This flash report is unaudited and the translation of the Japanese language version.
Consolidated Financial Summary for
the Third Quarter Ended September 30, 2020 (IFRS)
November 12, 2020 | |||
Listed company name: Coca-Cola Bottlers Japan Holdings Inc. | Listed stock exchanges: Tokyo | ||
Code number: 2579 | URL: https://en.ccbj-holdings.com/ | ||
Delegate: | Title: Representative Director & President | Name: Calin Dragan | |
Contact: | Title: Head of Controllers Senior Group Division, Finance | Name: Cordula Thomas | Phone: 03-6896-1707 |
Expected date of quarterly report submission: November 13, 2020
Schedule for dividends payment: -
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results conference: Yes
(Fractions of one million yen are rounded)
1. Consolidated financial results for the third quarter 2020 (from January 1, 2020 to September 30, 2020)
- Consolidated financial results
(Percentages indicate changes over the same period in the prior fiscal year)
Revenue | Business income | Operating loss | Net loss | Net loss attributable to | Total comprehensive | |||||||||||||||
owners of the parent | loss | |||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | million yen | % | |||||||||
3rd quarter, 2020 | 616,774 | (11.2) | 6,958 | (59.3) | (6,334) | - | (4,670) | - | (4,644) | - | (11,446) | - | ||||||||
3rd quarter, 2019 | 694,763 | (2.2) | 17,103 | (40.1) | (51,880) | (55,650) | (55,693) | (54,877) | ||||||||||||
- | - | - | - | |||||||||||||||||
Loss per share | Diluted earnings per share | |||||||||||||||||||
yen | yen | |||||||||||||||||||
3rd quarter, 2020 | (25.90) | - | ||||||||||||||||||
3rd quarter, 2019 | (309.40) | - |
Note "Business income" is a measure of our recurring business performance that is calculated as costs of goods and selling, general and administrative expenses are deducted from revenue, and other income and expenses are added and subtracted accordingly.
(2) Consolidated financial position
Total assets | Total equity | Equity attributable to parent owners | Ratio of equity attributable to | ||
parent owners | |||||
million yen | million yen | million yen | % | ||
Sep. 30, 2020 | 966,337 | 493,298 | 492,860 | 51.0 | |
Dec. 31, 2019 | 952,444 | 506,491 | 505,999 | 53.1 |
2. Dividends
Dividends per share | |||||
1Q | 2Q | 3Q | Year-end | Annual | |
yen | yen | yen | yen | yen | |
FY ended December 2019 | - | 25.00 | - | 25.00 | 50.00 |
FY ending December 2020 | - | 0.00 | - |
FY ending December 2020 | 25.00 | 25.00 | |||
(forecast) | |||||
Note: Revisions to the cash dividends forecasts most recently announced: None |
3. Forecast for consolidated financial results 2020 (from January 1, 2020 to December 31, 2020)
(Percentages indicate changes over the same period in the prior fiscal year)
Net loss for the year | Earnings per | |||||||||||||
Revenue | Business Income | Operating loss | Net loss | attributable to owners of the | ||||||||||
parent | share | |||||||||||||
million yen | % | million | % | million yen | % | million yen | % | million yen | % | yen | ||||
yen | ||||||||||||||
Full-year 2020 | 819,700 | (10.4) | 0 | (100.0) | (9,700) | - | (7,000) | - | (7,000) | - | (39.03) | |||
Note: Revisions to the forecasts of consolidated operating results most recently announced: None
Notes | |||
(1) Changes in significant subsidiaries during the current period: | None | ||
(2) Changes in accounting policies and changes in accounting estimates: | |||
1) | Changes in accounting policies as required by IFRS: | None | |
2) | Changes other than those in 1) above: | None | |
3) | Changes in accounting estimates: | None | |
(3) Number of outstanding shares (common shares) | |||
1) The number of outstanding shares (including treasury shares): | |||
3rd Quarter, September 2020: | 206,268,593 shares | ||
FY ended December 2019: | 206,268,593 shares | ||
2) | The number of treasury shares: | ||
3rd Quarter, September 2020: | 26,919,449 shares | ||
FY ended December 2019: | 26,917,320 shares | ||
3) | The number of average shares outstanding: | ||
3rd Quarter, September 2020: | 179,350,270 shares | ||
3rd Quarter, September 2019: | 180,002,117 shares |
- The consolidated financial summary is not subject to quarterly review procedures conducted by certified public accountant or audit firm.
- Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available at a time of issuance of this report, and the actual results may be changed due to a number of inherent uncertainties in the forecast. Actual results may differ materially from the forecast. Furthermore, please refer to "1. Qualitative Information on the Financial Summary for this Quarter (3) Information on the Future Outlook, such as Forecast of Consolidated Financial Results" on page 5 for matters relating to performance forecasts.
Table of Contents | ||
1. Qualitative Information on the Financial Summary for this Quarter ..................................................................................................... | 2 | |
(1) | Qualitative Information on Consolidated Financial Results............................................................................................................. | 2 |
(2) | Qualitative Information on Consolidated Financial Position ........................................................................................................... | 4 |
(3) | Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results ............................................. | 5 |
2. Condensed Consolidated Financial Statements and Notes .................................................................................................................... | 6 | |
(1) | Condensed Consolidated Statement of Financial Position............................................................................................................... | 6 |
(2) | Condensed Consolidated Statements of Loss and Comprehensive Loss.......................................................................................... | 8 |
(3) | Condensed Consolidated Statements of Changes in Equity........................................................................................................... | 10 |
(4) | Condensed Quarterly Consolidated Statements of Cash Flows ..................................................................................................... | 11 |
(5) | Notes to Condensed Consolidated Financial Statements ............................................................................................................... | 12 |
(Notes Relating to Going Concern Assumption) ............................................................................................................................. | 12 | |
(Changes in Accounting Policies).................................................................................................................................................... | 12 | |
(Segment Information) .................................................................................................................................................................... | 12 |
1
1. Qualitative Information on the Financial Summary for this Quarter
- Qualitative Information on Consolidated Financial Results
Coca-Cola Bottlers Japan Holdings Inc. ("CCBJH" or the "Company", or "we") announced year-to-datethird-quarter results for the fiscal year ending on December 31, 2020 (January 1, 2020 to September 30, 2020, YTD Q3).
During the continued outbreak of the novel coronavirus (COVID-19), the safety and health of our consumers, our customers and our employees- especially those working daily to produce and supply essential goods and services- is our number one priority. Our mission is to deliver happy moments to everyone, even in challenging times, and we have been working with comprehensive business continuity actions in place to ensure safe and secure product supply.
In the year-to-datethird-quarter period, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is expected to continue to decline versus the prior-year reflecting weaker consumer traffic and demand driven by the COVID-19 outbreak as well as rainy and cool weather in July. The health food and cosmetics industries are also expected to decline reflecting weaker consumer traffic and demand as well as drop of inbound tourists' demand driven by the COVID-19 outbreak.
We continue to drive fundamental business transformation under the guiding principle of our mid-term strategic business plan announced in August 2019 that "business as usual is not an option". We are implementing initiatives to return the business to a sustainable growth trajectory, including transformation in the important vending channel and back-office routines to drive cost efficiencies, and increasing front-facing investments for growth in such areas as production capacity, space-to-sell and people development. In the short term, we are focusing on various urgent mitigation initiatives to deal with the rapidly evolving situation triggered by the COVID-19 outbreak, as we continue to address our cost structure and high fixed-cost base of the beverage business. We are also finding opportunities during this turbulent period to accelerate the pace of ongoing transformation projects and to identify new opportunities. This will ensure that we are well-prepared for the evolution of the business environment in the longer term.
Our year-to-datethird-quarter results were impacted by a sharp drop in beverage business sales volumes since March due to the COVID-19 situation, but we have seen moderating performance trends in the third quarter (July to September, Q3) compared to the second quarter (April to June), which has been the most impacted quarter thus far during the pandemic.
In addition to the business update in this document, please also see our earnings presentation material posted on the Company IR website (https://en.ccbjholdings.com/ir/library/presentation.php) to be used in our earnings conference call on Friday, November 13, 2020 at 1:30 pm (JST). The earnings presentation and audio will be available live and on demand as an audio webcast in the IR section of the CCBJH website.
Highlights of the Third Quarter
- Volume, revenue and Business Income in third quarter shows moderating trend versus prior quarters this year and third quarter Business Income was almost even versus prior year. Year-to-datethird-quarter revenue declined 11% and Business Income declined 59% versus prior year, reflecting negative channel/package mix and weaker consumer traffic and demand driven by the COVID-19 outbreak.
- Vending channel value share continues to improve, with 18 consecutive months of positive momentum. Focus on recovering year-to-dateover-the-counter ("OTC") market share decline with selective marketing reinvestment in fourth quarter (October to December), in line with gradual return of consumer demand.
- Delivering significant cost saving efforts to mitigate topline pressure while accelerating transformation including vending and OTC sales route transformation.
- Alcohol business continues to perform well. New alcohol manufacturing line installed in Kyoto Plant to meet growing demand and ensure stable supply.
- Announced updated full-year 2020 plan on October 5, targeting even Business Income through continued cost savings in spite of topline pressures. No change to 25 yen-per-shareyear-end dividend forecast.
- Continue to drive fundamental business transformation guided by our mid-term strategic plan amid the current COVID-19 driven challenges.
2
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Coca-Cola Bottlers Japan Inc. published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 08:06:05 UTC