November 8, 2024 | ||
Summary of Consolidated Financial Results | ||
for the Second Quarter of the Fiscal Year Ending March 31, 2025 | ||
(Six Months Ended September 30, 2024) | [Japanese GAAP] | |
Company name: | AOKI Holdings Inc. | Listings: Tokyo Stock Exchange |
Stock code: | 8214 | URL: https://www.aoki-hd.co.jp/ |
Representative: | Haruo Tamura, President | |
Contact: | Satoshi Eguchi, General Manager of IR Office | Tel: +81-45-941-1388 |
Scheduled date of filing of Semi-annual Report: | November 11, 2024 |
Scheduled date of payment of dividend: | December 3, 2024 |
Preparation of supplementary materials for financial results: | Yes |
Holding of financial results meeting: | Yes (for institutional investors and analysts) |
Note: The original disclosure in Japanese was released on November 8, 2024 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 - September 30, 2024)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||
owners of parent | ||||||||
Six months ended Sep. 30, 2024 | Million yen | % | Million yen | % | Million yen | % | Million yen | % |
82,933 | 2.3 | 4,171 | 9.8 | 3,824 | 7.5 | 2,791 | 35.3 | |
Six months ended Sep. 30, 2023 | 81,055 | 7.2 | 3,798 | 87.9 | 3,557 | 111.6 | 2,063 | 243.6 |
Note: Comprehensive income (million yen) | Six months ended Sep. 30, 2024: | 2,123 | (down 1.5%) | |||
Six months ended Sep. 30, 2023: | 2,156 | (up 194.1%) | ||||
Net income per | Diluted net income | |||||
share | per share | |||||
Six months ended Sep. 30, 2024 | Yen | Yen | ||||
33.21 | - | |||||
Six months ended Sep. 30, 2023 | 24.50 | - |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||
Million yen | Million yen | % | |||
As of Sep. 30, 2024 | 220,742 | 136,174 | 61.6 | ||
As of Mar. 31, 2024 | 236,327 | 137,056 | 57.9 | ||
Reference: Shareholders' equity (million yen) | As of Sep. 30, 2024: 135,884 | As of Mar. 31, 2024: 136,757 |
2. Dividends
Dividend per share | |||||
1Q-end | 2Q-end | 3Q-end | |||
Yen | Yen | Yen | |||
FY3/24 | - | 13.00 | - | ||
FY3/25 | - | 15.00 | |||
FY3/25 (forecasts) | - |
Note: Revisions to the most recently announced dividend forecast: None
Year-end
Yen
37.00
40.00
Total
Yen
50.00
55.00
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)
(Percentages represent year-on-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | |||||||
owners of parent | share | ||||||||||
Full year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
191,800 | 2.2 | 15,000 | 8.2 | 14,300 | 8.0 | 8,000 | 5.6 | 95.16 |
Note: Revisions to the most recently announced consolidated forecast: Yes
The sales and ordinary profit forecasts and business segment forecasts have been revised. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 for further information.
* Notes
- Significant changes in the scope of consolidation during the period: None
- Application of special accounting methods for presenting consolidated interim financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
Note: Please refer to "Changes in Accounting Policies" on page 10 for further information on 1).
(4) Number of shares outstanding (common shares)
1) | Number of shares outstanding (including treasury shares) at the end of the period | |||
As of Sep. 30, 2024: | 86,649,504 shares | As of Mar. 31, 2024: | 86,649,504 shares | |
2) | Number of treasury shares at the end of the period | |||
As of Sep. 30, 2024: | 2,551,593 shares | As of Mar. 31, 2024: | 2,626,986 shares | |
3) Average number of shares outstanding during the period | ||||
Six months ended Sep. 30, 2024: | 84,043,934 shares | Six months ended Sep. 30, 2023: | 84,218,844 shares |
Note 1: The current quarterly (semi-annual) summary report is not subject to review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forecasts and other matters Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 of the attachments regarding preconditions or other related matters for the forecast shown above.
Supplementary materials for financial results
Supplementary materials for financial results are disclosed on TDnet on Friday, November 8, 2024 and posted on the Company's website.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by web conference on Thursday, November 21, 2024. Materials to be distributed at this event will be available on the Company's website on the morning of the meeting.
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025 | ||
Contents of Attachments | ||
Pages | ||
1. Overview of Results of Operations, etc. | 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 4 |
2. Consolidated Interim Financial Statements and Notes | 5 | |
(1) | Consolidated Interim Balance Sheet | 5 |
(2) | Consolidated Interim Statement of Income and | |
Consolidated Interim Statement of Comprehensive Income | 7 | |
Consolidated Interim Statement of Income | 7 | |
Consolidated Interim Statement of Comprehensive Income | 8 | |
(3) | Consolidated Interim Statement of Cash Flows | 9 |
(4) | Notes to Consolidated Interim Financial Statements | 10 |
Going Concern Assumption | 10 | |
Significant Changes in Shareholders' Equity | 10 | |
Changes in Accounting Policies | 10 | |
Segment Information | 11 |
1
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
1. Overview of Results of Operations, etc.
(1) Results of Operations
In the first half of the current fiscal year, there was a recovery of the Japanese economy at a moderate pace backed by firm consumer spending due to rising wages as corporate earnings increased and the labor market and personal income improved. The outlook for the economy is still uncertain because of concerns about the impact on consumer spending of high prices caused by the high cost of energy and raw materials due to turmoil in many areas of the world and the yen's depreciation.
Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings increased in the first half. Net sales increased 2.3% from one year earlier to 82,933 million yen, operating profit increased 9.8% to 4,171 million yen, ordinary profit increased 7.5% to 3,824 million yen, and profit attributable to owners of parent increased 35.3% to 2,791 million yen.
Business segment performance was as follows.
Fashion Business
During the first half, this business enlarged selections of men's and women's Cool Biz apparel that feature a variety of functions to keep people comfortable in hot summer weather in Japan. AOKI stores started selling the BIZ MOVE line of casual business apparel that looks sharp and facilitates easy movements of the wearer. For women, AOKI stores added T-shirts, cardigans and other items to the Kinseki Cut Series of apparel that protects skin from harsh summer sunlight. ORIHICA expanded its lineup of business casual fashions. This includes the Mugen Coordination Shirt lines that cover all seasons and is suitable for work as well as at parties and ordinary day-to-day activities. ORIHICA added six stores during the first half, including stores in areas where this company had no stores. To improve efficiency and relocate stores, AOKI and ORIHICA each closed one store. As a result, the number of stores increased from 593 at the end of the previous fiscal year to 597 at the end of the first half.
These activities generated strong sales of Cool Biz and casual apparel. However, expenses increased because of more advertising and other measures to bring in customers. Sales in this segment increased 1.6% year on year to 38,263 million yen and operating loss was 222 million yen compared with a profit of 437 million yen one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes are continuing to add private rooms with locks and took actions to meet the demand for indoor entertainment during hot weather. COTE D'AZUR karaoke facilities focused on upgrading and expanding the selection of food and beverages. For example, the popular Kin-no Potato items and dishes created with the oversight of Oreno French/Italian restaurants were added to the Grand Menu. At FiT24, which operates 24-hour self-service fitness gyms, there were many activities to attract new members. Two examples are events that allow non- members to use the facilities at no charge for a day and a special membership plan for high school students. During the first half, KAIKATSU CLUB opened six cafés and FiT24 fitness opened two centers, while three KAIKATSU CLUB cafés and four COTE D'AZUR karaoke facilities were closed due to measures to improve efficiency. As a result, including the 83 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 50 franchised stores), the number of locations in this business decreased from 784 at the end of the previous fiscal year to 776 at the end of the first half.
Segment sales and earnings increased because of these measures and firm sales at existing locations due to higher demand because people needed cool places to get away from summer heat. Sales in this segment increased 1.1% to 38,701 million yen and operating profit increased 17.9% to 4,405 million yen.
Anniversaire and Bridal Business
This business continued to increase measures for receiving new orders and raising the percentage of sales meetings with customers that result in firm orders. One step was the announcement of 2024 additions to Trend Collections, a series of original wedding formats that match the latest trends. On September 14, Anniversaire Minato Mirai Yokohama, one of the largest guest house wedding facility in Japan, reopened following a renovation to celebrate its 10th anniversary. This business will continue to meet an increasingly diverse range of customer needs with measures that reflect the constant change in the types of weddings couples want and the steadily growing demand in the MICE
2
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
(meetings, incentive travel, conventions, exhibitions/events) category.
Sales increased 12.8% to 4,906 million yen and there was an operating loss of 375 million yen compared with a loss of 434 million yen one year earlier. First half performance was supported by the operations of ANNIVERSAIRE Omotesando, which was closed until the middle of September in 2023, and a decrease in expenses for renovations.
Real Estate Leasing Business
Segment sales increased 24.2% to 3,384 million yen and operating profit increased 72.0% to 792 million yen mainly because of the leasing of properties to tenants outside the AOKI Group in the previous fiscal year.
(2) Financial Position
- Balance sheet position Assets
Total assets at the end of the second quarter decreased 15,584 million yen from the end of the previous fiscal year to 220,742 million yen primarily because of a decrease in accounts receivable-trade.
Current assets decreased 14,140 million yen mainly due to decreases of 2,918 million yen in cash and deposits and 8,644 million yen in accounts receivable-trade caused by seasonal and other factors. Non-current assets decreased 1,444 million yen due to a decrease of 1,857 million yen in investments and other assets resulting from sales of investment securities, while property, plant and equipment increased 596 million yen.
Liabilities
Current liabilities decreased 6,816 million yen from the end of the previous fiscal year. There were decreases of 7,425 million yen in accounts payable-trade due to seasonal and other factors, 1,361 million yen in accrued income taxes due to the payment of income taxes, 1,961 million yen in provision for bonuses and 2,845 million yen in other current liabilities including accounts payable-other, while there were proceeds from short-term borrowings of 6,000 million yen. Non-current liabilities decreased 7,886 million yen due to a decrease of 7,710 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets decreased 882 million yen from the end of the previous fiscal year. There were decreases of 317 million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus and 619 million yen in valuation difference on available-for-sale securities due to sales of investment securities.
2) Cash flow position
Cash and cash equivalents (hereafter "net cash") at the end of the second quarter decreased 2,918 million yen from the end of the previous fiscal year to 32,739 million yen.
Cash flows from operating activities
Net cash provided by operating activities increased 9 million yen from one year earlier to 3,762 million yen. The principal factors were profit before income taxes of 3,889 million yen and depreciation of 4,960 million yen, while there were income taxes paid of 2,074 million yen, gain on sale of investment securities of 563 million yen and a decrease in accrued consumption taxes of 537 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 4,754 million yen from one year earlier to 1,699 million yen. This was mainly due to the payments of 5,357 million yen for the purchase of property, plant and equipment for new store openings, renewals and other activities, while there was a net decrease in trust beneficiary rights of 1,636 million yen, proceeds of 1,304 million yen from sale of investment securities and proceeds of 1,185 million yen from sale of property, plant and equipment.
3
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
Cash flows from financing activities
Net cash used in financing activities decreased 920 million yen from one year earlier to 4,981 million yen. This was mainly due to scheduled repayments of long-term borrowings of 6,768 million yen and dividends paid of 3,102 million yen, while there were proceeds from short-term borrowings of 6,000 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
By taking into consideration marketing and other activities of all businesses in the second half of the current fiscal year based on results of operations in the first half, the fiscal year forecasts for sales and ordinary profit announced on May 10, 2024 has been revised.
Our business segment forecasts were also revised as follows. Business segment forecasts for the fiscal year ending March 31, 2025
Fashion | Entertainment | Anniversaire | Real Estate | Consolidated | |
and Bridal | Leasing | ||||
Million yen | Million yen | Million yen | Million yen | Million yen | |
Sales | 101,600 | 76,300 | 11,700 | 6,700 | 191,800 |
YoY change (%) | 101.6 | 101.0 | 114.0 | 110.7 | 102.2 |
Segment profit | 8,600 | 5,900 | 500 | 1,600 | 15,000 |
YoY change (%) | 106.4 | 108.2 | 865.4 | 121.9 | 108.2 |
Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of consolidation adjustments.
- These forecasts are based on judgments made in accordance with information available to the management at the time these materials were prepared. Actual results may differ substantially from these forecasts for a number of reasons.
4
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
2. Consolidated Interim Financial Statements and Notes
(1) Consolidated Interim Balance Sheet
(Millions of yen) | ||
FY3/24 | Second quarter of FY3/25 | |
(As of Mar. 31, 2024) | (As of Sep. 30, 2024) | |
Assets | ||
Current assets | ||
Cash and deposits | 35,657 | 32,739 |
Accounts receivable-trade | 15,442 | 6,798 |
Inventories | 22,247 | 22,843 |
Other | 8,496 | 5,325 |
Allowance for doubtful accounts | (42) | (46) |
Total current assets | 81,800 | 67,659 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 64,406 | 64,610 |
Land | 30,693 | 30,594 |
Other, net | 15,941 | 16,433 |
Total property, plant and equipment | 111,042 | 111,638 |
Intangible assets | 6,771 | 6,627 |
Investments and other assets | ||
Guarantee deposits | 6,446 | 6,381 |
Leasehold deposit | 18,873 | 18,901 |
Other | 11,446 | 9,588 |
Allowance for doubtful accounts | (52) | (54) |
Total investments and other assets | 36,713 | 34,816 |
Total non-current assets | 154,526 | 153,082 |
Total assets | 236,327 | 220,742 |
5
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
(Millions of yen) | ||
FY3/24 | Second quarter of FY3/25 | |
(As of Mar. 31, 2024) | (As of Sep. 30, 2024) | |
Liabilities | ||
Current liabilities | ||
Accounts payable-trade | 18,713 | 11,288 |
Short-term borrowings | - | 6,000 |
Current portion of long-term borrowings | 9,842 | 10,783 |
Income taxes payable | 2,106 | 744 |
Provision for bonuses | 3,790 | 1,828 |
Provision for bonuses for directors (and other officers) | 240 | 76 |
Other | 17,165 | 14,320 |
Total current liabilities | 51,857 | 45,041 |
Non-current liabilities | ||
Long-term borrowings | 32,687 | 24,976 |
Retirement benefit liability | 607 | 593 |
Asset retirement obligations | 7,914 | 7,920 |
Other | 6,203 | 6,034 |
Total non-current liabilities | 47,412 | 39,526 |
Total liabilities | 99,270 | 84,567 |
Net assets | ||
Shareholders' equity | ||
Share capital | 23,282 | 23,282 |
Capital surplus | 22,597 | 22,612 |
Retained earnings | 92,813 | 92,495 |
Treasury shares | (3,047) | (2,959) |
Total shareholders' equity | 135,645 | 135,431 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 741 | 122 |
Remeasurements of defined benefit plans | 369 | 330 |
Total accumulated other comprehensive income | 1,111 | 453 |
Non-controlling interests | 299 | 290 |
Total net assets | 137,056 | 136,174 |
Total liabilities and net assets | 236,327 | 220,742 |
6
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
(2) Consolidated Interim Statement of Income and Consolidated Interim Statement of Comprehensive Income Consolidated Interim Statement of Income
(Millions of yen) | |||
First six months of FY3/24 | First six months of FY3/25 | ||
(Apr. 1, 2023 - Sep. 30, 2023) | (Apr. 1, 2024 - Sep. 30, 2024) | ||
Net sales | 81,055 | 82,933 | |
Cost of sales | 49,466 | 49,894 | |
Gross profit | 31,589 | 33,039 | |
Selling, general and administrative expenses | 27,790 | 28,867 | |
Operating profit | 3,798 | 4,171 | |
Non-operating profit | |||
Interest income | 31 | 37 | |
Dividend income | 21 | 16 | |
Other | 79 | 76 | |
Total non-operating profit | 132 | 130 | |
Non-operating expenses | |||
Interest expenses | 150 | 125 | |
Loss on retirement of non-current assets | 29 | 74 | |
Loss on cancellation of guarantee and leasehold | 5 | 104 | |
deposits | |||
Other | 188 | 173 | |
Total non-operating expenses | 374 | 477 | |
Ordinary profit | 3,557 | 3,824 | |
Extraordinary income | |||
Gain on sale of non-current assets | - | 184 | |
Gain on sale of investment securities | - | 563 | |
Settlements received | 500 | - | |
Total extraordinary income | 500 | 747 | |
Extraordinary losses | |||
Impairment loss | 137 | 682 | |
Total extraordinary losses | 137 | 682 | |
Profit before income taxes | 3,920 | 3,889 | |
Income taxes - current | 1,065 | 634 | |
Income taxes - deferred | 826 | 473 | |
Total income taxes | 1,892 | 1,107 | |
Profit | 2,027 | 2,782 | |
Loss attributable to non-controlling interests | (35) | (8) | |
Profit attributable to owners of parent | 2,063 | 2,791 | |
7
AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2025
Consolidated Interim Statement of Comprehensive Income
(Millions of yen) | ||
First six months of FY3/24 | First six months of FY3/25 | |
(Apr. 1, 2023 - Sep. 30, 2023) | (Apr. 1, 2024 - Sep. 30, 2024) | |
Profit | 2,027 | 2,782 |
Other comprehensive income |
Valuation difference on available-for-sale securities Remeasurements of defined benefit plans, net of tax Total other comprehensive income
Comprehensive income Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
164 | (619) |
(35) | (38) |
129 | (658) |
2,156 | 2,123 |
2,192 | 2,132 |
(35) | (8) |
8