures, causing revenue to plunge. For the full year, revenue increased by 24 million yen year on year including foreign exchange effects.
New infections were ongoing, and as the quarantine measures of administrative bodies continued, our business had been greatly affected by teleworking and the self-restraint on going out, etc. However, quarantine measures were relaxed due to the acceleration of the vaccine rollout, resulting in revenue picking up. For the full year, revenue decreased by 7 million yen year on year including foreign exchange effects.
Cost of sales increased by 188 million yen year on year to 16,433 million yen. The main changes are as follows.
(Million yen) | |||
Item | Changes | Reason for change | |
The average number of salon stylists during the fiscal year under | |||
Personnel expenses | 471 | review rose partly because consigned salons in Japan joined the | |
Company Group in the previous fiscal year. | |||
Decrease in the number of consigned salons due to the joining | |||
Outsourcing fees | (382) | of the above consigned salons and a fall in revenue of the | |
consigned salons |
Selling, general and administrative expenses decreased by 162 million yen year on year to 2,466 million yen. The main changes are as follows.
(Million yen) | |||
Item | Changes | Reason for change | |
Personnel expenses | 53 | Increase in in-house haircut school trainees and area managers, | |
in particular | |||
Recruitment | (67) | Decrease accompanying optimization of the number of recruits | |
expenses | in the face of a delayed recovery in revenue | ||
Advertising expenses | (39) | Decrease in new store openings and curtailment of sales | |
promotion activities | |||
Travel and | |||
transportation | (34) | Restraints on movement due to the spread of COVID-19 | |
expenses |
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QB Net Holdings Co. Ltd. published this content on 31 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2021 09:31:06 UTC.