Consolidated Financial Summary for
Baroque Japan Limited
Quarterly Financial Information for the period ended August 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) Consolidated statement of cash flows | 7 | |
(4) | Notes to the consolidated financial statements | 8 |
(Note on going-concern) | 8 | |
(Change in shareholders' equity) | 8 | |
(Change in accounting policy) | 8 | |
(Segment accounting) | 8 | |
(Additional information) | 8 | |
(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 second quarter, in regards to the Japanese economy, due to the spread of Covid-19 epidemic, the issue of State of Emergency had an effect in the restrictions of economic activities and personal consumptions also remains in a severe situation. Although vaccination has progressed so far, the spread of new variant made the outlook for the future economy continues to remain certain.
Under these circumstances, the Group's domestic business was affected by the expansion of subjected areas and extensions of the State of Emergency due to the 5th wave of Covid-19 epidemic and unseasonable weather such as localized torrential rain also led the second quarter of store sales decrease. However, domestic EC sales significantly grew year-on-year due to strengthening live commerce, etc., and as a result, domestic sales and gross profit during the consolidated cumulative second quarter, were significantly higher than in the same period of the previous year.
In addition, through proper sales and inventory control, we further strengthen to reduce business consignment expenses, etc., and while the SG&A expense ratio improved year-on-year, operating profit and recurring profit significantly exceeded 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, demand for luxury made-in Japan denim continued to grow, and both wholesale and EC sales significantly grew year-on-year.
As of August 31, 2021, we have 369 stores in Japan (284 directly operated, 85 through franchise) and 6 overseas stores (5 directly operated) totaling in 375 stores. In addition, our Chinese retail business operations conducted alongside our joint venture partner Belle have grown to include 304 storefronts.
As a result of the above, the second quarter of the current consolidated cumulative period saw a consolidated turnover of 26,566 million yen (26.9% increase from the same term last year), operating profit of 529 million yen (year-on-year loss of 446 million yen), recurring profit of 756 million yen (year-on-year loss of 857 million yen), and net income attributable to shareholders of the parent company was 299 million yen (year-on-year loss of 918 million yen).
(2) Financial review
During the 6 months' period ended August 31, 2021, assets decreased by 1,752 million yen to 36,590 million yen, mainly due to the decrease in Cash and cash equivalents by 2,815 million yen, the increased in Inventories by 953 million yen.
Liabilities decreased by 1,514 million yen to 15,917 million yen, mainly due to the decreased in Short-terminterest-bearing borrowings by 1,000 million yen, the decrease in Notes and trade payables by 117 million yen and Current tax payable by 159 million yen.
Equity decreased by 238 million yen to 20,673 million yen, mainly due to the decrease in Retained earnings by 1,158 million yen for the payment of dividends, the increase in Retained earnings by 299 million yen from net profit, the increase in Foreign currency translation reserve by 350 million yen, and the increase in Non-controlling interests by 270 million yen.
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2. Consolidated financial statements
(1) Consolidated balance sheet
(Unit: million yen) | |||||
As at February 28, 2021 | As at August 31, 2021 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 15,924 | 13,109 | |||
Notes and trade receivables | 8,001 | 8,010 | |||
Inventories | 4,918 | 5,871 | |||
Consumables | 197 | 85 | |||
Others | 348 | 387 | |||
Total current assets | 29,390 | 27,465 | |||
Non-current assets | |||||
Property, plant and equipment | |||||
Building and leasehold improvements | 1,317 | 1,323 | |||
(net) | |||||
Land | 350 | 350 | |||
Construction in progress | 32 | 3 | |||
Others (net) | 74 | 77 | |||
Total property, plant and equipment | 1,773 | 1,754 | |||
Intangible assets | |||||
Software | 701 | 631 | |||
Others | 118 | 200 | |||
Total intangible assets | 819 | 832 | |||
Investments and other assets | |||||
Investments in and advances to | 1,597 | 1,772 | |||
associates | |||||
Rental deposits | 3,232 | 3,242 | |||
Deferred tax assets | 1,426 | 1,446 | |||
Others | 102 | 76 | |||
Total investments and other assets | 6,359 | 6,538 | |||
Total non-current assets | 8,952 | 9,125 | |||
Total assets | 38,343 | 36,590 | |||
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(Unit: million yen) | ||||
As at February 28, 2021 | As at August 31, 2021 | |||
Liabilities | ||||
Current liabilities | ||||
Notes and trade payables | 3,872 | 3,755 | ||
Short-terminterest-bearing | 3,000 | 2,000 | ||
borrowings | ||||
Interest-bearing borrowings | 125 | - | ||
Other payables | 946 | 947 | ||
Accrued expenses | 641 | 520 | ||
Current tax payable | 550 | 390 | ||
Deposits received | 10 | 0 | ||
Provision for bonus | 297 | 148 | ||
Provision for reinstatement costs | 9 | 23 | ||
Others | 180 | 240 | ||
Total current liabilities | 9,632 | 8,027 | ||
Non-current liabilities | ||||
Interest-bearing borrowings | 6,000 | 6,000 | ||
Other payables | 15 | 15 | ||
Deferred tax liabilities | 65 | 70 | ||
Deposits received | 459 | 468 | ||
Provision for retirement benefits | 17 | 18 | ||
Provision for reinstatement costs | 1,120 | 1,158 | ||
Others | 121 | 158 | ||
Total non-current liabilities | 7,798 | 7,890 | ||
Total liabilities | 17,431 | 15,917 | ||
Equity | ||||
Shareholders' equity | ||||
Share capital | 8,258 | 8,258 | ||
Share premium | 8,059 | 8,059 | ||
Retained earnings | 3,855 | 2,996 | ||
Treasury stock | △692 | △692 | ||
Total shareholders' equity | 19,480 | 18,621 | ||
Other reserves | ||||
Foreign currency translation reserve | △170 | 179 | ||
Total other reserves | △170 | 179 | ||
Non-controlling interests | 1,601 | 1,872 | ||
Total equity | 20,911 | 20,673 | ||
Total liabilities and equities | 38,343 | 36,590 | ||
―4―
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Baroque Japan Ltd. published this content on 15 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2021 06:11:11 UTC.