ISTYLE INC. August 15, 2022 | ||
Summary of Consolidated Financial Results | ||
for the Fiscal Year Ended June 30, 2022 | ||
[Japanese GAAP] | ||
Company name: | istyle Inc. | Stock exchange listings: Prime Market of the TSE |
Securities code: | 3660 | URL: https://www.istyle.co.jp/en |
Representative: | Tetsuro Yoshimatsu, Representative Director, CEO | |
Contact: | Kei Sugawara, Director, CFO | Tel: +81-3-6161-3660 |
Scheduled date of Annual General Meeting of Shareholders: | September 26, 2022 | |
Scheduled date of filing Annual Securities Report: | September 27, 2022 | |
Scheduled date of dividend payment: | - | |
Preparation of supplementary materials for financial results: | Yes | |
Holding of financial results briefing: | Yes (For analysts and institutional investors) |
(All amounts are rounded off to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021 - June 30, 2022)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable to | ||||||||||||||
owners of the parent company | |||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||
Fiscal year ended June 30, 2022 | 34,401 | 11.2 | (453) | - | (593) | - | (571) | - | |||||||||
Fiscal year ended June 30, 2021 | 30,950 | 1.3 | (604) | - | (795) | - | 379 | - | |||||||||
Note: Comprehensive income (million yen) | Fiscal year ended June 30, 2022: 571 (-8.5 %) | ||||||||||||||||
Fiscal year ended June 30, 2021: 624 (- %) | |||||||||||||||||
Net income per | Diluted net income | Return on equity | Ordinary income | Operating income | |||||||||||||
share | per share | to total assets | to net sales | ||||||||||||||
Yen | Yen | % | % | % | |||||||||||||
Fiscal year ended June 30, 2022 | |||||||||||||||||
(8.00) | - | (7.0) | (2.7) | (1.3) | |||||||||||||
Fiscal year ended June 30, 2021 | 5.50 | 5.28 | 5.8 | (3.4) | (2.0) | ||||||||||||
Reference: Equity in earnings of affiliates: Fiscal year ended June 30, 2022: 107 million yen
Fiscal year ended June 30, 2021: (194) million yen
Note: Diluted net income per share for the fiscal year ended June 30, 2022 is not disclosed even though dilutive shares exist, because the Company recorded net income losses.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | ||
Million yen | Million yen | % | Yen | ||
As of June 30, 2022 | |||||
22,168 | 8,652 | 38.1 | 118.31 | ||
As of June 30, 2021 | 22,235 | 8,109 | 35.5 | 110.60 | |
Reference: Total equity | As of June 30, 2022: | 8,454 million yen | |||
As of June 30, 2021: | 7,902 million yen |
(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Million yen | Million yen | Million yen | Million yen | |
Fiscal year ended June 30, 2022 | 1,276 | (1,529) | (1,354) | 5,690 |
Fiscal year ended June 30, 2021 | 1,553 | 389 | (1,557) | 7,094 |
2. Dividends
Dividend per share | Total | Payout ratio | Dividend on | |||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | dividends | (consolidated) | equity | |
(consolidated) | ||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |
Fiscal year ended June 30, 2021 | - | 0.00 | - | 0.00 | 0.00 | - | - | - |
Fiscal year ended June 30, 2022 | - | 0.00 | - | 0.00 | 0.00 | - | - | - |
Fiscal year ending June 30, 2023 | - | 0.00 | - | 0.00 | 0.00 | - | ||
(forecasts) |
3. Consolidated Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 - June 30, 2023)
(Percentages represent year-on-year changes)
Net income
Net income
Net salesOperating incomeOrdinary income attributable to owners of the
parent company
per share
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full | 40,000 | 16.3 | 500 | - | 170 | - | 30 | - | 0.42 |
year | |||||||||
* Notes
- Changes in significant subsidiaries during the period (changes in scope of consolidation): Yes Exclusion: 1 subsidiary: istyle USA, Inc.
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
(3) Number of shares outstanding (common shares)
1) | Number of shares issued (including treasury shares) at end of period | |
As of June 30, 2022: | 74,146,800 shares | |
As of June 30, 2021: | 74,146,800 shares | |
2) | Number of treasury shares at end of period | |
As of June 30, 2022: | 2,693,567 shares | |
As of June 30, 2021: | 2,693,567 shares | |
3) | Average number of shares outstanding during the period | |
Fiscal year ended June 30, 2022: | 71,453,233 shares | |
Fiscal year ended June 30, 2021: | 68,995,843 shares |
Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021 - June 30, 2 022)
(1) Non-consolidated results of operations | (Percentages represent year-on-year changes) | |||||||||
Net sales | Operating income | Ordinary income | Net income | |||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Fiscal year ended June 30, 2022 | 7,012 | 5.7 | (610) | - | 458 | - | 517 | - | ||
Fiscal year ended June 30, 2021 | 6,632 | (4.9) | (172) | - | (732) | - | (1,106) | - | ||
Net income per share | Diluted net income per share | |||||||||
Yen | Yen | |||||||||
Fiscal year ended June 30, 2022 | 7.23 | 7.23 | ||||||||
Fiscal year ended June 30, 2021 | (16.04) | - |
Note: Diluted net income per share for the fiscal years ended June 30, 2021 have not been disclosed because the Company recorded net income losses although there were outstanding dilutive shares.
(2) Non-consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |||
Million yen | Million yen | % | Yen | |||
As of June 30, 2022 | 19,988 | 6,116 | 30.6 | 85.58 | ||
As of June 30, 2021 | 19,354 | 5,288 | 27.0 | 73.18 | ||
Reference: Total equity | As of June 30, 2022 6,115 million yen | As of June 30, 2021 | 5,229 million yen |
- The current summary report is not subject to audit by certified public accountants or auditing corporations.
- Cautionary statement with respect to forecasts and other matters
- Earnings forecasts and other forward-looking statements in this report are based on assumptions judged to be valid and information available to the Company at the time of this report's preparation. Actual performance may differ significantly from these forecasts for a number of reasons. For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to "1. Operating Results and Financial Position (4) Future Outlook" on page 6 in the accompanying material.
- The Company is scheduled to hold a briefing for analysts and institutional investors on August 16, 2022.
- This financial report is solely a translation of the original Japanese "Kessan Tanshin" document, wh ich has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.
Accompanying Materials - Contents
1. Operating Results and Financial Position | 2 | |
(1) | Analysis of Operating Results | 2 |
(2) | Consolidated Financial Position | 4 |
(3) | Status of Cash Flows | 5 |
(4) | Future Outlook | 6 |
2. Basic Rationale Regarding the Selection of Accounting Standards | 6 | |
3. Consolidated Financial Statements and Relevant Notes | 7 | |
(1) | Consolidated Balance Sheets | 7 |
(2) | Consolidated Statements of Income and Comprehensive Income | 10 |
(3) | Consolidated Statements of Changes in Net Assets | 13 |
(4) | Consolidated Statements of Cash Flows | 15 |
(5) | Notes on Consolidated Financial Statements | 17 |
(Notes on the Going-concern Assumption) | 17 | |
(Changes in Accounting Policies) | 17 | |
(Additional Information) | 18 | |
(Segment Information) | 19 | |
(Per share Information) | 22 | |
(Significant Subsequent Events) | 22 |
1
1. Operating Results and Financial Position
(1) Analysis of Operating Results
Business sentiment in the cosmetics industry remains deeply negative due to the impact of the novel coronavirus (COVID- 19), which has resulted in reduced consumer willingness to make purchases, fewer opportunities to wear cosmetics as consumers refrain from outings to prevent the spread of the virus, and the disappearance of demand from overseas visitors to Japan. In response, there has been a clear tendency among cosmetics manufacturers to pursue digital transformation (DX)*1, with a shift to the use of digital advertising channels and strengthening of E-Commerce. As a result, we expect to see increased opportunities for business growth as a company providing a platform for integrated services combining media, E- Commerce, and retail stores.
The istyle Group posted record net sales in the current fiscal year despite the impact of government restrictions, such as the declaration of a state of emergency and priority measures to prevent the spread of the disease, which were announced for approximately five months mainly in the Tokyo metropolitan area, a marked return of human flow and recovery in demand for cosmetics after March 2022 led to an increase in store sales. In addition to an increase in store sales, growth in EC, including sales expansion of @cosme BEAUTY DAY, a special EC event in the Beauty Service segment, and an increase in advertising and solutions sales in the On Platform segment contributed to a record-high sales.
Despite a rise in SG&A expenses, including increases in depreciation and amortization of software in the On Platform segment and provision for bonuses, operating income improved year on year due to increase in gross profit due to higher sales.
In addition, we recorded an extraordinary profit of 208 million yen, including a 114 million yen on step acquisitions due to acquisition of shares in South Korean company Glowdayz Inc., which became a subsidiary in August 2021. We also recorded an extraordinary loss of 305 million yen, including a 211 million yen impairment loss associated with an impairment charge on lower profitability of overseas retail stores.
As a result, the consolidated operating performance for this fiscal year was as follows:
Net sales: | 34,401 million yen (30,950 million yen in previous fiscal year: |
11.2% year-on-year increase) | |
Operating loss: | 453 million yen (604 million yen loss in previous fiscal year) |
Ordinary loss: | 593 million yen (795 million yen loss in previous fiscal year) |
Loss before income taxes: | 690 million yen (558 million yen income in previous fiscal year) |
Net loss attributable to owners of | 571 million yen (379 million yen income in previous fiscal year) |
the parent company: |
*1 Digital transformation (DX): Company reforms leveraging data and digital technologies, of products, services, business models, work flows, organizational structures, processes, and company culture, with the aim of increasing adaptability to sudden changes in the business environment, better responding to the needs of customers and society, and establishing competitive advantages.
1) On Platform segment
The On Platform segment comprises services based on the beauty portal site @cosme, including B-to-B services and B-to-C
services.
2
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Istyle Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 07:52:04 UTC.
