Financial the 2nd quarter the Fiscal FY05 / 2023 [JGAAP] (Consolidated) (HTML)

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Fiscal year ending May 2023Summary of financial results for the second quarter (Japanese standards) (consolidated)

 

 

 

 

December 20, 2022

Listed company name

Tsuruha Holdings Co., Ltd.

Listed exchangeeast

Code number

3391

URLhttp://www.tsuruha-hd.com

Representative

(Title)

President and CEO

(family name)Jun Tsuruha

Contact person

(Title)

Executive Officer General Manager of Administration Headquarters

(family name)Makoto Murakami

TEL011-783-2755

Scheduled quarterly report submission date

December 28, 2022

Scheduled payment start date

January 6, 2023

Whether or not supplementary explanatory materials for quarterly financial results have been created:Yes

 

Whether or not a quarterly Financial results announcement is held:Yes

(For institutional investors and analysts)

 

 

(Rounded down to the nearest million yen)

1. Consolidated financial results for the second quarter of the fiscal year ending May 2023 (May 16, 2022 to November 15, 2022)

(1) Consolidated business results (cumulative)

(% Display is the rate of increase / decrease from the same quarter of the previous year)

 

 

amount of sales

Operating income

Ordinary profit

Attribution to the shareholders of the parent company

Quarterly net income

 

One million yen

One million yen

One million yen

One million yen

Second Quarter of the Fiscal Year Ending May 2023

484,106

4.7

24,700

8.8

24,820

9.7

14,631

14.9

Second Quarter of the Fiscal Year Ending May 2022

462,512

2.0

22,709

18.9

22,622

20.1

12,739

23.2

 

(Note) Comprehensive income

Second Quarter of the Fiscal Year Ending May 2023

20,829

One million yen

31.8%)

 

Second Quarter of the Fiscal Year Ending May 2022

15,809

One million yen

(△21.6%)

 

 

Per share

Quarterly net income

After adjusting for potential stock

Per share

Quarterly net income

 

Yen

Yen

Second Quarter of the Fiscal Year Ending May 2023

301.27

300.40

Second Quarter of the Fiscal Year Ending May 2022

262.46

261.62

 

(2) Consolidated financial position

 

Total assets

Net worth

Capital adequacy ratio

Net assets per share

 

One million yen

One million yen

Yen

Second Quarter of the Fiscal Year Ending May 2023

530,850

299,661

51.4

5,618.66

May 2022

562,363

284,046

45.9

5,314.48

 

(Reference) Equity

Second Quarter of the Fiscal Year Ending May 2023

273,076

One million yen

 

May 2022

258,035

One million yen

 

2. 2. Dividend status

 

Annual dividend

End of first quarter

End of second quarter

End of third quarter

Term end

total

 

Yen

Yen

Yen

Yen

Yen

May 2022

83.50

83.50

167.00

Fiscal year ending May 2023

116.50

 

 

 

Fiscal Year Ending May 2023 (Forecast)

 

 

116.50

233.00

(Note) Whether or not there is any revision from the recently announced dividend forecast:Nothing

 

3. Consolidated earnings forecast for the fiscal year ending May 2023 (May 16, 2022 to May 15, 2023)

 

(% Display is the rate of increase / decrease from the previous period)

 

 

amount of sales

Operating income

Ordinary profit

Attribution to parent company shareholders

Net income

Per share

Net income

 

One million yen

One million yen

One million yen

One million yen

Yen

Full year

968,800

5.8

42,700

5.3

42,571

6.3

22,640

5.9

466.29

(Note) Whether or not there is any revision from the latest announced business forecast:Nothing

 

 

* Notes

(1) Changes in significant subsidiaries during the current quarterly consolidated cumulative period (changes in specified subsidiaries due to changes in the scope of consolidation):Nothing

 

(2) Application of accounting treatment specific to the preparation of quarterly consolidated financial statements:Yes

 

(3) Changes in accounting policies, changes in accounting estimates, and restatements of revisions

① Changes in accounting policies due to revisions to accounting standards, etc .:Nothing

(2) Changes in accounting policies other than (1):Nothing

③ Change of accounting estimateNothing

④ Correction redisplayNothing

 

(4) Number of issued shares (common stock)

① Number of issued shares at the end of the period (including treasury stock)

2Q of May 2023

49,488,468

stock

May 2022

49,439,968

stock

② Number of treasury stock at the end of the period

2Q of May 2023

886,721

stock

May 2022

886,655

stock

③ Average number of shares during the period (cumulative quarterly)

2Q of May 2023

48,566,414

stock

2Q of May 2022

48,539,312

stock

 

* Quarterly financial statements are not subject to quarterly reviews by certified accountants or audit corporations.

 

* Explanation of proper use of business forecasts and other special notes

The forecast figures contained in this document are forecasts based on currently available information and contain many uncertainties. Actual results may differ from the above figures due to changes in business conditions. Please refer to page 3 of the attached materials for matters related to the above forecasts.

 

○ Contents of attached materials

 

1. Qualitative Information on Quarterly Financial Results ……………………………………………………………………………………

2

(1) Explanation of operating results ………………………………………………………………………

2

(2) Explanation of financial position ……………………………………………………………………………………………

2

(3) Explanation of future forecast information such as consolidated earnings forecasts ………………………………………………………………

3

2. Quarterly Consolidated Financial Statements and Major Notes ……………………………………………………………………………………

4

(1) Quarterly Consolidated Balance Sheet ………………………………………………………………………………………

4

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

6

Quarterly Consolidated Income Statement

 

Second Quarter Consolidated Cumulative Period ………………………………………………………………………

6

Quarterly Consolidated Statement of Comprehensive Income

 

Second Quarter Consolidated Cumulative Period ………………………………………………………………………

7

(3) Quarterly Consolidated Statement of Cash Flows ……………………………………………………………………

8

(4) Notes to Quarterly Consolidated Financial Statements ……………………………………………………………………

10

(Note regarding going concern assumption) ………………………………………………………………………………………

10

(Note when there is a significant change in the amount of shareholders' equity) …………………………………………………………

10

(Application of special accounting treatment to the preparation of quarterly consolidated financial statements)

10

 

 

 

1. Qualitative information on quarterly financial results

(1) Explanation of operating results

During the second quarter of the current consolidated cumulative period (May 16, 2022 to November 15, 2022), the economic situation will continue to be affected by the new coronavirus infection, but various restrictions on movement will be eased and the flow of people will recover. However, the economy showed signs of a gradual recovery. However, there are downside risks due to the deterioration of the situation in Ukraine, soaring resource prices, fluctuations in the financial and capital markets, etc., and income growth is sluggish amid continued price increases. It is difficult to predict the situation for the time being. In the drugstore industry, competitors are continuing to open more stores in pursuit of improved convenience while taking advantage of the price advantage compared to other formats, and the business environment surrounding the Company continues to be severe. increase.

Under these circumstances, the Group aims to achieve the goals of the new medium-term management plan. The store strategy is to improve the accuracy of store openings and promote renovations. We have worked to increase the sales composition ratio, and in the DX strategy, we have been working on sales promotion utilization of customer data, development of our own payment service, and IT system development. In addition, we have worked to improve profitability and reduce selling, general and administrative expenses by establishing a performance management system.

With regard to store development, we worked to further strengthen our dominance in existing areas and proceeded with the renovation and closure of unprofitable stores in order to strengthen competitiveness. From the beginning of the fiscal year, we opened 76 new stores, took over the business of one store, and closed 48 stores. . As a result, the number of group stores as of the end the 2nd quarter was 2,551 directly managed stores.

 

The store openings and closings of the Group are as follows (unit: store)

 

End of the previous fiscal year

Number of stores

branch store

Subsidiary etc.

closed

Net increase

Number of stores at the end of the second quarter

home

Dispensing pharmacy

Hokkaido

422

9

12

△3

419

117

East and North

570

19

1

12

8

578

132

Kanto Koshinetsu

520

13

9

4

524

211

Chubu / Kansai

247

9

5

4

251

141

China

326

14

1

13

339

115

Shikoku

220

6

6

226

66

Kyushu / Okinawa

217

6

9

△3

214

34

Domestic store total

2,522

76

1

48

29

2,551

816

In addition to the above, we have 17 overseas stores and 6 franchise stores.

 

As a result, the performance for the second quarter consolidated cumulative period was 484,106 million yen in sales (up 4.7% year-on-year), 24.7 billion yen in operating income (up 8.8% year-on-year), and 24,820 million yen in ordinary income. ¥14,631 million (up 14.9% year on year). .

 

(2) Explanation of financial position

(Status of assets, liabilities and net assets)

Total assets at the end of the current second quarter consolidated accounting period decreased by 31,513 million yen from the end of the previous consolidated fiscal year to 530,850 million yen.

Total liabilities decreased by 47,128 million yen from the end of the previous consolidated fiscal year to 231,189 million yen.

The main reason for the decrease in total assets and total liabilities was the decrease in cash and deposits and accounts payable, etc., due to the fact that the end of the previous consolidated fiscal year was a holiday for financial institutions.

Total net assets increased by 15,615 million yen from the end of the previous consolidated fiscal year to 299,661 million yen.

As a result of the above, the equity ratio increased by 5.5 percentage points to 51.4%.

 

 

(Cash flow situation)

Cash and cash equivalents (hereinafter referred to as “funds”) for the current second quarter consolidated cumulative period decreased by 44,698 million yen from the end of the previous consolidated fiscal year to 82,194 million yen. The main reason for the decrease in funds was a decrease in trade payables due to the fact that the end of the previous consolidated fiscal year was a holiday for financial institutions.

The status of each cash flow and their factors in the current second quarter consolidated cumulative period are as follows.

 

(Cash flow from operating activities)

Net cash used in operating activities for the current second quarter consolidated cumulative period was 19,710 million yen (down 25.5% year-on-year). This was mainly due to positive factors such as income before income taxes of ¥25,460 million and depreciation of ¥5,640 million, as the end of the previous consolidated fiscal year was a holiday for financial institutions. This was due to the negative factors of 46,642 million yen in decrease in trade payables and 4,388 million yen in income taxes paid.

 

(Cash flow from investment activities)

Funds used for investment activities during the current second quarter consolidated cumulative period amounted to 16,291 million yen (up 15.5% year on year). This was mainly due to expenditure of 13,091 million yen for the purchase of property, plant and equipment associated with new store openings and expenditure of 4,038 million yen for guarantee deposits.

 

(Cash flow from financing activities)

Funds used for financing activities during the current second quarter consolidated cumulative period were 8,696 million yen (up 1.5% year-on-year). This was mainly due to cash dividends paid of 4,054 million yen and repayment of long-term loans payable of 3,600 million yen.

 

(3) Explanation of future forecast information such as consolidated earnings forecasts

There is no change in the full-year earnings forecast announced on June 21, 2022.

2. 2. Quarterly consolidated financial statements and main notes

(1) Quarterly consolidated balance sheet

 

 

(Unit: million yen)

 

Previous consolidated fiscal year

(May 15, 2022)

Current second quarter consolidated accounting period

(November 15, 2022)

Assets

 

 

current assets

 

 

Cash and deposits

127,026

82,327

accounts receivable

49,155

44,010

Product

132,314

138,148

Raw materials and supplies

121

82

Short-term loans receivable

1

1

others

19,895

18,161

Total current assets

328,514

282,732

Fixed asset

 

 

Tangible fixed assets

 

 

Buildings and structures (net)

52,948

58,814

Mechanical equipment and carriers (net amount)

0

0

Tools, utensils and equipment (net)

14,702

15,511

land

14,435

14,504

Lease assets (net amount)

7,098

8,044

Construction in progress

2,113

2,164

Total property, plant and equipment

91,299

99,040

Intangible fixed assets

 

 

Goodwill

34,281

32,218

Software

2,494

2,936

Telephone subscription right

104

104

others

1,145

1,293

Total intangible assets

38,025

36,552

Investments and other assets

 

 

Investment securities

26,723

32,793

Long-term loan

9

9

Deferred tax asset

6,647

6,508

Deposit deposit

65,481

67,652

others

5,723

5,623

Allowance for doubtful accounts

62

62

Total investment and other assets

104,523

112,525

Total fixed assets

233,849

248,118

Total assets

562,363

530,850

 

 

 

 

(Unit: million yen)

 

Previous consolidated fiscal year

(May 15, 2022)

Current second quarter consolidated accounting period

(November 15, 2022)

Debt section

 

 

Current Liabilities

 

 

Accounts payable

155,660

109,017

Long-term borrowing scheduled to be repaid within one year

7,200

10,700

Accounts payable

20,347

16,560

Lease debt

551

599

Income taxes payable, etc.

5,278

9,827

Contract liability

10,418

12,378

Bonus reserve

5,996

6,240

Reserve for directors' bonuses

680

323

Point reserve

291

293

others

7,188

5,187

Total current liabilities

213,613

171,126

Fixed liabilities

 

 

Long-term borrowing

39,475

32,375

Lease debt

8,294

9,355

Deferred tax liability

5,204

6,925

Retirement Benefit Revenue

4,119

3,049

Asset retirement obligations

3,847

3,976

others

3,763

4,380

Total fixed liabilities

64,704

60,062

Total debt

278,317

231,189

Of Net Assets

 

 

Shareholders' equity

 

 

Capital

11,322

11,433

Capital surplus

29,375

29,486

an earned surplus

205,714

216,291

Treasury stock

5,312

5,313

Total shareholders' equity

241,098

251,897

Accumulated other comprehensive income

 

 

Valuation difference on other securities

16,988

21,214

Accumulated adjustment for retirement benefits

52

35

Total other comprehensive income

16,936

21,178

Stock acquisition right

2,269

1,627

Non-controlling interests

23,740

24,957

Total net assets

284,046

299,661

Total liabilities and net assets

562,363

530,850

 

(2) Quarterly consolidated income statement and quarterly consolidated income statement

(Quarterly consolidated income statement)

(Second quarter consolidated cumulative period)

 

 

(Unit: million yen)

 

Previous second quarter consolidated cumulative period

(Own May 16, 2021

To November 15, 2021)

Second quarter consolidated cumulative period

(From May 16, 2022

To November 15, 2022)

amount of sales

462,512

484,106

Cost of sales

325,695

338,767

Gross profit

136,817

145,339

Selling, general and administrative expenses

114,107

120,638

Operating income

22,709

24,700

Non-operating income

 

 

Interest income

67

63

Dividend income

180

186

Equipment donations

350

280

Rent received

114

118

Compensation received

191

24

Insurance money received

62

24

others

234

239

Total non-operating income

1,201

937

Non-operating expenses

 

 

Interest expense

356

546

Premature cancellation penalty

261

133

Closed store related expenses

472

75

others

197

61

Total non-operating expenses

1,288

817

Ordinary profit

22,622

24,820

Extraordinary benefit

 

 

Gain on sales of fixed assets

0

26

Gain on reversal of stock acquisition rights

801

Subsidy income

29

others

0

Total extraordinary profit

30

827

Extraordinary loss

 

 

Loss on retirement of fixed assets

97

24

Impairment loss

22

110

Loss due to disaster

52

Total extraordinary loss

119

187

Income before tax adjustment

22,534

25,460

Income Taxes

8,225

8,885

Quarterly net income

14,308

16,574

Quarterly net income attributable to non-controlling interests

1,569

1,943

Quarterly net income attributable to owners of the parent company

12,739

14,631

 

(Quarterly Consolidated Comprehensive Income Statement)

(Second quarter consolidated cumulative period)

 

 

(Unit: million yen)

 

Previous second quarter consolidated cumulative period

(Own May 16, 2021

To November 15, 2021)

Second quarter consolidated cumulative period

(From May 16, 2022

To November 15, 2022)

Quarterly net income

14,308

16,574

Other comprehensive income

 

 

Valuation difference on other securities

1,460

4,236

Adjustment amount for retirement benefits

39

17

Total other comprehensive income

1,500

4,254

Quarterly comprehensive income

15,809

20,829

(breakdown)

 

 

Quarterly comprehensive income for parent company shareholders

14,212

18,873

Quarterly comprehensive income for non-controlling interests

1,596

1,955

 

(3) Quarterly Consolidated Statement of Cash Flows

 

 

(Unit: million yen)

 

Previous second quarter consolidated cumulative period

(Own May 16, 2021

To November 15, 2021)

Second quarter consolidated cumulative period

(From May 16, 2022

To November 15, 2022)

Cash flow from operating activities

 

 

Income before tax adjustment

22,534

25,460

Depreciation

4,641

5,640

Impairment loss

22

110

Loss due to disaster

-

52

Amortization of goodwill

2,158

2,163

Increase (decrease) in allowance for doubtful accounts

7

-

Increase (decrease) in provision for bonuses

617

243

Increase (decrease) in reserve for directors' bonuses

246

357

Increase (decrease) in net defined benefit liability

173

1,069

Increase (decrease) in accrued points

4,113

2

Interest and dividend income

247

249

Compensation received

191

24

Insurance money received

62

24

Interest expense

356

546

Equipment donations

350

280

Loss on retirement of fixed assets

97

24

Loss on sales of fixed assets (△ indicates gain)

0

26

Gain on reversal of stock acquisition rights

801

Decrease (increase) in trade receivables

10,015

5,145

Decrease (increase) in inventories

2,532

5,795

Increase (decrease) in accounts payable

50,715

46,642

Increase (decrease) in contract liabilities

7,648

1,959

Increase (decrease) in accrued consumption tax, etc.

1,885

69

others

4,716

1,161

subtotal

16,806

15,016

Amount of interest and dividends received

181

188

Amount of compensation received

191

24

Amount of insurance money received

62

24

Amount of interest paid

356

542

Amount of corporate tax, etc. paid

9,744

4,388

Cash flow from operating activities

26,471

19,710

 

 

 

 

(Unit: million yen)

 

Previous second quarter consolidated cumulative period

(Own May 16, 2021

To November 15, 2021)

Second quarter consolidated cumulative period

(From May 16, 2022

To November 15, 2022)

Cash flow from investing activities

 

 

Expenditure from time deposits

0

0

Expenditure for acquisition of property, plant and equipment

10,529

13,091

Proceeds from sales of property, plant and equipment

8

103

Expenditure for acquisition of software

592

955

Payments for acquisition of investment securities

163

-

Proceeds from sales of investment securities

28

18

expenditure on loans

3

0

Income from loan collection

2

7

Payment of security deposit

4,440

4,038

Return of security deposit

1,724

1,917

others

134

250

Cash flow from investing activities

14,100

16,291

Cash flow from financing activities

 

 

Expenditure for repayment of long-term borrowings

3,600

3,600

Expenditure for repayment of lease obligations

261

304

Proceeds from issuance of new shares

1

1

Payment for acquisition of treasury stock

0

0

Dividend payment amount

4,052

4,054

Amount of dividends paid to non-controlling shareholders

652

738

Cash flow from financing activities

8,565

8,696

Increase (decrease) in cash and cash equivalents

49,137

44,698

Beginning balance of cash and cash equivalents

116,398

126,892

Quarterly balance of cash and cash equivalents

67,260

82,194

 

(4) Notes to Quarterly Consolidated Financial Statements

(Notes on going concern assumption)

Not applicable.

 

(Note when there is a significant change in the amount of shareholders' equity)

Not applicable.

 

(Application of special accounting treatment to the preparation of quarterly consolidated financial statements)

(Calculation of tax costs)

Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting to income before income taxes for the consolidated fiscal year including the second quarter of the fiscal year under review, and multiplying quarterly net income before income taxes by the estimated effective tax rate. is calculated.

However, if the calculation of tax costs using the estimated effective tax rate results in a significantly unreasonable result, the statutory effective tax rate is used.

The amount of corporate tax adjustment is included in the corporate tax.