Consolidated Financial Results for the Fiscal Year Ended February 28, 2022
[Japanese GAAP]
April 7, 2022
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange Securities code: 8016
URL:https://www.onward-hd.co.jp/site/english/ Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor relations Phone: +81-3-4512-1030
Scheduled date of Annual General Meeting of Shareholders: May 26, 2022 Scheduled date of commencing dividend payments: May 27, 2022 Scheduled date of filing annual securities report: May 27, 2022 Availability of supplementary materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Fiscal Year Ended February 28, 2022 (March 1, 2021 - February 28, 2022)
(1) Consolidated Operating Results (% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Recurring profit | Profit attributable to owners of parent | |
Fiscal year ended February 28, 2022 February 28, 2021 | Million yen %
| Million yen (1,079) (20,173) % - - | Million yen 507 (20,174) % - - | Million yen 8,566 (23,181) % - - |
(Note) Comprehensive income: Fiscal year ended February 28, 2022: 11,657 million yen [-%]
Fiscal year ended February 28, 2021: (20,032) million yen [-%]
Basic earnings per share | Diluted earnings per share | Return on equity | Ratio of recurring profit to total assets | Ratio of operating profit to net sales | |
Fiscal year ended February 28, 2022 February 28, 2021 | Yen 63.17 (171.18) | Yen 63.04 - | % 13.9 (31.6) | % 0.3 (9.4) | % (0.6) (11.5) |
(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended February 28, 2022: (73) million yen
Fiscal year ended February 28, 2021: (70) million yen
EBITDA (operating profit + depreciation and amortization):
Fiscal year ended February 28, 2022: 3,915 million yen [-%] Fiscal year ended February 28, 2021: (14,133) million yen [-%]
(Notes) 1.
2.
The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and "Implementation Guidance on Accounting Standard for Revenue Recognition" (ASBJ Guidance No. 30, March 26, 2021) early, from the beginning of the fiscal year under review. The presentation method has been changed from the fiscal year under review, and therefore, with regard to net sales, operating profit, and EBITDA in the Consolidated Operating Results, the Company states figures and year-on-year changes after reclassification that reflect this change in the presentation method.
(2) Consolidated Financial Position
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
As of February 28, 2022 As of February 28, 2021 | Million yen 157,727 196,052 | Million yen 77,257 59,509 | % 42.4 28.9 | Yen 493.14 418.32 |
(Reference)
Shareholders' equity: As of February 28, 2022: 66,886 million yen
As of February 28, 2021: 56,723 million yen
(3) Consolidated Cash Flows
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents at end of period | |
Fiscal year ended February 28, 2022 February 28, 2021 | Million yen 7,814 (19,614) | Million yen 21,685 6,091 | Million yen (36,173) 5,860 | Million yen 15,199 21,270 |
2. Dividends
Annual dividends per share | Total dividends (annual) | Payout ratio (consolidated) | Ratio of dividends to net assets (consolidated) | |||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||||
Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 | Yen - - | Yen - - | Yen - - | Yen 12.00 12.00 | Yen 12.00 12.00 | Million yen 1,627 1,627 | % - 19.0 | % 2.1 2.4 |
Fiscal year ending February 28, 2023 (Forecast) | - | - | - | 12.00 | 12.00 | 95.7 |
3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Recurring profit | Profit attributable to owners of parent | Basic earnings per share | |
1H (cumulative) Full year | Million yen %
| Million yen (1,800) 2,100 % - - | Million yen (1,750) 2,050 % - 304.1 | Million yen (1,250) 1,700 % - (80.2) | Yen (9.22) 12.54 |
(Reference) EBITDA (operating profit + depreciation and amortization):
Full year ending February 28, 2023 (forecast): 7,080 million yen [180.8%]
Full year ended February 28, 2022: 3,915 million yen [-%]
* Notes:
(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None
Newly included: - (Company name:) Excluded: - (Company name:)
(2) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
(3) Total number of issued shares (common stock)
1) Total number of issued shares at the end of the period (including treasury shares):As of February 28, 2022:
As of February 28, 2021:
157,921,669 shares 157,921,669 shares
2) Total number of treasury shares at the end of the period:As of February 28, 2022:
As of February 28, 2021:
22,287,771 shares 22,322,123 shares
3) Average number of shares outstanding during the period:Fiscal year ended February 28, 2022:
Fiscal year ended February 28, 2021:
135,619,330 shares 135,420,529 shares
(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 1, 2021 - February 28, 2022)
(1) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Recurring profit | Net income | |
Fiscal year ended February 28, 2022 February 28, 2021 | Million yen %
| Million yen %
| Million yen 5,345 (3,170) % - - | Million yen 8,525 (22,397) % - - |
Basic earnings per share | Diluted earnings per share | |
Fiscal year ended February 28, 2022 February 28, 2021 | Yen 62.87 (165.39) | Yen 62.74 - |
(2) Non-consolidated Financial Position
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
As of February 28, 2022 As of February 28, 2021 | Million yen 134,254 162,749 | Million yen 78,861 71,275 | % 58.6 43.7 | Yen 580.53 524.61 |
(Reference) Shareholders' equity: As of February 28, 2022: 78,739 million yen As of February 28, 2021: 71,136 million yen
* These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
* Explanation of the proper use of performance forecast and other notes
The performance outlook and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that have been deemed reasonable. Actual performance may differ significantly from these forecasts due to a wide range of factors. For conditions used as the assumptions for the performance forecast and notes on the use of performance forecast, please refer to "1. Overview of Operating Results, etc." on page 2 of the Attachments.
Table of Contents - Attachments
1. Overview of Operating Results, etc. .................................................................................................... 2
(1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2
(2) Overview of Financial Position for the Fiscal Year under Review ................................................. 3
(3) Overview of Cash Flows for the Fiscal Year under Review ............................................................ 3 (4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next
Fiscal Year ............................................................................................................................................ 4
(5) Future Outlook ................................................................................................................................ 4
2. Basic Policy on Selection of Accounting Standards ............................................................................ 4
3. Consolidated Financial Statements and Principal Notes ..................................................................... 5
(1) Consolidated Balance Sheets .......................................................................................................... 5
(2) Consolidated Statements of Income and Comprehensive Income .................................................. 7
(3) Consolidated Statements of Changes in Equity .............................................................................. 9
(4) Consolidated Statements of Cash Flows ....................................................................................... 13
(5) Notes to Consolidated Financial Statements ................................................................................. 15
(Uncertainties of entity's ability to continue as going concern) ............................................... 15
(Significant accounting policies for preparation of Consolidated Financial Statements) ........ 15
(Changes in accounting policies) ................................................................................................ 19
(Changes in the presentation method) ........................................................................................ 21
(Notes to Consolidated Statements of Income) ........................................................................... 21
(Notes to Consolidated Statements of Comprehensive Income) .............................................. 22
(Notes to Consolidated Statements of Changes in Equity) ........................................................... 23
(Notes to Consolidated Statements of Cash Flows) ..................................................................... 25
(Segment information, etc.) ...................................................................................................... 26
(Per share information) ............................................................................................................. 31
(Significant events after reporting period) ............................................................................... 33
(Omission of disclosure) .......................................................................................................... 35
4. Others ................................................................................................................................................ 36
Changes in officers ................................................................................................................... 36
1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review (from March 1, 2021 to February 28, 2022), the Japanese economy remained in a difficult situation due to the prolonged impact of COVID-19, such as stay-at-home due to the application of the priority measures such as for prevention of the spread of disease taken throughout Japan on account of the rapid spread of the Omicron variant and rising prices of raw materials, even though an increase in vaccination rates temporarily halted the spread of infection.
In these circumstances, the Group has steadily promoted the integration of physical stores and e-commerce as a priority measure in the Apparel Business and expanded the number of OMO (Online Merges with Offline)-type stores which introduced the Click and Try system, as well as reduced lost sales opportunities caused by out of stock items through full-scale operation of an integrated inventory management system, thus realizing net sales growth and higher gross profit margins in both existing physical stores and e-commerce.
Due to the achievements, etc. of global business reforms that have been conducted since the fiscal year ended February 28, 2020, such as withdrawals from unprofitable businesses and unprofitable stores, operating profitability significantly improved. Thanks to efforts at restoring financial health mainly by securitizing non-current assets and streamlining fund management, the shareholders' equity ratio increased 13.5pt year-on-year to 42.4%.
As a result of the above, consolidated net sales amounted to 168,453 million yen (a 4.2% decrease year-on-year), a consolidated operating loss was recorded at 1,079 million yen (an operating loss of 20,173 million yen for the previous fiscal year), a consolidated recurring profit was recorded at 507 million yen (a recurring loss of 20,174 million yen for the previous fiscal year), and profit attributable to owners of parent amounted to 8,566 million yen (a loss attributable to owners of parent of 23,181 million yen for the previous fiscal year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as a management indicator with the purpose of enabling convenient comparisons between companies regardless of differences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion of business foundations that utilize creation of new businesses, M&A, etc.
EBITDA for the fiscal year under review was 3,915 million yen ((14,133) million yen for the previous fiscal year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, Onward Kashiyama Co., Ltd., which is a core group company, withdrew from unprofitable businesses and unprofitable stores and steadily executed sales strategies such as expanding OMO-type stores. As a result, it increased net sales and significantly reduced losses. Despite a decrease in sales at Onward Trading Co., Ltd., which conducts a B2B business, profit increased owing to robust net sales in the highly profitable uniform business. Sales also grew at Tiaclasse Co., Ltd., whose main sales channel is e-commerce, and at Onward Personal Style Co., Ltd., which is developing the KASHIYAMA made-to-order suit brand that has garnered high praise in this year's job-hunting season.
In the overseas business, due mainly to withdrawal from unprofitable businesses under the global business reforms, profitability improved, and the profit and loss improved significantly.
As a result, the loss was significantly reduced despite a decrease in sales for the Apparel Business as a whole.
[Lifestyle Business]
Sales increased significantly, and profitability was restored at Chacott Co., Ltd., which operates a wellness business, due to the recovery of orders received for its mainstay ballet products, which faced severe circumstances due to the impact of COVID-19 in the previous fiscal year. Sales and profit increased at Yamato
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Onward Holdings Co. Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 02:43:07 UTC.