SENSHUKAI CO., LTD. Summary of Financial Results for the Fiscal Year 2021 (Ended December 31, 2021)
[Japanese GAAP] | ||
February 10, 2022 | ||
Company name: SENSHUKAI CO.,LTD. | Stock exchange: Tokyo Stock Exchange, First Section | |
Stock code: | 8165 | URL: https://www.senshukai.co.jp |
Representative: | Mr. Kenji Kajiwara, President and Representative Director | |
Inquiries: | Mr. Tetsuya Takahashi, Director, General Manager, Corporates Headquarters | |
Tel: +81-6-6881-3220 |
Scheduled date of annual general meeting of shareholders: March 30, 2022
Scheduled date of payment of dividend: March 31, 2022
Scheduled date of filing of Annual Security Report: March 31, 2022
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes (Only a webcast is planned to prevent the spread of COVID -19)
(All amounts are rounded down to the nearest millions of yen)
1. Consolidated Financial Results for the Fiscal Year 2021 (January 1, 2021 - December 31, 2021)
(1) Consolidated operating results
(Percentages represent changes from the same period of the previous fiscal year)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
Fiscal Year 2021 | 73,149 | (12.2) | 349 | - | 520 | - | 308 | - | |||
Fiscal Year 2020 | 83,286 | (6.6) | (389) | - | (3,800) | - | (3,946) | - |
Note: Comprehensive income (millions of yen) | Fiscal Year 2021: 736 (-%) | Fiscal Year 2020: (4,219) (-%) | ||||
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 2021 | 6.64 | - | 0.9 | 0.9 | 0.5 | |
Fiscal Year 2020 | (95.23) | - | (10.6) | (5.5) | (0.5) |
Reference: Equity in earnings (losses) of affiliates (millions of yen) Fiscal Year 2021: 77 Fiscal Year 2020: (3,515)
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Millions of yen | Millions of yen | % | Yen | |
Fiscal Year 2021 | 52,476 | 33,202 | 63.3 | 708.09 |
Fiscal Year 2020 | 63,933 | 32,088 | 50.2 | 699.01 |
Reference: Shareholders' equity (millions of yen) Fiscal Year 2021: 33,202 Fiscal Year 2020: 32,088
(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 | |
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Fiscal Year 2021 | (317) | (603) | (3,066) | 15,665 |
Fiscal Year 2020 | 2,428 | (1,557) | (3,995) | 19,592 |
2. Dividends
Dividend per share | Total dividends | Payout ratio | Dividend on equity | ||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | (total) | (consolidated) | (consolidated) | ||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | ||||
Fiscal Year 2020 | - | 0.00 | - | 0.00 | 0.00 | - | - | - | |||
Fiscal Year 2021 | - | 3.00 | - | 4.00 | 7.00 | 328 | 105.4 | 1.0 | |||
Fiscal Year 2022 | - | 3.00 | - | 4.00 | 7.00 | 93.8 | |||||
(forecasts) | |||||||||||
3. Consolidated Outlook for Fiscal Year 2022 (January 1, 2022 - December 31, 2022)
(Percentages represent changes from the same period of the previous fiscal year)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | ||||||||
owners of parent | share | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Full Year 2022 | 76,000 | - | 200 | - | 300 | - | 350 | - | 7.46 |
Note: Beginning with the fiscal year 2022, Senshukai will apply Accounting Standard for Revenue Recognition ((Accounting Standards Board of Japan (ASBJ) Statement No. 29). The above forecasts incorporate this accounting standard and comparisons with the previous fiscal year are omitted.
* Notes
-
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Excluded: 3 (Dears Brain Inc., PLANETWORK CO., LTD., WONDERSTAGE Co., Ltd.)
Note: Please refer to "3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements (Changes in Significant Subsidiaries during the Period)" on page 14 for further information. - Changes in accounting policies and accounting-based estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards, others: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting-based estimates: None
- Restatements: None
- Number of shares outstanding (common shares)
- Number of shares outstanding at the end of the period (including treasury shares)
Fiscal Year 2021: | 52,056,993 shares | Fiscal Year 2020: | 52,056,993 shares |
2) Number of treasury shares at the end of the period | |||
Fiscal Year 2021: | 5,167,335 shares | Fiscal Year 2020: | 6,151,627 shares |
3) Average number of shares outstanding during the period | |||
Fiscal Year 2021: | 46,444,898 shares | Fiscal Year 2020: | 41,440,388 shares |
(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for Fiscal Year 2021 (January 1, 2021 - December 31, 2021)
(1) Non-consolidated operating results
(Percentages represent changes from the same period of the previous fiscal year)
Net sales | Operating profit | Ordinary profit | Profit | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
Fiscal Year 2021 | 67,190 | (5.6) | 1,005 | (65.1) | 1,304 | (53.9) | (2,939) | - | ||||
Fiscal Year 2020 | 71,157 | 11.2 | 2,883 | - | 2,827 | - | 1,803 | (75.8) | ||||
Net income per share | Diluted net income per share | |||||||||||
Yen | Yen | |||||||||||
Fiscal Year 2021 | (63.28) | - | ||||||||||
Fiscal Year 2020 | 43.53 | - | ||||||||||
(2) Non-consolidated financial position | ||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||
Fiscal Year 2021 | 50,763 | 32,264 | 63.6 | 688.09 | ||||||||
Fiscal Year 2020 | 56,257 | 34,694 | 61.7 | 755.79 | ||||||||
Reference: Shareholders' equity (millions of yen) | Fiscal Year 2021: 32,264 | Fiscal Year 2020: 34,694 |
- This financial report is not subject to audit by certified public accountants or auditing firms.
-
Cautionary statement with respect to forward-looking statements Cautionary statement with respect to forecasts
The above projections are based on information available at the time of release of this report. Actual results could differ significantly from these projections due to a variety of factors. For further details regarding the projections, please refer to page 4.
How to view supplementary information at the financial results meeting
There will be no meeting for the presentation of financial results for 202 1 because of the COVID-19 pandemic. A video of this presentation is planned to be posted on the Senshukai website soon. In addition, materials used for this presentation will be disclosed using the Timely Disclosure network (TDnet) and will be posted on the Senshukai website.
SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021 | ||
Contents of Attachments | ||
1. Overview of Results of Operations | 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Cash Flows | 3 |
(4) | Basic Policy Regarding Distribution of Earnings and Dividends in the Current and Next Fiscal Years | 4 |
(5) Outlook | 4 | |
2. Basic Approach for the Selection of Accounting Standards | 5 | |
3. Consolidated Financial Statements and Notes | 6 | |
(1) | Consolidated Balance Sheet | 6 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income | 8 |
Consolidated Statement of Income | 8 | |
Consolidated Statement of Comprehensive Income | 10 | |
(3) | Consolidated Statement of Changes in Equity | 11 |
(4) | Consolidated Statement of Cash Flows | 13 |
(5) | Notes to Consolidated Financial Statements | 14 |
Going Concern Assumption | 14 | |
Changes in Significant Subsidiaries during the Period | 14 | |
Important Changes in the Scope of Application of the Equity Method | 14 | |
Additional Information | 14 | |
Segment Information | 15 | |
Per Share Information | 18 | |
Significant Subsequent Events | 18 |
- 1 -
SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021
1. Overview of Results of Operations
- Results of Operations
Overview
In 2021, the business environment remained difficult due to repeated declarations of a state of emergency following the resurgence of COVID-19 and to restrictions on economic activity. During the second half of 2021, although restrictions on economic activity were gradually reduced as more people received vaccinations, the outlook for the economy remains uncertain because of a rapid increase in COVID-19 caused by the Omicron variant.
In Japan's retail industry, store sales continue to face challenges due to restrictions on going out and reduced opening hours. Mail-order and online shopping sales are growing steadily because these are firmly established as shopping channels among consumers. The growth of e-commerce is attracting a growing number of new competitors, resulting in even more heated competition. Furthermore, a full-scale recovery of Japan's retail sector is unlikely to happen soon because of the decline in demand linked to staying home for safety during the pandemic and the low level of consumer motivation to make purchases.
In this business environment, sales were firm in the mail-order and online shopping business compared with 2019 pre-pandemic levels. However, sales in this business decreased because the upturn in demand associated with stay- at-home consumption caused by the pandemic settled down compared to the 2020 level. Beginning with the second quarter of 2021, the bridal business was no longer included in the consolidated financial statements because of the sale of shares of three subsidiaries at the end of the first quarter as part of activities involving a reexamination of the Senshukai Group's business portfolio. As a result, net sales in 2021 were down 12.2% to 73,149 million yen. For the same reasons, the mail-order and online shopping businesses reported a decline in earnings, but the bridal business reported fewer losses. As a result, there was an operating profit of 349 million yen compared with a loss of 389 million yen in 2020. Ordinary profit was 520 million yen compared with a loss of 3,800 million yen in 2020. Profit attributable to owners of parent was 308 million yen compared with a loss of 3,946 million yen in 20 20.
Business segment performance was as follows.
Beginning with the first quarter of 2021, the credit card business, which was formerly included in the insurance and credit card business segment, has been reclassified and included in the mail -order and online shopping business segment for better coordination to the membership measures in this business. Due to this change, the insurance and credit card business segment has been renamed as the "insurance business" segment. Prior-year segment information has been revised to incorporate this new segment to permit comparisons.
(Mail-order and Online Shopping Business)
Consolidated sales in the mail-order and online shopping business, which is primarily the catalog and the Internet businesses, decreased 4.7% year-over-year to 64,325 million yen in 2021. Operating profit decreased 66.1% to 894 million yen.
Although the number of members making purchases increased steadily by comparison to the prepandemic 2019, the level of special demand for stay-at-home consumption eased from the level recorded in 2020. Other reasons for the decrease in sales and earnings included the strengthening of the framework for the implementation of the medium - term management plan announced in July 2021, and the increase in fees and person nel expenses incurred to get ready for the 2022 renewal of the core IT system, which is an essential premise for our business reform using digital technologies.
(Bridal Business)
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., a wholly owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of consolidation following the sales of all shares of Dears Brain and PLANETWORK on March 31, 2021. In 2021, when the Group had withdrawn from these businesses, consolidated sales in the bridal business decreased 79.4% year-over-year to 1,733 million yen and there was an operating loss of 1,045 million yen compared with a loss of 3,728 million yen in 2020.
- 2 -
SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased 7.1% year-over-year to 4,732 million yen. Operating profit decreased 34.8% to 302 million yen.
Although orders for outsourced logistics and call center services increased due to the expansion of mail-order sales to corporate clients, both sales and earnings decreased because of a downturn in the demand for products used for protection against becoming infected during the pandemic.
(Insurance Business)
This business provides support, mainly to Belle Maison members, for choosing the most suitable insurance policies. Consolidated sales increased 4.7% year-over-year to 420 million yen and operating profit decreased 1.7% to 189 million yen.
(Others)
Consolidated sales in other businesses, which include childcare support business and manufacturing and sales of cosmetics, increased 3.0% year-over-year to 1,938 million yen. Operating profit decreased 80.5% year-over-year to 7 million yen.
In the childcare support business, earnings decreased because of higher expenses for recruiting activities and for fees and other expenses required for opening new childcare facilities.
(2) Financial Position
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., a wholly owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of consolidation following the sales of all shares of Dears Brain and PLANETWORK in 2021.
Main reason for the following decreases in property, plant and equipment, goodwill and long-term borrowings is the effect of the exclusion of these companies from the consolidation.
Assets totaled 52,476 million yen at the end of 2021, a decrease of 11,457 million yen from the end of 2020.
Current assets decreased 3,149 million yen to 34,463 million yen. The factors included a decrease of 3,927 million yen in cash and deposits. Non-current assets decreased 8,307 million yen to 18,013 million yen. The factors included decreases of 8,196 million yen in property, plant and equipment, 1,203 million yen in goodwill and 1,157 million yen in investments and other assets. There was an increase of 2,249 million yen in intangible assets excluding goodwill because of ongoing activities for the replacement of the main IT system.
Current liabilities decreased 5,363 million yen to 15,966 million yen. The factors included decreases of 2,713 million yen in short-term borrowings, 858 million yen in accounts payable-trade and 742 million yen in accounts payable- other. Non-current liabilities decreased 7,207 million yen to 3,307 million yen. The main factors were decreases of 5,840 million yen in long-term borrowings and 712 million yen in asset retirement obligations.
Net assets increased 1,113 million yen to 33,202 million yen. The factors included booking of profit attributable to owners of parent of 308 million yen, and a decrease of 572 million yen in treasury shares due to disposal of treasury shares for restricted stock compensation. As a result, the equity ratio was 63.3%.
(3) Cash Flows
The balance of cash and cash equivalents at the end of 2021 was 15,665 million yen, a decrease of 3,927 million yen from the end of 2020.
Operating activities used net cash of 317 million yen (net cash provided of 2,428 million yen in 2020). The main cash inflows were depreciation of 981 million yen, an increase in trade payables of 567 million yen and profit before income taxes of 399 million yen. The main cash outflows include an increase in inventories of 2,069 million yen.
Investing activities used net cash of 603 million yen (net cash used of 1,557 million yen in 2020). The main cash inflows include proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation of 2,773 million yen. The main cash outflows include 3,025 million yen for the purchase of intangible assets and 458 million yen for the purchase of property, plant and equipment.
- 3 -
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
SENSHUKAI Co. Ltd. published this content on 11 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2022 07:55:05 UTC.
