BAROQUE JAPAN LIMITED Consolidated Financial Summary for
Baroque Japan Limited
Quarterly Financial Information for the period ended May 31, 2021
Tokyo Stock Exchange First Section, 3548
English Translation of the original Japanese-Language Report
Contents
1. Management discussion and analysis | 2 | |
(1) | Summary of the business | 2 |
(2) | Financial review | 2 |
2. Consolidated financial statements and notes | 3 | |
(1) | Consolidated balance sheet | 3 |
(2) | Consolidated income statement and consolidated statement of comprehensive income | 5 |
(3) | Notes to the consolidated financial statements | 7 |
(Note on going-concern) | 7 | |
(Change in shareholders' equity) | 7 | |
(Change in accounting policy) | 7 | |
(Segment accounting) | 7 | |
(Additional information) | 7 | |
(Subsequent events) | 7 |
Note:
If there is any inconsistency or conflict between English and Japanese versions of this information, the Japanese version shall prevail.
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1. Management discussion and analysis
(1) Summary of the business
During the consolidated cumulative first quarter, in regards to the Japanese economy, due to the spread of Covid- 19 epidemic, the third state of emergency were issued and because of that the economic activities were restricted and personal consumption was sluggish, and the outlook for the future continues to remain uncertain.
Under these circumstances, the Group's domestic business was affected by the closure of commercial facilities and shortened business hours due to the reissue of the state of emergency from April 25. However, in the previous year, all stores were closed in May, while this year the number of closed stores were 117 as of April 25. The number of closed stores has gradually decreased since then and compared to the previous year, and the impact to the store sales shrank. As a result, domestic sales and gross profit for the consolidated cumulative first quarter were significantly higher than in the same period of the previous year.
As of domestic EC sales, even during the store closure period, we actively launch measures such as live streaming on Instagram and the sales are continuing to grow more than the previous year.
In addition to thorough proper sales and inventory control, we further strengthen to reduce SG & A expenses such as percentage rent due to the closure, personnel expenses, business consignment expenses and advertising expenses, and due to the effect of increased sales, the SG&A expense ratio improved year-on-year, and operating profit and recurring profit became significantly improved compared to the same period of the previous year.
Regarding the Chinese Joint Venture with Belle International Holdings Limited (hereon, Belle), our strategic business partner within the Joint Venture, Chinese personal consumption remains strong and the sales of both retail companies (equity method affiliates) and wholesale companies (consolidated subsidiaries) have increased year-on- year. Additionally, in regards to our US business operations, while consumption is activating due to the spread of vaccines, demand for denim continued to grow year-on-year, and both wholesale and EC sales significantly grew year-on year.
As of May 31,2021, we have 375 stores in Japan (291 directly operated, 84 through franchise) and 5 overseas stores (5 directly operated) - for a total of 380 stores. In addition, the number of stores in the Chinese retail business operated through Joint Venture with Belle has reached 291.
As a result of the above, the current consolidated cumulative first quarter period saw a consolidated turnover of 13,208 million yen (54.2% increase from the same term last year), operating profit of 802 million yen (916.4% increase from the same term last year), recurring profit of 889 million yen (year-on-year loss of 376 million yen), and net income attributable to shareholders of the parent company was 402 million yen (year-on-year loss of 797 million yen).
(2) Financial review
During the 3 months' period ended May 31, 2021, assets decreased by 1,191 million yen to 37,151 million yen, mainly due to the decrease in Cash and cash equivalents by 2,897 million yen, the increase in Inventories by 1,287 million yen, and the increase in Notes and trade receivables by 418 million yen.
Liabilities decreased by 790 million yen to 16,640 million yen, mainly due to the decreased in Short-term interest- bearing borrowings by 1,000 million yen, the increase in Notes and trade payables by 259million yen.
Equity decreased by 401 million yen to 20,510 million yen, mainly due to the payment of dividends by 1,158 million yen , and the increase in Retained earnings by 402 million yen from net profit.
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2. Consolidated financial statements
(1) Consolidated balance sheet
(Unit: million yen) | |||||
As at February 28, 2021 | As at May 31, 2021 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 15,924 | 13,027 | |||
Notes and trade receivables | 8,001 | 8,419 | |||
Inventories | 4,918 | 6,205 | |||
Consumables | 197 | 153 | |||
Others | 348 | 357 | |||
Total current assets | 29,390 | 28,164 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Building and leasehold improvements | 1,317 | 1,307 | |||
(net) | |||||
Land | 350 | 350 | |||
Construction in progress | 32 | 16 | |||
Others (net) | 74 | 86 | |||
Total property, plant and equipment | 1,773 | 1,760 | |||
Intangible assets | |||||
Software | 701 | 675 | |||
Others | 118 | 175 | |||
Total intangible assets | 819 | 850 | |||
Investments and other assets | |||||
Investments in and advances to | 1,597 | 1,612 | |||
associates | |||||
Rental deposits | 3,232 | 3,216 | |||
Deferred tax assets | 1,426 | 1,448 | |||
Others | 102 | 97 | |||
Total investments and other assets | 6,359 | 6,375 | |||
Total non-current assets | 8,952 | 8,986 | |||
Total assets | 38,343 | 37,151 | |||
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(Unit: million yen) | ||||
As at February 28, 2021 | As at May 31, 2021 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and trade payables | 3,872 | 4,132 | ||
Short-terminterest-bearing borrowings | 3,000 | 2,000 | ||
Interest-bearing borrowings | 125 | 50 | ||
Other payables | 946 | 1,081 | ||
Accrued expenses | 641 | 466 | ||
Current tax payable | 550 | 434 | ||
Deposits received | 10 | 5 | ||
Provision for bonus | 297 | 367 | ||
Provision for reinstatement costs | 9 | 11 | ||
Others | 180 | 227 | ||
Total current liabilities | 9,632 | 8,777 | ||
Non-current liabilities | ||||
Interest-bearing borrowings | 6,000 | 6,000 | ||
Other payables | 15 | 15 | ||
Deferred tax liabilities | 65 | 69 | ||
Deposits received | 459 | 459 | ||
Provision for retirement benefits | 17 | 17 | ||
Provision for reinstatement costs | 1,120 | 1,159 | ||
Others | 121 | 142 | ||
Total non-current liabilities | 7,798 | 7,863 | ||
Total liabilities | 17,431 | 16,640 | ||
Equity | ||||
Shareholders' equity | ||||
Share capital | 8,258 | 8,258 | ||
Share premium | 8,059 | 8,059 | ||
Retained earnings | 3,855 | 3,099 | ||
Treasury stock | △692 | △692 | ||
Total shareholders' equity | 19,480 | 18,724 | ||
Other reserves | ||||
Foreign currency translation reserve | △170 | △13 | ||
Total other reserves | △170 | △13 | ||
Non-controlling interests | 1,601 | 1,799 | ||
Total equity | 20,911 | 20,510 | ||
Total liabilities and equities | 38,343 | 37,151 | ||
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Baroque Japan Ltd. published this content on 15 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2021 06:04:29 UTC.
