Arata Corporation · TSE:2733
Arata — Q2 FY2024 Earnings Presentation
22 slides from Arata's earnings presentation, November 2024
Slide 1: ARATA Corporation Q2 FY03/2025 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 Q2 of Fiscal Year E
Slide 2: Q2 FY03/2025 results
Q2 FY03/2025 results 2
Slide 3: Q2 FY03/2025 Highlights
Q2 FY03/2025 results ■ Q2 FY03/2025 Highlights Q2 FY03/2025 Record-high Net sales and Ordinary income Point Sales growth in the H&B and Pet categories Increases in SG&A expenses Improve Gross profit by expanding H&B categories Not achieve Operating income and Achieve Net sales targets Ordinary incom
Slide 4: Consolidated Statements of Income
Q2 FY03/2025 results ■ Consolidated Statements of Income Q2 Q2 Progress FY03/2024 FY03/2025 YoY change rate Q2 FY03/2025 Planning (Millions of yen) Results Results Change Rate (%) Rate (%) Net sales 471,388 491,522 20,134 104.3 488,000 100.7 Gross profit 46,181 48,641 2,459 105.3 - - SG&A expenses 3
Slide 5: Q2 FY03/2025 Overview and Factors: Net Sales
Q2 FY03/2025 results ■ Q2 FY03/2025 Overview and Factors Net sales: Record highs achieved for the 10th consecutive year Achieved plan for 2Q FY03/2025 Net Sales : JPY491.522 billion YoY: +JPY20.134 billion 104.3% Q2 FY03/2025 Cumulative Net Sales YoY 104.3% ・ Success of existing focus categories (H&
Slide 6: Sales by Category (YoY)
Q2 FY03/2025 results ■Sales by Category (YoY) (Millions of JPY) 160,000 149,310 143,908 H&B Percentage of Net Sales Q2 FY03/2024 103.8% 30.4% Q2 FY03/2025 120,000 92,221 91,945 86,868 87,953 105.6% 80,000 71,368 106.2% 104.5% 67,589 103.3% 45,440 43,985 99.9% 30,795 40,000 30,819 101.7% 10,440 10,26
Slide 7: Net Sales by Business Category (YoY)
Q2 FY03/2025 results ■Net Sales by Business Category (YoY) (Millions of JPY) 280,000 256,184 247,675 Q2 FY03/2024 240,000 Drugstores Percentage of Net Sales Q2 FY03/2025 200,000 52.1% 103.4% 160,000 120,000 106.5% 71,222 102.4% 106.2% 109.7% 80,000 66,856 53,817 55,109 51,255 40,000 34,765 38,136 98
Slide 8: Q2 FY03/2025 Overview and Factors: Ordinary Income
Q2 FY03/2025 results ■ Q2 FY03/2025 Overview and Factors Ordinary income: Record highs achieved Not achieved plan for 2Q FY03/2025 Ordinary income: JPY8.569 billion YoY: +JPY145 million 101.7% Gross profit : JPY48.641 billion YoY: +JPY2.459 billion 105.3% Gross margin: 9.90% YoY +0.10 points ・ Stron
Slide 9: Consolidated Statements of Income (Accounting period)
Q2 FY03/2025 results ■ Consolidated Statements of Income (Accounting period) Q1 Q2 YoY change YoY change (Millions of JPY) FY03/2024 FY03/2025 Rate (%) FY03/2024 FY03/2025 Rate (%) Net sales 235,239 245,604 104.4 236,148 245,918 104.1 Gross profit 23,221 24,726 106.5 22,960 23,914 104.2 SG&A expense
Slide 10: Factors for Failure to Achieve Profit Plan and H2 Measures
Q2 FY03/2025 results ■ Factors for Failure to Achieve Profit Plan and Measures in H2 FY03/2025 Q2 Q2 FY03/2024 FY03/2025 YoY change (Millions of yen) Results Results Change Rate (%) SG&A expenses 38,208 40,467 2,258 105.9 - Logistics cost 12,555 13,522 966 107.7 - Personnel expenses 16,753 17,453 69
Slide 11: H2 FY03/2025 measures
Q2 FY03/2025 results ■H2 FY03/2025 measures Measures to Improve Sales and Gross Profit ・ Aim to expand the composition ratio of focus categories (H&B and pets) ・ Commencement of transactions with new retailers and expansion of existing transactions ・ Enhance product lineup by developing new brands s
Slide 12: Consolidated Balance Sheets
Q2 FY03/2025 results ■Consolidated Balance Sheets FY03/2024 Q2 FY03/2025 (Millions of JPY) (Millions of JPY) Current assets Current Current assets Current liabilities liabilities 242,745 170,647 235,074 160,871 76.6% 53.8% 76.1% 52.1% Long-term 36,609 Long-term 35,353 liabilities 11.6% liabilities 1
Slide 13: Progress of Medium-Term Management Plan 2026
Progress of Medium-Term Management Plan 2026 13
Slide 14: Creating a Market with Our Unique Product Proposals
Progress of Medium-Term Management Plan 2026 ■ Medium-Term Management Plan 2026 measures: Growth Strategy (Strengthen Categories) Participated in the JAPAN Drugstore Show 2024 from August 30 to September 1, 2024 Cosmetic booth Fem booth Pet booth Concept Concept “Luxurious Pop” "Connection" ✓ Touch-
Slide 15: Growth Strategy: Exclusive and Preferential Distribution Items
Progress of Medium-Term Management Plan 2026 ■ Medium-Term Management Plan 2026 measures: Growth Strategy (Expansion of exclusive and preferential distribution items) Strengthen sales promotion of our original cosmetic brand “3650 (san roku go zero)” ✓ Planning collaboration with “GENIC”, a ✓Pop-up
Slide 16: New initiatives: Began dealing with convenience store formats
Progress of Medium-Term Management Plan 2026 ■ New initiatives: Began dealing with convenience store formats Commencement of transactions with major convenience store operators Promote Medium-Term Management Plan 2026 strategy (category strategy, expand exclusive and preferential distribution items)
Slide 17: Earnings forecast
Progress of Medium-Term Management Plan 2026 ■Earnings forecast (Billions of JPY) 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
Slide 18: Financial Strategy (Return to Shareholders)
Progress of Medium-Term Management Plan 2026 ■Medium-Term Management Plan 2026 measures : Financial Strategy (Return to Shareholders) Dividend policy: Aim for stable dividends and dividend increases while keeping in mind the dividend payout ratio of 30% FY03/2024: Interim JPY41.5, Term end JPY51, To
Slide 19: Financial Strategy (Stock and Shareholder Strategy)
Progress of Medium-Term Management Plan 2026 ■Medium-Term Management Plan 2026 measures : Financial Strategy (Stock and Shareholder Strategy) Acquisition of treasury stock Acquisition period: November 8, 2023 to November 7, 2024 Total amount of shares to be acquired: Up to JPY3 billion ➤ Completion
Slide 20: Topics
Topics 20
Slide 21: Integrated Report 2024 issued
Topics ■Integrated Report 2024 issued English version will be published in December 2024 Please refer to the Integrated Report for details of our activities. Aarata Integrated Report Search [Integrated Report Theme] TAKE ACTION Introduction to the Strategy and Initiatives for the First Year of the M
Slide 22: Cautionary Statement and IR Inquiries
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