[Translation]
Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023
[IFRS]
May 12, 2023 | |||||
Listed Company: Wacoal Holdings Corp. | Stock Exchanges: Tokyo | ||||
Code Number: 3591 URL:http://www.wacoalholdings.jp/ | |||||
Representative: | (Position) | Representative Director, President and CEO | (Name) | Hironobu Yasuhara | |
For Inquiries: | (Position) | Corporate Officer, Head of Corporate Planning Dept. | (Name) | Katsuya Hirooka | |
Tel: +81 (075) 682-1010 | |||||
Scheduled date of Ordinary Shareholders' Meeting: June 28, 2023 | Scheduled Commencement Date of Dividend Payment: June 5, 2023 | ||||
Scheduled date of Annual Securities Report Filing: June 28, 2023 | |||||
Supplementary materials regarding Annual Business Results: Yes |
Explanatory meeting regarding Annual Business Results: Yes (for institutional investors and analysts)
(Amounts less than 1 million yen have been rounded.)
1. Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)
- Consolidated Business Results
(% indicates changes from previous fiscal year)
(Loss) Profit | |||||||||||||||||||||||
Before Income | Net (Loss) Profit | ||||||||||||||||||||||
Operating (Loss) | Taxes and Equity | ||||||||||||||||||||||
Revenue | Business Profit | (Loss) Profit | Attributable to Owners | ||||||||||||||||||||
Profit | in Net Profit of | ||||||||||||||||||||||
of Parent | |||||||||||||||||||||||
Affiliated | |||||||||||||||||||||||
Companies | |||||||||||||||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Millions | % | Millions | % | ||||||||||||
of Yen | of Yen | of Yen | of Yen | of Yen | of Yen | ||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
ended March | 188,592 | 9.6 | 4,102 | 730.4 | (3,490) | - | (699) | - | (1,734) | - | (1,776) | - | |||||||||||
31, 2023 | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
ended March | 172,072 | - | 494 | - | 3,291 | - | 4,083 | - | 1,585 | - | 1,732 | - | |||||||||||
31, 2022 | |||||||||||||||||||||||
Ratio of (Loss) | |||||||||||||||||||||||
Total | Return on Equity | Profit Before | |||||||||||||||||||||
Basic (Loss) | Diluted (Loss) | Income Taxes and | Ratio of Operating | ||||||||||||||||||||
Comprehensive | Attributable to | Equity in Net Profit | |||||||||||||||||||||
Earnings per Share | Earnings per Share | Income to Revenue | |||||||||||||||||||||
Income | Owners of Parent | of Affiliated | |||||||||||||||||||||
Companies to Total | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Millions | % | Yen | Yen | % | % | % | |||||||||||||||||
of Yen | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
ended March | 4,133 | (60.3) | (29.66) | (29.66) | (0.8) | (0.2) | (1.9) | ||||||||||||||||
31, 2023 | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
ended March | 10,418 | - | 27.83 | 27.71 | 0.8 | 1.3 | 1.9 | ||||||||||||||||
31, 2022 | |||||||||||||||||||||||
(Reference) Share of profit (loss) of investments | Fiscal Year ended March 31, 2023: | 2,223 million yen | |||||||||||||||||||||
accounted for using equity method: | Fiscal Year ended March 31, 2022: | 579 million yen | |||||||||||||||||||||
(Note) Business profit is calculated by subtracting cost of sales, and selling, general and administrative expenses from revenue. | |||||||||||||||||||||||
(2) Consolidated Financial Condition | |||||||||||||||||||||||
Total Assets | Total Equity | Equity Attributable to | Ratio of Equity Attributable | Equity Attributable to | |||||||||||||||||||
Owners of Parent | to Owners of Parent | Owners of Parent per Share | |||||||||||||||||||||
Fiscal Year | Millions of Yen | Millions of Yen | Millions of Yen | % | Yen | ||||||||||||||||||
ended March | 285,296 | 213,119 | 209,834 | 73.5 | 3,617.03 | ||||||||||||||||||
31, 2023 | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
ended March | 299,177 | 220,868 | 217,990 | 72.9 | 3,546.96 | ||||||||||||||||||
31, 2022 |
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(3) Consolidated Cash Flows Status | ||||||||||||||||||||||
Cash Flows | Cash Flows provided | Cash Flows used in | Balance of Cash and Cash | |||||||||||||||||||
provided by | by used in Investing | Financing Activities | Equivalents at End of Fiscal | |||||||||||||||||||
Operating Activities | Activities | Year | ||||||||||||||||||||
Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen | |||||||||||||||||||
Fiscal Year Ended March 31, 2023 | 7,334 | 3,902 | (22,541) | 26,781 | ||||||||||||||||||
Fiscal Year Ended March 31, 2022 | 16,622 | (3,042) | (41,007) | 37,485 | ||||||||||||||||||
2. Status of Dividends | ||||||||||||||||||||||
Annual Dividends per Share | Ratio of | |||||||||||||||||||||
Total | Dividends to | |||||||||||||||||||||
Equity | ||||||||||||||||||||||
Amount of | Payout Ratio | |||||||||||||||||||||
End of | End of | End of | Attributable | |||||||||||||||||||
Dividends | (consolidated) | |||||||||||||||||||||
to Owners of | ||||||||||||||||||||||
First | Second | Third | Year-end | Annual | (annual) | |||||||||||||||||
Parent | ||||||||||||||||||||||
Quarter | Quarter | Quarter | ||||||||||||||||||||
(consolidated) | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Millions of | % | % | |||||||||||||||
Yen | ||||||||||||||||||||||
Fiscal Year Ended March 31, 2022 | - | 20.00 | - | 30.00 | 50.00 | 3,093 | 179.7 | 1.4 | ||||||||||||||
Fiscal Year Ended March 31, 2023 | - | 40.00 | - | 40.00 | 80.00 | 4,720 | - | 2.2 | ||||||||||||||
Fiscal Year Ending March 31, | - | 50.00 | - | 50.00 | 100.00 | 120.9 | ||||||||||||||||
2024 (Estimates) |
3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(% indicates changes from the previous fiscal year with respect to "Annual" and from the six-month period ended September 30, 2022 with respect to "Six-month Period Ending September 30, 2023")
Profit Before | |||||||||||||
Income Taxes and | Net Profit | ||||||||||||
Equity in Net | Basic Earnings per | ||||||||||||
Revenue | Business Profit | Operating Profit | Attributable to | ||||||||||
Profit of | Share | ||||||||||||
Owners of Parent | |||||||||||||
Affiliated | |||||||||||||
Companies | |||||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Millions | % | Yen | |||
of Yen | of Yen | of Yen | of Yen | of Yen |
Six-month Period
Ending
September 30, 2023
Annual
103,000
205,000
5.6
8.7
4,500
6,000
3.6
46.3
4,400
6,000
10.0 5,500 - 7,000
(6.5)
-
3,900
4,800
(7.2)
-
67.23
82.74
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*Notes
-
Changes in significant subsidiaries during the fiscal year ended March 31, 2023 (i.e., changes in specified subsidiaries (tokutei kogaisha) which involve change in scope of consolidation): None
New: None
Excluded: None
(Note) For details, please see "3. Consolidated Financial Statements and Accompanying Notes - (6) Basic Significant Matters in Preparation of Consolidated Financial Statements" on page 18. - Changes in accounting principles and /or accounting estimates:
- Changes in accounting principles required by IFRS: None
- Changes in accounting principles other than (i) above: None
- Changes in accounting estimates: None
- Number of Issued Shares (Common Stock)
Fiscal Year Ended | Fiscal Year Ended | ||
March 31, 2023 | March 31, 2022 | ||
(i) | Number of issued shares (including treasury stock) as of period-end: | 64,500,000 shares | 65,589,042 shares |
(ii) | Number of shares held as treasury stock as of period-end: | 6,487,185 shares | 4,130,773 shares |
(iii) | Average number of shares during the period: | 59,871,381 shares | 62,234,734 shares |
(Reference) Summary of Non-consolidated Results
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)
- Non-consolidatedBusiness Results
(% indicates changes from previous fiscal year) | |||||||||
Net Sales | Operating Income | Ordinary Income | Net Income | ||||||
Millions of Yen % | Millions of Yen | % | Millions of Yen | % | Millions of Yen % | ||||
Fiscal Year Ended March 31, 2023 | 6,772 | 9.3 | 2,503 | 8.9 | 2,473 | 47.0 | 4,458 | 62.1 | |
Fiscal Year Ended March 31, 2022 | 6,196 | (62.3) | 2,299 | (82.0) | 1,682 | (86.0) | 2,749 | (76.2) |
Net Income | |
per Share | |
Yen | |
Fiscal Year Ended March 31, 2023 | 74.46 |
Fiscal Year Ended March 31, 2022 | 44.18 |
Diluted Net Income per Share
Yen 74.15 43.99
(2) Non-consolidated Financial Condition
(% indicates changes from previous fiscal year)
Total Assets | Net Assets | Capital-to-asset Ratio | Net Asset per Share | ||
Millions of Yen | Millions of Yen | % | Yen | ||
Fiscal Year Ended March 31, 2023 | 154,705 | 130,602 | 84.1 | 2,242.19 | |
Fiscal Year Ended March 31, 2022 | 165,180 | 138,332 | 83.4 | 2,241.50 | |
(Reference) Equity Capital: As of the | end of the fiscal year | ended March 31, 2023: | 130,075 million yen | ||
As of the end of the fiscal year ended March 31, 2022: | 137,758 million yen |
*These financial statements are not subject to audit procedures by the certified public accountants or the independent auditor.
*Cautionary Statement regarding Forecast of Business Results
(Implementation of the International Financial Reporting Standards ("IFRS"))
Our group has implemented IFRS starting from the current consolidated fiscal year. The financial figures for the corresponding period of the previous fiscal year and the previous fiscal year are also presented in accordance with IFRS. For differences between IFRS and U.S. GAAP in the financial figures, please see "3. Consolidated Financial Statements and Accompanying Notes - (7) Notes to the Consolidated Financial Statements (First-time adoption)" on page 19 of the attached materials.
(Cautionary note on forward-looking statements)
The forecast of business results is based on reasonable information we obtained as of the date hereof and, due to various risks, uncertainties and other factors arising in the future, actual results in the future may differ largely from the estimates set out in this document. For notes on conditions used for the forecast of business results and cautionary statements regarding forecast of business results, please see "1. Business Results - (1) Business Results for Fiscal Year 2023 - (iii) Business Forecast for Next Fiscal Year" on page 9 of the attached materials.
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Table of Contents for Attached Materials | ||
1. | Business Results ------------------------------------------------------------------------------------------------------------------------------------- | 5 |
(1) | Business Results for Fiscal Year 2023 ----------------------------------------------------------------------------------------------------------- | 5 |
(2) | Financial Condition as of Fiscal Year 2023 ---------------------------------------------------------------------------------------------------- | 10 |
(3) | Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2023 and Fiscal Year 2024 ---------------------------- | 11 |
2. | Basic Policies regarding Selection of Accounting Standards---------------------------------------------------------------------------------- | 11 |
3. | Consolidated Financial Statements and Accompanying Notes-------------------------------------------------------------------------------- | 12 |
(1) | Consolidated Statement of Financial Position --------------------------------------------------------------------------------------------------- | 12 |
(2) | Consolidated Statements of Profit or Loss and Consolidated Statement of Comprehensive Income ------------------------------------ | 14 |
(3) | Consolidated Statements of Equity ---------------------------------------------------------------------------------------------------------------- | 16 |
(4) | Consolidated Statements of Cash Flows ---------------------------------------------------------------------------------------------------------- | 17 |
(5) | Notes on Going Concern --------------------------------------------------------------------------------------------------------------------------- | 18 |
(6) | Basic Significant Matters in Preparation of Consolidated Financial Statements ------------------------------------------------------------ | 18 |
(7) | Notes to the Consolidated Financial Statements ------------------------------------------------------------------------------------------------ | 19 |
(Segment Information) ----------------------------------------------------------------------------------------------------------------------------------------- | 19 | |
(Per Share Information) ---------------------------------------------------------------------------------------------------------------------------------------- | 20 | |
(Significant Subsequent Events) ------------------------------------------------------------------------------------------------------------------------------- | 20 | |
(First-time Adoption) ------------------------------------------------------------------------------------------------------------------------------------------- | 21 |
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Qualitative Information and Financial Statements | |||||
1. Business Results | |||||
(1) Business Results for Fiscal Year 2023 | |||||
(i) Results for the Fiscal Year Ended March 31, 2023 | |||||
(Millions of Yen) | |||||
Previous Fiscal Year | Current Fiscal Year | Increased/(Decreased) from | |||
(ended March 2022) | (ended March 2023) | previous fiscal year | |||
Amount | Amount | Amount | % | ||
Revenue | 172,072 | 188,592 | +16,520 | +9.6 | |
Cost of sales | 76,248 | 82,189 | +5,941 | +7.8 | |
Gross profit | 95,824 | 106,403 | +10,579 | +11.0 | |
Selling, general and administrative expenses | 95,330 | 102,301 | +6,971 | +7.3 | |
Business profit | 494 | 4,102 | +3,608 | +730.4 | |
Other income | 3,749 | 5,254 | +1,505 | +40.1 | |
Other expenses | 952 | 12,846 | +11,894 | - | |
Operating (loss) profit | 3,291 | (3,490) | (6,781) | - | |
Finance income | 1,930 | 1,517 | (413) | (21.4) | |
Finance expense | 232 | 795 | +563 | +242.7 | |
Share of profit (loss) of investments accounted for | (906) | 2,069 | +2,975 | - | |
using equity method | |||||
(Loss) profit before income taxes and equity in net | 4,083 | (699) | (4,782) | - | |
income of affiliated companies | |||||
Net (loss) profit attributable to owners of parent | 1,732 | (1,776) | (3,508) | - |
(Our group voluntarily implements the International Financial Reporting Standards ("IFRS") starting from the beginning of the current fiscal year, and the results for the previous fiscal year have been reclassified to conform to IFRS.)
Business environment surrounding our group during the current fiscal year (from April 1, 2022 to March 31, 2023) were severely affected by weak sales of our core innerwear products in major countries. In Japan, although there were signs of recovery in consumer spending as restrictions on economic activities eased, sales from our group's domestic business has remained below our initial expectations due to the sluggish increase in the number of customers visiting our retail stores in addition to the negative impact on consumer spending arising from rising inflation,. Our business environment in the United States remained weak due to the slowdown in consumer spending as well as the impact of suppliers' restraint on purchasing. Our business in China also remained challenging due to the impact of the prolonged implementation of strict coronavirus pandemic ("COVID-19") restrictions. On the other hand, our business in Europe maintained its growth trend due to the strong performance of our core brands, while our business in other Asian countries also recovered as relaxation of COVID-19 restrictions took place.
Under such circumstances, our group announced in June 2022 the "VISION 2030", our medium- to long-term strategy framework, and our mid-term business plan for the next three years starting with the current fiscal year, and we are working to achieve sustainable growth and to enhance our corporate value. In our domestic business, we continued to promote our unique CX strategy including the utilization of our customers database and merger between online and offline activities to improve value of our customer experience, and strengthen our efforts to improve profitability, aiming to "transform ourselves into a resilient corporate structure". In our overseas business, we promoted initiative for further growth by expanding our e-commerce business, in addition to expanding solid sales in the existing areas where we conduct our business. With regard to financial strategies side, we worked to improve our return on equity by implementing initiatives to improve profitability and capital efficiency.
As a result of the above, for the current fiscal year, consolidated revenue was 188.59 billion yen (an increase of 9.6% as compared to such revenue for the previous fiscal year). Consolidated business profit was 4.10 billion yen (an increase of 730.4% as compared to such profit for the previous fiscal year) due to the positive impact of the partial revision to the Flexible Retirement Program at Wacoal Corp. (*), in addition to the increased revenue. We recorded a consolidated operating loss of 3.49 billion yen (as compared to a consolidated operating profit of 3.29 billion yen for the previous fiscal year) as a result of the impairment charges of 10.03 billion yen recorded on goodwill and intangible assets related to Wacoal International Corp. (U.S.) and the expenses of 0.75 billion yen incurred for the implementation of the Flexible Retirement Program at Wacoal Corp. (*), despite a gain from sale of fixed assets (3.02 billion yen) related to the sale of our former business office building in Osaka. Consolidated loss before income taxes and equity in net profit of affiliated companies was 0.70 billion yen (as compared to a consolidated profit of 4.08 billion yen for the previous fiscal year) and consolidated net loss attributable to owners of parent was 1.78 billion yen (as compared to a consolidated net profit of 1.73 billion yen for the previous fiscal year) as a result of the operating loss despite the recording of profit from our investments accounted for using equity method.
The key exchange rates used for the current fiscal year (the previous fiscal year) were: 135.47 yen (112.38 yen) to the U.S. dollar; 163.15 yen (153.56 yen) to the Sterling pound; and 19.75 yen (17.51 yen) to the Chinese yuan.
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Wacoal Holdings Corporation published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 07:32:16 UTC.