CONSOLIDATED FINANCIAL REPORT(Japanese GAAP)
FIRST QUARTER OF THE FISCAL YEAR ENDING
FEBRUARY 28, 2025
(March 1, 2024 to May 31, 2024)
July 11, 2024
YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number 8008.
Representative: | Hidetoshi Masuda, President and Representative Director |
Inquiries: | Masahiko Nishimura, Managing Director, Managing Executive Officer |
responsible for Operations |
Tel: +81-3-5719-3295
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): July 12, 2024
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): -
(Millions of yen rounded down)
1. Consolidated Operating Results for the First Quarter of Fiscal 2024
(March 1, 2024 to May 31, 2024)
- Consolidated Operating Results (Cumulative)
(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Net sales | Operating Income | Ordinary Income | Profit attributable to | ||||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
1Q FY2024 | 9,693 | 1.1 | 542 | (25.5) | 655 | (22.9) | 525 | 4.6 | |
1Q FY2023 | 9,585 | 2.8 | 727 | 87.3 | 850 | 73.5 | 502 | 25.2 | |
Note: Comprehensive income 1Q FY2024: 744 million yen (53.2%) | 1Q FY2023: 485 million yen (-%) | ||||||||
Net Income | Net Income per | ||||||||
per Share | Share after Dilution | ||||||||
Yen | Yen | ||||||||
1Q FY2024 | 24.52 | - | |||||||
1Q FY2023 | 23.45 | - | |||||||
(Reference) | Operating income before the amortization of goodwill: | ||||||||
1Q FY 2024: ¥666 million | 1Q FY 2023: ¥852 million |
The Company considers operating income before the amortization of goodwill to be an important management indicator.
- Consolidated Financial Position
Total Assets | Net Assets | Net Assets to Total | Net Assets per Share | |
Assets | ||||
Millions of yen | Millions of yen | % | Yen | |
May 31, 2024 | 51,734 | 38,459 | 74.3 | 1,791.47 |
February 29, 2024 | 50,643 | 38,596 | 76.2 | 1,798.49 |
(Reference) Shareholders' equity: May 31, 2024: 38,438 million yen | February 29, 2024: 38,577 million yen |
2. | Dividends | |||||
Dividends per Share | ||||||
(Record Date) | End of 1Q | End of 2Q | End of 3Q | Year-end | Annual | |
Yen | Yen | Yen | Yen | Yen | ||
Fiscal 2023 | - | 41.50 | - | 41.50 | 83.00 | |
Fiscal 2024 | - | |||||
Fiscal 2024 | 41.50 | - | 41.50 | 83.00 | ||
(Forecast) | ||||||
Note: Revision to the most recently announced cash dividend forecast: No
- 1 -
3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2025 (March 1, 2024 to February 28, 2025)
(Percentages represent percentage changes as compared with the corresponding period in the previous fiscal year)
Net Sales | Operating Income | Ordinary Income | Profit attributable to | Net Income | |||||
owners of parent | per Share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Interim period | 20,000 | 4.7 | 1,000 | (6.5) | 1,200 | (6.6) | 750 | 7.7 | 34.96 |
Fiscal year | |||||||||
ending | 41,000 | 3.9 | 2,350 | 12.1 | 2,800 | 11.3 | 1,600 | 23.0 | 74.58 |
February 28, | |||||||||
2025 |
Note: Revision to the most recently announced operating results forecast: No (Reference) EPS before the amortization of goodwill is ¥97.72.
Notes
-
Changes in Important Subsidiaries during the Period:
(Changes in specified subsidiaries that caused changes in the scope of consolidation): No - Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated Financial Statements: Yes
- Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
- Changes of accounting principles in line with revisions to accounting and other standards: No
- Changes of accounting principles other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
May 31, 2024: 24,331,356 shares | Feb. 29, 2024: 24,331,356 shares |
2. Total number of treasury stock as of the period-end:
May 31, 2024: 2,874,856 shares | Feb. 28, 2024: 2,881,696 shares |
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)
First quarter fiscal 2024: 21,453,450 shares First quarter fiscal 2023: 21,443,216 shares
Note: The number of recorded treasury stock includes 125,329 of the Company' shares held by the Shares Grant Trust for Officers as of the end of the first quarter of the subject consolidated fiscal year.
- These quarterly consolidated financial results are not subject to auditing by certified public accountants or audit firms.
- Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items Results forecasts are prepared based on information available at the time of disclosure of this document. Actual results may vary from forecast figures for a variety of reasons. For the assumptions that underpin operating results forecasts as well as cautionary notes on the use of operating results forecasts, please refer to "1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated Results Forecasts and Other Future Predictions" on page 5.
- 2 -
Contents | ||
1. Qualitative Information on Business and Financial Results | 4 | |
(1) | Explanation of Business Results | 4 |
(2) | Explanation of Financial Condition | 4 |
(3) | Explanation of Consolidated Results Forecasts and Other Future Predictions | 5 |
2. Consolidated Quarterly Financial Statements | 6 | |
(1) | Consolidated Quarterly Balance Sheets | 6 |
(2) | Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of | 8 |
Comprehensive Income | ||
Consolidated Quarterly Statements of Income First Quarter Cumulative | 8 | |
Consolidated Quarterly Statements of Comprehensive Income First Quarter Cumulative | 9 | |
(3) | Notes to Consolidated Quarterly Financial Statements | 9 |
(Notes Regarding Going Concern Assumptions) | 9 | |
(Notes Regarding Substantial Changes in Shareholders' Equity) | 10 | |
(Application of Special Accounting Treatment in the Preparation of the Consolidated | 10 | |
Financial Statements) | ||
(Changes in Accounting Policies) | 10 | |
(Additional Information) | 10 | |
(Segment Information) | 11 | |
(Matters related to Revenue Recognition) | 12 | |
(Important Subsequent Events) | 12 |
- 3 -
1. Qualitative Information on Business and Financial Results
(1) Explanation of Business Results
During the first quarter period (March 1, 2024, to May 31, 2024) of fiscal 2024 (ending February 2025), the Japanese economy showed signs of a modest recovery, with improvement in corporate earnings, as well as conditions for employment and income. Nevertheless, the outlook for the future remained uncertain over concerns about rising prices due to higher raw material costs and the depreciation of the yen, and growing geopolitical risks.
In the retail sector, sales of high-ticket items were firm, and demand from inbound tourism continued to rise. However, wage increases have not kept pace with rising prices, and with real wages on a downward trend, consumers continue to focus on cost savings and lower prices, leading to greater market polarization.
Under such circumstances, during the fiscal year ending February 2025, the initial year of the 7th Medium-Term Management Plan, YONDOSHI HOLDINGS Group, with a basis on responding to the business environment, is focusing on value provided to customers, and implementing various measures to establish a foundation for dynamic future growth. In addition, the Company practiced sustainable management to establish a highly trusted corporate group, and worked to enhance enterprise value by strengthening internal controls, providing shareholder returns, and making medium- to long-term investments linked to earnings growth.
As a result, net sales for the subject first quarter period amounted to ¥9,693 million (up 1.1% from the same period of the previous fiscal year), for a fourth consecutive quarter of revenue gains. Earnings at all levels was mostly in line with plan, with operating income of ¥542 million (down 25.5%), and ordinary income of ¥655 million (down 22.9%). Profit attributable to owners amounted to ¥525 million (up 4.6%), rising for a fourth consecutive quarter mainly from an extraordinary gain of ¥340 million on sale of Company-heldavailable-for-sale securities. Operating income before the amortization of goodwill, which the Company considers to be an important management indicator, amounted to ¥666 million (down 21.7%).
Operating results by business segment were as follows. Of note, the Jewelry Business segment has been renamed the Brand Business, with a view to expansion into new business domains.
Brand Business
The F.D.C. Products Group, which handles the Brand Business, is working to strengthen its foundation by revising product and sales promotion strategies to expand support among female customers. With the aim of rebuilding the portfolio by taste, F.D.C. Products Group increased the number of directors, and began product planning under a new structure.
In terms of store openings and closings, two stores were closed, for a total of 136 stores at the end of the subject period.
As a result, net sales in the Brand Business segment amounted to ¥3,511 million (down 10.2% from the same period of the previous fiscal year), with operating income of ¥249 million (down 34.8%). While this represented a decrease in both revenue and earnings, the results were mostly in line with plan.
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, was impacted by low temperatures in early spring and other types of unseasonable weather in certain areas, but overall sales increased on new store openings. In terms of store openings and closings, four stores were opened, and one store renovated, for a total of 103 stores at the end of the subject period.
Apparel manufacturing and wholesaler The AS'TY Group expanded measures with major business partners, leading to positive performance in both revenue and earnings.
As a result, net sales in the Apparel Business segment amounted to ¥6,182 million (up 8.9% from the same period of the previous fiscal year), with operating income of ¥406 million (down 9.9%). While this represented a revenue gain with earnings decline, the results were mostly in line with plan.
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2024) amounted to ¥51,734 million, an increase of ¥1,090 million from the end of the previous fiscal year (February 29, 2024). This was due mainly to increases of ¥212 million in investment securities, and ¥527 million in merchandise and finished goods. Total liabilities amounted to ¥13,275 million, an increase of ¥1,227 million from the end of the previous fiscal year, due mainly to an increase of ¥850 million in short-term borrowings. Total net assets
- 4 -
at the end of the subject period amounted to ¥38,459 million, a decrease of ¥136 million from the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Consolidated results forecasts for fiscal 2024 are unchanged from those announced on April 12, 2024.
- 5 -
2. Consolidated Quarterly Financial Statements
- Consolidated Quarterly Balance Sheets
(Millions of yen) | |||
End of the Fiscal Year Ended | End of the First Quarter of | ||
February 29, 2024 | the Fiscal Year Ending | ||
(As of February 29, 2024) | February 28, 2025 | ||
(As of May 31, 2024) | |||
ASSETS | |||
Current assets: | |||
Cash and deposits | 1,579 | 1,955 | |
Notes and accounts receivable ― trade | 2,905 | 3,152 | |
Merchandise and finished goods | 8,080 | 8,608 | |
Work in process | 108 | 148 | |
Raw materials and supplies | 430 | 195 | |
Other current assets | 842 | 931 | |
Allowance for doubtful accounts | (5) | (6) | |
Total current assets | 13,941 | 14,984 | |
Noncurrent assets: | |||
Property, plant and equipment: | |||
Buildings and structures, net | 4,027 | 4,011 | |
Land | 5,839 | 5,839 | |
Other, net | 449 | 423 | |
Total property, plant and equipment | 10,316 | 10,274 | |
Intangible assets: | |||
Goodwill | 1,241 | 1,117 | |
Other intangible assets | 483 | 468 | |
Total intangible assets | 1,724 | 1,585 | |
Investments and other assets: | |||
Investment securities | 20,530 | 20,743 | |
Net defined benefit asset | 443 | 451 | |
Other | 3,733 | 3,741 | |
Allowance for doubtful accounts | (47) | (47) | |
Total investments and other assets | 24,660 | 24,889 | |
Total noncurrent assets | 36,701 | 36,749 | |
Total assets | 50,643 | 51,734 |
- 6 -
5.(要約)四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended | End of the First Quarter of | |
February 29, 2024 | the Fiscal Year Ending | |
(As of February 29, 2024) | February 28, 2025 | |
(As of May 31, 2024) | ||
LIABILITIES | ||
Current liabilities: | ||
Notes and accounts payable ― trade | 2,369 | 3,021 |
Electronically recorded obligations - operating | 699 | 538 |
Short-term borrowings | ― | 850 |
Income taxes payable | 252 | 368 |
Provision for bonuses | 271 | 222 |
Provision for directors' bonuses | 48 | 15 |
Asset retirement obligations | 86 | 12 |
Other | 1,878 | 1,757 |
Total current liabilities | 5,605 | 6,785 |
Noncurrent liabilities: | ||
Provision for share-based remuneration for directors (and | 243 | 244 |
other officers) | ||
Retirement benefit liability | 494 | 480 |
Asset retirement obligations | 979 | 972 |
Other | 4,724 | 4,791 |
Total noncurrent liabilities | 6,441 | 6,489 |
Total liabilities | 12,047 | 13,275 |
NET ASSETS | ||
Shareholders' equity: | ||
Capital stock | 2,486 | 2,486 |
Capital surplus | 7,178 | 7,178 |
Retained earnings | 30,567 | 30,198 |
Treasury stock | (6,123) | (6,110) |
Total shareholders' equity | 34,109 | 33,753 |
Other accumulated comprehensive income: |
Valuation difference on available-for-sale securities Deferred gains or losses on hedges
Revaluation reserve for land Remeasurements of defined benefit plans Total other accumulated comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets
4,857 | 5,066 |
8 | 12 |
(233) | (233) |
(165) | (160) |
4,467 | 4,685 |
18 | 20 |
38,596 | 38,459 |
50,643 | 51,734 |
- 7 -
-
Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income First Quarter Cumulative
(Millions of yen) | |||
First Quarter of the | First Quarter of the | ||
Fiscal Year Ended | Fiscal Year Ending | ||
February 29, 2024 | February 28, 2025 | ||
(March 1, 2023 to | (March 1, 2024 to | ||
May 31, 2023) | May 31, 2024) | ||
Net sales | 9,585 | 9,693 | |
Cost of Sales | 4,772 | 5,028 | |
Gross profit | 4,813 | 4,665 | |
Selling, general and administrative expenses | 4,085 | 4,122 | |
Operating income | 727 | 542 | |
Non-operating income | |||
Interest income | 34 | 35 | |
Dividends received | 69 | 66 | |
Foreign exchange gains | 5 | 4 | |
Other | 15 | 7 | |
Total non-operating income | 123 | 113 | |
Non-operating expenses | |||
Interest expenses | 0 | 0 | |
Loss on insurance cancellation | 0 | ― | |
Other | 0 | 0 | |
Total non-operating expenses | 1 | 0 | |
Ordinary income | 850 | 655 | |
Extraordinary income | |||
Gain on sales of investment securities | ― | 340 | |
Total extraordinary income | ― | 340 | |
Extraordinary loss | |||
Impairment loss | 9 | 32 | |
Loss on closing of stores | 1 | 4 | |
Building demolition expenses | ― | 100 | |
Total extraordinary losses | 10 | 137 | |
Net income before income taxes | 840 | 858 | |
Total income taxes | 337 | 332 | |
Net income | 502 | 525 | |
Profit attributable to owners of parent | 502 | 525 |
- 8 -
Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative
(Millions of yen) | |||
First Quarter of the | First Quarter of the | ||
Fiscal Year Ended | Fiscal Year Ending | ||
February 29, 2024 | February 28, 2025 | ||
(March 1, 2023 to | (March 1, 2024 to | ||
May 31, 2023) | May 31, 2024) | ||
Income before minority interests | 502 | 525 | |
Other comprehensive income | |||
Other valuation difference on available-for-sale securities | (51) | 209 | |
Deferred gains or losses on hedges | 33 | 3 | |
Foreign currency translation adjustments | (2) | ― | |
Remeasurements of defined benefit plans, net of tax | 4 | 5 | |
Total other comprehensive income | (16) | 218 | |
Comprehensive income | 485 | 744 | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of the parent | 485 | 744 |
- 9 -
-
Notes to Consolidated Quarterly Financial Statements
(Notes Regarding Going Concern Assumptions) Not applicable
(Notes Regarding Substantial Changes in Shareholders' Equity) Not applicable
(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial Statements)
(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application of tax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject first quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Changes in Accounting Policies) Not applicable
(Additional Information)
(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stock compensation plan (hereinafter, the "Plan"), with eligible persons the Company's directors (excluding directors who are audit and supervisory committee members) and directors who are audit and supervisory committee members (excluding outside directors), as well as directors and corporate auditors (excluding outside corporate auditors) of the Company's major group companies from November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company's shares to eligible directors of eligible companies in accordance with rules for granting trust-based stock compensation to corporate officers as determined by the eligible companies. The Company will contribute funds to the trust, and the trust will use these funds to acquire the Company's shares, and grant them to eligible directors. In principle, directors and other officers will receive the Company's shares at the time of retirement.
- The Company's own shares held in the Trust
The Company's own shares held in the Trust are recorded as treasury stock under net assets at their book value in the Trust (excluding the amount of ancillary expenses). The book value and number of shares of such treasury stock was ¥255 million, for 132,170 shares at the end of the previous consolidated fiscal year, and ¥241 million, for 125,329 shares at the end of the first quarter of the subject consolidated fiscal year.
- 10 -
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Yondoshi Holdings Inc. published this content on 11 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 06:37:07 UTC.