Kotobuki Spirits Co., Ltd.TSE: 2222

FY2021 (Year Ended March 31, 2021) Consolidated Business Results Kotobuki Spirits Co,.Ltd.

· Issued by Kotobuki Spirits Co., Ltd.

Kotobuki Spirits Co.,Ltd.

FY2021(Year Ended March 31, 2021) Consolidated Business Results

Kotobuki Spirits Co.,Ltd.

Kotobuki Spirits Co.,Ltd.

Company Overview

Firm name

Kotobuki Spirits Co.,Ltd.

Securities code

2222（Tokyo Stock Exchange 1st section）

Address

2028, Hatagasaki, Yonago-shi, Tottori, 683-0845, Japan

Establishment

April 25th,1952

Capital

1.2 Billion 17.8 Million yen

President

Seigo Kawagoe

Employees

Kotobuki Spirits 8 people/Group Total 1,583 people

Group companies

Consolidated subsidiary 18 companies （domestic 16・overseas 2）

Net sales

23.2 Billion Yen（FY2021 :Year ended March 31, 2021）

March 31,2021

‐1‐

Kotobuki Spirits Co.,Ltd.

The Impact of COVID-19 on business performance

‐2‐

●We strived to reduce costs by reducing executive compensation and employee bonuses as well as all cost. Recorded subsidy income of 2.4 billion yen as non-operatingincome, including employment adjustment subsidies.
●Cash decreased by 982 million yen from the beginning of the term.(End of the period :cash 7.3 billion yen)Borrowed 1billion yen through the new corona system loan.(Interest-freeloan) We did not borrow from the overdraft limit (7.8 billion yen) .
＜FY2022＞
●Since April 25, this year, the business environment has deteriorated due to the recurrence order of the "emergency declaration," ​targeting four prefectures, and production operations are being curtailed.Most of our directly managed stores continue to operate in line with the operation of facilities.April sales downed 43.2% (YoY).
＜FY2022 Business Forecast and Dividend forecast ＞ ●It is currently undecided due to "emergency declaration"

Kotobuki Spirits Co.,Ltd.

The Impact of COVID-19 on business performance

●Sales ＜FY2021 ＞

  • Compared to FY2020:%） ＞

Apr

May

Jun

Jul

Aug

Sep

YoY(%)

△82.4％

△79.0％

△61.5％

△56.7％

△60.8％

△48.6％

Oct

Nov

Dec

Jan

Feb

Mar

YoY(%)

△34.1％

△37.8％

△36.7％

△56.9％

△37.8％

30.0％

（Compared to FY2019:% ）

4Q Sales

Jan

Feb

Mar

YoY(%)

△50.3％

△41.9％

△28.3％

In the 4Q, following the reissue of the state of "emergency declaration" targeting 11 prefectures, January downed significantly from the same month of the previous year.In March, due to mail-order sales and strengthening of measures for private demand, it returned to a decrease of 28.3% compared to March in FY2019.

‐3‐

Kotobuki Spirits Co.,Ltd.

FY2021 Highlight

（3Q-4QTotal） Net sales 32.9% down,Net profit 720 million yen （1Q-4QTotal） Net sales 48.6% down,Net loss 570 million yen

  • It was strongly affected by the spread of COVID-19, such as the disappearance of inbound demand and the decrease in movement due to the request to refrain from going out. As a result of being forced to significantly reduce the business activities , the business performance FY2021 was net loss.

●In the second half, the demand for souvenirs remained sluggish due to the decrease in movement, although there were signs of recovery due to Go to travel campaign.Under the circumstances, we committed to brands value up and due to the promotion of measures to stimulate private demand at mail-order sales, special events and directly managed stores.We worked to significantly reduce costs,too.Net income turned from a deficit in the first half to a surplus in the second half.

１Q

2Q

1Q-2QTotal

３Q

４Q

3Q-4QTotal1Q-4QTotal

（Unit：Million of yen）

(Apr-Jun)

(Jul-Sep)

(Oct-Dec)

(Jan-Mar)

Net sales

2,716

5,189

7,905

8,402

6,898

15,300

23,205

（YoY）

（△74.4％）

（△55.9％）

（△64.7％）

（△36.8％）

（△27.4％）

（△32.9％）

（△48.6％）

Ordinary profit

△ 1,755

△ 201

△ 1,956

1,653

△ 19

1,634

△ 322

（YoY）

（－）

（－）

（－）

（△38.6％）

（－）

（△44.2％）

（－）

Net profit

△ 1,163

△ 127

△ 1,290

1,116

△ 395

720

△ 570

（YoY）

（－）

（－）

（－）

（△34.4％）

（－）

（△60.7％）

（－）

‐4‐

This is an excerpt of the original content. To continue reading it, access the original document here.