FY 2023/02 1st Quarter
Financial Results
July 8, 2022
Table of Contents
・Consolidated Income Statement -Summary | 4 |
・Adastria non-consolidated Income Statement | 6 |
・Product Promotion Initiatives | 7 |
・Online Business | 8 |
・Improve recognition by promoting own EC site | 9 |
・Progress on Strategy to Open Own EC site ".st" | 10 |
・Overseas Business | 11 |
・Situation in each Overseas Region | 12 |
・Consolidated Balance Sheet | 13 |
・Number of Stores | 14 |
・New Stores | 15 |
・Sustainability Management Initiatives | 16 |
・Responses to the Current Business Climate | 17 |
・FY2023/02 Consolidated Forecast (Re-posting) | 18 |
2
Consolidated Income Statement
The Accounting Standard for The New Revenue Recognition is applied from FY2023/02. | Millions of yen | |||||||
FY2022/02 1Q | FY2023/02 1Q | |||||||
Results | Results | |||||||
Ratio | Ratio | YoY | ||||||
Net sales | 46,387 | 100.0% | 58,006 | 100.0% | 125.0% | |||
Adastria(Non-consolidated) | 39,918 | 86.1% | 48,540 | 83.7% | 121.6% | |||
Domestic subsidiaries *1 | 4,145 | 8.9% | 4,268 | 7.4% | 103.0% | |||
Overseas subsidiaries *2 | 3,068 | 6.6% | 3,983 | 6.9% | 129.8% | |||
Zetton (Food & Beverage Subsidiary) | - | - | 1,943 | 3.4% | - | |||
Gross profit | 26,382 | 56.9% | 33,303 | 57.4% | 126.2% | |||
SG&A expenses | 25,757 | 55.5% | 28,729 | 49.5% | 111.5% | |||
Advertising & promotion | 2,308 | 5.0% | 2,175 | 3.8% | 94.2% | |||
Personnel | 9,152 | 19.7% | 10,313 | 17.8% | 112.7% | |||
Rent & depreciation *3 | 9,005 | 19.4% | 10,206 | 17.6% | 113.3% | |||
Amortization of goodwill | 14 | 0.0% | 51 | 0.1% | 347.5% | |||
Others | 5,276 | 11.4% | 5,983 | 10.3% | 113.4% | |||
Operating profit | 624 | 1.3% | 4,574 | 7.9% | 732.1% | |||
Adastria(non-consolidated) | 487 | 1.1% | 4,171 | 7.2% | 855.1% | |||
Domestic subsidiaries *1 | - 94 | - | 64 | 0.1% | - | |||
Overseas subsidiaries *2 | - 21 | - | 96 | 0.2% | - | |||
Adastria Logistics | 128 | 0.3% | 116 | 0.2% | 90.8% | |||
Zetton (Food & Beverage Subsidiary) *4 | - | - | 114 | 0.2% | - | |||
Ordinary profit | 961 | 2.1% | 4,926 | 8.5% | 512.5% | |||
Net income attributable to owners of the parent | 269 | 0.6% | 3,313 | 5.7% | 1227.5% | |||
EBITDA | 2,091 | 4.5% | 6,357 | 11.0% | 304.0% | |||
Depreciation and amortization | 1,451 | 3.1% | 1,731 | 3.0% | 119.3% | |||
Amortization of goodwill | 14 | 0.0% | 51 | 0.1% | 347.5% |
*1:Domestic subsidiaries are the sum of four domestic subsidiaries: BUZZWIT Co.,Ltd., ELEMENT RULE Co., Ltd., Adastria eat Creations Co.,Ltd., ADOORLINK Co., Ltd.(Period Feb. to Apr. ) | |
*2:Overseas subsidiaries are the sum of overseas subsidiaries: Hong Kong, Mainland China, Taiwan, USA.(Period Jan. to Mar.) | |
*3:Rent & depreciation costs are the sum of Rent expenses, Lease expenses and Depreciation. | |
3 | *4:Operating profit of Zetton, Inc. is shown after consolidation adjustments. |
Consolidated Income Statement - Summary (1)
- Summary: Sales and earnings higher than planned due to sales recovery and cost controls
- Net sales: 58.0 billion yen (+25.0% YoY)
・Parent company: | Up 21.6% as apparel demand for going out recovered due to easing of pandemic restrictions; promotions |
also contributed to sales. | |
Strong sales of major products of GLOBAL WORK and of LAKOLE, as more stores were opened, | |
contributed to sales growth. | |
・Domestic subsidiaries: | Up 3% YoY. Strong sales of high-end brands raised earnings of ELEMENT RULE. |
Sales at the EC company BUZZWIT were unchanged due to the recovery of sales at physical stores. | |
・Overseas subsidiaries: | Up 29.8%; new brands were launched in Taiwan and USA sales and earnings increased because of |
strength in the wholesale sector; sales up in mainland China as new stores contributed to growth but | |
earnings down due to the COVID-19; sales and earnings down in Hong Kong because of the pandemic. |
・Food and beverage business: Higher earnings at newly consolidated Zetton, Inc.; the business climate is slowly returning to normal.
Effect of the new revenue | Consolidated sales: -637 million yen (-1.4% YoY conversion) |
recognition accounting standard | |
Increase due to M&A | Consolidated sales: +1,943 million yen (+4.2% YoY conversion) |
- Gross profit margin: 57.4% (+0.5p YoY)
- Negative effects of foreign exchange rates and the high cost of materials, but the gross profit margin in the apparel and other merchandise business was down only 0.2 pct. point from one year earlier due to supplying the products at the right times, prices and volumes and holding down discount sales.
Effect of the new revenue | Gross profit margin: -0.4% |
recognition accounting standard | |
Effect of higher food and | Gross profit margin: +0.7% |
beverage business sales | |
4
Consolidated Income Statement - Summary (2)
- SG&A expense ratio: 49.5% (-6.0pYoY)
・Advertising & promotions: | 3.8% (-1.2p YoY) (-0.13 billion yen YoY) | ||
・Personnel: | Decreased due to the application of revenue recognition accounting standard | ||
17.8% (-1.9p YoY) (+1.16 billion yen YoY) | |||
・Rent & depreciation: | Higher salaries and bonuses as stores returned to normal operating | ||
17.6% (-1.8p YoY) (+1.2 billion yen YoY) | |||
・Other: | Higher rent due to higher sales; includes 40 million yen increase in depreciation because of Zetton PPA* | ||
10.3% (-1.1p YoY) (+0.7 billion yen YoY) | |||
Higher credit card fees, delivery expenses, electricity fees and other expenses | |||
Effect of the new revenue | SG&A expenses: -605 million yen (SG&A expenses ratio: -0.5%) | ||
recognition accounting standard | |||
Increase due to M&A | SG&A expenses: +1,464 million yen (SG&A expenses ratio: +0.8%) | ||
(including amortization) | |||
- Operating profit: 4.5 billion yen (+3.94 billion yen YoY)
・Operating income ratio: | 7.9%, EBITDA margin: 11.0% |
- Ordinary profit: 4.9 billion yen (+3.96 billion yen YoY)
・ Non-operating income: | Subsidy income of 129 million yen for shortened operating hours and other measures for safety during the |
pandemic, employment adjustment subsidy of 50 million yen and foreign exchange gains of 274 million yen | |
・Non-operating expenses: | Derivative valuation loss of 106 million yen involving the termination of operations in South Korea |
- Net income attributable to owners of the parent 3.3 billion yen (+3.04 billion yen YoY)
*PPA (Purchase Price Allocation): Purchase price allocation is the allocation of the cost of acquiring a company based on fair values of all assets and liabilities of the acquired company.
5
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Adastria Co. Ltd. published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 09:41:06 UTC.