WELCIA HOLDINGS CO., LTD. Consolidated Financial Results
for the Three Months Ended May 31, 2022
[Japanese GAAP]
July 5, 2022
Company name: WELCIA HOLDINGS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3141
URL: https://www.welcia.co.jp/
Representative: Tadahisa Matsumoto, President and Representative Director
Contact: Takamune Shibazaki, Director, Executive Officer and Chief Financial Officer
Phone: +81-3-5207-5878
Scheduled date of filing quarterly securities report: July 5, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 31, 2022 (March 1, 2022 - May 31, 2022)
(1) Consolidated Operating Results (cumulative) | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating income | Ordinary income | Net income | ||||||
attributable to | |||||||||
owners of parent | |||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
May 31, 2022 | 267,716 | 7.6 | 7,713 | 5.9 | 10,495 | 18.6 | 6,321 | 19.1 | |
May 31, 2021 | 248,861 | 7.0 | 7,282 | (30.8) | 8,851 | (21.3) | 5,307 | (19.6) |
(Note) Comprehensive income: Three months ended May 31, 2022: ¥6,464 million [22.4 %]
Three months ended May 31, 2021: ¥5,279 million [(20.7)%] | ||||||||
Net income | Diluted net income | |||||||
per share | per share | |||||||
Three months ended | haveYen | Yen | ||||||
May 31, 2022 | 30.30 | 30.28 | ||||||
May 31, 2021 | 25.50 | 25.48 | ||||||
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. have been | ||||||||
adopted from the beginning of the three months ended May 31, 2022. The figures for the three months ended | ||||||||
Mary 31, 2022 reflect the accounting standard, etc. | ||||||||
(2) Consolidated Financial Position | ||||||||
Total assets | Net assets | Equity ratio | ||||||
Million yen | Million yen | % | ||||||
As of May 31, 2022 | 493,764 | 212,033 | 41.7 | |||||
As of February 28, 2022 | 463,048 | 207,886 | 43.5 |
(Reference) Equity: As of May 31, 2022: ¥205,656 million As of February 28, 2022: ¥201,602 million
(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. have been adopted from the beginning of the three months ended May 31, 2022. The figures for the three months ended Mary 31, 2022 reflect the accounting standard, etc.
2. Dividends
Annual dividends | |||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | |||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | ||
- | 15.00 | - | 15.00 | 30.00 | |||
February 28, 2022 | |||||||
Fiscal year ending | - | ||||||
February 28, 2023 | |||||||
Fiscal year ending | |||||||
February 28, 2023 | 16.00 | - | 16.00 | 32.00 | |||
(Forecast) |
(Note) Revision to the forecast for dividends announced most recently: None
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)
(% indicates changes from the previous corresponding period.)
Net income | Net income | ||||||||
Net sales | Operating income | Ordinary income | attributable to owners | ||||||
per share | |||||||||
of parent | |||||||||
First half | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
555,800 | 9.3 | 25,360 | 11.5 | 28,540 | 13.5 | 17,560 | 13.1 | 84.20 | |
(cumulative) | |||||||||
1,110,000 | 8.2 | 47,000 | 9.3 | 51,600 | 8.4 | 28,400 | 7.4 | 136.17 | |
Full year |
(Notes) 1. Revision to the financial results forecast announced most recently: None
2. The "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. have been adopted from the beginning of the three months ended May 31, 2022. The above consolidated results forecast figures reflect the accounting standard, etc.
* Notes:
(1) Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):
Newly included: - ( | ), Excluded: - ( | ) |
- Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 8 of the attached document.
(4) Total number of issued and outstanding shares (common shares)
1) | Total number of issued and outstanding shares at the end of the period (including treasury stock): | |
May 31, 2022: | 209,633,676 shares | |
February 28, 2022: | 209,633,676 shares | |
2) | Total number of treasury stock at the end of the period: | |
May 31, 2022: | 894,960 shares | |
February 28, 2022: | 1,077,900 shares |
3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):
Three months ended May 31, 2022: | 208,639,189 shares |
Three months ended May 31, 2021: | 208,094,371 shares |
(Note) The number of shares of the Company held in the Employees' Stock Ownership ESOP Trust (February 28, 2022: 624,800 shares; May 31, 2022: 441,700 shares) and the number of shares of the Company held in the Directors' Remuneration BIP Trust (February 28, 2022: 440,442 shares; May 31, 2022: 440,442 shares) were included in the total number of treasury stock at the end of the period. The number of shares of the Company held in the Employees' Stock Ownership ESOP Trust was included in the number of treasury stock, which was to be deducted from the calculation of the average number of shares outstanding during the period (May 31, 2021: 1,502,114 shares; May 31, 2022: 981,682 shares).
- These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
-
Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements provided herein are based on information available to the Company and certain assumptions deemed reasonable, and the Company does not promise the achievement of those forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. For the assumptions underlying the forecasts and the notes on the use of the forecasts, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached document.
Table of Contents - Attachments | ||
1. Qualitative Information on Quarterly Financial Results......................................................................................... | 2 | |
(1) | Explanation of Operating Results....................................................................................................................... | 2 |
(2) | Explanation of Financial Position ...................................................................................................................... | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information................... | 3 |
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................................ | 4 | |
(1) | Quarterly Consolidated Balance Sheets ............................................................................................................. | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... | 6 |
Quarterly Consolidated Statements of Income................................................................................................... | 6 | |
Three Months Ended May 31 ...................................................................................................................... | 6 | |
Quarterly Consolidated Statements of Comprehensive Income......................................................................... | 7 | |
Three Months Ended May 31 ...................................................................................................................... | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements ...................................................................................... | 8 |
(Notes on going concern assumption) ................................................................................................................ | 8 | |
(Notes in case of significant changes in shareholders' equity) .......................................................................... | 8 | |
(Changes in accounting policies) ....................................................................................................................... | 8 | |
(Significant subsequent events).......................................................................................................................... | 9 |
1
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022), as severe restrictions imposed due to the COVID-19 pandemic began to be eased, there were moves toward returning to normalcy with the lifting of the semi-emergency coronavirus measures across the country and other circumstances. However, the outlook for the Japanese economy still remains uncertain amid concerns about the impact of the resurgence of infection in China and the prolonged turmoil in Ukraine, as well as factors including a decline in consumer confidence due to rising raw material costs and energy prices, depreciation of the yen and fluctuations in financial and capital markets.
In the drugstore industry, the primary area of the Group's business, the environment for business continues to be challenging due to such factors as aggressive store openings by competitors, major players expanding their scales of business through mergers and acquisitions, and competition involving players from across different industrial sectors and business formats.
Under such circumstances, the Group continued to operate its business to provide products and services, while implementing measures to prevent infections and thorough hygiene management, and also actively engaged in the free PCR and other testing programs. Sales of goods division were driven by seasonal products in the OTC segment and others, but the number of customers for existing stores continued to decrease, partly in a rebound from the previous year's stay-home demand. In the cosmetics segment, sales have not recovered to the level before the pandemic, although sales of products such as makeup-related products are recovering with the increase in opportunities for people to go out. In the dispensing division, the number of prescriptions handled increased due primarily to hospital visits returning to normal with increased outings and the increase in stores with dispensing pharmacies (1,864 stores as of May 31, 2022), despite the effects of the revision of drug dispensing fees and NHI drug prices. Additionally, the Group managed to optimize selling, general and administrative expenses, mainly in terms of its labor costs by managing store man-hours for optimization and improving store operational efficiency through the promotion of automatic ordering, although utilities expenses were increased by soaring fuel prices.
As for store openings and closures, the Group as a whole opened 41 stores and closed four stores, to have a total of 2,505 stores as of May 31, 2022.
(Unit: No. of Stores)
No. of stores as | No. of stores as | |||
of February 28, | Openings | Closures | ||
of May 31, 2022 | ||||
2022 | ||||
WELCIAYAKKYOKU | 2,023 | 38 | 2 | 2,059 |
Pupule Himawari | 132 | - | - | 132 |
Marudai Sakurai | 92 | 1 | - | 93 |
Pharmacy | ||||
SHIMIZU YAKUHIN | 65 | - | 1 | 64 |
Marue Drug | 58 | - | 1 | 57 |
YODOYA | 25 | - | - | 25 |
Kanamitsu Yakuhin | 26 | - | - | 26 |
MASAYA | 36 | 1 | - | 37 |
Total in Japan | 2,457 | 40 | 4 | 2,493 |
Welcia-BHG | 11 | 1 | - | 12 |
(Singapore) | ||||
Total | 2,468 | 41 | 4 | 2,505 |
(Note) Of the number of stores as of May 31, 2022, 1,712 stores of WELCIA YAKKYOKU, 19 stores of Pupule Himawari, 37 stores of Marudai Sakurai Pharmacy, 40 stores of SHIMIZU YAKUHIN, 22 stores of Marue Drug, 10 stores of YODOYA, 19 stores of Kanamitsu Yakuhin, and five stores of
2
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Welcia Holdings Co. Ltd. published this content on 12 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2022 08:13:02 UTC.
