August 12, 2015 |
Consolidated Financial Results and Recording of Special Loss for the Six Months Ended June 30, 2015 |
|
McDonaldfs Holdings Company (Japan), Ltd. hereby announces its consolidated financial results for the six months ended June 30, 2015 (January 1, 2015 to June 30, 2015) of the fiscal year ending December 31, 2015 (January 1, 2015 to December 31, 2015). The company also reports special losses as outlined below for the same period.
|
|
Highlights |
¥ |
Sales and profit declined significantly from the year before, reflecting the impact of food-related issues and non-recurring costs for investments associated with the Business Revitalization Plan; however, earnings are developing broadly in line with the Companyfs plan |
¥ |
By accelerating the execution of strategies for the business recovery, same-store sales are expected to turn positive in the 2nd half |
|
|
(In Millions of Yen) |
|
1st Half 2015 |
Actual |
2014 Actual |
vs. Last Year |
System-wide Sales* |
172,025 |
237,778 |
-27.7% |
Consolidated Sales |
85,281 |
121,000 |
-29.5% |
Consolidated Operating Income |
-18,291 |
3,512 |
- |
Consolidated Ordinary Income |
-19,536 |
3,233 |
- |
Consolidated Net Income |
-26,220 |
1,852 |
- |
|
*System-wide Sales: Combined sales of company-operated and franchised restaurants. |
|
|
1st Half 2015 |
vs. Last Year |
Same-store Sales |
-27.5% |
Same-store Guest Count |
-18.8% |
System-wide Guest Count |
-19.2% |
|
|
In the first half of fiscal 2015, system-wide sales decreased by 65.7 billion yen from the previous year to 172 billion yen. This was due to the impact of a continuously challenging business environment due large part to the prolonged impact of food-related issues. Ordinary loss was 19.5 billion yen, reflecting the sales decline and 9.3 billion yen non-recurring costs for investments associated with the Business Revitalization Plan (*1). Overall, we recorded a net loss of 26.2 billion yen, including a 6.7 billion yen special loss comprised of impairment loss and strategic closure-related expenses.
Although we posted a significant loss for the first half of the year due to one-time investment costs and expenses, our earnings are developing broadly in line with our forecast announced on April 16. Our business is trending upward and we expect to see a further improvement in sales and profit in the 2nd half.
|
|
Going forward, we continue to focus on activities related to food safety and quality. In addition, we aim to accelerate the pace of business recovery and lay the foundation for future growth through the flawless execution of our Four-pillar Business Revitalization Plan: gCustomer Focused Initiativesh, gAccelerate Restaurant Revitalizationh, gLocalize Our Business Structureh and gImprove Cost and Resource Efficiencyh. Through a variety of customer and community focused activities, we aim to provide customers with a restaurant experience exceeding their expectations, which we believe will enable us to grow the business again in the 2nd half and beyond.
|
|
(*1 For the details of our Business Revitalization Plan, please refer to April 16, 2015 announcement regarding gEarnings Forecast for Fiscal Year Ending December 31, 2015 and Business Revitalization Planh.)
|
|
ƒReference: One-time Investment Costs & Special Charges„
The breakdown of one-time investment costs and special charges booked in the first half is as follows. No change has been made to the projected annual amount we announced on April 16, 2015.
|
(In Billions of Yen) |
|
Projected Annual Amount (Announced on April 16) |
Booked Amount for 1st Half 2015 |
Impact on Ordinary Income Special |
Special Loss |
Total |
Acceleration of Investment in Restaurants - cost associated with 131 strategic closures planned in the 2nd half |
5.8 |
0.3 |
2.6 |
2.9 |
Voluntary Early Retirement Program - premium retirement benefits & outplacement service cost for 78 applicants. |
0.8 |
- |
0.6 |
0.6 |
Financial Measures for Franchisees - financial support programs for FC owners |
12.6 |
8.6 |
- |
8.6 |
Impairment Loss - revaluation of restaurant assets |
4.9 |
- |
3.5 |
3.5 |
Marketing Spend & Other Investments - investments to accelerate business recovery |
1.4 |
0.4 |
- |
0.4 |
Total |
25.5 |
9.3 |
6.7 |
16.0 |
|
(rounded to one decimal place) |
|
EOD |
|
¡Consolidated Financial Results for the Six Months Ended June 30, 2015
|
(570KB:English) |
Download Adobe Reader to view PDF.
|
|