Consolidated Financial Results
for the Three Months Ended May 31, 2021
[Japanese GAAP]
July 6, 2021
Company name: Belc CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9974
URL: https://www.belc.jp
Representative: Issei Harashima, President and Representative Director
Contact: Hideo Ueda, Senior Managing Director; Associate GM of Compliance Office; Responsible for Finance and Accounting Department and Operations Support Department, and in charge of Legal Affairs
Phone: +81-49-287-0111
Scheduled date of filing quarterly securities report: July 12, 2021
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 31, 2021 (March 1, 2021 - May 31, 2021)
(1) Consolidated Operating Results (Cumulative) | (% 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 31, 2021 | 73,369 | 3.8 | 3,341 | (21.9) | 3,551 | (20.8) | 2,401 | (6.6) | ||||||||||||||||
May 31, 2020 | 70,668 | 23.1 | 4,277 | 110.8 | 4,485 | 107.5 | 2,570 | 81.1 | ||||||||||||||||
(Note) Comprehensive income: Three months ended May 31, 2021: ¥2,412 million [(6.7)%] | ||||||||||||||||||||||||
Three months ended May 31, 2020: ¥2,586 million [82.5%] | ||||||||||||||||||||||||
Basic earnings | Diluted | |||||||||||||||||||||||
earnings | ||||||||||||||||||||||||
per share | ||||||||||||||||||||||||
per share | ||||||||||||||||||||||||
Three months ended | Yen | Yen | ||||||||||||||||||||||
May 31, 2021 | 115.07 | - | ||||||||||||||||||||||
May 31, 2020 | 123.18 | - | ||||||||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | ||||||||||||||||||||||
Million yen | Million yen | % | ||||||||||||||||||||||
As of May 31, 2021 | 141,427 | 77,736 | 55.0 | |||||||||||||||||||||
As of February 28, 2021 | 136,558 | 76,283 | 55.9 | |||||||||||||||||||||
(Reference) Equity: As of May 31, 2021: ¥77,736 million | ||||||||||||||||||||||||
As of February 28, 2021: ¥76,283 million | ||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||
1st quarter- | 2nd quarter- | 3rd quarter- | Year-end | Total | ||||||||||||||||||||
end | end | end | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||
Fiscal year ended | - | 40.00 | - | 46.00 | 86.00 | |||||||||||||||||||
February 28, 2021 | ||||||||||||||||||||||||
Fiscal year ending | - | |||||||||||||||||||||||
February 28, 2022 | ||||||||||||||||||||||||
Fiscal year ending | 43.00 | - | 43.00 | 86.00 | ||||||||||||||||||||
February 28, 2022 | ||||||||||||||||||||||||
(Forecast) |
(Note) Revision to the forecast for dividends announced most recently: None
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)
(% indicates changes from the previous corresponding period.)
Profit attributable | Basic earnings | ||||||||
Operating income | Operating profit | Ordinary profit | to owners of | ||||||
per share | |||||||||
parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 283,597 | (0.3) | 11,308 | (5.2) | 11,996 | (5.4) | 8,031 | (9.0) | 384.88 |
(Note) Revision to the financial results forecast announced most recently: None
* Notes:
-
Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: -
Excluded: - - Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: None
- 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 31, 2021: | 20,867,800 shares |
February 28, 2021: | 20,867,800 shares |
2) Total number of treasury shares at the end of the period: | |
May 31, 2021: | 1,153 shares |
February 28, 2021: | 1,153 shares |
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
Three months ended May 31, 2021: | 20,866,647 shares |
Three months ended May 31, 2020: | 20,866,760 shares |
- These quarterly consolidated financial results are outside the scope of quarterly reviews by certified public accountants or an audit firm.
-
Explanation of the proper use of financial results forecasts and other notes
The business outlook and other forward-looking statements in these materials are based on information currently available to the Company and certain assumptions that are deemed reasonable. Actual financial results, etc. may significantly vary from these forecasts due to various factors. For the assumptions used in the above financial results forecasts and other related matters, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 3.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results for the Period under Review ....................... | 2 | |
(1) | Explanation of Operating Results .................................................................................................... | 2 |
(2) | Explanation of Financial Position .................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements .. | 3 |
2. Quarterly Consolidated Financial Statements and Principal Notes ...................................................... | 4 | |
(1) | Quarterly Consolidated Balance Sheets ........................................................................................... | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ................................... | 6 |
Quarterly Consolidated Statements of Income ................................................................................. | 6 | |
Quarterly Consolidated Statements of Comprehensive Income ....................................................... | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements .................................................................... | 8 |
(Notes on going concern assumption) ......................................................................................... | 8 | |
(Notes in case of significant changes in shareholders' equity) .................................................... | 8 |
1
1. Qualitative Information on Quarterly Financial Results for the Period under Review
-
Explanation of Operating Results
During the three months ended May 31, 2021, the Japanese economic climate remained harsh due to the impact of COVID-19. Meanwhile, in conjunction with vaccination rollout along with the implementation of measures to curb the spread of infection, expectations are high for the economy to recover thanks mainly to the effects of various government policies. Nevertheless, the economic outlook, including the trends of COVID-19 in Japan and overseas and the impact of changes in the financial and capital markets, remain uncertain.
In the retail industry, amid the daily fluctuations in the number of new cases of COVID-19, the voluntary restraints by consumers to go out, and their reluctance to buy as a result of changes in consumer behavior due to the declaration of the state of emergency by the government, conditions remain harsh, with increasingly fierce competition across business types and categories, as well as ongoing difficulties in securing personnel.
In this environment, the Belc Group (the "Group") has worked to sell delicious and fresh products, emphasize our price appeal, and create stores that are supported and trusted by customers, led by our motto of "Better Quality & Lower Price," so that we, as a supermarket, can provide members of local communities with richer lives.
Below is an overview of the main initiatives we have implemented.
In our sales measures, we have continued with business as usual in all stores, supplied products, and fulfilled our role as a lifeline in communities while employing various measures to prevent the spread of COVID-19. In April, to commemorate the number of Belc card members exceeding two million, we carried out a massive promotional campaign in which customers won big prizes. In addition to flyers and social media, we also proactively promoted our products to appeal to various generations by using radio broadcasts and other media in collaboration with a popular girl group. We have also been enhancing the convenience of our customers by expanding the stores that support our online grocery shopping service, "Belc otodoke (delivery) pack." Furthermore, we increased the number of stores with "smabelc," a service that enables smart shopping and eases the lines at the check-out counters.
In our product measures, we have provided high-quality products at reasonable prices by procuring products from better production sites and developing directly imported products. We have expanded our offering of products in our private brand, "kurabelc (Belc for everyday life)," successively launching new and reasonably priced products that help improve people's daily lives. Furthermore, in response to the increasing demand for home-cooked meals, we sold select Belc deli products and proposed various recipes to customize such products.
In our store operations, we have used the Company's greatest feature, our standardized corporate structure, as a foundation on which we have firmly established our labor scheduling program (LSP), appropriately allocated personnel, and leveraged labor-saving equipment to promote efficient chain operation.
As for our store investments, to promote greater competitiveness and standardization, we renovated three existing stores, expanded their deli and convenience food selections, and updated the facilities to provide more pleasant shopping environments. In March 2021, we closed the Satte Minami Store in Satte City, Saitama Prefecture. As a result, we operate 122 stores as of May 31, 2021.
We have leveraged our in-house logistics strengths to carry out large-scale batch procurement of products from production sites and manufacturers, through which we aim to improve our delivery efficiency and product price competitiveness while achieving more consistent product quality. We have also continued to review and revise our delivery system based on the work performed at stores, and to improve the efficiency of store operations.
As a result, operating income (net sales and operating revenue combined) for the three months ended May 31, 2021 was ¥73,369 million (103.8% of that of the same period of the previous fiscal year), operating profit was ¥3,341 million (78.1% of that of the same period of the previous fiscal year), ordinary profit was ¥3,551 million (79.2% of that of the same period of the previous fiscal year) and profit attributable to owners of parent was ¥2,401 million (93.4% of that of the same period of the previous fiscal year).
2
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Explanation of Financial Position (Assets)
Total assets as of May 31, 2021 were ¥141,427 million, an increase of ¥4,868 million compared with the end of the previous fiscal year.
Current assets were ¥25,376 million, an increase of ¥2,121 million compared with the end of the previous fiscal year, due mainly to an increase of ¥2,946 million in cash and deposits.
Non-current assets were ¥116,050 million, an increase of ¥2,747 million compared with the end of the previous fiscal year, due mainly to an increase of ¥2,851 million in land.
(Liabilities)
Liabilities were ¥63,690 million, an increase of ¥3,415 million compared with the end of the previous fiscal year.
Current liabilities were ¥35,588 million, an increase of ¥839 million compared with the end of the previous fiscal year, due mainly to an increase of ¥1,958 million in accounts payable - trade.
Non-current liabilities were ¥28,102 million, an increase of ¥2,576 million compared with the end of the previous fiscal year, due mainly to an increase of ¥2,775 million in long-term borrowings.
(Net assets)
Net assets were ¥77,736 million, an increase of ¥1,452 million compared with the end of the previous fiscal year, due mainly to an increase of ¥1,441 million in retained earnings.
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Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
As for the future outlook, amid the daily fluctuations in the spread of COVID-19, the vaccination rollout is gradually taking hold, and expectations are high for economic activities to resume. Nevertheless, given the difficulty of predicting when the pandemic will actually be contained and the prevailing economic instability, the economic outlook is expected to remain uncertain.
Taking into consideration the above circumstances, the Company has decided not to revise the financial results forecast for the fiscal year ending February 28, 2022 announced on April 9, 2021. Going forward, the Company will disclose any events that could significantly impact its business performance as soon as they occur.
3
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Belc Co. Ltd. published this content on 19 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2021 06:02:05 UTC.