Non-Consolidated Financial Results for the Six Months Ended March 31, 2021 [Japanese GAAP]
May 12, 2021 | ||||
Company name: | Shinnihonseiyaku Co., Ltd. | Stock exchange listing: | Tokyo Stock Exchange | |
Code number: | 4931 | URL: | https://corporate.shinnihonseiyaku.co.jp | |
Representative | Takahiro Goto, President & Representative Director and Chief Executive Officer | |||
Contact: | Kazuhiro Tagami, Director of the Board | (TEL) +81-92-720-5800 |
Scheduled date of filing the quarterly securities report: | May 13, 2021 |
Scheduled date of commencing dividend payments: | - |
Availability of supplementary briefing material on quarterly | |
financial results | Yes |
Schedule of quarterly financial results briefing session | Yes (For institutional investors and analysts) |
(Amounts of less than one million yen are rounded down.) |
1. Financial Results for the Six Months Ended March 31, 2021 (October 1, 2020 to March 31, 2021)
(1) | Operating Results (Cumulative) | |||||||||||||||||||||||
(% indicates the change from the corresponding period of the previous fiscal year.) | ||||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | |||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||
Six months ended | ||||||||||||||||||||||||
March 31, 2021 | 16,575 | (1.5) | 1,398 | 27.3 | 1,430 | 30.0 | 965 | 40.8 | ||||||||||||||||
Six months ended | ||||||||||||||||||||||||
March 31, 2020 | 16,834 | 1.7 | 1,098 | (24.1) | 1,100 | (22.5) | 685 | (20.7) | ||||||||||||||||
Basic earnings per | Diluted earnings per | |||||||||||||||||||||||
share | share | |||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||
Six months ended | 44.79 | 44.34 | ||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||
Six months ended | 31.74 | 31.62 | ||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||
(2) | Financial Position | |||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||
Million yen | Million yen | % | ||||||||||||||||||||||
As of March 31, 2021 | 20,277 | 15,344 | 75.0 | |||||||||||||||||||||
As of September 30, 2020 | 19,956 | 14,267 | 71.2 | |||||||||||||||||||||
(Reference) Equity: | Six months ended March 31, 2021 | 15,217 million yen | ||||||||||||||||||||||
As of September 30, 2020 | 14,201 million yen | |||||||||||||||||||||||
2. | Dividends | |||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||
Fiscal year ended September | - | 0.00 | - | 30.00 | 30.00 | |||||||||||||||||||
30, 2020 | ||||||||||||||||||||||||
Fiscal year ending September | - | 0.00 | ||||||||||||||||||||||
30, 2021 | ||||||||||||||||||||||||
Fiscal year ending September | - | 32.50 | 32.50 | |||||||||||||||||||||
30, 2021 (Forecast) | ||||||||||||||||||||||||
(Notes) Revision from the most recently announced dividend forecast: No |
3. Financial Results Forecast for the Fiscal Year Ending September 30, 2021 (October 1, 2020 to September 30, 2021) Preface to the financial results forecast
(% indicates changes from the previous fiscal year.)
Net sales | Operating profit | Ordinary profit | Profit | Basic earnings per | |||||||||
share | |||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||
Full year | 35,000 | 3.8 | 3,500 | 5.1 | 3,460 | 5.4 | 2,300 | 8.4 | 106.14 | ||||
(Notes) | Revision from the most recently announced financial results forecast: No | ||||||||||||
* | Notes | ||||||||||||
(1) | Accounting policies adopted specially for the preparation of the quarterly financial statements | No |
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) | Changes in accounting policies due to the revision of accounting standards: | No | |||
2) | Changes in accounting policies other than 1) above: | No | |||
3) | Changes in accounting estimates: | No | |||
4) | Retrospective restatement: | No | |||
(3) Total number of shares issued (common stock) | |||||
1) | Total number of shares issued at the end of | As of March 31, | 21,855,200 shares | As of September | 21,611,300 shares |
the period (including treasury shares) | 2021 | 30, 2020 | |||
2) | Total number of treasury shares at the end | As of March 31, | 173,435 shares | As of September | 190,140 shares |
of the period | 2021 | 30, 2020 | |||
3) | Average number of shares during the | Six months ended | 21,565,687 shares | Six months ended | 21,611,300 shares |
period (cumulative) | March 31, 2021 | March 31, 2021 |
- These quarterly financial results are outside the scope of quarterly review by certified public accountants or auditing firms.
-
Explanation on the proper use of financial results forecast and other notes
Financial results forecasts and other forward-looking statements herein are based on currently available information and certain assumptions that the Company deems as reasonable, and actual results, etc. may differ significantly from these forecasts due to various factors.
(How to obtain the supplementary briefing material and the content of the financial results briefing)
The Company plans to deliver an online financial results briefing for institutional investors and analysts on Wednesday, May 12, 2021. The supplementary briefing material used in this briefing is disclosed today on TDnet as well as posted on the Company's website.
Table of Contents | ||
1. Qualitative Information for Quarterly Financial Results for the Period Under Review ............................................. | 2 | |
(1) | Explanation on Business Results ....................................................................................................................... | 2 |
(2) | Explanation on Financial Position ..................................................................................................................... | 2 |
(3) | Explanation on Financial Results Forecast and Other Forward-Looking Information ...................................... | 2 |
2. Quarterly Financial Statements and Primary Notes .................................................................................................... | 3 | |
(1) | Quarterly Balance Sheet..................................................................................................................................... | 3 |
(2) | Quarterly Statement of Income .......................................................................................................................... | 5 |
(3) | Notes to the Quarterly Financial Statements ...................................................................................................... | 6 |
(Notes on going concern assumption)......................................................................................................................... | 6 | |
(Notes when there was a substantial change in the amount of shareholders' equity) .................................................. | 6 | |
(Segment information, etc.) ........................................................................................................................................ | 6 | |
(Additional information)............................................................................................................................................. | 6 |
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1. Qualitative Information for Quarterly Financial Results for the Period Under Review
-
Explanation on Business Results
During the first six months of the current fiscal year, the second declaration of the state of emergency was issued due to the resurgence in COVID-19 infections. This had a major impact on economic activities and personal consumption, and the Japanese economy still continues to be in a difficult situation. With concerns about a resurge in infections, the outlook for the economy in Japan and overseas is expected to remain uncertain although a moderate recovery in economic activities is likely as measures are taken to prevent the spread of infections.
Under such a market environment, during the first six months of the current fiscal year, net sales declined from the same period of the previous fiscal year. This was due to a temporary restraint in advertising investment in the latter half of the previous fiscal year and a decrease in the number of customers visiting direct stores and other stores that handle our products amid the COVID-19 pandemic, but progressed in line with the plan.
In the Mail Order segment, domestic EC sales expanded steadily, supported by the smooth acquisition of new customers driven by active advertising investment in addition to the up-selling of "PERFECT ONE Wrinkle Stretch Gel" to existing customers, which continued to be strong as in the first quarter.
In the Direct Store Sales/Wholesale segment, the business environment has remained harsh mainly due to continued self-restraint on outings following the declaration of a state of emergency issued in January.
In the Overseas Sales segment, we are working to expand sales while closely monitoring the impact of COVID-19 infections and the status of economic activities in the local areas. In China, our main market, we have been steadily increasing sales through the implementation of live commerce utilizing SNS and popular KOL, etc. In ASEAN, we have started to deploy our products in major EC malls such as Lazada, Shopee, and Konvy in Thailand and are working to increase awareness of and sales to the younger generations in the local areas.
In the Smart Health Care Business, we launched "BODY AURA," a supplement which boosts the ability to protect yourself* (self-protection power) necessary for health management in the new normal era. We began selling the product through our own online shop and at drugstores nationwide. We will work to increase brand awareness and sales through TV commercials and SNS.
As a result of the foregoing, for the first six months of the current fiscal year, net sales were 16,575 million yen (down 1.5% year on year), operating profit was 1,398 million yen (up 27.3% year on year), ordinary profit was 1,430 million yen (up 30.0% year on year), and profit was 965 million yen (up 40.8% year on year).
The Company's business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales of cosmetics and merchandise related to health care. As the ratio of Direct Store Sales/Wholesale and Overseas Sales to overall sales is insignificant, and their materiality as disclosed information is low, description by business segment has been omitted. - The ability to maintain strength by eating and exercising.
-
Explanation on Financial Position
Total assets as of the end of the second quarter of the current fiscal year were 20,277 million yen, an increase of 321 million yen from the end of the previous fiscal year. This was mainly due to a 354 million yen increase in cash and deposits, a 199 million yen increase in merchandise, and a 181 million yen decrease in non-current assets.
Liabilities totaled 4,933 million yen, a decrease of 755 million yen from the end of the previous fiscal year. The main factors for the decrease were a decrease of 307 million yen in accounts payable-other, a decrease of 154 million yen in accounts payable-trade, and a decrease of 106 million yen in income taxes payable.
Net assets came to 15,344 million yen, an increase of 1,077 million yen from the end of the previous fiscal year. The main factors were an increase of 664 million yen due to issuance of new shares, posting of profit of 965 million yen, and a decrease of 642 million yen due to payment of dividends. - Explanation on Financial Results Forecast and Other Forward-Looking Information
The forecast for the fiscal year ending September 30, 2021 has not changed from the forecast announced on November 6, 2020 "Non-Consolidated Financial Results for the Fiscal Year Ended September 30, 2020."
Financial results and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable at the date of publication of this document. Actual results, etc. may differ significantly from these forecasts due to various factors.
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2. Quarterly Financial Statements and Primary Notes
(1) Quarterly Balance Sheet
(Unit: Million yen)
Previous fiscal year | Second quarter of the current | |||||||
fiscal year | ||||||||
(As of September 30, 2020) | ||||||||
(As of March 31, 2021) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and deposits | 12,271 | 12,626 | ||||||
Accounts receivable - trade | 2,607 | 2,516 | ||||||
Merchandise | 1,058 | 1,258 | ||||||
Other | 350 | 395 | ||||||
Allowance for doubtful accounts | (76) | (80) | ||||||
Total current assets | 16,211 | 16,715 | ||||||
Non-current assets | ||||||||
Property, plant and equipment | 2,297 | 2,219 | ||||||
Intangible assets | 470 | 376 | ||||||
Investments and other assets | 975 | 967 | ||||||
Total non-current assets | 3,744 | 3,562 | ||||||
Total assets | 19,956 | 20,277 | ||||||
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