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Consolidated Financial Results
for the Three Months Ended May 20, 2022
[Japanese GAAP]
June 27, 2022
Company name: OKUWA Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 8217
URL: http://www.okuwa.net
Representative: Hirotsugu Okuwa, President and Representative Director
Contact: Kozo Togawa, Director; Managing Executive Officer; General Manager, Administration Headquarters; and General Manager, IR Office
Phone: +81-73-425-2481
Scheduled date of filing quarterly securities report: June 27, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary explanatory materials on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 20, 2022 (February 21, 2022 - May 20,
2022) | ||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||
Operating income | Operating profit | Ordinary profit | Profit attributable to | |||||
owners of parent | ||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % |
May 20, 2022 | 58,132 | - | 273 | (74.1) | 346 | (68.8) | 203 | (63.0) |
May 20, 2021 | 64,363 | (6.3) | 1,053 | (47.6) | 1,112 | (46.3) | 551 | (52.8) |
(Note) Comprehensive income: Three months ended May 20, 2022: ¥93 million [(86.0)%] Three months ended May 20, 2021: ¥665 million [(39.7)%]
Basic earnings | Diluted earnings | |
per share | per share | |
Three months ended | Yen | Yen |
May 20, 2022 | 4.64 | 4.64 |
May 20, 2021 | 12.57 | 12.57 |
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first three months of the consolidated fiscal year under review. Therefore, the figure of operating income for the three months ended May 20, 2022 shows the amount after the relevant accounting standards are applied, and the change from the previous corresponding period is not described.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | ||
Million yen | Million yen | % | ||
As of May 20, 2022 | 130,337 | 77,757 | 59.4 | |
As of February 20, 2022 | 133,513 | 78,170 | 58.3 | |
(Reference) Equity: | As of May 20, 2022: ¥77,472 million | |||
As of February 20, 2022: ¥77,876 million |
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first three months of the consolidated fiscal year under review. Therefore, the figures as of May 20, 2022 show the amounts after the relevant accounting standards are applied.
2. Dividends
Annual dividends | |||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended | - | 13.00 | - | 13.00 | 26.00 | ||
February 20, 2022 | |||||||
Fiscal year ending | - | ||||||
February 20, 2023 | |||||||
Fiscal year ending | |||||||
February 20, 2023 | 13.00 | - | 13.00 | 26.00 | |||
(Forecast) |
(Note) Revision to the dividend forecast announced most recently: None
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2023 (February 21, 2022 - February 20, 2023)
(% indicates changes from the previous corresponding period.) | |||||||||
Operating | Profit | Basic earnings | |||||||
Operating profit | Ordinary profit | attributable to | |||||||
income | per share | ||||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
First half | 125,000 | - | 2,000 | (19.0) | 2,100 | (19.6) | 1,000 | (31.0) | 22.80 |
Full year | 252,000 | - | 5,400 | 3.2 | 5,600 | 2.5 | 2,050 | 34.6 | 46.75 |
(Note) Revision to the financial results forecast announced most recently: None
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first three months of the consolidated fiscal year under review. Therefore, the figures of operating income in the consolidated financial results forecast for the fiscal year ending February 20, 2023 show the amounts after the relevant accounting standards are applied, and the changes from the previous corresponding period are not described.
* Notes:
- Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included: - ( | ), Excluded: - ( | ) |
- Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes
For details, please refer to "(3) Notes to Quarterly Consolidated Financial Statements (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)" on page 8 of the Attachments to this report. - Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of issued and outstanding shares (common shares)
- Total number of issued and outstanding shares at the end of the period (including treasury shares):
May 20, 2022: | 45,237,297 shares |
February 20, 2022: | 45,237,297 shares |
2) Total number of treasury shares at the end of the period: | |
May 20, 2022: | 1,380,597 shares |
February 20, 2022: | 1,386,767 shares |
3) Average number of shares during the period (cumulative total): | |
Three months ended May 20, 2022: | 43,851,054 shares |
Three months ended May 20, 2021: | 43,837,963 shares |
- These consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
- Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on certain information available to the Company as of the date of publication of this document and on certain assumptions deemed reasonable. As such, actual results may differ significantly from these forecasts due to a wide range of factors. For the assumptions used as the basis for the financial results forecast and notes on the use of the forecast, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the Attachments to this report.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results ................................................................................. | 2 | |
(1) | Explanation of Operating Results............................................................................................................. | 2 |
(2) | Explanation of Financial Position ............................................................................................................ | 2 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information................. | 3 |
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................... | 4 | |
(1) | Quarterly Consolidated Balance Sheets .................................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income................................................. | 6 |
(3) | Notes to Quarterly Consolidated Financial Statements............................................................................... | 8 |
(Notes on going concern assumption) ................................................................................................... | 8 | |
(Notes in case of significant changes in shareholders' equity) ................................................................. | 8 | |
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial | ||
statements)........................................................................................................................................ | 8 | |
(Changes in accounting policies) .......................................................................................................... | 8 | |
(Additional information) ...................................................................................................................... | 9 |
1
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the three months ended May 20, 2022 (February 21, 2022 - May 20, 2022), the Japanese economy saw its corporate activities and consumer spending remain extremely challenged as the quasi-emergency measures, which had been reapplied in January 2022, were extended to March 21, amid the prolonged influence of the COVID-19 pandemic. Although there were signs of the economy reopening or being normalized as the spread of COVID-19 was being mitigated by widespread vaccination, the outlook remains uncertain due to a series of subsequent events, including soaring prices of crude oil and other energy resources, as well as raw materials, following the emergence of geopolitical risks such as Russia's invasion of Ukraine, and the yen's rapid depreciation following the rise in interest rates in the U.S.
The retail industry, too, continues to be hindered by this harsh environment, primarily owing to fluctuating prices of raw materials due to the imbalance between supply and demand and the hikes in market prices, and secondly, owing to rising costs due to an upward swing in energy and labor costs. Against this backdrop, OKUWA Co., Ltd. (the "Company") has decided the slogan for the fiscal year as "Let us contribute to host communities through our business as we cope with the ever-changing social circumstances and remain true to the customer-comes-first principle." With the basic stance of responding to the ever-changing social environment and customer needs, and providing customers with food safety and security, and a prosperous life, we have worked to provide products and services that can respond to changing lifestyles with an eye on a post COVID-19 world. In addition, we have continued to thoroughly implement preventive measures against the infection at each store, and have worked to provide sales systems and services to ensure the safety of employees and earn the trust of our customers.
As for the new store openings for the period under review, we opened the Nakatsugawa Nakamura Store (Nakatsugawa-shi, Gifu) in March. As for the revitalization of existing stores, we renovated the Kishiwada Hatsuta Store (Kishiwada-shi, Osaka) in March, and both the Pare Marche Nishikani Store (Kani-shi, Gifu) and the Price Cut Matsusaka Oishi Store (Matsusaka-shi, Mie) in April. Meanwhile, in order to increase management efficiency, we closed the Sanda Store (Sanda-shi, Hyogo) and the Momoyama Store (Kinokawa- shi, Wakayama).
With regards to our consolidated subsidiaries, due to changes in consumer demand in the aftermath of the disruptions stemmed from the pandemic, OAK FOODS CO.LTD., which operates restaurants, began to show a recovery trend to post slightly higher sales, while Hiramatsu Co., Ltd., a food supermarket chain, and SUNRISE., CO. LTD., which handles the processing and delivery of agricultural and other products, both saw a decline in sales.
As a result, for the three months ended May 20, 2022, the Company and its consolidated subsidiaries (the "Group") posted operating income (net sales and operating revenue) of 58,132 million yen (64,363 million yen for the corresponding period of the previous year), operating profit of 273 million yen (down by 74.1% year-on-year), and profit attributable to owners of parent of 203 million yen (down by 63.0% year-on-year).
The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first three months of the consolidated fiscal year under review. For details, please see "2. Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)."
(2) Explanation of Financial Position
Total assets at the end of the first three months of the consolidated fiscal year under review decreased by 3,176 million yen from the end of the previous consolidated fiscal year to 130,337 million yen. The breakdown of the changes is as follows: a decrease of 2,838 million yen in current assets, primarily due to an increase of 1,021 million yen in merchandise and finished goods and a decrease of 3,845 million yen in cash and deposits; and a decrease of 338 million yen in non-current assets, primarily due to an increase of 957
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