H2O RETAILING CORPORATION Consolidated Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2024 (Japanese accounting standards)
Nov. 2, 2023 | |||||||||||||||||||||
Company name | H2O RETAILING CORPORATION | Listing | Tokyo Stock Exchange | ||||||||||||||||||
Securities code | 8242 | URL https://www.h2o-retailing.co.jp/en | |||||||||||||||||||
Representative | Title: | President and Representative Director (Name) | ARAKI Naoya | ||||||||||||||||||
Inquiries | Title: | Executive Officer | (Name) | YOSHIMATSU | (TEL) 06-6365-8120 | ||||||||||||||||
Hiroyuki | |||||||||||||||||||||
Scheduled date of filing of the financial report | Nov. 10, 2023 Scheduled date of dividend payment Nov. 30, 2023 | ||||||||||||||||||||
Preparation of supplementary materials | : | Yes | |||||||||||||||||||
Briefing session on financial results | : | Yes (For institutional investors and analysts ) | |||||||||||||||||||
(Figures are rounded down to the nearest million yen. ) | |||||||||||||||||||||
Consolidated Financial Results (Apr. 1, 2023 to Sep. 30, 2023) | |||||||||||||||||||||
(1) Consolidated operating results (Cumulative) | (Percentages indicate year-on-year changes. ) | ||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable | ||||||||||||||||||
to owners of parent | |||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||
2Q of FY2024 | 318,543 | 4.6 | 9,897 | 788.4 | 10,664 | 276.1 | 6,294 | 125.6 | |||||||||||||
2Q of FY2023 | 304,425 | 28.4 | 1,114 | - | 2,835 | - | 2,790 | △65.5 | |||||||||||||
(NOTE) Comprehensive income 2Q of FY2024 | 12,809Millions of yen | (△20.7%) | FY2023 | 16,145Millions of yen | (22.5%) | ||||||||||||||||
Earnings | Earnings | ||||||||||||||||||||
Per share | |||||||||||||||||||||
Per share | |||||||||||||||||||||
(Diluted) | |||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
2Q of FY2024 | 54.47 | 54.02 | |||||||||||||||||||
2Q of FY2023 | 22.64 | 22.48 | |||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||
Total assets | Net assets | Owner's Equity ratio | |||||||||||||||||||
Millions of yen | Millions of yen | % | |||||||||||||||||||
2Q of FY2024 | 691,634 | 281,177 | 37.1 | ||||||||||||||||||
FY2023 | 686,423 | 272,814 | 36.2 | ||||||||||||||||||
(Reference) Shareholders' equity2Q of FY2024 | 256,569Millions of yen | FY2023 | 248,821Millions of yen | ||||||||||||||||||
2.Dividends | |||||||||||||||||||||
Annual Dividends | |||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fiscal Year End | Total | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||
FY2023 | - | 12.50 | - | 12.50 | 25.00 | ||||||||||||||||
FY2024 | - | 12.50 | |||||||||||||||||||
FY2024 (Forecast) | - | 15.50 | 28.00 | ||||||||||||||||||
(Note 1) Revision to recently disclosed dividends forecast | : | Yes |
(Note 2) Breakdown of dividends of FY2024: ¥12.50 Special Payments ¥3.00
(Note 3) Regarding dividends, please refer " Notice regarding difference between Forecast and results for the Second Quarter and Revision of Forecasts and Year-End Dividend Forecasts for the Fiscal Year Ending March 31, 2024."
Forecast of Consolidated Financial Results for the Fiscal Year Ending Mar. 31, 2024 (Apr. 1, 2023 to Mar. 31, 2024) (Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Earnings | ||||||
to owners of parent | Per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
FY2024 | 680,000 | 8.3 | 22,000 | 93.2 | 22,500 | 73.0 | 13,000 | △20.6 | 112.84 | |
(Note 1) Revision to recently disclosed consolidated business results forecast | :Yes |
(Note 2) Regarding revision of the forecast, please refer to "Notice regarding difference between Forecast and results for the Second
Quarter and Revision of Forecasts and Year-End Dividend Forecasts for the Fiscal Year Ending March 31, 2024".
(Note 3) The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31,2020) and other standards from the beginning of the first quarter of FY2022.
Consolidated gross sales, which is equivalent to net sales up to FY2021 excluding the effects of changes in accounting policies, amounted to 1,050,000 million yen (up 7.2% year on year) for the full year.
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.
* Notes | ||
(1) Changes of significant subsidiaries during the period | : | None |
(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
(2) Adoption of special accounting methods for preparing quarterly consolidated | : None | |||||||
financial statements | ||||||||
(3) Changes in accounting policies, changes in accounting estimates or restatements | ||||||||
① | Changes in accounting policies due to changes in consolidated | : | None | |||||
accounting standards | ||||||||
② | Changes in accounting policies other than ① | : | None | |||||
③ | Changes in accounting estimates | : | None | |||||
④ | Restatement of due to correction | : | None | |||||
(4) Number of shares issued and outstanding (common shares) | ||||||||
① | Number of shares outstanding at the end of the | |||||||
period | 2Q of FY2024 | 125,201,396Shares | FY2023 | 125,201,396Shares | ||||
(including treasury stock) | ||||||||
② | Number of treasury stock at the end of the period | 2Q FY2024 | 9,989,192Shares | FY 2023 | 8,813,548Shares | |||
③ Average number of shares outstanding | ||||||||
2Q of FY2024 | 115,549,145Shares | 2Q of FY2023 | 123,218,745Shares | |||||
(quarterly consolidated cumulative period) | ||||||||
* | Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or | |||||||
an audit corporation. | ||||||||
* | Explanations and other special notes concerning the appropriate use of business performance forecasts |
・The forecasts of consolidated financial results in this document are based on information available as of the date this document is released. Actual business and other results may differ from the forecasts due to various factors. Please refer to the " P.3 2. of Attached Materials: Forecast of FY2024" for the assumptions upon which forecasts are based and the cautionary statements regarding the use of forecasts.
○Accompanying Materials
1.Status of financial results | 2 |
2.Forecast of FY2024 | 3 |
3.Quarterly Consolidated Financial Statements | 4 |
(1) Quarterly Consolidated Balance Sheets | 4 |
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income | 6 |
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1.Status of financial results
- Sales
Consolidated net sales were ¥318,543 million, 104.6% year on year. Consolidated gross sales, which are equivalent to net sales up to the fiscal year before the application of Accounting Standard for Revenue Recognition, excluding the effects of changes in accounting policies, amounted to ¥505,189 million, 109.5% year on year. In Department Store Business, in addition to steady domestic sales, inbound sales increased significantly. In Supermarket Business, existing store sales increased year on year due to an increase in unit prices and a recovery in number of customers, resulting an increase in overall consolidated sales.
- Operating Profit and Ordinary Profit
Operating profit was ¥9,897 million, 888.4% year on year and ordinary profit was ¥10,664 million, 376.1% year on year), both record highs for the 2Q consolidated cumulative period, due to the improvement in profits accompanying the growth in sales in Department Store Business and the increase in profits in each segment.
(Department Store Business)
Domestic sales continued to make steady progress as the number of customers increased in line with the normalization of economic activities due to the recovery from the COVID-19 disaster. In addition, inbound sales, centered on high-end items, increased significantly, surpassing FY2019 results.
In Hankyu Main Store, sales in all categories increased from the previous year due to further recovery of outgoing needs. Overall sales of fashion, including cosmetics, were strong, and sales of jewelry, watches, and luxury brand fashions continued to grow.
Selling, general and administrative expenses were lower than planned due to efforts to control advertising and other costs, despite an increase in personnel expenses, utilities expenses, and expenses sales related expenses, such as card fees.
As a result of the above, gross sales were ¥259,140 million, 117.5% year on year and operating profit was ¥7,039 million, 432.9% year on year.
(Supermarket Business)
In Supermarket business, gross sales were ¥210,904 million, 102.5% year on year and operating profit was ¥4,123 million, 250.9% year on year.
Existing store sales at Izumiya Hankyu Oasis Co., Ltd. were 104.0% year on year (number of customers: 101.0%, average spend per customer: 103.0%). Existing store sales at Kansai Super Market Ltd. were 104.6% year on year (number of customers: 100.0%, average spend per customer: 104.5%). Both companies recorded year on year increases in existing store sales due to an increase in average customer spend as a result of price hike and a recovery in number of customers.
To improve sales and margins, in addition to measures to attract customers, such as promoting regular sales promotions on weekdays, we strengthened initiatives for delicatessen items, private-brand products, and priority sales products.
Selling, general and administrative (SG&A) expenses were lower than the results for the previous fiscal year due to efforts to control expenses through the implementation of fixture and other improvements to increase productivity and the optimization of store staff organization.
Profits at food manufacturing subsidiaries increased as Hankyu Delica i Co., Ltd. and Hankyu Bakery Co., Ltd. increased their wholesale sales outside the Group and specialty store sales.
(Shopping Center Business)
Gross sales were ¥15,807 million, 90.3% year on year and operating profit was ¥1,792 million, 206.7% year on year. In H2O Shopping Center Development Co., Ltd., which operates management of Izumiya Shopping Center and sales of apparel and home products at Izumiya stores, we worked to strengthen profitability, optimize expenses, and strengthen collaboration with local communities. Although sales declined due to the reduction of direct operation area and the
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closure of Izumiya Shopping Center stores, efforts to increase tenant sales and the installation of new event parcels were better than planned, and cost control also contributed to the increase in profit. Oi Development Co., Ltd., which operates business hotels, posted increases in both sales and profits as occupancy rates exceeded 90%, reflecting the success of aggressive efforts to capture demand through flexible pricing measures under recovering both business and tourism demand.
(Other businesses)
Gross sales were ¥19,336 million, 109.0% year on year and operating profit was ¥1,318 million (operating loss of ¥1,563 million in the previous year). Due to the recovery of business environment from COVID-19, sales of specialty store subsidiary increased. The subsidiary in the other business, which excluded the holding company, recorded an increase of ¥321 million in operating profit.
- Profit attributable to owners of parent
Profit attributable to owners of parent was ¥6,294 million, 225.6% year on year due to an extraordinary income of ¥988 million including gain on sales of non-current assets by H2O Shopping Center Development Co., Ltd. and an extraordinary loss of ¥1,178 million including loss on retirement of non-current assets of ¥794 million associated with the renovation of Hankyu Main Store and the remodeling of Kobe Hankyu and Takatsuki Hankyu.
2. Forecast of FY2024
Consolidated forecast of FY2024 is as follows, based on the results of the first half of the current fiscal year and the current situation.
(Millions of yen) | |
FY2024 | |
Net sales | 680,000 |
Operating profit | 22,000 |
Ordinary profit | 22,500 |
Profit attributable to owners of parent | 13,000 |
3
3.Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen) | |||||
FY2023 | 2Q of FY2024 | ||||
(As of Mar. 31, 2023) | (As of Sep. 30, 2023) | ||||
Assets | |||||
Current assets | |||||
Cash and deposits | 58,670 | 54,994 | |||
Notes and accounts receivable - trade | 68,572 | 67,972 | |||
Merchandise and finished goods | 19,800 | 20,019 | |||
Work in process | 149 | 189 | |||
Raw materials and supplies | 1,285 | 1,017 | |||
Accounts receivable - other | 8,055 | 8,036 | |||
Other | 5,306 | 5,600 | |||
Allowance for doubtful accounts | △430 | △627 | |||
Total current assets | 161,408 | 157,202 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Buildings and structures, net | 125,783 | 127,621 | |||
Machinery, equipment and vehicles, net | 2,839 | 3,326 | |||
Land | 162,665 | 161,117 | |||
Construction in progress | 1,465 | 1,136 | |||
Other, net | 10,498 | 10,464 | |||
Total Property, plant and equipment, net | 303,253 | 303,666 | |||
Intangible assets | |||||
Goodwill | 1,690 | 1,436 | |||
Other | 18,074 | 22,592 | |||
Total intangible assets | 19,764 | 24,028 | |||
Investments and other assets | |||||
Investment securities | 101,249 | 107,604 | |||
Long-term loans receivable | 11,454 | 10,391 | |||
Guarantee deposits | 70,903 | 70,100 | |||
Retirement benefit asset | 4,548 | 5,047 | |||
Deferred tax assets | 14,901 | 14,643 | |||
Other | 1,683 | 1,665 | |||
Allowance for doubtful accounts | △2,743 | △2,716 | |||
Total investments and other assets | 201,997 | 206,736 | |||
Total non-current assets | 525,015 | 534,432 | |||
Total assets | 686,423 | 691,634 | |||
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(Millions of yen) | |||||
FY2023 | 2Q of FY2024 | ||||
(As of Mar. 31, 2023) | (As of Sep. 30, 2023) | ||||
Liabilities | |||||
Current liabilities | |||||
Notes and accounts payable - trade | 63,674 | 70,422 | |||
Current portion of long-term loans borrowings | 15,350 | 5,350 | |||
Accounts payable - other | 27,877 | 29,832 | |||
Lease obligations | 839 | 760 | |||
Income taxes payable | 5,395 | 2,812 | |||
Gift certificates | 8,908 | 8,809 | |||
Advances received | 32,820 | 34,412 | |||
Provision for bonuses | 4,740 | 5,793 | |||
Provision for directors' bonuses | 109 | 94 | |||
Provision for loss on store closings and others | 1,947 | 695 | |||
Provision for temporary expenses associated with | 682 | - | |||
reforms of human resource | |||||
Asset retirement obligations | 570 | 172 | |||
Other | 13,139 | 12,892 | |||
Total current liabilities | 176,055 | 172,047 | |||
Non-current liabilities | |||||
Bonds payable | 20,000 | 20,000 | |||
Long-term loans payable | 143,917 | 143,706 | |||
Long-term accounts payable - other | 325 | 192 | |||
Lease obligations | 10,280 | 9,917 | |||
Deferred tax liabilities | 31,735 | 33,709 | |||
Deferred tax liabilities for land revaluation | 266 | 266 | |||
Provision for directors' retirement benefits | 207 | 181 | |||
Provision for redemption of gift certificates | 3,247 | 3,321 | |||
Long-term guarantee deposits | 10,572 | 10,416 | |||
Net defined benefit liability | 13,028 | 12,841 | |||
Asset retirement obligations | 3,444 | 3,401 | |||
Other | 526 | 455 | |||
Total non-current liabilities | 237,553 | 238,409 | |||
Total liabilities | 413,608 | 410,457 | |||
Net assets | |||||
Shareholders' equity | |||||
Capital shares | 17,796 | 17,796 | |||
Capital surplus | 94,882 | 94,695 | |||
Retained earnings | 105,473 | 110,312 | |||
Treasury shares | △11,938 | △13,800 | |||
Total shareholders' equity | 206,213 | 209,003 | |||
Accumulated other comprehensive income | |||||
Valuation difference on available-for-sale securities | 42,925 | 46,996 | |||
Revaluation reserve for land | 303 | 303 | |||
Foreign currency translation adjustment | 1,188 | 1,943 | |||
Remeasurements of defined benefit plans | △1,808 | △1,676 | |||
Total accumulated other comprehensive income | 42,608 | 47,565 | |||
Share acquisition rights | 1,200 | 1,248 | |||
Non-controlling interests | 22,792 | 23,358 | |||
Total net assets | 272,814 | 281,177 | |||
Total liabilities and net assets | 686,423 | 691,634 | |||
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Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income Consolidated income statement for the quarter
2Q consolidated cumulative accounting period
(Millions of yen) | |||
2Q of FY2023 | 2Q of FY2024 | ||
(From Apr. 1, 2022 | (From Apr. 1, 2023 | ||
To Sep. 30, 2022) | To Sep. 30, 2023) | ||
Net sales | 304,425 | 318,543 | |
Cost of sales | 177,891 | 181,496 | |
Gross profit | 126,533 | 137,047 | |
Selling, general and administrative expenses | 125,419 | 127,150 | |
Operating profit | 1,114 | 9,897 | |
Non-operating income | |||
Interest income | 277 | 155 | |
Dividend income | 629 | 668 | |
Share of profit of entities accounted for using equity | - | 61 | |
method | |||
Gain on debt settlement | 421 | 346 | |
Foreign exchange gains | 1,357 | 164 | |
Other | 401 | 516 | |
Total non-operating income | 3,088 | 1,912 | |
Non-operating expenses | |||
Interest expenses | 492 | 446 | |
Provision for redemption of gift certificates | 339 | 273 | |
Share of loss of entities accounted for using equity | 225 | - | |
method | |||
Other | 310 | 424 | |
Total non-operating expenses | 1,367 | 1,145 | |
Ordinary profit | 2,835 | 10,664 | |
Extraordinary income | |||
Gain on sale of non-current assets | 4,973 | 988 | |
Subsidy income | 55 | - | |
Total extraordinary income | 5,029 | 988 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 707 | 794 | |
Office relocation expenses | 273 | 282 | |
Loss on store closings | 1,400 | 101 | |
Loss related to COVID-19 | 380 | - | |
Loss on withdrawal of system development | 279 | - | |
Expenses for store openings | 102 | - | |
Total extraordinary losses | 3,144 | 1,178 | |
Profit before income taxes | 4,719 | 10,473 | |
Income taxes - current | 1,659 | 2,350 | |
Income taxes - deferred | △113 | 329 | |
Total income taxes | 1,546 | 2,680 | |
Profit | 3,173 | 7,793 | |
Profit attributable to non-controlling interests | 383 | 1,498 | |
Profit attributable to owners of parent | 2,790 | 6,294 | |
6
Quarterly Consolidated Statements of Comprehensive Income 2Q consolidated cumulative accounting period
(Millions of yen) | |||
2Q of FY2023 | 2Q of FY2024 | ||
(From Apr. 1, 2022 | (From Apr. 1, 2023 | ||
To Sep. 30, 2022) | To Sep. 30, 2023) | ||
Profit | 3,173 | 7,793 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | 11,055 | 4,131 | |
Foreign currency translation adjustment | 574 | 288 | |
Remeasurements of defined benefit plans | 166 | 130 | |
Share of other comprehensive income of entities | 1,176 | 466 | |
accounted for using equity method | |||
Total other comprehensive income | 12,972 | 5,016 | |
Quarterly comprehensive income | 16,145 | 12,809 | |
(Comprehensive income attributable to) | |||
Comprehensive income attributable to owners of parent | 15,792 | 11,251 | |
Comprehensive income attributable to non-controlling | 352 | 1,557 | |
interests | |||
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H2O Retailing Corporation published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 06:16:52 UTC.
