Arata Corporation · TSE:2733
Arata — FY2023 Earnings Presentation
24 slides from Arata's earnings presentation, May 2024
Slide 1: ARATA Corporation Fiscal Year Ending March 2024 Financial Results
NOTICE The slides in this presentation has been translated using a mechanical automatic translation service. In some cases, the translation may be inaccurate or unintended. Please use this service with the understanding that translations are not always accurate. ARATA Corporation Fiscal Year Ending
Slide 2: Progress of Medium-Term Management Plan 2026
Progress of Medium-Term Management Plan 2026 Copyright ARATA Corp. All Rights Reserved 2
Slide 3: Progress of Medium-Term Management Plan 2026
Progress of Medium-Term Management Plan 2026 Long-term Management vision 2030 Realize your dreams. Change your daily lives. The dream to spend enriching and comfortable time every day for many years to come. We want to be a company that can make peoples’ “dreams come true.” ARATA will change your li
Slide 4: Progress of Medium-Term Management Plan 2026: Strategy and FY03/2024 Results
Progress of Medium-Term Management Plan 2026 Medium-Term Management Plan 2026 Strategy FY03/2024 Results Growth Strategy - Expansion of H&B and pet categories ・ "ARATA Collection2024" Exhibition Held - Strengthening Uniqueness by Expanding Monopoly and ・ Established new cosmetic brand “3650” preferr
Slide 5: FY03/2024 Results
FY03/2024 Results Copyright ARATA Corp. All Rights Reserved 5
Slide 6: Consolidated Statements of Income
FY03/2024 Results ■Consolidated Statements of Income Record high Net sales and ordinary income FY03/2023 FY03/ 2024 YoY change Versus forecast Planning (Millions of yen) Results Results Change Rate (%) Change Rate (%) Net sales 891,600 944,149 52,548 105.9 928,000 16,149 101.7 Gross profit 86,805 92
Slide 7: Sales by Category (YoY)
FY03/2024 Results ■Sales by Category (YoY) (Millions of yen) 300,000 289,806 277,861 Health & Beauty FY03/2023 FY03/2024 Percentage of Net Sales 250,000 30.7% 110.4% 106.3% 197,155 200,000 183,488 104.3% 172,600 178,534 104.0% 150,000 134,155 128,985 105.2% 100,000 75,957 103.5% 72,191 61,427 63,586
Slide 8: Net Sales by Business Category (YoY)
FY03/2024 Results ■Net Sales by Business Category (YoY) 494,582 (Millions of yen) 500,000 460,060 FY03/2023 FY03/2024 Drugstores 400,000 Percentage of Net Sales 52.4% 300,000 107.5% (YoY +0.8 points) 200,000 103.6% 132,287 104.2% 103.8% 127,689 109,016 108.4% 97,802 104,650 100,000 70,584 100.0% 94,
Slide 9: Consolidated Balance Sheets
FY03/2024 Results ■Consolidated Balance Sheets FY03/2023 FY03/2024 (Millions of yen) (Millions of yen) Current assets Current Current assets Current liabilities liabilities 217,681 158,760 242,745 170,546 74.8% 54.6% 76.6% 53.8% Long-term 30,030 Long-term 36,710 liabilities 10.3% liabilities 11.6% N
Slide 10: Improve financial soundness and ensure profitability
FY03/2024 Results ■Ratio of net worth and ROE % Equity RatioTrends % ROE Trends 40 12 35.6 35.4 35.1 34.6 9.6 9.7 35 10 9.4 33.2 8.8 8.3 30 8 25 6 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 Improve financial soundness and ensure profitability Copyright ARATA Corp
Slide 11: FY03/2024 Factors: Net Sales
FY03/2024 Results ■ FY03/2024 Factors Record-high sales for the ninth consecutive year Net sales: JPY944.149 billion YoY: +JPY52.548 billion 105.9% FY03/2023 Cumulative FY03/2024 Cumulative Net sales YoY 104.0% Net sales YoY 105.9% ・ Improvement of product unit price →Increase in sales of high-volum
Slide 12: FY03/2024 Factors: Record High Ordinary Income
FY03/2024 Results ■ FY03/2024 Factors Record high Ordinary income Ordinary income: JPY15.341 billion YoY: +JPY1.661 billion 112.1% Gross profit: JPY92.418 billion YoY: +JPY5.612 billion 106.5% Gross margin: 9.79% YoY +0.05 points ・ Strong sales of exclusive products such as cosmetics and hair care p
Slide 13: Consolidated Statements of Income (Accounting period)
FY03/2024 Results ■Consolidated Statements of Income (Accounting period) The first half(Q1-Q2) Q3 Q4 FY03/2023 FY03/2024 YoY FY03/2023 FY03/2024 YoY FY03/2023 FY03/2024 YoY (Millions of yen) Results Results (%) Results Results (%) Results Results (%) Net sales 445,220 471,388 105.9 233,776 247,730 1
Slide 14: Q4 FY03/2024 Factors
■Q4 FY03/2024 Factors Copyright ARATA Corp. All Rights Reserved 14
Slide 15: Q4 Initiatives: Improving Gross Profit
FY03/2024 Results ■Q4 Initiatives for Achieving Medium-Term Management Plan 2026: Improving Gross Profit ARATA Collection 2024 “3650” Brand Expansion 2024 March June 2023 Held the first corporate-wide exhibition in Tokyo Launched new cosmetic brand “3650” →Strengthen sales promotion In addition to m
Slide 16: Q4 Initiatives: Monopoly and Preferred Distributed Products
FY03/2024 Results ■Q4 Initiatives for Achieving Medium-Term Management Plan 2026: Improving Gross Profit Net Sales of Monopoly and Preferred Distributed Products FY03/2020 FY03/2023 FY03/2024 FY03/2026 (Forecast) Net sales Less than (Forecast) Composition Over 6% 7% 1% Over 8% Steady progress toward
Slide 17: Q4 Initiatives: Controlling SG&A Expenses
FY03/2024 Results ■Q4 Initiatives for Achieving Medium-Term Management Plan 2026: Controlling SG&A Expenses Implementation of IT Medium-Term Management Plan Improve logistics productivity Strengthen development by utilizing ・ Efficiency of delivery with manufacturers external consulting ・ Labor savi
Slide 18: Earnings forecast
FY03/2024 Results ■Earnings forecast (Billions of yen) Profit attributable Net sales Operating income Ordinary income to owners of parent Net Income FY03/2023 Results 891.6 12.8 13.6 8.2 105.9% 113.2% 112.1% 125.5% FY03/2024 Results 944.1 14.5 15.3 10.3 102.6% 112.3% 108.2% 106.6% FY03/2025 Forecast
Slide 19: Medium-Term Management Plan 2026 Measures
Medium-Term Management Plan 2026 Measures - Strengthen foundation - Sustainability - Financial Strategy Copyright ARATA Corp. All Rights Reserved 19
Slide 20: Strengthen foundation: Transformation into Human Capital Management
Medium-Term Management Plan 2026 Measures ■Medium-Term Management Plan 2026: Strengthen foundation 〈Transformation into Human Capital Management〉 Investing in human capital with a view to the future - Improve employee salary levels by revising the salary system - Payment of performance-based bonuses
Slide 21: Sustainability
Medium-Term Management Plan 2026 Measures ■Medium-Term Management Plan 2026: Sustainability ・ CDP response First-year C assessment ・ Awarded the Excellence Award at the Supply Chain Innovation Award 2023 by Japel Co., Ltd. Efforts to improve shipping efficiency and truck rotationconducted in coopera
Slide 22: Financial Strategy: Shares and Shareholder Measures
Medium-Term Management Plan 2026 Measures ■Medium-Term Management Plan 2026: Financial Strategy 〈3 Shares and Shareholder Measures〉 ① Share buyback Acquisition period: November 8, 2023 to November 7, 2024 Total amount of shares to be acquired: Up to JPY3 billion ▶ Cumulative treasury stock acquired
Slide 23: Financial Strategy: Shareholder return
Medium-Term Management Plan 2026 Measures ■Medium-Term Management Plan 2026: Financial Strategy 〈Shareholder return〉 Dividend policy: Aim to further improve dividend payout ratio while considering stable dividends FY03/2024: Interim JPY41.5, Term end JPY51, Total JPY92.5 (YoY +JPY24.5) 9th consecuti
Slide 24: IR inquiry address
Cautionary Statement with Respect to Forward-Looking Statements This material is solely for information purposes and should not be construed as a solicitation. This document (including the performance plan) has been prepared by us based on reliable information currently available, but it involves