August 8, 2024 | ||
Summary of Consolidated Financial Results | ||
for the First Quarter of the Fiscal Year Ending March 31, 2025 | ||
(Three Months Ended June 30, 2024) | ||
[Japanese GAAP] | ||
Company name: | AOKI Holdings Inc. | Listings: Tokyo Stock Exchange |
Stock code: | 8214 | URL: https://www.aoki-hd.co.jp/ |
Representative: | Haruo Tamura, President | |
Contact: | Satoshi Eguchi, General Manager of IR Office | Tel: +81-45-941-1388 |
Scheduled date of payment of dividend: | - |
Preparation of supplementary materials for financial results: | Yes |
Holding of financial results meeting: | None |
Note: The original disclosure in Japanese was released on August 8, 2024 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 - June 30, 2024)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | ||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||||
owners of parent | |||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||||||
Three months ended Jun. 30, 2024 | 42,887 | 3.2 | 2,354 | 3.3 | 2,213 | 1.2 | 1,623 | 12.7 | |||||||||||||
Three months ended Jun. 30, 2023 | 41,549 | 5.9 | 2,278 | 47.3 | 2,187 | 57.3 | 1,439 | 14.7 | |||||||||||||
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2024: | 1,419 | (down 11.5%) | |||||||||||||||||||
Three months ended Jun. 30, 2023: | 1,604 | (up 9.5%) | |||||||||||||||||||
Net income per | Diluted net income | ||||||||||||||||||||
share | per share | ||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||
Three months ended Jun. 30, 2024 | 19.32 | - | |||||||||||||||||||
Three months ended Jun. 30, 2023 | 17.06 | - | |||||||||||||||||||
(2) Consolidated financial position | |||||||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||||||
Million yen | Million yen | % | |||||||||||||||||||
As of Jun. 30, 2024 | 222,681 | 135,367 | 60.7 | ||||||||||||||||||
As of Mar. 31, 2024 | 236,327 | 137,056 | 57.9 | ||||||||||||||||||
Reference: Shareholders' equity (million yen) | As of Jun. 30, 2024: 135,087 | As of Mar. 31, 2024: 136,757 | |||||||||||||||||||
2. Dividends | |||||||||||||||||||||
Dividend per share | |||||||||||||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||
FY3/24 | - | 13.00 | - | 37.00 | 50.00 | ||||||||||||||||
FY3/25 | - | ||||||||||||||||||||
FY3/25 (forecasts) | 15.00 | - | 40.00 | 55.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 191,500 | 2.0 | 15,000 | 8.2 | 14,600 | 10.3 | 8,000 | 5.6 | 95.21 |
Note: Revisions to the most recently announced consolidated forecast: None
* Notes
- Significant changes in the scope of consolidation during the period: None
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- 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 |
(4) Number of shares outstanding (common shares)
1) | Number of shares outstanding (including treasury shares) at the end of the period | |||
As of Jun. 30, 2024: | 86,649,504 shares | As of Mar. 31, 2024: | 86,649,504 shares | |
2) | Number of treasury shares at the end of the period | |||
As of Jun. 30, 2024: | 2,627,197 shares | As of Mar. 31, 2024: | 2,626,986 shares | |
3) Average number of shares outstanding during the period | ||||
Three months ended Jun. 30, 2024: | 84,022,398 shares | Three months ended Jun. 30, 2023: | 84,399,275 shares |
Note 1: Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: None
Note 2: Cautionary statement with respect to forecasts and other matters Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for the forecast shown above.
Supplementary materials for financial results
Supplementary materials for financial results will be available on the Company's website immediately after the earnings announcement on Thursday, August 8, 2024.
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025 | ||
Contents of Attachments | ||
Pages | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) Quarterly Consolidated Statement of Income and | ||
Quarterly Consolidated Statement of Comprehensive Income | 6 | |
Quarterly Consolidated Statement of Income | 6 | |
Quarterly Consolidated Statement of Comprehensive Income | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Changes in Accounting Policies | 8 | |
Segment Information | 8 | |
Significant Changes in Shareholders' Equity | 9 | |
Going Concern Assumption | 9 | |
Notes to Consolidated Statement of Cash Flows | 9 |
1
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, there was a recovery of the Japanese economy at a moderate pace backed by firm consumer spending as the labor market and personal income improved. The outlook for the economy is still uncertain because of turmoil in many areas of the world and the continuation of inflation as the yen 's depreciation raises the cost of energy and raw materials.
Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings increased in the first quarter. Net sales increased 3.2% from one year earlier to 42,887 million yen, operating profit increased 3.3% to 2,354 million yen, ordinary profit increased 1.2% to 2,213 million yen, and profit attributable to owners of parent increased 12.7% to 1,623 million yen.
Business segment performance was as follows.
Fashion Business
One highlight of the first quarter was the expansion of merchandise in the Air Cool Series of apparel featuring breathable fabrics for comfort during hot summer days. Selections include suits, combinations of jackets and slacks, business shirts, and other items. In the women's apparel category, main product lines include Air Cool Suits, which are comfortable and stylish, and jackets with outstanding functions in the MeWORK Series for comfort during the summer. This business also increased the lineup of tops and other associated items. ORIHICA added the new product lineups for summer, including BIZSPO Slacks, BIZ Polo Shirts and BIZ T (t-shirts), to the BIZSPO Series of business casual apparel with a sporty styling. One ORIHICA store opened during the first quarter. As a result, the number of stores increased from 593 at the end of the previous fiscal year to 594 at the end of the first quarter.
First quarter sales benefited from these actions and firm sales at existing stores. However, earnings were held dow n by the higher cost of purchasing merchandise, more advertising to attract customers and other factors. As a result, sales in this segment increased 3.3% year on year to 21,803 million yen and operating profit decreased 29.0% year on year to 907 million yen.
Entertainment Business
KAIKATSU CLUB café complexes are continuing to add private rooms with locks and offering customers a variety of items made possible by collaborations with other companies. One example is "Kaikatsu-no Natsumen (summer noodles)" with an original broth, which was developed with a well -known manufacturer. COTE D'AZUR karaoke stores expanded the food and beverage selection with a new drink menu, a happy hour between opening time and 6:00 in the evening, and other steps. FiT24, which operates 24-hourself-service fitness gyms, offered trial use at no cost and days when people can use gyms at no cost and conducted a campaign that gives members a discount for bringing in new members. Another priority was measures to increase the use of indoor golf facilities at these gyms. During the first quarter, KAIKATSU CLUB opened one café while two COTE D'AZUR karaoke facilities were closed due to measures to improve efficiency. As a result, including the 88 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 51 franchised stores), the number of locations in this business decreased from 784 at the end of the previous fiscal year to 779 at the end of the first quarter.
Segment sales and earnings increased because of these measures and firm sales at existing locations. Sales in this segment increased 0.9% to 18,204 million yen and operating profit increased 24.8% to 1,496 million yen.
Anniversaire and Bridal Business
There were many activities to receive orders for weddings, including the Shining Wedding Gown Cathedral Wedding Fair campaign during the Golden Week holiday period in early May. Another major activity was measures to cover an increasingly diverse range of needs, such as by offering wedding ceremonies that include a pet, a service that has been consistently popular since it started. ANNIVERSAIRE Café added seasonal dessert selections that were very popular.
Sales increased 15.6% to 2,360 million yen and there was an operating loss of 213 million yen compared with a loss of 209 million yen one year earlier First quarter performance was supported by the operations of ANNIVERSAIRE Omotesando, which was closed for remodeling one year earlier, but held down by a small decrease in the number of weddings at existing locations.
2
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
Real Estate Leasing Business
Segment sales increased 32.2% to 1,681 million yen and operating profit increased 76.6% to 390 million yen mainly because of the leasing of properties to tenants outside the AOKI Group in the previous fiscal year.
- Explanation of Financial Position Balance sheet position
Assets
Total assets at the end of the first quarter decreased 13,645 million yen from the end of the previous fiscal year to 222,681 million yen primarily because of a decrease in accounts receivable-trade.
Current assets decreased 12,698 million yen mainly due to decreases of 6,972 million yen in accounts receivable-trade caused by seasonal and other factors and 5,050 million yen in cash and deposits. Non-current assets decreased 947 million yen due to a decrease of 1,224 million yen in investments and other assets, including deferred tax assets, while property, plant and equipment increased 423 million yen.
Liabilities
Current liabilities decreased 7,734 million yen from the end of the previous fiscal year. There were decreases of 4,728 million yen in accounts payable-trade due to seasonal and other factors and 1,967 million yen in accrued income taxes due to the payment of income taxes. Non-current liabilities decreased 4,221 million yen due to a decrease of 4,258 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets decreased 1,689 million yen from the end of the previous fiscal year. There was a decrease of 1,485 million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The plan for first quarter sales and earnings at the beginning of the current fiscal year was somewhat conservative due to the assumption that the upturn in activity following the pandemic would end. However, first quarter sales and operating profit were slightly higher than the pace required to accomplish the fiscal year plan mainly because of the strong performance of the Entertainment Business.
There are no revisions to the forecasts for the fiscal year ending in March 2025 , which was announced on May 10, 2024, due to uncertainty about the outlook for the business climate. Most significant is concerns about the increasing tendency of consumers to hold down expenditures in response to inflation as the yen's depreciation raises the cost of energy and raw materials.
3
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
2. Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheet
(Millions of yen) | |||
FY3/24 | First quarter of FY3/25 | ||
(As of Mar. 31, 2024) | (As of Jun. 30, 2024) | ||
Assets | |||
Current assets | |||
Cash and deposits | 35,657 | 30,606 | |
Accounts receivable-trade | 15,442 | 8,470 | |
Inventories | 22,247 | 21,827 | |
Other | 8,496 | 8,243 | |
Allowance for doubtful accounts | (42) | (46) | |
Total current assets | 81,800 | 69,102 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 64,406 | 64,157 | |
Land | 30,693 | 30,771 | |
Other, net | 15,941 | 16,536 | |
Total property, plant and equipment | 111,042 | 111,465 | |
Intangible assets | 6,771 | 6,644 | |
Investments and other assets | |||
Guarantee deposits | 6,446 | 6,381 | |
Leasehold deposit | 18,873 | 18,917 | |
Other | 11,446 | 10,222 | |
Allowance for doubtful accounts | (52) | (52) | |
Total investments and other assets | 36,713 | 35,468 | |
Total non-current assets | 154,526 | 153,579 | |
Total assets | 236,327 | 222,681 | |
4
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
(Millions of yen) | |||
FY3/24 | First quarter of FY3/25 | ||
(As of Mar. 31, 2024) | (As of Jun. 30, 2024) | ||
Liabilities | |||
Current liabilities | |||
Accounts payable-trade | 18,713 | 13,985 | |
Current portion of long-term borrowings | 9,842 | 9,842 | |
Income taxes payable | 2,106 | 138 | |
Provision for bonuses | 3,790 | 858 | |
Provision for bonuses for directors (and other officers) | 240 | 38 | |
Other | 17,165 | 19,259 | |
Total current liabilities | 51,857 | 44,123 | |
Non-current liabilities | |||
Long-term borrowings | 32,687 | 28,428 | |
Retirement benefit liability | 607 | 599 | |
Asset retirement obligations | 7,914 | 7,920 | |
Other | 6,203 | 6,242 | |
Total non-current liabilities | 47,412 | 43,191 | |
Total liabilities | 99,270 | 87,314 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 23,282 | 23,282 | |
Capital surplus | 22,597 | 22,597 | |
Retained earnings | 92,813 | 91,327 | |
Treasury shares | (3,047) | (3,047) | |
Total shareholders' equity | 135,645 | 134,160 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 741 | 570 | |
Remeasurements of defined benefit plans | 369 | 356 | |
Total accumulated other comprehensive income | 1,111 | 927 | |
Non-controlling interests | 299 | 279 | |
Total net assets | 137,056 | 135,367 | |
Total liabilities and net assets | 236,327 | 222,681 | |
5
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
- Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
(For the Three-month Period)
(Millions of yen) | |||
First three months of FY3/24 | First three months of FY3/25 | ||
(Apr. 1, 2023 - Jun. 30, 2023) | (Apr. 1, 2024 - Jun. 30, 2024) | ||
Net sales | 41,549 | 42,887 | |
Cost of sales | 25,067 | 25,762 | |
Gross profit | 16,481 | 17,124 | |
Selling, general and administrative expenses | 14,203 | 14,770 | |
Operating profit | 2,278 | 2,354 | |
Non-operating profit | |||
Interest income | 21 | 23 | |
Dividend income | 4 | 6 | |
Other | 62 | 36 | |
Total non-operating profit | 88 | 66 | |
Non-operating expenses | |||
Interest expenses | 79 | 65 | |
Loss on retirement of non-current assets | 13 | 15 | |
Loss on store closings | 31 | 65 | |
Other | 55 | 61 | |
Total non-operating expenses | 180 | 207 | |
Ordinary profit | 2,187 | 2,213 | |
Extraordinary income | |||
Gain on sale of investment securities | - | 226 | |
Settlements received | 500 | - | |
Total extraordinary income | 500 | 226 | |
Extraordinary losses | |||
Impairment loss | 86 | 71 | |
Total extraordinary losses | 86 | 71 | |
Profit before income taxes | 2,601 | 2,369 | |
Income taxes - current | 595 | 61 | |
Income taxes - deferred | 600 | 703 | |
Total income taxes | 1,195 | 765 | |
Profit | 1,405 | 1,603 | |
Loss attributable to non-controlling interests | (34) | (19) | |
Profit attributable to owners of parent | 1,439 | 1,623 | |
6
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
Quarterly Consolidated Statement of Comprehensive Income
(For the Three-month Period)
(Millions of yen) | ||
First three months of FY3/24 | First three months of FY3/25 | |
(Apr. 1, 2023 - Jun. 30, 2023) | (Apr. 1, 2024 - Jun. 30, 2024) | |
Profit | 1,405 | 1,603 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 217 | (171) |
Remeasurements of defined benefit plans, net of tax | (17) | (13) |
Total other comprehensive income | 199 | (184) |
Comprehensive income | 1,604 | 1,419 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of | 1,639 | 1,438 |
parent | ||
Comprehensive income attributable to non-controlling | (34) | (19) |
interests | ||
7
AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2025
-
Notes to Quarterly Consolidated Financial Statements Changes in Accounting Policies
Application of Accounting Standard for Current Income Taxes
The Company has applied the Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022) from the beginning of the first quarter of the fiscal year ending March 31, 2025.
There is no effect of the application of this standard on the quarterly consolidated fi nancial statements.
Segment Information
First three months of FY3/24 (Apr. 1, 2023 - Jun. 30, 2023)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
(Millions of yen) | ||||||||||
Reportable segment | Amounts | |||||||||
shown on | ||||||||||
Real | Others | Adjustment | quarterly | |||||||
Anniversaire | Total | consolidated | ||||||||
Fashion | Entertainment | Estate | Subtotal | (Note 1) | (Note 2) | |||||
statement of | ||||||||||
and Bridal | Leasing | |||||||||
income | ||||||||||
(Note 3) | ||||||||||
Net sales | ||||||||||
Fashion | 21,106 | - | - | - | 21,106 | - | 21,106 | - | 21,106 | |
Café complex | - | 14,057 | - | - | 14,057 | - | 14,057 | - | 14,057 | |
Karaoke | - | 2,479 | - | - | 2,479 | - | 2,479 | - | 2,479 | |
Fitness | - | 1,319 | - | - | 1,319 | - | 1,319 | - | 1,319 | |
Bridal | - | - | 2,042 | - | 2,042 | - | 2,042 | - | 2,042 | |
Other | - | 165 | - | - | 165 | 7 | 173 | - | 173 | |
Revenue from | ||||||||||
contracts with | 21,106 | 18,023 | 2,042 | - | 41,172 | 7 | 41,180 | - | 41,180 | |
customers | ||||||||||
Other revenues | - | 17 | - | 351 | 369 | - | 369 | - | 369 | |
External sales | 21,106 | 18,041 | 2,042 | 351 | 41,542 | 7 | 41,549 | - | 41,549 | |
Inter-segment | ||||||||||
sales and | 0 | 1 | 0 | 920 | 922 | 14 | 937 | (937) | - | |
transfers | ||||||||||
Total | 21,106 | 18,043 | 2,042 | 1,272 | 42,464 | 21 | 42,486 | (937) | 41,549 | |
Segment profit | 1,279 | 1,199 | (209) | 221 | 2,490 | (3) | 2,487 | (208) | 2,278 | |
(loss) | ||||||||||
Notes: 1. The "others" classification is businesses not included in reportable segments such as advertising -related business.
- The -208 million yen adjustment to segment profit (loss) includes 1,108 million yen in elimination for inter-segment transactions and -1,316 million yen in company-wide costs that cannot be allocated to any specific reportable segments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportable segments.
- Segment profit (loss)is adjusted with operating profit on the quarterly consolidated statement of income.
2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment Material impairment losses related to non-current assets
In the Fashion Business and the Entertainment Business, impairment losses were recognized for operating stores set to be closed for which there is little expectation of recovery; impairment losses of 20 million yen and 65 million yen were booked respectively in the first three months of FY3/24.
8