Skylark Holdings Co., Ltd.

FY2021 First Quarter Financial Results

May 14, 2021

Executive Summary

Q1FY2021 Results

  • Sales 64.8bn yen ((21.9)bn yen, (25)%)
  • Same Store Sales (vs.2019)31.1

Same Store Sales (YoY) 23.4%, Traffic29.6)%, ATP +8.7%

    • Delivery sales: 9.9bn yen (+47%YoY), Takeout sales: 5.5bn yen (2.3x YoY)
  • OP (1.3)bn yen ((1.3)bn yen YoY)
    • OP decrease is limited to (1.3)bn yen vs. sales decline of (21.9)bn yen
    • Strengthen our high profit structure by reducing costs by 3.9 billion yen and improving productivity

FY2021 Guidance Revised

Sales

310bn yen 285bn yen ((25.0) bn yen)

OP

5.0bn yen 5.0bn yen (±0)

Dividend

TBD TBD

Copyright © SKYLARK GROUP All rights reserved.

2

1Q2021 Sales Analysis

  • The main factor behind the year-on-year decrease in sales of (21.9)bn yen was the impact of COVID-19 in January and February

Sales (bn yen)

1Q2020

1Q2021

YoY

86.7

64.8

(21.9)

Factors behind monthly

Jan.

Feb.

Mar.

*Sales decrease in March

YoY sales decline

0.0

compare to 2019

(10.0)bn yen

(2.0)

(4.0)

(2.3)bn yen

Shortening of late-night operation

(6.0)

hours

*as of July 2020, store closing

(8.0)

time is 23:30

Shortening of operating hours by

(8.5)

gov't request

(10.0)

bn yen

Store closures

bn yen

(12.0)

(11.1)

COVID-19 impact, others

Copyright © SKYLARK GROUP All rights reserved.

3

Same Store Sales (vs.2019)

  • Under the 1st declaration of a state of emergency, sales declined to approx. 50% compared to 2019, but recovered to approx. 80% after the declaration was lifted
  • Under the declaration of state of emergency in 2021, we were able to secure approx.70% of 2019

120.0%

100.0%

80.0%

60.0%

40.0%

20.0%

of

Apr.

May 25

Jan.

.25

Go To Campaign

Av. sales approx.80

Av .70

% change in weekly average daily sales compared to same store sales for 2019

Copyright © SKYLARK GROUP All rights reserved.

4

Establishing a High Profit Structure

  • Continue cost reduction in Q1
  • Lowered the break-even point to establish a high profit structure

Q1 2020

Q1 2021

Sales 86.7bn yen

64.8bn yen

YoY sales

21.9)bn yen

Estimated profit in

OP

Actual

the profit structure

Actual

in 2020

400mn yen

*(10.6)bn yen

(1.3)bn yen

*Estimated with marginal profit for sales of (21.9)bn yen

Copyright © SKYLARK GROUP All rights reserved.

  • Cost reductions 3.9bn yen
    Labor costs: 1.7bn yen
    Other SG&A: 2.2bn yen
  • One-offfactors 5.3bn yen
    Subsidy for cooperation with shortening of business

hours:

4.0bn yen

  • Gain on sales of insurance agency business: 0.9bn yen
  • Deposit for closing stores: 0.4bn yen

5

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

Attachments

  • Original document
  • Permalink

Disclaimer

Skylark Co. Ltd. published this content on 14 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 14:56:13 UTC.