Summary of Financial Results for the First Quarter Ended May 31, 2022
[IFRS] (Consolidated)
July 14, 2022 | |||
Company | create restaurants holdings inc. | Listed on the TSE | |
Stock Code | 3387 | URL: https://www.createrestaurants.com | |
Representative | Jun Kawai, President | ||
Contact | Genta Ohuchi, Director, CFO, Management of Accounting Dept. | T E L: +81-3-5488-8022 |
Expected date of filing of quarterly report: July 14, 2022 | Expected starting date of dividend payment: - |
Preparation of quarterly supplementary financial document: Yes | |
Quarterly results briefing: None | |
(Rounded down to million yen) |
1. Consolidated business results for the three months ended May 2022 (March 1, 2022 through May 31, 2022)
(1) Consolidated results of operations | (% change from the previous corresponding period) | |||||||||||||||||
Profit | Total comprehensive | |||||||||||||||||
Revenue | Operating profit | Profit before taxes | Profit for the period | attributable to | ||||||||||||||
profit for the period | ||||||||||||||||||
owners of parent | ||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||
Three months | 26,243 | 47.9 | 5,166 | 239.8 | 5,130 | 251.2 | 3,873 | 262.6 | 3,422 | 220.5 | 4,571 | 254.7 | ||||||
ended May 2022 | ||||||||||||||||||
Three months | 17,740 | 50.2 | 1,520 | - | 1,461 | - | 1,068 | - | 1,067 | - | 1,288 | - | ||||||
ended May 2021 | ||||||||||||||||||
Basic earnings | Diluted earnings | |||||||||||||||||
per share | per share | |||||||||||||||||
Yen | Yen | |||||||||||||||||
Three months ended | 16.28 | - | ||||||||||||||||
May 2022 | ||||||||||||||||||
Three months ended | 5.72 | 5.72 | ||||||||||||||||
May 2021 | ||||||||||||||||||
(Reference) Adjusted EBITDA: Three months ended May 2022: 9,294 million yen (67.1%) Three months ended May 2021: 5,562 million yen (-%)
(Note 1) "Basic earnings per share" and "Diluted earnings per share" are calculated based on "Profit attributable to owners of parent."
(Note 2) The diluted earnings per share for the three months ended May 2022 are not presented, as there are no dilutive shares.
(Note 3) Adjusted EBITDA is disclosed as useful comparative information on the business performance of the Group. For definitions and calculation methods of Adjusted EBITDA, please refer to "1. Qualitative Information on Results for the Current Quarter (1) Qualitative information on the consolidated financial results" on page 2 of the attached document.
(2) Consolidated financial position
Equity | Ratio of | |||
Total assets | Total equity | attributable to | equity attributable | |
owners of parent | to owners of parent | |||
Million yen | Million yen | Million yen | % | |
As of May 2022 | 137,572 | 34,619 | 27,319 | 19.9 |
As of Feb 2022 | 133,605 | 30,730 | 23,788 | 17.8 |
2. Dividends
Annual dividend | ||||||
End of 1Q | End of 2Q | End of 3Q | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Year ended Feb 2022 | - | 1.50 | - | 3.00 | 4.50 | |
Year ending Feb 2023 | - | |||||
Year ending Feb 2023 (forecast) | 3.00 | - | 3.00 | 6.00 |
(Note) Revisions to dividend forecast for the current quarter: None
3.Forecast of consolidated business results for the fiscal year ending February 2023 (March 1, 2022 through February 28, 2023)
Revenue | Operating profit | Profit before taxes | Profit for the year | Profit attributable to | Basic profit | ||||||
owners of parent | per share | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Year ending Feb | 115,000 | 46.8 | 7,300 | -4.4 | 6,800 | -4.7 | 5,100 | -23.4 | 4,500 | -24.0 | 21.41 |
2023 | |||||||||||
(Note) Revisions to business forecast for the current quarter: None | |||||||||||
(Reference) Adjusted EBITDA: Year ending February 2023 (Forecast): 24,700 million yen (-8.8%) |
*Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): None
- Changes in accounting policies, accounting estimates and restatement
① Changes in accounting policies required under IFRS:
②Changes in accounting policies due to reasons other than ① ③Changes in accounting estimates - Shares outstanding (common stock)
① Number of shares outstanding at the end of period (treasury stock included)
As of May 2022 | 212,814,284 shares |
As of February 2022 | 212,814,284 shares |
②Treasury stock at the end of period | |
As of May 2022 | 2,644,751 shares |
As of February 2022 | 2,656,151 shares |
③Average number of stock during period (quarterly cumulative period)
Three months ended May 2022 | 210,162,248 shares |
Three months ended May 2021 | 186,783,134 shares |
- None
- None
- None
(Note 1) Treasury stock to be deducted for the calculation of the number of treasury stock at the end of the period and the average number of stock during period (quarterly cumulative period) include the Company's shares held by the Custody Bank of Japan, Ltd. (trust account) as a trust asset related to the Employee Incentive Plan "Trust-type ESOP for Employees."
*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms.
*Explanation regarding appropriate use of business forecasts and other special instructions
- Our Group adopts International Financial Reporting Standards ("IFRS").
- Forecasts regarding future performance in this material are based on information currently available to the company and certain assumptions that the company deems to be reasonable at the time this report was prepared. Actual results may differ significantly from the forecasts due to various factors. Please refer to page 3 of the attached document for the precautions for using the prerequisites for business forecasts.
○ Table of Contents of the Appendix | ||
1. Qualitative Information on Results for the Current Quarter............................................................................................................ | 2 | |
(1) | Qualitative information on the consolidated financial results..................................................................................................... | 2 |
(2) | Qualitative information on consolidated financial position........................................................................................................ | 2 |
(3) | Qualitative information on the consolidated business forecasts.................................................................................................. | 3 |
2. Condensed Quarterly Consolidated Financial Statements and Major Notes ................................................................................... | 4 | |
(1) Condensed Quarterly Consolidated Statements of Financial Position......................................................................................... | 4 | |
(2) Condensed Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income... | 6 | |
(3) | Condensed Quarterly Consolidated Statements of Changes in Equity......................................................................................... | 8 |
(4) | Condensed Quarterly Consolidated Statement of Cash Flows....................................................................................... .............. | 9 |
(5) Notes on the Condensed Quarterly Consolidated Financial Statements..................................................................................... | 11 | |
(Notes on going concern assumptions) ........................................................................................ ................................................. | 11 | |
(Significant Accouting policies) ................................................................................................................................................. | 11 | |
(Segment information) ....................................................................................................... .......................................................... | 11 | |
(Per-stock information) .......................................................................................................... ...................................................... | 11 | |
(Significant subsequent events) ..................................................................................................... .............................................. | 11 |
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1. Qualitative Information on Results for the Current Quarter
(1) Qualitative information on the consolidated financial results
In the first quarter of the current fiscal year, the Japanese economy saw a gradual recovery. Although the impact of the COVID- 19 has been prolonged, the recovery was seen as the stricter COVID-19 measures, which had been applied since January 2022, were completely lifted on March 21, and there were the effects of the rise in vaccination rates, coupled with the relaxation of the government's border control measures. On the other hand, the outlook remains uncertain due to rising prices of commodities caused by soaring global resource prices and the emergence of geopolitical risks brought about by tense international situations.
In the restaurant industry, the business environment is expected to remain challenging due to soaring raw material prices and rising labor costs. In addition, with the spread of remote working and the acceleration of digitization, the consumer lifestyles are changing, and we need to flexibly respond to these environmental changes.
Under these circumstances, our Group continued to maintain and strengthen the lean cost structure developed during the COVID- 19 crisis. Furthermore, we maximized our ability to respond to change, which is one of the Group's strengths, by opening new outlets with high investment efficiency, mainly in the Contract Business and SA/PA Business, changing the business format to provide higher value-added services, and furthermore, introducing food trucks. As a result, the Group as a whole opened 10 new outlets, changed the format of 9 outlets, and closed 14 outlets. As of the end of the first quarter, the number of outlets on a consolidated basis, including subcontracted outlets, totaled 1,033. In addition, we have further promoted the Group Federation Management by consolidating outlet design and repair operations and making cross-sectional personnel transfers across the Group of management personnel that contribute to revitalizing communication among operating companies. As part of DX (Digital Transformation), we are adopting mobile ordering to more outlets, utilizing meal delivery robots, and improving the efficiency and advancement of back-office operations.
As a result, in the first quarter of the current fiscal year, revenue was 26,243 million yen (up 47.9% year on year), operating profit was 5,166 million yen (up 239.8% year on year), profit before taxes was 5,130 million yen (up 251.2% year on year), profit for the period was 3,873 million yen (up 262.6% year on year), and profit attributable to owners of parent was 3,422 million yen (up 220.5% year on year). Adjusted EBITDA was 9,294 million yen (up 67.1% year on year) and Adjusted EBITDA margin was 35.4% (31.4% in the same period of the previous fiscal year), and Adjusted equity attributable to owners of the parent (adjusted equity ratio) was 30.2% (see note).
(Note) We use Adjusted EBITDA, Adjusted EBITDA margin and Adjusted equity attributable to owners of the parent (adjusted equity ratio) as useful indicators of our group's performance.
Adjusted EBITDA, Adjusted EBITDA margin and Adjusted equity attributable to owners of the parent (adjusted equity ratio) are calculated as follows
・Adjusted EBITDA = Operating profit + Other operating expenses - Other operating revenues (excluding sponsorship income, employment adjustment subsidies, subsidy for cooperation of shorten operating hours, rent reductions and exemptions, etc.) + Depreciation and amortization + Non-recurring expense items (advisory expenses related to share acquisition, etc.)
・Adjusted EBITDA margin = Adjusted EBITDA/Revenue × 100
・Adjusted equity attributable to owners of the parent (adjusted equity ratio): Ratio of equity attributable to owners of parent (shareholders' equity ratio) excluding the impact of IFRS No. 16.
- Qualitative information on consolidated financial position
- Assets, liabilities and shareholders' equity
(Assets)
Current assets at the end of the first quarter of the current fiscal year were 33,552 million yen, increased by 4,867 million yen from the end of the previous fiscal year. This was mainly due to an increase of 3,240 million yen in trade and other receivables and 1,499 million yen in cash and cash equivalents.
Noncurrent assets at the end of the first quarter of the current fiscal year were 104,020 million yen, decreased by 899 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 1,216 million yen in property, plant and equipment.
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(Liabilities)
The balance of liabilities at the end of the first quarter of the current fiscal year was 102,953 million yen, increased by 79 million yen from the end of the previous fiscal year. This was mainly due to increases of 2,027 million yen in trade and other payables and 838 million yen in income taxes payable, while there was a decrease of 2,100 million yen in bonds and borrowings.
(Assets)
The balance of shareholders' equity at the end of the first quarter of the current fiscal year was 34,619 million yen, increased by 3,888 million yen from the end of the previous fiscal year. This was mainly due to an increase of 2,791 million yen in retained earnings.
The ratio of equity attributable to owners of the parent (equity ratio) is 19.9%.
(2) Consolidated results of cash flows
Cash and cash equivalents (hereinafter "Net cash") at the end of the first quarter of the current fiscal year was 23,002 million yen, increased by 1,499 million yen from the end of the previous fiscal year.
The status of each cash flow in the first quarter of the current consolidated fiscal year and its factors are as follows. (Cash flows from operating activities)
Net cash provided by operating activities for the first quarter was 7,871 million yen (up 132.7% year on year). This was mainly due to the recording of 5,130 million yen in profit before taxes and 3,834 million yen in depreciation and amortization.
(Cash flow from investing activities)
Net cash used in investing activities in the first quarter was 513 million yen (down 26.5% year on year). This was mainly due to purchase of property, plant and equipment of 327 million yen.
(Cash flow from financing activities)
Net cash used in investing activities for the first quarter of the current fiscal year was 5,967 million yen (down 13.1% year on year). This was mainly due to repayments of lease liabilities of 3,163 million yen, repayments of long-term loans payable of 2,101 million yen.
(3) Qualitative information on the consolidated business forecasts
As for the outlook for the current fiscal year, while there are signs of a recovery in economic activities due to the rise in the COVID-19 vaccination rate and development of therapeutic drugs, the business environment is expected to remain uncertain, with soaring raw material prices and rising labor and other costs. In addition, with the spread of remote working and the acceleration of digitization, the consumer lifestyles are changing, and we need to flexibly respond to these environmental changes.
Against this backdrop, the Group will continue to maintain and strengthen its lean management structure, which was created through thorough cost reductions as a measure for the COVID-19 impact. In addition, we aim to create a sustainable profit growth based on the three pillars of our growth strategy: "reviewing the portfolio with an eye on the post-COVID era," "further evolving the Group Federation Management," and "improving productivity and solving human resource shortages through DX."
The consolidated financial results for the first quarter were generally in line with our expectations, and we remain unchanged our full-year forecasts for the fiscal year ending February 2023 from the figures announced on April 14, 2022.
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create restaurants Holdings Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 02:10:00 UTC.