Financial Results
for the nine months ended September 30, 2021 - Consolidated (Based on IFRS)
November 5, 2021
Company name | Sapporo Holdings Limited |
Security code | 2501 |
Listed on | Tokyo Stock Exchange (First Section); Sapporo Securities Exchange |
URL | https://www.sapporoholdings.jp/en/ |
Representative | Masaki Oga, President and Representative Director |
Contact | Tatsuya Komatsu, Director of the Corporate Planning Department |
Telephone | +81-3-5423-7407 |
Scheduled dates: | |
Filing of quarterly financial report | November 12, 2021 |
Commencement of dividend payments | - |
Supplementary information to the quarterly earnings results | Available |
Quarterly earnings results briefing held | Yes |
(mainly targeted at institutional | |
investors and analysts) |
1. Consolidated Financial Results for the nine months ended September 30, 2021 (January 1 - September 30, 2021)
(Amounts in million yen rounded to the nearest million yen)
(1) Operating Results
(Percentage figures represent year-over-year changes)
Revenue | Core operating | Operating profit | Profit | ||||||||||||||||
profit | |||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||||||||||
Nine months ended | 309,061 | (2.0) | 1,544 | 31.7 | 23,948 | _ | 15,661 | _ | |||||||||||
September 30, 2021 | |||||||||||||||||||
Nine months ended | 315,346 | (12.7) | 1,173 | (81.7) | (2,041) | _ | (1,162) | _ | |||||||||||
September 30, 2020 | |||||||||||||||||||
Profit attributable to | Total comprehensive | Basic earnings | Diluted earnings | ||||||||||||||||
owners of parent | income | per share | per share | ||||||||||||||||
million yen | % | million yen | % | Yen | yen | ||||||||||||||
Nine months ended | 15,731 | _ | 21,617 | _ | 201.95 | 197.72 | |||||||||||||
September 30, 2021 | |||||||||||||||||||
Nine months ended | (925) | _ | (8,084) | _ | (11.87) | (11.87) | |||||||||||||
September 30, 2020 | |||||||||||||||||||
Note: Profit before tax |
Nine months ended September 30, 2021:23,883 million yen
Nine months ended September 30, 2020: (2,850) million yen
Note: Core Operating Profit is a proprietary profit indicator that measures the performance consistency of our business. Core operating profit is calculated as Revenue - Cost of sales - SG&A expenses.
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(2) Financial Position
Total assets | Total equity | Equity attributable | Equity ratio | |
to owners of | attributable to | |||
parent | owners of parent | |||
million yen | million yen | million yen | % | |
Nine months ended | 576,843 | 167,818 | 167,099 | 29.0 |
September 30, 2021 | ||||
December 31, 2020 | 616,349 | 149,551 | 149,781 | 24.3 |
2. Dividends
Dividend per share | |||||||||
Record date or period | End Q1 | End Q2 | End Q3 | Year-end | Full year | ||||
Yen | yen | Yen | yen | yen | |||||
Year ended December | - | 0.00 | - | 42.00 | 42.00 | ||||
31, 2020 | |||||||||
Year ending December | - | 0.00 | - | ||||||
31, 2021 | |||||||||
Year ending December | 42.00 | 42.00 |
31, 2021 (forecast)
Note: Changes were made to dividends forecasts in the nine months ended September 30, 2021: None
3. Forecast of Consolidated Earnings for the Year Ending December 31, 2021 (January 1 - December 31, 2021)
(Percentage figures represent year-over-year changes)
Revenue | Core operating | Operating | Profit | Profit attribute to | Basic earnings | ||||||||
profit | profit | owners of parent | per share | ||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | Yen | |||
Year ending | 447,200 | 2.9 | 6,700 | 57.2 | 18,000 | _ | 12,000 | _ | 12,000 | _ | 154.05 | ||
December | |||||||||||||
31, 2021 |
Note: Changes were made to earnings forecasts in the nine months ended September 30, 2021: None
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4. Other
(1) Changes to scope of consolidation: None
*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: - | Newly excluded: - |
- Changes in accounting policy, changes in accounting estimates, and retrospective restatement
- Changes in accounting policies required by IFRS: None
- Changes other than 1) above: None
- Changes in accounting estimates: None
- Number of shares issued and outstanding (common stock)
-
Number of shares issued at end of period (treasury stock included): September 30, 2021: 78,794,298 shares
December 31, 2020: 78,794,298 shares - Number of shares held in treasury at end of period: September 30, 2021: 896,091 shares December 31, 2020: 896,951 shares
- Average number of outstanding share during the period:
-
Number of shares issued at end of period (treasury stock included): September 30, 2021: 78,794,298 shares
Nine months ended September 30, 2021: 77,898,123 shares
Nine months ended September 30, 2020: 77,897,518 shares
*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial Instruments and Exchange Act.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information available to the Company as of the date of this document. Actual results may differ from those expressed or implied by forward-looking statements due to various factors. For the assumptions underlying the forecasts herein and other information on the use of earnings forecasts, refer to "1. Analysis of Operating Results and Financial Condition (4) Consolidated Earnings Forecast" on page 7.
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1. Analysis of Operating Results and Financial Condition
(1) Operating Results
In the first nine months of 2021 (January 1 to September 30, 2021), the Group was impacted by Japan's repeated issuances of state of emergency due to the COVID-19 pandemic and restrictions on the service of alcoholic beverages due to semi-state of emergency measures, which caused sales of commercial-use beer and sales to restaurants such as beer halls to decline compared to the same period of the previous year.
However, the core operating profit increased year on year due to a curtailment in expenses from cost structure reforms. Additionally, operating profit and net profit attributable to owners of parent were up year on year due to the sale of investment properties.
1) Summary in key figures
Millions of yen, except percentages
Revenue | Core operating profit | Operating profit | Profit attributable to | |
owners of parent | ||||
Nine months ended September | 309,061 | 1,544 | 23,948 | 15,731 |
30, 2021 | ||||
Nine months ended September | 315,346 | 1,173 | (2,041) | (925) |
30, 2020 | ||||
Change (%) | (2.0) | 31.7 | ― | ― |
*Core operating profit is the Sapporo Group's unique profit benchmark for measuring the performance of its regular business and is calculated by deducting cost of sales, and selling, general and administrative expenses, from revenue.
Results by segment are outlined below.
2) Results by reportable segment
Millions of yen, except percentages
Revenue | Core operating profit | Operating profit | ||||||||
Nine months | Nine months | Nine months | Nine months | Nine months | Nine months | |||||
ended | ended | Change | ended | ended | Change | ended | ended | Change | ||
September. | September. | (%) | September. | September. | (%) | September. | September. | (%) | ||
30, 2020 | 30, 2021 | 30, 2020 | 30, 2021 | 30, 2020 | 30, 2021 | |||||
Alcoholic | 206,797 | 202,029 | (2.3) | 317 | 45 | (85.9) | (3,655) | (182) | ― | |
Beverages | ||||||||||
Food & | 90,966 | 90,399 | (0.6) | (2,346) | (257) | ― | (2,469) | (13) | ― | |
Soft Drinks | ||||||||||
Real Estate | 17,459 | 16,510 | (5.4) | 8,003 | 6,398 | (20.0) | 8,609 | 28,555 | 231.7 | |
Alcoholic Beverages
Japan
The commercial-use market in the country has been significantly impacted by the COVID-19 pandemic. Total demand in Japan for beer and beer-type beverages is estimated to have only reached around 91% of the year-earlier level.
Amidst this situation, in the beer category, commercial-use beer sales volume declined, but sales of canned Sapporo Draft Beer Black Label and Yebisu brand beers were strong, with sales volumes at 114% and 104% of the previous year's level, respectively. In the new genre category, Sapporo Gold Star, which won three awards in Japan and overseas, continued its success, with an increase of 5% year on year in sales volume. As a result, total sales of beer and beer-type beverages stood at 91% of the year-earlier level.
In addition, we launched a low-alcohol,beer-like drink The DRAFTY in September 2021, taking on the challenge of creating new markets.
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In the RTD*1 category, sales of Sapporo Koime no Lemon Sour, a new product launched in March 2021, were strong, while sales of core collaborative RTD product Otoko Ume Sour were also steady, driving category revenue significantly higher year on year.
Our Japanese liquor business also posted a year-on-year increase in revenue with sustained solid sales of Kokuimo brand, Japan's best-selling*2 blended imo shochu, as well as Koime no Lemon Sour no Moto.
Overseas
The overseas commercial-use market has been impacted by the COVID-19 pandemic. Total demand in North America for beer and beer-type beverages is estimated to have increased year on year, as it is on a recovery trend in the United States, while it decreased year on year in Canada.
Under this trend, although overseas brands saw a decrease year on year in beer sales volume in the course of strategic product changes by Sleeman Breweries, our focus RTD sales volume increased year on year.
Sales volume of Sapporo brand beer were up year on year, since the commercial-use market recovered thanks to removed operating restrictions placed on restaurants in the United States, in addition to the success of strengthening efforts in the home-use market.
Restaurants
The entire restaurant industry, including pub restaurants and izakaya, has been suffering substantial impacts from the COVID-19 pandemic since 2020. In the Company's restaurant business, many restaurants were closed or had shortened operating hours during the period of restricted sales of alcoholic beverages.
Amidst these challenges, the business experienced a decrease in revenue yet an improvement in core operating loss year on year, after efforts to bolster menus along with take-out and delivery products, close unprofitable restaurants, and shift to a low-cost,low-operation business format, among other initiatives.
As a result of the above factors, revenue in the Alcoholic Beverages segment for the first nine months of 2021 came to ¥202.0 billion (down ¥4.8 billion or 2% year on year). The segment posted a core operating profit of ¥0.0 billion (down ¥0.3 billion or 86% year on year) and an operating loss of ¥0.2 billion (compared with a loss of ¥3.7 billion a year earlier).
*1: RTD, or ready-to-drink beverages, are pre-mixed,low-alcoholcocktail-like beverages that can be consumed as is immediately after opening.
*2: Based on Intage SRI market research on combined blended imo shochu sales in the supermarket, convenience store, and direct sales channels from December 2019 to September 2021.
Food & Soft Drinks
Although total demand in Japan for soft drinks continued to expand due to the lesser impact of the COVID-19 pandemic compared to the previous year and the hot weather that lasted until the early August, growth is estimated to have remained flat year on year because of the decrease after the torrential rains mainly in western Japan in the mid-August.
Against this backdrop, in the domestic soft drink business, sales of lemon-based soft drinks such as Kireto Lemon were strong on rising health consciousness, and posted a solid increase of 14% year on year.
The Craft Cola, which we revamped in September, also helped to attract attention, and the total sales volume for soft drinks was on a par year on year.
In the domestic food business, the sales volume of cold canned soups soared by 29% year on year. Lemon-based food products grew in sales volume by 6% year on year, as Pokka Lemon continued
to perform well due to the expansion in household demand.
Plant-based milk products also saw a 6% year-on-year increase in its sales volume, with our soymilk yogurt products contributing to this increase thanks to rising health consciousness. In addition, we launched GreenBio Almond Milk Yogurt (plain, unsweetened) in September to further revitalize the
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Sapporo Holdings Limited published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 06:11:28 UTC.