Aoyama Trading Co., Ltd.TSE: 8219

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025（PDF / 452KB）

Aug 9, 2024 at 6:11 AM UTC · Issued by Aoyama Trading Co., Ltd.

(Percentages are in comparison with the same period of the previous year.)

Note : This document has been translated from the Japanese original for reference purposes only. In the event

of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the First Quarter

of the Fiscal Year Ending March 2025 [Japanese standards]

			August 9, 2024
Listed Company Name: Aoyama Trading Co., Ltd.		Listed Exchange: Tokyo Stock Exchange
Code:	8219		URL https://www.aoyama-syouji.co.jp
Representative:	(Title) President		(Name) Osamu Aoyama
Contact person: (Title) Director, Senior Managing Executive Officer, and
	General Manager of Group Management Div.,
	Manager of General Planning and Policy Dept.	(Name) Koichi Yamane TEL: 084-920-0050
Scheduled date to start distributing dividends: -
Preparation of supplementary material on financial results: None
Holding of financial results presentation meeting	: None

(Amounts are rounded down to the nearest million yen)

1. Consolidated financial results for the first quarter of the fiscal year ending March 2025 (From April 1, 2024 to June 30, 2024)

(1) Consolidated financial results

	Net sales		Operating income	Ordinary income	Profit attributable to
		owners of parent

	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Three months ended Jun. 30, 2024	44,979	1.5	1,695	(8.7)	1,732	(19.7)	800	(35.0)
Three months ended Jun. 30, 2023	44,304	7.2	1,856	-	2,157	161.8	1,230	-

(Note) Comprehensive income: Three months ended Jun. 30, 2024: 934 million yen [(61.2%)]

Three months ended Jun. 30, 2023: 2,409 million yen [389.7%]
	Net income per	Diluted net income
	share	per share
	Yen	Yen
Three months ended Jun. 30, 2024	16.05	-
Three months ended Jun. 30, 2023	24.70	-
(2) Consolidated financial position
Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of Jun. 30, 2024	336,556	178,529	51.9
As of Mar. 31, 2024	335,597	180,877	52.8

(Reference) Equity capital:	As of Jun. 30, 2024: 174,734 million yen As of Mar. 31, 2024: 177,126 million yen
2. Dividends
			Annual dividend
	Q1-end	Q2-end	Q3-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
FY3/2024	-	0.00	-	65.00	65.00
FY3/2025	-
FY3/2025 (Forecast)		30.00	-	31.00	61.00

(Note) Revision to the most recently announced dividend forecast: None

3. Consolidated forecast for the fiscal year ending March, 2025 (From April 1, 2024 to March 31, 2025)

				(Percentages are in comparison with the same period of the previous year.)
	Net sales		Operating income	Ordinary income	Profit attributable to	Net income
		owners of parent	per share

(Cumulative results for)	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	85,400	2.9	1,400	0.1	1,400	(22.1)	100	(78.4)	2.01
Full year	198,800	2.6	13,000	9.1	13,300	6.4	9,100	(9.8)	182.50

(Note) Revision to the most recently announced Consolidated forecast: None

As of Jun. 30, 2024

50,394,016 shares

50,394,016 shares As of Mar. 31, 2024

* Notes
(1) Significant changes in the scope of consolidation during the period under review	:None
(2) Application of special accounting methods for quarterly consolidated financial statements	:Yes

(Note) For details, please refer to “(3) Notes to Quarterly Consolidated Financial Statements (Application of special accounting

methods for quarterly consolidated financial statements)” on page 9.
(3) Changes in accounting policies, changes in accounting estimates, and restatement
a) Changes in accounting policies due to revision of accounting standards	: Yes
b) Changes in accounting policies for a reason other than the above [a]	: None
c) Changes in accounting estimates	: None
d) Restatements	: None

(Note) For details, please refer to “(3) Notes to Quarterly Consolidated Financial Statements (Notes on Changes in Accounting Policies)” on page 9.

Number of outstanding shares (common shares)

Number of shares outstanding at the end

of the fiscal year (including treasury shares)

b) Number of treasury shares at the end of	As of Jun. 30, 2024	530,253 shares	As of Mar. 31, 2024	531,253 shares
the fiscal year	Three months ended June		Three months ended June
c) Average number of shares outstanding	49,863,096 shares	49,843,519 shares
during the term	2024		2023

(Note) The number of treasury shares at the end of the fiscal year includes the Company's shares (327,400 shares for Q1 FY3/2025, and 328,400 shares for FY3/2024) held by Custody Bank of Japan, Ltd. (Trust Account E) as trust property pertaining to the “Employee Stock Ownership Plan (J-ESOP) “. In addition, the Company's shares held by Custody Bank of Japan, Ltd. (Trust Account E) are included in the total that is deducted in the treasury shares calculation of the average number of shares during the period (328,066 shares for Q1 FY3/2025 and 332,533 shares for Q1 FY3/2024).

Review of the attached quarterly consolidated financial statements
by a certified public accountant or an audit corporation: Yes (Voluntary)
Explanation of forecasts of operations and other notes

(Notes on forward-looking statements)

The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company. The Company does not guarantee that these forecasts will be achieved. Actual results may differ significantly due to a variety of factors. Please refer to“Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements”on page 4 of the Appendix for the assumptions used in the forecasts and notes on the use of the forecasts.

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

○ Contents

1. Overview of Operating Results	2
(1)	Overview of Operating Results for the Period under Review	2
(2)	Overview of Financial Position for the Period under Review	4
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements	4
2. Quarterly Consolidated Financial Statements and Main Notes	5
(1) Quarterly Consolidated Balance Sheet	5
(2) Quarterly Consolidated Statements of Income and Comprehensive Income	7
(3)	Notes to Quarterly Consolidated Financial Statements	9
(Notes Concerning Going Concern Assumption)	9
(Notes on Changes in Accounting Policies)	9
(Application of Special Accounting Methods for Quarterly Consolidated Financial Statements)	9
(Notes to Statement of Cash Flows)	9
(Notes on Significant Changes in the Amount of Shareholders' Equity)	9
(Notes on Segment Information, etc.)	10
Interim Review Report on Quarterly Consolidated Financial Statements by Independent Auditors	12

- 1 -

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

1. Overview of Operating Results

(1) Overview of Operating Results for the Period under Review

Matters concerning the future in the text are based on the judgment of the Group as of the end of the current quarterly consolidated fiscal year under review.

							(Unit: million yen)
		Net sales				Segment income or loss
				(Operating income or loss)

	First three	First three	Increase Year-on-	First three	First three	Increase Year-on-
	months of	months of	months of	months of
	(decrease)	year (%)	(decrease)	year (%)
	FY3/2025	FY3/2024	FY3/2025	FY3/2024

Business Wear	29,557	29,545	11	100.0	737	797	(59)	92.5
Business

Credit Card	1,306	1,256	49	103.9	532	555	(22)	95.9
Business

Printing and Media	2,600	2,601	(0)	100.0	(18)	1	(19)	-
Business

Sundry Sales	3,884	3,914	(30)	99.2	151	124	27	122.3
Business

Total Repair	3,682	3,230	451	114.0	36	66	(29)	54.8
Service Business

Franchisee	3,732	3,489	243	107.0	263	206	57	127.7
Business

Real Estate	761	773	(11)	98.5	150	144	6	104.3
Business

Others	306	424	(118)	72.1	(63)	(12)	(51)	-
Adjustments	(852)	(932)	80	-	(94)	(25)	(68)	-
Total	44,979	44,304	675	101.5	1,695	1,856	(160)	91.3

(Notes) Net sales and Segment income or loss by segment (operating income or loss) are figures before the elimination of inter- segment transactions.

During the first quarter of the fiscal year under review (from April 1, 2024 to June 30, 2024), the Japanese economy showed a gradual recovery backed by the normalization of social and economic activities and improvements in the employment and income environments. However, the outlook remains uncertain due to concerns about a slowdown in consumption, as income growth has failed to keep pace with continued high prices.

Under these circumstances, the Group's operating results for the first three months of the fiscal year under review were as follows. This was mainly due to a decrease in operating income in the core segment of Business Wear Business, which offset strong performance mainly in Franchisee Business.

Net sales: 44.979 billion yen (up 1.5% year on year)

Operating income: 1.695 billion yen (down 8.7% year on year)

Ordinary income: 1.732 billion yen (down 19.7% year on year)

Net income attributable to owners of the parent: 800 million yen (down 35.0% year on year)

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Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

Results by segment are as follows.

Segment sales and income (loss) figures are before the elimination of inter-segment transactions.

[Aoyama Trading Co., Ltd. Business Wear Business, Blue Rivers Co., Ltd., MDS Co., Ltd., Eisho Co., Ltd., FUKURYO Co., Ltd., Aoyama Suits (Shanghai) Co., Ltd., Melbo Men’s Wear, Inc.]

Sales in this segment were 29.557 billion yen (flat year on year), and segment profit (operating profit) was 737 million yen (down 7.5% from the same period of the previous fiscal year).

In the Aoyama Trading Co., Ltd. Business Wear Business, which is the core segment of this business, the number of men's suits (not including set-up suits) sold was 219 thousand, down 11.8% year on year, and the average unit selling price was 33,436 yen, up 6.8% year on year. In this environment, Existing store sales for the three months ended June 30, 2024 (April to June) decreased 0.2% compared to the same period of the previous fiscal year. This was mainly due to the penetration of business casual products such as functional set-up suits and “zero pressure suits” which are easy to coordinate with casual styles.

Store openings and closings are described below.

Number of stores opened and closed in Business Wear Business by type of business and number of stores at the end of the fiscal year (as of June 30, 2024) >

	(Unit: Store)
Aoyama
Suits	Melbo Men’s

Name of business category

	Yofuku-no-Aoyama
Opened [Relocation]	1 [1]
(April to June)

Closed (April to June)	2
Number of stores as of the end	683
of June

Aoyama Trading Co., Ltd.
The Suit	Universal
Language	Total
Company
Measure’s

2 [1]	0	3 [2]
0	1	3
44	13	740

(Shanghai)	Wear, Inc.
Co., Ltd.
Yofuku-no-	azabu tailor
Aoyama

0	0
2	0
6	27

(Notes) 1. “The Suit Company” includes “Suit Square” and “White The Suit Company” (including outlet stores). “Universal Language Measure's” includes “Universal Language” (including outlet stores).

Store opened and closed in Aoyama Suits (Shanghai) Co., Ltd. are from January to March 2024. The number of stores at the end of period is as of the end of March 2024.
Store opened and closed in Melbo Men’s Wear, Inc. are from March to May 2024. The number of stores at the end of period is as of the end of May, 2024.

Credit Card Business>> [Aoyama Capital Co., Ltd.]

In this segment, sales were 1.306 billion yen (up 3.9% from the same period of the previous year), and segment profit (operating profit) was 532 million yen (down 4.1% from the same period of the previous fiscal year), due to an increase in sales and consumables expenses, etc., despite an increase in shopping and cashing fees.

As of the end of May 2024, Aoyama Card had 3.9 million active members.

<< Printing and Media Business>> [ASCON Co., Ltd.]

In this segment, sales were 2.6 billion yen (flat year on year), and the segment loss (operating loss) was 18 million yen (segment profit (operating income) of 1 million yen in the same period of the previous fiscal year), mainly due to an increase in cost of sales.

<< Sundry Sales Business>> [Seigo Co., Ltd.]

In this segment, sales were 3.884 billion yen (down 0.8% from the same period of the previous fiscal year), and segment profit (operating profit) was 151 million yen (up 22.3% from the same period of the previous fiscal year), due to the effects of structural reforms such as personnel cost reductions, despite a decrease in sales due to the closing of stores.

As of the end of May 2024, there were 101 stores. (111 stores as of May 31, 2023)

<> [Minit Asia Pacific Co., Ltd.]

In this segment, sales were 3.682 billion yen (up 14.0% from the same period of the previous fiscal year), and segment profit (operating profit) was 36 million yen (down 45.2% from the same period of the previous fiscal year), mainly due to an increase in personnel expenses in the Japan business, despite an increase in sales associated with an increase in the number of overseas stores.

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339

253

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

Store openings and closings are described below.

Number of stores opened and closed in Total Repair Service Business and number of stores at the end of the fiscal year (as of June 30, 2024) >

Area			Mister Minit
Japan	Oceania	Others

Opened (April to June)	5	3	1
Closed (April to June)	4	2	0

Number of stores as of the end of June

(Note) “Oceania” refers to Australia and New Zealand, and “Others” refers to Singapore and Malaysia.

(Unit: Store)

Total 9 6

626

<> [glob Co., Ltd.]

In this segment, sales were 3.732 billion yen (up 7.0% from the same period of the previous fiscal year), and segment profit (operating profit) was 263 million yen (up 27.7% from the same period of the previous fiscal year), due to strong performance in the Food Service Business and other business categories.

Store openings and closings are described below.

< Number of stores opened and closed in Franchisee Business by type of business and number of stores
at the end of the fiscal year (as of June 30, 2024) >			(Unit: store)
Name of business category	Food Service Business	Reuse Business	Fitness Business
Yakiniku King	Yuzu An	2nd STREET	Anytime Fitness

Opened (April to June)	0	0	0	0
Closed (April to June)	0	0	0	0
Number of stores as of the	40	13	18	9
end of June

<> [Aoyama Trading Co., Ltd. Real Estate Business]

In this segment, sales were 761 million yen (down 1.5% of the same period of the previous fiscal year), and segment profit (operating profit) was 150 million yen (up 4.3% of the same period of the previous fiscal year).

<> [WTW Corporation, Customlife Co., Ltd.]

In the other segment, sales were 306 million yen (down 27.9% from the same period of the previous fiscal year), and segment loss (operating loss) was 63 million yen (segment loss (operating loss) of 12 million yen in the same period of the previous fiscal year). As of June 30, 2024, there were seven WTW stores.

(2) Overview of Financial Position for the Period under Review

Current assets at the end of the first quarter under review were 208.078 billion yen, an increase of 987 million yen from the end of the previous fiscal year. This was mainly due to increases of 6.438 billion yen in cash and deposits and 1.019 billion yen in other current assets, which offset decreases of 5.933 billion yen in notes receivable - trade and accounts receivable - trade and of 581 million yen in merchandise and finished goods.

Non-current assets were 128.454 billion yen, a decrease of 20 million yen from the end of the previous fiscal year. This was mainly due to an increase of 140 million yen in property, plant and equipment and an increase of 486 million yen in intangible assets, which offset a decrease of 644 million yen in investments and other assets.

As a result, total assets were 336.556 billion yen, an increase of 958 million yen from the end of the previous fiscal year.

Current liabilities were 95.313 billion yen, a decrease of 5.89 billion yen from the end of the previous fiscal year. This was mainly due to decreases of 4.131 billion yen in Notes and accounts payable - trade, 1.409 billion yen in electronically recorded obligations - operating, 5 billion yen in the current portion of bonds payable, 1.113 billion yen in income taxes payable, 1.167 billion yen in provision for bonuses, and 1.951 billion yen in other under current liabilities, despite an increase of 8.878 billion yen in short-term borrowings.

Non-current liabilities were 62.713 billion yen, an increase of 9.196 billion yen from the end of the previous fiscal year. This was mainly due to increases of 8.681 billion yen in Long-term borrowings and 128 million yen in retirement benefit liability.

As a result, total liabilities amounted to 158.026 billion yen, an increase of 3.306 billion yen from the end of the previous fiscal year. Total net assets were 178.529 billion yen, a decrease of 2.347 billion yen from the end of the previous fiscal year. This was mainly due to decreases of 2.462 billion yen in retained earnings and 673 million yen in valuation difference on available-for-sale securities,

despite an increase of 758 million yen in foreign currency translation adjustments.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements

As of the announcement date of this document, the consolidated earnings forecast announced on May 10, 2024 has not been changed.

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Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

2. Quarterly Consolidated Financial Statements and Main Notes

(1) Quarterly Consolidated Balance Sheet

		(Unit: million yen)
	FY3/2024	First Quarter of FY3/2025
	(As of Mar. 31, 2024)	(As of Jun. 30, 2024)
Assets
Current assets
Cash and deposits	82,552	88,990
Notes receivable - trade and Accounts receivable -	18,199	12,266
trade

Marketable securities	1,800	1,800
Merchandise and finished goods	45,912	45,331
Work in process	413	408
Raw materials and supplies	2,626	2,742
Operating loans	53,219	53,148
Other	2,540	3,559
Allowance for doubtful accounts	(173)	(170)
Total current assets	207,090	208,078
Non-current assets
Property, plant and equipment
Buildings and structures, net	32,563	32,315
Land	40,845	40,849
Other, net	10,404	10,789
Total property, plant and equipment	83,813	83,954
Intangible assets
Goodwill	3,574	3,725
Other	4,958	5,293
Total Intangible assets	8,532	9,019
Investments and other assets
Leasehold and guarantee deposits	16,401	16,417
Other	19,989	19,344
Allowance for doubtful accounts	(262)	(281)
Total investments and other assets	36,128	35,481
Total non-current assets	128,475	128,454
Total deferred assets	31	23
Total assets	335,597	336,556
Liabilities
Current liabilities
Notes and accounts payable - trade	12,758	8,626
Electronically recorded obligations	15,028	13,618
Bonds payable due within one year	15,005	10,005
Short-term borrowings	36,284	45,163
Income taxes payable	2,094	981
Contract liability	1,721	1,726
Provision for bonuses	1,913	746
Other	16,397	14,445
Total current liabilities	101,203	95,313
Non-current liabilities
Bonds payable	6,000	6,000
Long-term borrowings	30,070	38,751
Retirement benefit liability	8,706	8,835
Other	8,739	9,126
Total non-current liabilities	53,517	62,713
Total liabilities	154,720	158,026
	- 5 -

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

		(Unit: million yen)
	FY3/2024	First Quarter of FY3/2025
	(As of Mar. 31, 2024)	(As of Jun. 30, 2024)
Net assets
Shareholders' equity
Share capital	62,504	62,504
Capital surplus	62,358	62,358
Retained earnings	65,399	62,937
Treasury shares	(1,440)	(1,438)
Total shareholders' equity	188,822	186,362
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,337	1,663
Deferred gains or losses on hedges	2	18
Revaluation reserve for land	(14,804)	(14,804)
Foreign currency translation adjustments	1,141	1,900
Remeasurements of defined benefit plans	(373)	(405)
Total accumulated other comprehensive income	(11,696)	(11,627)
Non-controlling interests	3,750	3,795
Total net assets	180,877	178,529
Total liabilities and net assets	335,597	336,556

- 6 -

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

(2) Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Income
(For the Three-Month Period)
		(Unit: million yen)
	First three months of FY3/2024	First three months of FY3/2025
	(Apr. 1, 2023 to Jun. 30, 2023)	(Apr. 1, 2024 to Jun. 30, 2024)
Net sales	44,304	44,979
Cost of sales	21,543	22,178
Gross profit	22,760	22,801
Selling, general and administrative expenses	20,904	21,105
Operating Income	1,856	1,695
Non-operating income
Interest income	26	25
Dividend income	56	61
Rental income from real estate	8	6
Foreign exchange gains	212	21
Subsidy income	1	-
Other	123	65
Total non-operating income	428	180
Non-operating expenses
Interest expense	80	106
Loss on valuation of derivatives	32	0
Other	14	35
Total non-operating expenses	127	142
Ordinary income	2,157	1,732
Extraordinary income
Gain on sale of Non-current assets	1	2
Gain on sales of investment securities	-	1
Total Extraordinary income	1	4
Extraordinary loss
Loss on sale and retirement of non-current assets	39	14
Impairment loss	26	93
Total extraordinary losses	66	107
Income before income taxes	2,092	1,629
Income taxes	799	766
Quarterly net income	1,292	863
Net income attributable to non-controlling interests	61	63
Profit attributable to owners of parent	1,230	800

- 7 -

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025, Aoyama Trading Co., Ltd. (8219)

Quarterly Consolidated Statement of Comprehensive Income

(For the Three-Month Period)

(Unit: million yen)

Quarterly net income

Other comprehensive income

Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Foreign currency translation adjustments Remeasurements of defined benefit plans

Total other comprehensive income Quarterly comprehensive income

(Breakdown)

Quarterly comprehensive income attributable to shareholders of the parent company Comprehensive income attributable to non-controlling interests

First three months of FY3/2024	First three months of FY3/2025
(Apr. 1, 2023 to Jun. 30, 2023)	(Apr. 1, 2024 to Jun. 30, 2024)
1,292	863
602	(673)
36	15
505	760
(27)	(32)
1,116	70
2,409	934
2,347	868
61	65

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