Consolidated Financial Results
for the Nine Months Ended May 31, 2023
[Japanese GAAP]
July 7, 2023
Company name: Ryohin Keikaku Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 7453
URL:https://www.ryohin-keikaku.jp/eng/
Representative: Nobuo Domae, President and Representative Director
Contact: Kenta Horiguchi, Executive Officer and General Manager of Corporate Planning Office
Phone: +81-3-3989-5972
Scheduled date of filing quarterly securities report: July 14, 2023
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing materials on quarterly financial results: Yes
Schedule of quarterly business results briefing session: Yes (for securities analysts)
(Amounts of less than one million yen are rounded down.) | ||||||||||||
1. Consolidated Financial Results for the Nine Months Ended May 31, 2023 (September 1, 2022 to May 31, 2023) | ||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||||
Operating revenue | Operating profit | Ordinary profit | Net income attributable to | |||||||||
owners of parent | ||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
Nine months ended | 435,797 | 17.5 | 22,672 | (8.7) | 24,133 | (15.5) | 18,682 | (6.6) | ||||
May 31, 2023 | ||||||||||||
Nine months ended | 370,756 | 7.5 | 24,832 | (29.4) | 28,568 | (25.6) | 19,998 | (31.3) | ||||
May 31, 2022 | ||||||||||||
(Note) Comprehensive income: Nine months ended May 31, 2023: 18,402 million yen (-36.5%) |
Nine months ended May 31, 2022: 28,975 million yen (-14.7%)
Earnings per share | Diluted earnings per share | |
Yen | Yen | |
Nine months ended | 70.77 | 70.61 |
May 31, 2023 | ||
Nine months ended | 75.95 | 75.77 |
May 31, 2022 | ||
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net asset per share | |||||||||
Million yen | Million yen | % | Yen | |||||||||
As of May 31, 2023 | 414,801 | 253,195 | 60.2 | 944.34 | ||||||||
As of August 31, 2022 | 399,324 | 244,852 | 60.5 | 915.93 | ||||||||
(Reference) Equity capital: As of May 31, 2023: 249,525 million yen | ||||||||||||
As of August 31, 2022: 241,555 million yen | ||||||||||||
2. Dividends | ||||||||||||
Annual dividends | ||||||||||||
End of 1st quarter | End of 2nd quarter | End of 3rd quarter | Year-end | Total | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||
Fiscal year ended | - | 20.00 | - | 20.00 | 40.00 | |||||||
August 31, 2022 | ||||||||||||
Fiscal year ending | - | 20.00 | - | |||||||||
August 31, 2023 | ||||||||||||
Fiscal year ending | ||||||||||||
August 31, 2023 | 20.00 | 40.00 | ||||||||||
(forecast) | ||||||||||||
(Notes) Revision to the forecast for dividends announced most recently: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending August 31, 2023 (September 1, 2022 to August 31, 2023)
(% indicates changes from the previous fiscal year.)
Operating revenue | Operating profit | Ordinary profit | Net income attributable to | Earnings per share | |||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 585,000 | 17.9 | 30,000 | (8.5) | 29,700 | (20.2) | 18,600 | (24.3) | 70.53 |
(Note) Revision to the financial results forecast announced most recently: No
*Notes
(1) Changes in significant subsidiaries during the period under review
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No New: - (company name: - ), excluded - (company name: - )
(2) Accounting methods adopted specially for the preparation of quarterly consolidated financial statements: Yes
See (3) Notes to Quarterly Consolidated Financial Statements, 2. Quarterly Consolidated Financial Statements and Principal Notes in p.8 of Attached Materials for details.
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement | ||
(i) | Changes in accounting policies due to the revision of accounting standards: No | |
(ii) | Changes in accounting policies other than (i) above: | No |
(iii) Changes in accounting estimates: | No | |
(iv) Retrospective restatement: | No |
(4) Total number of issued shares (common shares) | |||||
(i) Total number of issued shares at the end of | |||||
As of May 31, 2023 | 280,780,000 shares | As of August 31, | |||
the period (including treasury shares): | 2022 | 280,780,000 shares | |||
(ii) | Total number of treasury shares at the end | ||||
As of May 31, 2023 | 16,547,612 shares | As of August 31, | |||
of the period: | 2022 | 17,053,847 shares | |||
(iii) | Average number of shares during the | ||||
Nine months ended | 264,000,723 shares | Nine months ended | |||
period: | 263,296,916 shares | ||||
May 31, 2023 | May 31, 2022 | ||||
*These quarterly consolidated financial results are exempt from the audit procedure by certified public accountants or audit firms.
*Explanation of the proper use of financial results forecast and other special notes
Forward-looking statements in these materials are based on information available to the management at the time of preparation of this report and on assumptions that management believes are reasonable, and do not represent a guarantee from the Company that they will be achieved. Actual results may differ significantly from these statements for various reasons.
○ Table of Contents of Attached Materials | ||
1. Qualitative Information on Quarterly Financial Results | 2 | |
(1) | Explanation of Operating Results | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information | 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 | ||
(For the first nine months) | 6 | |
Quarterly Consolidated Statements of Comprehensive Income | ||
(For the first nine months) | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
(Notes to going concern assumption) | 8 | |
(Notes to significant changes in shareholders' equity) | 8 | |
(Accounting methods adopted specially for the preparation of quarterly consolidated financial statements) | 8 | |
(Segment information, etc.) | 9 | |
(Revenue recognition) | 10 |
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1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the nine months ended May 31, 2023, economic activities gradually resumed, reflecting factors such as the level of progress in COVID-19 vaccination and the relaxation of movement restrictions. At the same time, the economic outlook both in Japan and overseas continued to be uncertain, given the global surge in resource prices, supply chain disruptions, and the rapid depreciation of the yen. Further, consumers are becoming increasingly budget-minded with prices of daily necessities and energy costs rising one after another.
Under such circumstances, the Ryohin Keikaku Group, in its second founding, has built its corporate identity to realize "Well- being Life and Society." We have developed merchandise, services, stores, and activities pursuing the ideal relationship between humans, nature, and things and a spiritually rich human society. The group drove forward its business to fulfill the following two missions.
Our first mission is to provide daily necessities and services with genuine quality and ethical value, at appropriate and affordable prices. The second mission is to have a positive impact on each region by operating stores that serve as community centers, sharing concerns and values with local residents and collaborating with them to tackle local issues.
The Ryohin Keikaku Group's operating results for the nine months ended May 31, 2023, are as follows.
Operating revenue | 435,797 million yen (up 17.5% from the same period a year ago) |
Operating profit | 22,672 million yen (down 8.7% from the same period a year ago) |
Ordinary profit | 24,133 million yen (down 15.5% from the same period a year ago) |
Net income attributable to owners of parent | 18,682 million yen (down 6.6% from the same period a year ago) |
While operating revenue increased owing to an increase in the number of stores as the Company opened new stores, operating profit declined as growth in operating gross profit stagnated due to higher procurement prices caused by the rapid depreciation of the yen and the surging raw materials costs.
In the third quarter, however, the Ryohin Keikaku Group turned around the profit structure of the Japan business coinciding with the price revision, while the overseas business also continued to perform strongly. As a result, the Company posted increases in both revenue and profit for the third quarterly accounting period, making steady progress towards achieving the full-year forecast.
The number of MUJI stores (including licensed stores) in Japan and overseas totaled 1,172 as of May 31, 2023, with 555 stores in Japan and 617 overseas. In Japan, the group enhanced its retail store network by opening 65 stores primarily adjacent to local food supermarkets, while opening 48 stores overseas mainly in mainland China, Taiwan, and Thailand.
Operating results by segment are as follows.
(i) Japan Business
Operating revenue from the Japan business during the nine months under review totaled 261,866 million yen (up 10.5% compared with the same period a year earlier), and segment profit came to 5,043 million yen (down 61.0%), resulting in revenue increase and profit decline.
Operating revenue increased as the Company actively opened new stores in residential areas. Meanwhile, operating profit of the segment declined as operating gross profit struggled due to the depreciation of the yen and high raw material prices, and expenses for opening stores and merchandise marketing communications rose. Under these circumstances, operating gross profit improved after the price revision of some products implemented in January and February 2023, and the segment profit for the quarterly accounting period returned to positive growth in the third quarterly accounting period.
(ii) East Asia Business
Operating revenue from the East Asia business during the nine months under review totaled 124,726 million yen (up 25.5% compared with the same period a year earlier) and segment profit came to 22,666 million yen (up 50.3%), resulting in increases in both revenue and profit.
In mainland China, the impact of the spread of COVID-19 greatly affected store operations in the first quarter. However, sales have been recovering since January 2023 as economic activities resumed and both revenue and profit improved. Further, the business in Taiwan, Hong Kong, and South Korea also recorded increases in both revenue and profit.
(iii) Asia East / South & Oceania Business
Operating revenue from the Asia East / South & Oceania business during the nine months under review totaled 23,052 million yen (up 51.0% compared with the same period a year earlier) and segment profit came to 3,346 million yen (up 114.4%), resulting in increases in both revenue and profit.
Sales in Southeast Asian countries, such as Thailand and Malaysia, performed strongly and revenue grew significantly, as products for the ASEAN region, uniquely developed to suit the local cultures and climates, were well received by local customers in the current fiscal year.
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(iv) Europe & Americas Business
Operating revenue from the Europe & Americas business during the nine months under review totaled 26,152 million yen (up 37.0% compared with the same period a year earlier) and segment profit came to 2,343 million yen (segment loss of 830 million yen in the same period a year earlier).
Sales in both North America and Europe grew and the segment posted increases in both revenue and profit. In particular, the business in North America performed strongly due to enhanced store operation capabilities.
[ESG initiatives]
Under the principle "To contribute to society and people," which has not changed since its founding, the Ryohin Keikaku Group aims to become a front runner of ESG management in the second founding and implements initiatives to contribute to the creation of an ecological and sustainable society with resource-recycling through our products, services, and activities led by locally- rooted stores.
- ESG in merchandise
The Company aims to offer products with reduced environmental burdens and adopt circular designs for all its products to make them recyclable resources after use. As part of these efforts, the Company has been collecting used clothes from customers since 2010, upcycling them into apparel after washing and redyeing, and selling them since 2015 and has been gradually expanding such products. As the Company made great progress in the collection of clothes thanks to the cooperation of a large number of customers, we expanded the number of stores offering the upcycled apparel from two to eight and began limited sales of these products on May 30.
- ESG in business activities
Endorsing the purport of "realization of a decarbonized and sustainable society through promotion of wood use (Wood Change)" called for by the Ministry of Agriculture, Forestry and Fisheries, the Company and its group company MUJI HOUSE Co., Ltd. signed an "agreement to promote the use of wood in buildings for expanding wood use" on May 31. The Company, which has been promoting utilization of local wood for stores, will contribute to achievement of carbon neutrality and revitalization of mountainous areas through active use of wood as structural materials as well as for interior and exterior of stores. Furthermore, the Company will also dispatch active dissemination of information regarding the significance of wood use and its advantages through mokuiku (wood education) activities, etc.
- ESG through localization activities
On April 28, the Company relaunched Café & Meal MUJI in Sato-no-MUJIMinnami-no-Sato, a facility for urban and rural exchange in Kamogawa City, Chiba Prefecture. The Company in April 2017 signed a regional cooperation agreement with Kamogawa City, and was approved as a designated administrator of Minnami-no-Sato in March 2018 and started operating the facility in April. As it was approved as designated administrator of the facility for five more years in April 2023, it relaunched Café & Meal MUJI in the facility and installed a workation spot to attract visitors within and from outside the prefecture. It also started offering discounts to the residents of Kamogawa City to encourage them to use local produce and vitalize local production for local consumption.
(2) Explanation of Financial Position
As of May 31, 2023, total assets of the Ryohin Keikaku Group stood at 414,801 million yen, up 15,476 million yen from the end of the previous fiscal year. This was primarily due to a 9,392 million yen increase in cash and deposits, a 3,137 million yen increase in notes and accounts receivable - trade, a 5,066 million yen decline in merchandise, a 8,545 million yen increase in property, plant and equipment, and a 3,132 million yen decline in investment securities.
Liabilities totaled 161,606 million yen, up 7,134 million yen from the end of the previous fiscal year. This was due primarily to a 13,251 million yen decline in accounts payable - trade, a 11,372 million yen increase in short-term loans payable, a 2,950 million yen increase in accrued expenses, and a 4,233 million yen increase in income taxes payable.
Net assets came to 253,195 million yen, up 8,342 million yen from the end of the previous fiscal year. This was primarily due to a 7,637 million yen increase in retained earnings, a 1,649 million yen decline in valuation difference on available-for-sale securities, and a 2,107 million yen increase in deferred gains or losses on hedges.
As a result, consolidated shareholders' equity ratio came to 60.2% compared with 60.5% at the end of the previous fiscal year.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There has been no change to the full-year financial results forecast in Consolidated Financial Results for the Six Months Ended February 28, 2023, announced on April 13, 2023.
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Ryohin Keikaku Co. Ltd. published this content on 07 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2023 06:07:04 UTC.