Create Sd Holdings Co., Ltd. · TSE:3148
Create Sd — H1 FYE May 2023 Earnings Presentation
20 slides from Create Sd's earnings presentation, Jan 12, 2023
Slide 1: Financial Results for Q2 of FYE May 2023
Financial Results for Q2 of FYE May 2023 (June 1, 2022 to November 30, 2022) January 12, 2023 The earnings forecasts in this document are based on the business environment as of the time of writing. Actual results may differ from projections due to a variety of factors. Note also that inquiries shou
Slide 2: Agenda
Consolidated Results for H1 of FYE May 2023 1. Consolidated Statement of Income 2. Consolidated Balance Sheet 3. Performance Highlights (Non-Consolidated) Initiatives in H2 of FYE May 2023 1. New store openings 2. Sales measures at drug stores 3. Sales measures at prescription drug stores 4. Promoti
Slide 3: Results for H1 of FYE May 2023
Results for H1 of FYE May 2023 3
Slide 4: 1. Consolidated Statement of Income for H1 of FYE May 2023
1. Consolidated Statement of Income for H1 of FYE May 2023 FYE May 2022 FYE May 2023 H1 Results H1 Results YoY Vs plan (Millions of yen) Share (%) (Millions of yen) Share (%) change (%) (%) Net sales 173,823 100.0 187,392 100.0 107.8 102.8 Gross profit 46,968 27.0 50,989 27.2 108.6 103.8 SG&A expens
Slide 5: 2. Consolidated Balance Sheet for H1 of FYE May 2023
2. Consolidated Statement of Income for H1 of FYE May 2023 May 31, 2022 Nov. 30, 2023 (Millions of yen) Total assets Total assets ■ Current assets -2,084 176,910 185,601(+8,690) Cash and deposits -5,219 Merchandise +1,636 Total Current liabilities ■ Non-current assets +10,774 Total assets Land +6,97
Slide 6: 3. Performance Highlights (Non-Consolidated)
3. Performance Highlights (Non-Consolidated) Store closings: 1 drug store (after completion of contract), ■ Store openings/closings and renovations 1 dedicated prescription drug store (after completion of contract) No. of store openings in H1 of Kanagawa Tokyo Shizuoka Chiba Saitama Annual FYE May 2
Slide 7: 3. Performance Highlights: Existing-store net sales YoY
3. Performance Highlights (Non-Consolidated) ■ H1 YoY net sales comparison at existing stores: 103.6% (OTC: 102.8%; prescriptions: 110.6%) H1 plan: 100.9% (OTC: 99.9%; prescriptions: 109.7%) FYE May 2022 FYE May 2023 FYE May 2023 Plan +8.0 +5.6 +5.8 +6.0 +5.1 +4.1 +4.0 +1.1 +2.3 +2.4 +1.2 +1.9 +2.0
Slide 8: 3. Performance Highlights: Net sales by segment
3. Performance Highlights (Non-Consolidated) ■ Net sales ―Net sales by segment― ・ Growth in medical and health products category arising from 7th wave of COVID-19 (common cold medicines, medical products, and antigen test kits) ・ Increase in prescriptions as percentage of sales with promotion of in-
Slide 9: 3. Performance Highlights: Gross profit margin and SG&A ratio
3. Performance Highlights (Non-Consolidated) ■ Gross profit margin: 27.4% Up 0.2 pts YoY Boosting factors: Increase in prescriptions as a percentage of sales, increase in sales of medical and health products category ■ SG&A ratio: 22.7% Up 0.3 pts YoY ・ Personnel expense ratio: 12.5% Down 0.1 pts Yo
Slide 10: 3. Performance Highlights: Dispensing department
3. Performance Highlights (Non-Consolidated) ■ Dispensing department ―Net sales/No. of prescriptions/prescription unit price― ・ Negative impact of last year’s revision of medical fees is minor as reduction of basic dispensing fee does not apply this year FYE May 2022 FYE May 2023 YoY change H1 Resul
Slide 11: Initiatives in H2 of FYE May 2023
Initiatives in H2 of FYE May 2023 11
Slide 12: 1. New store openings
1. New store openings ■ H2 store openings/closings Forecast as of November 30, 2022 ・Drug stores: 19 stores (Full-year forecast: 35 stores) ・Prescription drug stores: 35 stores (Full-year forecast: 61 stores) Full-year Full-year May 31, 2023 H1 store H2 store store opening store No. of Stores openin
Slide 13: 2. Sales measures at drug stores
2. Sales measures at drug stores ■ Renovations to revitalize ・ Renovations to enhance fresh produce: 11 stores existing stores → Improve convenience by reviewing product lineup ・ Enhancement of fresh produce lineup ・ Renovations to expand prescriptions: 2 stores and promotion of in-store pharmacies
Slide 14: 3. Sales measures at prescription drug stores
3. Sales measures at prescription drug stores ■ Greater dominance in prescription drug stores └Prescription drug store opening forecast for this year: 61 stores (Year-end ： 46.7% rate of in-store pharmacies quickly) ・ As of May 31, 2024: In-store pharmacy rate of 50% (forecast) ・Strengthen cooperati
Slide 15: 3. Sales measures at prescription drug stores (continued)
3. Sales measures at prescription drug stores ■ Introduction of inventory ■ Addressing of demand for e- management system prescriptions ・ Reduce losses on medical and health ・ Some stores have set up demand response products through visualization of system to prepare for start of operations on inven
Slide 16: 4. Promotion of sustainability
4. Promotion of sustainability ■ Disclosure of information based on TCFD recommendations ・ August 2022: Endorsed TCFD recommendations → Disclosed climate change-related information on website including (1) governance, (2) identification of risks and opportunities, (3) risk management system, and (4)
Slide 17: Revised FYE May 2023 Plan
Revised FYE May 2023 Plan 17
Slide 18: 1. Key Points of Revised Plan for Consolidated Performance
1. Key Points of Revised Plan for Consolidated Performance ■ Revised full-year forecasts 1H Full-year Vs initial Vs initial (Millions of yen) Initial target Results target Initial target Revised plan target Net sales 182,270 187,392 +5,122 371,300 376,800 +5,500 Operating profit 7,270 9,235 +1,965 1
Slide 19: 2. Revised FYE May 2023 Plan (Consolidated)
2. Revised FYE May 2023 Plan (Consolidated) FYE May 2022 Results Revised FYE May 2023 Plan Full-year YoY (Millions of yen) Share (Millions of yen) Share (%) (%) change (%) Net sales 350,744 100.0 376,800 100.0 107.4 Gross profit 95,578 27.3 103,550 27.5 108.3 SG&A expenses 77,402 22.1 84,600 22.5 10
Slide 20: Reference: Progress on Medium-term Management Plan
Reference: Progress on Medium-term Management Plan ■ Net sales target (consolidated) (Billions of yen) 450 (Revised plan) FYE May 2025 targets: 376.8 billion yen 420.0 Net sales 420 billion yen 400 371.3 350.7 Ordinary margin 5.0% 350 No. of stores 850 300 In-store pharmacy rate 250 55.0% FYE May FY
Create SD Holdings — H1 FYE May 2023 Earnings Presentation on 6ix