*This is an English translation for reference purpose only, and the original disclosure document was filed on November 12, 2021 at 16:00 (GMT+9)
Summary of Financial Statements for the Second Quarter
of the Fiscal Year Ending March 31, 2022
(Japan GAAP)
GEO HOLDINGS CORPORATION | November 12, 2021 | |
Listed Exchanges : Tokyo | ||
Securities Code: | 2681 | URL: https://www.geonet.co.jp/ |
Representative: | Yuzo Endo, President | |
Yoshiaki Kajita, | ||
Contact: | General Manager, Accounting and Finance | Telephone: +81 52 350 5711 |
Dept. |
Scheduled date to submit quarterly report: November 12, 2021
Scheduled date to start dividend payment: December 10, 2021
Supplementary material on quarterly financial results: Yes
Briefing on this quarterly financial results: Yes (to institutional investors and analysts)
(Amounts less than million yen are discarded.)
1. Consolidated Financial Results for the Second Quarter (from April 1, 2021 to September 30, 2021)
- Consolidated operating results
(The percentages indicate the rates of increase or decrease from the same period of the previous year.)
Net sales | Operating profit | Ordinary profit | Profit | |||||||||||||||
attributable to owners | ||||||||||||||||||
of parent | ||||||||||||||||||
Six months ended: | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | ||||||||||
September 30, 2021 | 151,948 | (4.2) | 1,482 | (59.1) | 1,993 | (48.8) | 725 | (41.0) | ||||||||||
September 30, 2020 | 158,578 | 14.9 | 3,623 | (20.9) | 3,897 | (20.6) | 1,229 | (54.4) | ||||||||||
(Note) Comprehensive income: | 536 million yen | (decrease of | 56.7%) for six months ended September 30, 2021 | |||||||||||||||
1,240 million yen (decrease of 54.1%) for six months ended September 30, 2020 | ||||||||||||||||||
Earnings per share (yen) | Fully diluted earnings per share | |||||||||||||||||
(yen) | ||||||||||||||||||
Six months ended: | ||||||||||||||||||
September 30, 2021 | 17.11 | 17.09 | ||||||||||||||||
September 30, 2020 | 28.99 | 28.92 | ||||||||||||||||
(Note) Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) was applied | ||||||||||||||||||
from the beginning of the first quarter of this fiscal year. Accordingly, the amounts of six months ended September 30, 2021 above reflect | ||||||||||||||||||
application of this standard. | ||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||
Total assets | Net assets | Shareholders' equity | ||||||||||||||||
ratio | ||||||||||||||||||
(Millions of yen) | (Millions of yen) | % | ||||||||||||||||
As of September 30, 2021 | 163,345 | 72,575 | 44.2 | |||||||||||||||
As of March 31, 2021 | 169,738 | 72,982 | 42.8 | |||||||||||||||
(Reference) Shareholders' | As of September 30, 2021: | 72,131 million yen | ||||||||||||||||
equity: | As of March 31, 2021: | 72,572 million yen |
(Note) Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020) was applied from the beginning of the first quarter of this fiscal year. Accordingly, the amounts of six months ended September 30, 2021 above reflect application of this standard.
2. Dividends
Dividend per share (yen) | |||||||||||
(Record dates) | 1st quarter end | 2nd quarter end | 3rd quarter end | Year-end | Annual | ||||||
Fiscal Year ended | - | 17.00 | - | 17.00 | 34.00 | ||||||
March 31, 2021 | |||||||||||
Fiscal Year ending | - | 12.00 | |||||||||
March 31, 2022 | |||||||||||
Fiscal Year ending | - | 12.00 | 24.00 | ||||||||
March 31, 2022 (Forecast) | |||||||||||
(Note) Modifications in the dividend forecast from the latest disclosure: None |
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2022
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
(The percentages indicate the rates of increase or decrease from the same period of the previous year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | |||||
per | |||||||||
owners of parent | |||||||||
share | |||||||||
(Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | (Millions of yen) | % | yen | |
Full-year | 320,000 | (2.5) | 4,000 | (7.2) | 4,500 | (6.2) | 2,000 | - | 47.16 |
(Notes)
- Modifications in the earnings forecast from the latest disclosure: None
- Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020) was applied from the beginning of the first quarter of this fiscal year. Accordingly, the amounts of consolidated earnings forecast above reflect application of this standard.
Notes
- Changes in important subsidiaries during this consolidated six months period (changes in Specified Subsidiaries accompanying a change in the scope of consolidation): None
- Adoptions of special accounting treatments for quarterly consolidated financial statements: None
- Changes in accounting principles or changes in accounting estimates or retrospective restatements
- Changes in accounting principles due to amendments to accounting standards, etc.: Yes
- Changes in accounting principles other than 1): None
- Changes in estimates used for accounting: None
- Retrospective restatements: None
(Note) See p.9 of the Attachments, "2. Consolidated Financial Statements for the Quarter (4) Notes on consolidated financial statements (Changes in accounting principles)" for details.
(4) Number of shares outstanding (common stock) | |||
1) | Number of shares outstanding (including treasury shares): | ||
As of September 30, 2021 | 42,405,952 shares | ||
As of March 31, 2021 | 42,405,952 shares | ||
2) | Number of treasury shares: | ||
As of September 30, 2021 | - shares | ||
As of March 31, 2021 | - shares | ||
3) | Average number of outstanding shares: | ||
During six months ended September 30, 2021 | 42,405,952 shares | ||
During six months ended September 30, 2020 | 42,398,953 shares |
- This summary is not subject to the quarterly review procedures by certified public accountants or audit firms.
- Explanation regarding appropriate use of financial forecasts and other special remarks
The forward-looking statements included in this summary such as financial forecasts are based on currently available information and certain assumptions, which we deem to be reasonable as of the date of this summary. There is no guarantee that we will achieve those financial forecasts. Actual results may differ significantly from these forecasts due to various factors. Please see "1. Qualitative Information on Quarterly Results, (3) Explanation on forward-looking information including consolidated earnings forecast" on page 4 of the Attachment on the basis of forecasts and a note on reliance on forecasts.
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Table of Contents for the Attachments | ||
1. Qualitative Information on Quarterly Results ........................................................................... | 2 | |
(1) | Details of consolidated operating results ............................................................................. | 2 |
(2) | Details of consolidated financial position............................................................................ | 3 |
(3) | Explanation on forward-looking information including consolidated earnings forecast..... | 4 |
2. Consolidated Financial Statements for the Quarter................................................................... | 5 | |
(1) | Consolidated Balance Sheets ............................................................................................... | 5 |
(2) | Consolidated quarterly income statement and statement of comprehensive income........... | 6 |
Consolidated Income Statement ......................................................................................... | 6 | |
Statement of Comprehensive Income ................................................................................. | 7 | |
(3) | Consolidated quarterly statement of cash flow.................................................................... | 8 |
(4) | Notes on consolidated financial statements ......................................................................... | 9 |
(Notes on going concern assumptions) ............................................................................... | 9 | |
(Notes on significant change in shareholders' equity) ........................................................ | 9 | |
(Changes in accounting principles)..................................................................................... | 9 | |
(Segment information) ........................................................................................................ | 9 |
GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2022
1. Qualitative Information on Quarterly Results
- Details of consolidated operating results
Consolidated earnings (April 1, 2021 to September 30, 2021)
For the six months ended September 30, 2021, business environment remained stagnant with uncertain outlook from resurgence of COVID-19 where the government repeatedly declared state of emergency and imposed quasi-emergency measures, economic activities being suppressed from the public voluntarily refraining from going out, and sluggish economy despite of increase in vaccination rate.
In such environment, the Group provided products and services, and continued to pursue various challenges in an aim to "offer joy to your everyday life" by shortening business hours at stores, and paying sufficient attention to safety of customers and employees by following guidelines from the relevant authorities, including wearing masks and disinfecting with alcohol.
As a result, for the Group's results for six months ended September 30, 2021, sales resulted in 151,948 million yen (4.2% decrease from the same period of the previous year), operating profit resulted in 1,482 million yen (59.1% decrease from the same period of the previous year), ordinary profit resulted in 1,993 million yen (48.8% decrease from the same period of the previous year), and profit attributable to owners of parent resulted in 725 million yen (41.0% decrease from the same period of the previous year).
In changes in accounting principles, we applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020), etc. from the beginning of the first quarter of this fiscal year. Accordingly, comparison of performance with the previous year is made with the amounts that are calculated based on a different calculation method. Please see "2. Consolidated Financial Statements for the Quarter (4) Notes on consolidated financial statements (Changes in accounting principles)" for details.
In reuse (comprehensive) merchandise 1 , sales for clothing, which is the core merchandise particularly for 2nd STREET, was sharply affected from voluntary restraint on going out, but signs of recovery in sales has been observed attributable to trends of relaxation of voluntary restraint on going out. In reuse luxury merchandise, wholesale to overseas of luxury watches grew solidly due to active overseas market.
In reuse (media) merchandise, we were able to secure stock for reuse game device due to gradual improvement in the balance between demand and supply for brand new game device. This stock enabled us to sell, thereby improving our business cycle. In reuse mobile device such as smartphones, etc., buying and selling showed signs of recovery from the launch of a new model iPhone. In reuse game software, sales did not exceed and it fell from the sale from the special demand that arose last year.
1 From this second quarter, we changed the English term of "reuse (non-media)" merchandise to "reuse (comprehensive)" merchandise to clarify that "reuse (comprehensive)" merchandise comprehensively includes reuse merchandise other than "reuse (media)" merchandise.
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GEO HOLDINGS CORPORATION (2681) Consolidated Financial Results for the Second Quarter of the Fiscal Year ending March 31, 2022
In our rental business where we mainly rent videos such as DVDs, the falling trends in sales is continuing due to the reduced supply of new titles that has been continuing from the postponement of release of movies in theatres that has been continuing from the previous year, and also due to the spread of video streaming services.
The number of our stores as of September 30, 2021 is as follows. The figures in ( ) for "Total"
show decrease from the end of the previous fiscal year.
Directly-managed stores | FC Stores and Distributors | Total | ||||||||
Newly | Closed | Newly | Closed | |||||||
opened | opened | |||||||||
Total number of GEO | 1,747 | 46 | 56 | 199 | 3 | 3 | 1,946 | (-10) | ||
group stores and facilities | ||||||||||
GEO | 993 | 4 | 31 | 145 | 0 | 2 | 1,138 | (-29) | ||
2nd STREET | 683 | 27 | 18 | 54 | 3 | 1 | 737 | (11) | ||
2nd STREET | 21 | 5 | 0 | 21 | (5) | |||||
(overseas) | ||||||||||
OKURA TOKYO | 17 | 3 | 1 | 17 | (2) | |||||
LuckRack | 14 | 7 | 3 | 14 | (4) | |||||
WAREHOUSE | 10 | 0 | 1 | 10 | (-1) | |||||
Others | 9 | 0 | 2 | 9 | (-2) | |||||
Notes: |
- The number of stores is counted based on each store name.
- GEO includes stores that buy and sell home game related items, mobile phones, and smart phones, and rent DVDs where they operate under the store names of GEO and GEO mobile.
- 2nd STREET includes stores that buy and sell clothing, home appliances and other items where they operate under the names of 2nd STREET, Super 2nd STREET, 2nd OUTDOOR, and JUMBLE STORE, etc.
- 2nd STREET (overseas) which were counted as "Others" in the previous fiscal year, are separately indicated from this fiscal year.
- Details of consolidated financial position
(Assets)
The current assets as of September 30, 2021 resulted in 106,795 million yen, which is a decrease of 6,892 million yen from the previous fiscal year end. This decrease is mainly due to a decrease of 10,969 million yen in cash and deposits, and a decrease of 1,514 million yen in notes and accounts receivable while there was an increase of 5,200 million yen in merchandise. The non-current assets resulted in 56,550 million yen, which is an increase of 499 million yen from the previous fiscal year end. This increase is mainly due to an increase of 755 million yen in buildings and structures (net).
As a result, the total assets as of September 30, 2021 resulted in 163,345 million yen, which is a decrease of 6,392 million yen from the previous fiscal year end.
(Liabilities)
The current liabilities as of September 30, 2021 resulted in 31,632 million yen, which is a decrease of 9,405 million yen from the previous fiscal year end. This decrease is mainly due to a decrease of 3,403 million yen in accounts payable and a decrease of 7,104 million yen in current liabilities-other.Non-current liabilities resulted in 59,137 million yen, which is an increase of 3,420 million yen from the previous fiscal year end. This increase is mainly due to an increase of 3,862 million yen in long- term borrowings.
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