BAROQUE JAPAN LIMITED Consolidated Financial Summary for
Baroque Japan Limited
Quarterly Financial Information for the period ended May 31, 2022
Tokyo Stock Exchange, 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) | 8 |
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, the Japanese economy began to move towards a normalisation of economic activities, mainly due to the easing of restrictions on activities following a decrease in the number of new cases of Covid-19 epidemic. On the other hand, the business environment remains uncertain due to the significant impact of rising raw material prices and transportation costs, the rapid depreciation of the yen, and restrictions on activities associated with China's zero-Covid policy.
Regarding the Group's domestic business, with the easing activities restrictions s from late March and a recovery in the flow of people, the overall recovery trend strengthened, particularly for department stores' brands and FB/SB brands, and shop sales increase to 114.5% year-on-year. As a result, domestic sales and domestic gross profit in the consolidated cumulative first quarter were higher than in the same period of the previous year.
In addition, by increasing the top line and the company continues to work on cost reductions, the SG&A expenses ratio was kept at the same level as in the previous year, and operating and recurring profits significantly exceeded the same period of the previous year.
Regarding the US business in the overseas business, demand for the mainstay luxury made-in Japan denim remained strong, with strong sales in EC and wholesale (luxury department stores and select stores). The US business has expanded to a scale that exceeds that of the pre-Covid-19 epidemic period, and the US business achieved significant year-on-year increases in both revenue and profit. As for the Chinese Joint Venture with Belle International Holdings Limited (hereon, "Belle"), our strategic business partner within the Joint Venture, despite the impact of restrictions on activities following the spread of the Covid-19 epidemic in China, and despite expanding the channel to TikTok and focusing on EC sales, sales and profits in the China business declined year-on-year.
As of May 31,2022, we have 373 stores in Japan (282 directly operated, 91 through franchise) and 3 overseas stores (1 directly operated, 2 through franchise) - for a total of 376 stores. In addition, the number of stores in the Chinese retail business operated through Joint Venture with Belle has reached 330.
As a result of the above, the current consolidated cumulative first quarter period saw a consolidated turnover of 14,071 million yen (6.5% increase from the same term last year), operating profit of 1,090 million yen (35.9% increase from the same term last year), recurring profit of 837 million yen (5.9% decrease from the same term last year), and net income attributable to shareholders of the Parent Company was 398 million yen (1.0% decrease from the same term last year).
(2) Financial review
During the 3 months' period ended May 31, 2022, assets increased by 200 million yen to 38,832 million yen, mainly due to the decrease in Cash and cash equivalents by 1,221 million yen, the increase in Notes and trade receivables by 1,201 million yen, and the increase in Inventories by 107 million yen.
Liabilities increased by 617 million yen to 16,812 million yen, mainly due to the increased in Notes and trade payables by 274 million yen, the increase in Other payables by 95 million yen, and the increase in Provision for bonus by 150 million yen.
Equity decreased by 417 million yen to 22,019 million yen. This was mainly due to the decrease in Retained earnings by 1,376 million yen for the payment of dividends, the increase in Retained earnings by 398 million yen from net profit, the increase in Foreign currency translation reserve by 333 million yen, and the increase in Non- controlling interests by 227 million yen.
―2―
2. Consolidated financial statements
(1) Consolidated balance sheet
(Unit: million yen) | |||||
As at February 28, 2022 | As at May 31, 2022 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 15,010 | 13,789 | |||
Notes and trade receivables | 8,869 | 10,071 | |||
Inventories | 5,550 | 5,658 | |||
Consumables | 71 | 71 | |||
Others | 343 | 513 | |||
Total current assets | 29,846 | 30,103 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Building and leasehold improvements | 1,055 | 1,143 | |||
(net) | |||||
Land | 350 | 350 | |||
Construction in progress | 12 | 4 | |||
Others (net) | 78 | 67 | |||
Total property, plant and equipment | 1,496 | 1,565 | |||
Intangible assets | |||||
Software | 568 | 831 | |||
Others | 402 | 178 | |||
Total intangible assets | 970 | 1,010 | |||
Investments and other assets | |||||
Investments in and advances to | 1,603 | 1,431 | |||
associates | |||||
Rental deposits | 3,159 | 3,130 | |||
Deferred tax assets | 1,503 | 1,530 | |||
Others | 52 | 60 | |||
Total investments and other assets | 6,318 | 6,152 | |||
Total non-current assets | 8,785 | 8,728 | |||
Total assets | 38,632 | 38,832 | |||
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(Unit: million yen) | |||
As at February 28, 2021 | As at May 31, 2022 | ||
Liabilities | |||
Current liabilities | |||
Notes and trade payables | 3,329 | 3,604 | |
Short-terminterest-bearing borrowings | 2,000 | 2,000 | |
Interest-bearing borrowings | 3,000 | 5,000 | |
Other payables | 1,131 | 1,227 | |
Accrued expenses | 483 | 502 | |
Current tax payable | 809 | 822 | |
Deposits received | 5 | － | |
Provision for bonus | 293 | 444 | |
Provision for reinstatement costs | 18 | 38 | |
Others | 242 | 243 | |
Total current liabilities | 11,313 | 13,882 | |
Non-current liabilities | |||
Interest-bearing borrowings | 3,000 | 1,000 | |
Other payables | 7 | 7 | |
Deferred tax liabilities | 74 | 79 | |
Deposits received | 488 | 503 | |
Provision for share awards for directors | 182 | 218 | |
Provision for retirement benefits | 20 | 19 | |
Provision for reinstatement costs | 1,106 | 1,096 | |
Others | 2 | 5 | |
Total non-current liabilities | 4,881 | 2,929 | |
Total liabilities | 16,194 | 16,812 | |
Equity | |||
Shareholders' equity | |||
Share capital | 8,258 | 8,258 | |
Share premium | 8,059 | 8,059 | |
Retained earnings | 4,168 | 3,191 | |
Treasury stock | △692 | △692 | |
Total shareholders' equity | 19,793 | 18,815 | |
Other reserves | |||
Foreign currency translation reserve | 459 | 792 | |
Total other reserves | 459 | 792 | |
Non-controlling interests | 2,184 | 2,411 | |
Total equity | 22,437 | 22,019 | |
Total liabilities and equities | 38,632 | 38,832 | |
―4―
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Baroque Japan Ltd. published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 06:33:03 UTC.
