Financial Results
for the nine months ended September 30, 2022 - Consolidated (Based on IFRS)
November 9, 2022
Company name | Sapporo Holdings Limited |
Security code | 2501 |
Listed on | Tokyo Stock Exchange (Prime Market); Sapporo Securities Exchange |
URL | https://www.sapporoholdings.jp/en/ |
Representative | Masaki Oga, President and Representative Director |
Contact | Satoshi Funakoshi, Director of the Corporate Planning Department |
Telephone | +81-3-5423-7407 |
Scheduled dates: | |
Filing of quarterly financial report | November 11, 2022 |
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, 2022 (January 1 - September 30, 2022)
(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 | 345,812 | 11.9 | 5,750 | 272.4 | 7,533 | (68.5) | 5,327 | (66.0) | |||||||||||
September 30, 2022 | |||||||||||||||||||
Nine months ended | 309,061 | (2.0) | 1,544 | 31.7 | 23,948 | _ | 15,661 | _ | |||||||||||
September 30, 2021 | |||||||||||||||||||
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 | 5,299 | (66.3) | 14,076 | (34.9) | 68.02 | 68.01 | |||||||||||||
September 30, 2022 | |||||||||||||||||||
Nine months ended | 15,731 | _ | 21,617 | _ | 201.95 | 197.72 | |||||||||||||
September 30, 2021 | |||||||||||||||||||
Note: Profit before tax | |||||||||||||||||||
Nine months ended September 30, 2022 | 8,989 million yen | ||||||||||||||||||
Nine months ended September 30, 2021 | 23,883 million yen |
*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
Equity | Ratio of | |||
equity attributable | ||||
Total assets | Total equity | attributable to | ||
to owners of parent | ||||
owners of parent | ||||
to total assets | ||||
million yen | million yen | million yen | % | |
Nine months ended | 640,004 | 174,132 | 173,245 | 27.1 |
September 30, 2022 | ||||
Year ended | 594,551 | 163,327 | 162,570 | 27.3 |
December 31, 2021 | ||||
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, 2021 | |||||||||
Year ending December | - | 0.00 | - | ||||||
31, 2022 | |||||||||
Year ending December | 42.00 | 42.00 | |||||||
31, 2022 (forecast) | |||||||||
Note: Changes to the latest | dividend forecast announced: None |
3. Forecast of Consolidated Earnings for the Year Ending December 31, 2022 (January 1 - December 31, 2022)
(Percentage figures represent year-over-year changes)
Core | Profit attributable | Basic | |||||||||
Revenue | Operating profit | Profit | to | earnings per | |||||||
operating profit | |||||||||||
owners of parent | share | ||||||||||
million yen | % | million yen | % | million yen | % | million | % | million | % | yen | |
yen | yen | ||||||||||
Year | |||||||||||
ending | 478,700 | 9.5 | 10,000 | 22.8 | 7,300 | (66.9) | 5,000 | (59.3) | 5,000 | (59.5) | 64.19 |
December | |||||||||||
Note: Changes to the latest consolidated results forecast announced: None
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4. Other
- Changes to scope of consolidation: Yes New: Stone Brewing Co.,LLC
- 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, 2022: 78,794,298 shares
December 31, 2021: 78,794,298 shares
- Number of shares held in treasury at end of period: September 30, 2022: 896,510 shares December 31, 2021: 896,510 shares
- Average number of outstanding shares during the period:
Nine months ended September 30, 2022: 77,897,741 shares
Nine months ended September 30, 2021: 77,898,123 shares
Audit Status
The quarterly financial results are outside the scope of audit procedures based on 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 9.
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1. Analysis of Operating Results and Financial Condition
(1) Operating Results
In the first nine months of 2022 (January 1 to September 30, 2022), the Group had been affected by the spread of COVID-19 in Japan and overseas since the beginning of the year. However, the lifting of restrictions on behavior after April led to year-on-year increases in Group on- trade beer sales and the sales of beer halls and other dining-out establishments. On the other hand, the outlook remains uncertain, with concerns over rising prices due to factors such as the situation in Ukraine, the rapid depreciation of the yen, and surging prices of raw materials will lead to consumers becoming more cautious with their spending.
In this context, despite a decrease in revenue from the Food & Soft Drinks and Real Estate businesses, overall consolidated revenue increased year-on-year. This was thanks to an increased revenue from the Alcoholic Beverages business due to factors such as a recovery in demand for on-trade market, an increasingly weak yen, and strong sales volumes in the United States.
Overall consolidated core operating profits increased year-on-year, despite decreased profits from the Real Estate business. This was thanks to the contribution of the Alcoholic Beverages business to increased revenue, etc., and the contribution of the Food & Soft Drinks business to profit structure improvements.
1) Summary in key figures (Q3)
Millions of yen, except percentages
Revenue | Core operating profit | Operating profit | Profit attributable to | |
owners of parent | ||||
Nine months ended September | 345,812 | 5,750 | 7,533 | 5,299 |
30, 2022 | ||||
Nine months ended September | 309,061 | 1,544 | 23,948 | 15,731 |
30, 2021 | ||||
Change (%) | 11.9 | 272.4 | (68.5) | (66.3) |
*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.
Alcoholic Beverages
Revenue increased year-on-year thanks to factors such as the recovery of the on-trade market and strong off-trade market sales in the United States.
Core operating profit and operating profit both increased year-on-year, despite increased variable costs due to factors such as increased raw material prices. This was thanks to the effects of increased revenue as well as the effects of profit structure improvements of the Restaurants business.
■Revenue: ¥241.0 billion (up ¥38.9 billion, or 19.3% year on year)
■Core operating profit: ¥4.9 billion (compared with a profit of ¥0.0 billion a year earlier)
■Operating profit: ¥6.8 billion (compared with a loss of ¥0.2 billion a year earlier)
Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages business were as follows.
Japan
On-trade market demand temporarily declined due to the rapid increase of infected individuals during the seventh wave of COVID-19. However, the impact on establishments that serve alcohol was milder than that of restrictions on the serving of alcohol during declarations of state of emergency, etc. last year. In addition, due in part to increased demand ahead of
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price revisions, total domestic demand for beer and beer-type beverages was estimated to have been about 109% year-on-year.
In this context, the Group's total domestic sales volumes of beer and beer-like beverages was 111% year-on-year. This was thanks to an increase in sales volume of on-trade products and an increase in sales of off-trade products due to last-minute demand ahead of price revisions.
Overseas
COVID countermeasures promoted economic resumption and commercial market demand was in recovery mode over the previous year, but in overall North American beer demand both the U.S. and Canada posted year-on-year declines.
In this context, sales of overseas beer brands exceeded that of the previous year thanks to a recovery of the on-trade market in Canada.
Sales of RTDs*, something we are focusing on, are trending above those of the same period last year. In addition, sales of Sapporo brand beer remained strong thanks to the recovery of the on-trade market in the United States, the success of strengthening efforts in the off-trade market, and other factors.
Further, the Group acquired Stone Brewing Co., LLC (Hereinafter, Stone) and made it a consolidated subsidiary at the end of August. This was done for a number of purposes. One was to secure a manufacturing base for further growing the Sapporo brand beer, particularly in the United States. Another was to expand our Beer business by acquiring new brands.
Restaurants
Demand remains unstable in the pub, restaurant, and izakaya industry due to the impact of COVID-19. However, our Restaurants business has shifted to a gradual recovery since the lifting of operating restrictions in April, though additional waves of COVID-19 and other factors do lead to demand fluctuations.
*: RTD, or ready-to-drink beverages, are pre-mixed,low-alcoholcocktail-like beverages that can be consumed as is immediately after opening.
Food & Soft Drinks
Revenue decreased year-on-year due to factors such as decreased sales due to the reduction of unprofitable vending machines and the sell-off of the Cafe business in April.
Core operating profit and operating profit both increased year-on-year, despite increased raw material costs. This was thanks to the contribution of improved profits due to profit structure improvements such as the reduction of unprofitable vending machines and the sell-off of the Cafe business.
■Revenue: ¥89.5 billion (down ¥0.9 billion, or 1.0% year on year)
■Core operating profit: ¥0.8 billion (compared with a loss of ¥0.3 billion a year earlier)
■Operating profit: ¥1.3 billion (compared with a loss of ¥0.0 billion a year earlier)
Although COVID continues to have an impact, the on-trade market and vending machine demand recovered thanks to the relaxation of restrictions, with total domestic beverage demand estimated to be around 109% that of the previous year.
In this context, while lemon beverages trended well thanks to consumers' heightened health consciousness, domestic beverage sales volume decreased due to the reduction of unprofitable vending machines, falling to 99% of the previous year.
As for overseas, domestic revenue in Singapore increased to 104% year-on-year due to the loosening of the country's COVID-19 pandemic restrictions. Exports out of Singapore have also remained strong, growing to 128% year-on-year.
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Sapporo Holdings Limited published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 06:10:02 UTC.