BELC CO., LTD. Consolidated Financial Results
for the Three Months Ended May 31, 2022
[Japanese GAAP]
July 8, 2022
Company name: Belc CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9974
URL: https://www.belc.jp
Representative: Issei Harashima, President and Representative Director
Contact: Hideo Ueda, Senior Managing Director; Associate GM of Compliance Office; Responsible for Finance and Accounting Department and Operations Support Department, and in charge of Legal Affairs
Phone: +81-49-287-0111
Scheduled date of filing quarterly securities report: July 12, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary explanatory materials on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 31, 2022 (March 1, 2022 - May 31, 2022)
(1) Consolidated Operating Results (Cumulative) | (% indicates changes from the previous corresponding period.) | |||||||||
Operating income | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
May 31, 2022 | 74,050 | - | 2,986 | - | 3,120 | (12.1) | 2,078 | (13.5) | ||
May 31, 2021 | 73,369 | 3.8 | 3,341 | (21.9) | 3,551 | (20.8) | 2,401 | (6.6) |
(Note) Comprehensive income: Three months ended May 31, 2022: ¥2,086 million [(13.5)%] Three months ended May 31, 2021: ¥2,412 million [(6.7)%]
Basic earnings | Diluted earnings | |
per share | per share | |
Three months ended | Yen | Yen |
May 31, 2022 | 99.59 | - |
May 31, 2021 | 115.07 | - |
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) and other related accounting standards from the beginning of the fiscal year ending February 28, 2023. While the above consolidated operating results reflect the application of these accounting standards, changes from the previous corresponding period for operating income and operating profit are not provided as the figures for the previous fiscal year were prepared using a different accounting process.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of May 31, 2022 | 152,213 | 84,554 | 55.6 |
As of February 28, 2022 | 153,214 | 83,650 | 54.6 |
(Reference) Equity: As of May 31, 2022: ¥84,554 million As of February 28, 2022: ¥83,650 million
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) and other related accounting standards from the beginning of the fiscal year ending February 28, 2023. The figures for the fiscal year ending February 28, 2023 reflect the application of these accounting standards.
2. Dividends | ||||||||||||||||||
Annual dividends | ||||||||||||||||||
1st quarter- | 2nd quarter- | 3rd quarter- | Year-end | Total | ||||||||||||||
end | end | end | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||
Fiscal year ended | - | 43.00 | - | 47.00 | 90.00 | |||||||||||||
February 28, 2022 | ||||||||||||||||||
Fiscal year ending | - | |||||||||||||||||
February 28, 2023 | ||||||||||||||||||
Fiscal year ending | 45.00 | - | 45.00 | 90.00 | ||||||||||||||
February 28, 2023 | ||||||||||||||||||
(Forecast) | ||||||||||||||||||
(Note) Revision to the forecast for dividends announced most recently: None | ||||||||||||||||||
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023 | ||||||||||||||||||
(% indicates changes from the previous corresponding period.) | ||||||||||||||||||
Profit attributable | Basic earnings | |||||||||||||||||
Operating income | Operating profit | Ordinary profit | to owners of | |||||||||||||||
per share | ||||||||||||||||||
parent | ||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||||||||
Full year | 296,166 | - | 13,193 | - | 13,223 | (4.8) | 8,850 | (3.7) | 424.14 |
(Notes) Revision to the financial results forecast announced most recently: None
The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) and other related accounting standards from the beginning of the fiscal year ending February 28, 2023. While the above forecast reflect the application of these accounting standards, changes from the previous corresponding period for operating income and operating profit are not provided as the figures for the previous fiscal year were prepared using a different accounting process.
* Notes:
-
Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: -
Excluded: - - Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
(Note) For the details, please refer to "2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on page 8.
(4) Total number of issued and outstanding shares (common shares)
1) | Total number of issued and outstanding shares at the end of the period (including treasury shares): | |
May 31, 2022: | 20,867,800 shares | |
February 28, 2022: | 20,867,800 shares | |
2) | Total number of treasury shares at the end of the period: | |
May 31, 2022: | 1,287 shares | |
February 28, 2022: | 1,287 shares |
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
Three months ended May 31, 2022: | 20,866,513 shares |
Three months ended May 31, 2021: | 20,866,647 shares |
- These quarterly consolidated financial results are outside the scope of quarterly reviews by certified public accountants or an audit firm.
-
Explanation of the proper use of financial results forecasts and other notes
The business outlook and other forward-looking statements in these materials are based on information currently available to the Company and certain assumptions that are deemed reasonable. Actual financial results, etc. may significantly vary from these forecasts due to various factors. For the assumptions used in the above financial results forecasts and other related matters, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 3.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results for the Period under Review ........................ | 2 | |
(1) | Explanation of Operating Results .................................................................................................... | 2 |
(2) | Explanation of Financial Position .................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements .. | 3 |
2. Quarterly Consolidated Financial Statements and Principal Notes ...................................................... | 4 | |
(1) | Quarterly Consolidated Balance Sheets ........................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ................................... | 6 |
Quarterly Consolidated Statements of Income ................................................................................. | 6 | |
Quarterly Consolidated Statements of Comprehensive Income ....................................................... | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements .................................................................... | 8 |
(Notes on going concern assumption) ......................................................................................... | 8 | |
(Notes in case of significant changes in shareholders' equity) .................................................... | 8 | |
(Changes in accounting policies) ................................................................................................. | 8 | |
(Changes in presentation) ............................................................................................................ | 9 | |
(Additional information) ............................................................................................................. | 9 |
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1. Qualitative Information on Quarterly Financial Results for the Period under Review
-
Explanation of Operating Results
The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) and other related accounting standards from the beginning of the first quarter of the consolidated fiscal year ending February 28, 2023. While the key financial data for the three months ended May 31, 2022 reflects the application of these accounting standards, changes from the previous corresponding period for operating income and operating profit are not provided as the figures for the previous fiscal year were prepared using a different accounting process.
During the three months ended May 31, 2022, the Japanese economy is expected to recover as a result of various government policies taken while social and economic activities are being normalized, with full measures against COVID-19. However, due care must be taken with respect to the risk of the recurring spread of infection overseas, the protracted conflict in Ukraine, and the impact of changes in the financial and capital markets causing downturns. The economic outlook remains uncertain.
In the retail industry, although consumer spending shows some signs of recovery, a sharp drop in the exchange value of the yen has caused severe business conditions, including increased transportation costs due to soaring crude oil prices, and higher purchase prices for food products due to rising raw material prices.
In this environment, the Belc Group (the "Group") has worked to sell delicious and fresh products, emphasize our price appeal, and create stores that are supported and trusted by customers, led by our motto of "Better Quality & Lower Price," so that we, as a supermarket, can provide members of local communities with richer lives.
Below is an overview of the main initiatives we have implemented.
As for our sales measures, we have continued with business as usual, supplied products, and fulfilled our role as a lifeline in communities while employing various measures to prevent the spread of COVID-19. In April, we made efforts to give a wider-range of customers more incentives to visit our stores, including a massive promotional campaign in which customers won big prizes, and product promotions on social media. We have also been enhancing the convenience of our customers by gradually expanding the stores that support "Belc otodoke (delivery) pack," our online grocery shopping service, and "smabelc," a service that enables smart shopping and eases the lines at the check-out counters. Furthermore, we have pushed ahead with our efforts to provide shopping assistance to the elderly and other customers through increasing the availability of our mobile supermarket, "Tokushimaru."
As for our product measures, we have promoted select products using conceptual flyers that focus on the products. We have also further expanded our offering of products in our private label, "kurabelc (Belc for everyday life)," including a campaign in March to celebrate the 4th anniversary of the brand, successively launching reasonably priced products that help improve people's daily lives.
As for our store operations, we have used the Company's greatest feature, our standardized corporate structure, as a foundation on which we have firmly established our labor scheduling program (LSP), appropriately allocated personnel, and leveraged labor-saving equipment to promote efficient chain operations.
As for our store investments, we opened one new store, Forte Abiko Store in Abiko City, Chiba Prefecture in April 2022. In addition, we renovated two existing stores, expanded their deli and convenience food selections, and updated the facilities to provide more pleasant shopping environments. As a result, we operate 127 stores as of May 31, 2022.
We have leveraged the strength of our in-house logistics to carry out large-scale batch procurement of products from production sites and manufacturers, through which we aim to improve our delivery efficiency and product price competitiveness while achieving more consistent product quality. We have also continued to review and revise our delivery system based on the work performed at stores, and to improve the efficiency of store operations.
Meanwhile, our consolidated subsidiary Home Delica Co., Ltd. has increased the production capacity of
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Belc Co. Ltd. published this content on 12 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2022 03:03:07 UTC.
