Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022

[Japanese GAAP]

May 16, 2022

Company name: KEY COFFEE INC

Stock exchange listing: Tokyo Stock Exchange

Code number: 2594

URL: https://www.keycoffee.co.jp/

Representative: Yutaka Shibata, Representative Director and President

Contact: Akihiro Mizutani, General Manager, Finance Department

Phone: +81-3-3433-3311

Scheduled date of general shareholders' meeting: June 21, 2022

Scheduled date of commencing dividend payments: June 22, 2022

Scheduled date of filing securities report: June 22, 2022

Availability of supplementary explanatory materials on annual financial results: Available

Schedule of annual financial results briefing session: Scheduled (for analysts and trade papers)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2022

55,680

5.9

405

-

1,022

-

742

-

March 31, 2021

52,602

(16.1)

(2,470)

-

(3,159)

-

(4,084)

-

(Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥822 million [-%] Fiscal year ended March 31, 2021: ¥(3,673) million [-%]

Basic earnings

Diluted

Return on

Operating profit

earnings per

Return on assets

per share

equity

ratio

share

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2022

34.69

-

2.5

2.3

0.7

March 31, 2021

(190.80)

-

(12.9)

(6.9)

(4.7)

(Reference) Equity in earnings of affiliated companies:

Fiscal year ended March 31, 2022: ¥108 million

Fiscal year ended March 31, 2021: ¥(835) million

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of March 31, 2022

43,429

30,481

69.5

1,410.70

As of March 31, 2021

43,794

29,926

67.8

1,386.27

(Reference) Equity: As of March 31, 2022: ¥30,204 million

As of March 31, 2021: ¥29,673 million

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at year-end

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

March 31, 2022

861

(727)

(466)

5,443

March 31, 2021

(1,193)

(396)

(908)

5,756

2. Dividends

Annual dividends

Total

Ratio of

1st

2nd

3rd

Payout ratio

dividends to

Year-

dividends

quarter-

quarter-

quarter-

Total

(consolidated)

net assets

end

(annual)

end

end

end

(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

Fiscal year ended

-

0.00

-

5.00

5.00

108

-

0.3

March 31, 2021

Fiscal year ended

-

5.00

-

5.00

10.00

216

28.8

0.7

March 31, 2022

Fiscal year ending

March 31, 2023

-

5.00

-

5.00

10.00

42.8

(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% indicates changes from the previous corresponding period.)

Profit attributable

Net sales

Operating profit

Ordinary profit

to owners of

Profit per share

parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

64,000

14.9

550

35.7

700

(31.5)

500

(32.7)

23.35

* Notes:

  1. Changes in significant subsidiaries during the fiscal year under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: - (Company name: -)
    Excluded: - (Company name: -)
  2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
    1. Changes in accounting policies due to the revision of accounting standards: Yes
    2. Changes in accounting policies other than 1) above: None
    3. Changes in accounting estimates: None
    4. Retrospective restatement: None
  4. Total number of issued and outstanding shares (common shares)
    1. Total number of issued and outstanding shares at the end of the year (including treasury shares):

March 31, 2022:

22,689,000 shares

March 31, 2021:

22,689,000 shares

2) Total number of treasury shares at the end of the year:

March 31, 2022:

1,277,756 shares

March 31, 2021:

1,283,956 shares

3) Average number of shares during the year:

Year ended March 31, 2022:

21,410,294 shares

Year ended March 31, 2021:

21,405,056 shares

(Note) The total number of treasury shares at the end of the period includes the shares of the Company (268,500 shares on March 31, 2022, 274,700 shares on March 31, 2021) held by Custody Bank of Japan, Ltd. (Trust Account E). In calculation of the average number of shares during the period, the number of treasury shares deducted includes the shares of the Company (269,450 shares on March 31, 2022, 274,700 shares on March 31, 2021) held by Custody Bank of Japan, Ltd. (Trust Account E).

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Net income

Year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2022

49,063

6.1

529

-

343

-

202

-

March 31, 2021

46,235 (15.5)

(1,494)

-

(2,441)

-

(3,307)

-

Basic earnings

Diluted earnings

per share

per share

Year ended

Yen

Yen

March 31, 2022

9.44

-

March 31, 2021

(154.50)

-

Notes to Non-Consolidated Operating Results

(2) Non-consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of March 31, 2022

40,529

28,711

70.8

1,340.96

As of March 31, 2021

40,858

28,796

70.5

1,345.33

(Reference) Equity: As of March 31, 2022: ¥28,711 million As of March 31, 2021: ¥28,796 million

  • These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
  • Explanation of the proper use of financial results forecast and other notes

・Forward-looking statements and other statements about the future that are included in this material are based on information currently available to the Company and certain assumptions deemed reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results and others may differ significantly due to various factors. For the assumptions for financial results forecast and precautions for using financial results forecasts, please refer to "(4) Future Outlook" under "1. Overview of Operating Results, etc." on page 7 of the attached document.

・The Company will hold online the annual financial results briefing session for the fiscal year ended March 31, 2022 to prevent the spread of COVID-19.

Table of Contents - Attachments

1. Overview of Operating Results, etc. ........................................................................................................... 2

(1)

Overview of Operating Results for the Fiscal Year under Review .........................................................

2

(2)

Overview of Financial Position for the Fiscal Year under Review .........................................................

6

(3)

Overview of Cash Flows for the Fiscal Year under Review ...................................................................

6

(4) Future Outlook .......................................................................................................................................

7

(5)

Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review and the Next Fiscal

Year .........................................................................................................................................................

8

2. Basic Policy on Selection of Accounting Standards ...................................................................................

8

3. Consolidated Financial Statements and Principal Notes ............................................................................

9

(1)

Consolidated Balance Sheets ..................................................................................................................

9

(2)

Consolidated Statements of Income and Comprehensive Income ........................................................

11

(3)

Consolidated Statements of Changes in Equity ....................................................................................

14

(4)

Consolidated Statements of Cash Flows ..............................................................................................

16

(5)

Notes to Consolidated Financial Statements ........................................................................................

18

(Notes on going concern assumption) .............................................................................................

18

(Notes in the event of significant changes in the amount of shareholders' equity) ...........................

18

(Changes in accounting policies) ......................................................................................................

18

(Change in presentation method) ....................................................................................................

19

(Segment information, etc.) ............................................................................................................

19

(Per share information) ...................................................................................................................

22

(Significant subsequent events) ......................................................................................................

22

1

1. Overview of Operating Results, etc.

  1. Overview of Operating Results for the Fiscal Year under Review
    During the current consolidated fiscal year (April 1, 2021 to March 31, 2022), while the impact of the spread of COVID-19 infection was prolonged, the number of newly infected persons began to decrease due to the widespread use of vaccinations and the effects of various policies, and the economy was on a gradual recovery trend. However, the outlook remains uncertain due to the rapid spread of infection and stagnation of economic activities due to the outbreak of a new mutated virus from the beginning of 2022, as well as price hikes due to soaring resource and raw material prices and the international unrest surrounding Russia's invasion of Ukraine.
    In the coffee industry, consumption in the Household market remained firm due to continued stay-at-home demand resulting from lifestyle changes. Meanwhile, consumption in the HORECA market was on a recovery trend due to the easing of action restrictions last October, but remained sluggish since the beginning of the year due to a growing trend toward self-restraint caused by the rapid spread of COVID-19 infection.
    Green coffee bean market prices, which heavily influence KEY COFFEE's financial results, soared due to the prolonged lack of rainfall in Brazilian production areas and concerns about a decrease in production in the current fiscal year due to a large-scale frost that occurred in late July. The price continued to rise thereafter due to the stagnation of the marine transportation network caused by container shortages and a decrease in certified inventories in the coffee futures market, and remained at a high level throughout the fiscal year, roughly 170% of that in the previous fiscal year.
    Under these circumstances, the KEY COFFEE Group strived to reduce costs by streamlining and improving the efficiency of our operations, engaged in the creation of new demand, developed attractive products which meet the needs of consumers, and promoted solution-oriented business activities which contribute to the financial results of clients.
    In addition, we revised the prices of roasted coffee bean products delivered to clients and the manufacturer's shipping prices, based on the prospect that the rise in the cost of procuring green coffee beans will reach a level beyond the limit of what we can absorb through our internal efforts.
    Regarding our financial results, in the mainstay HORECA market of the coffee-related business, sales recovered, albeit not to the level of two years before, from the significant decline in sales due to the severe environment in the previous year, and the business restructuring implemented at the end of the previous fiscal year also contributed to an increase in profits compared to the previous fiscal year.
    Consequently, net sales for the KEY COFFEE Group in the consolidated fiscal year under review were 55,680 million yen (a 5.9% increase compared with the previous consolidated fiscal year), operating profit was 405 million yen (compared with operating loss of 2,470 million yen in the previous consolidated fiscal year), and ordinary income was 1,022 million yen (compared with ordinary loss of 3,159 million yen in the previous consolidated fiscal year). Profit attributable to owners of parent was 742 million yen (compared with loss attributable to owners of parent of 4,084 million yen in the previous consolidated fiscal year).

(Unit: Millions of yen)

Previous

Consolidated

Increase

Percent increase

(decrease) over

(decrease) over

consolidated

fiscal year

the previous

the previous

fiscal year

under review

year

year

Net sales

52,602

55,680

3,078

5.9%

Operating profit (loss)

(2,470)

405

2,875

-

Ordinary profit (loss)

(3,159)

1,022

4,181

-

Profit (loss) attributable to

(4,084)

742

4,827

-

owners of parent

2

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Key Coffee Inc. published this content on 27 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2022 11:03:14 UTC.