Translation
Notice: This English version is a translation of the original Japanese document and is only for reference purposes. In the case where any differences occur between the English version and the original Japanese version, the Japanese version will prevail.
August 6, 2024
CONSOLIDATED FINANCIAL RESULTS
for the First Three Months of the Fiscal Year Ending March 31, 2025
Company name: | TOMY COMPANY, LTD. |
Listing: | Prime Market of the Tokyo Stock Exchange |
Securities identification code: | 7867 |
URL: | www.takaratomy.co.jp |
Representative: | Akio Tomiyama, Representative Director, President & COO |
Inquiries: | Katsufumi Hirooka, Executive Officer, Head of Corporate Administrations |
TEL: +81-3-5654-1548 (from overseas) |
Scheduled date to commence dividend payments: Supplementary material on financial results: Financial results presentation meeting:
–
No
Yes (for institutional investors and analysts)
(in millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated performance for the first three months of the fiscal year ending March 31, 2025 (From April 1, 2024 to June 30, 2024)
(1) Consolidated operating results (cumulative)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Three months ended | Millions of | % | Millions of | % | Millions of | % | Millions of | % | |
yen | yen | yen | yen | ||||||
June 30, 2024 | 53,586 | 24.3 | 4,157 | 65.9 | 3,661 | 57.1 | 2,507 | 38.8 | |
June 30, 2023 | 43,102 | 9.0 | 2,506 | 50.5 | 2,330 | 74.5 | 1,805 | 145.6 | |
Note: | Comprehensive income | ||||
Three months ended June 30, 2024 | ¥7,215 million | [11.9%] | |||
Three months ended June 30, 2023 | ¥6,451 million | [(2.3)%] | |||
Basic earnings per share | Diluted earnings per | ||||
share | |||||
Three months ended | yen | yen | |||
June 30, 2024 | 27.84 | 27.83 | |||
June 30, 2023 | 19.72 | 19.70 | |||
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |||
As of | Millions of yen | Millions of yen | % | yen | ||
June 30, 2024 | 164,597 | 101,547 | 61.7 | 1,133.68 | ||
March 31, 2024 | 166,252 | 99,999 | 60.1 | 1,104.07 | ||
Reference: | Equity | |||||
As of June 30, 2024 | ¥101,513 million | |||||
As of March 31, 2024 | ¥99,966 million |
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2. Cash dividends
Annual dividends | |||||
First quarter-end | Second quarter-end | Third quarter-end | Year-end | Total | |
yen | yen | yen | yen | yen | |
Fiscal year ended | – | 17.50 | – | 32.50 | 50.00 |
March 31, 2024 | |||||
Fiscal year ending | – | ||||
March 31, 2025 | |||||
Fiscal year ending | |||||
March 31, 2025 | 24.00 | – | 24.00 | 48.00 | |
(Forecast) | |||||
Notes: 1. Revisions to the cash dividend forecasts most recently announced: None |
2. Breakdown of year-end dividend for the fiscal year ended March 31, 2024: ordinary dividend 24.50 yen, commemorative dividend 8.00 yen
3. Consolidated earnings forecasts for the fiscal year ending March 31, 2025
(From April 1, 2024 to March 31, 2025)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic | ||||||
earnings per | ||||||||||
owners of parent | ||||||||||
share | ||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | yen | ||
of yen | of yen | of yen | of yen | |||||||
Six months ending | 110,000 | 14.5 | 9,000 | 12.3 | 8,700 | 18.2 | 6,000 | 6.9 | 65.90 | |
September 30, 2024 | ||||||||||
(cumulative) | ||||||||||
Fiscal year ending | 230,000 | 10.4 | 20,000 | 6.3 | 19,500 | 9.5 | 12,500 | 27.4 | 137.30 | |
March 31, 2025 | ||||||||||
Note: Revisions to the consolidated earnings forecasts most recently announced: None |
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- Notes
- Significant changes in the scope of consolidation during the period: None
- Application of specific accounting for preparing quarterly consolidated financial statements: Yes
Note: For more details, please refer to the section of “(3) Notes Regarding Consolidated Financial
Statements, (Notes regarding specific accounting for preparing quarterly consolidated financial statements)” of “2. Consolidated Financial Statements and Significant Notes Thereto” on page 13 of the attached material. - Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards: None
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024 | 93,616,650 shares |
As of March 31, 2024 | 93,616,650 shares |
- Number of treasury shares at the end of the period
As of June 30, 2024
As of March 31, 2024
4,072,977 shares
3,072,841 shares
- Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024 | 90,060,225 shares |
Three months ended June 30, 2023 | 91,581,157 shares |
Note: The Company has introduced “Performance-linkedstock-based compensation system for Directors (excluding outside directors and part-time directors)” and “Performance-linked stock- based compensation system for Executive Officers.” Treasury shares remaining in the “Performance-linkedstock-based compensation system for Directors (excluding outside directors and part-time directors)” and the “Performance-linkedstock-based compensation system for Executive Officers” that are recorded as treasury shares in shareholders’ equity are included in treasury shares to be deducted in the calculation of the total number of issued shares at the end of the period for the calculation of net assets per share. They are also included in treasury shares to be deducted in the calculation of the average number of shares during the period for the calculation of basic earnings per share.
- Review of the Japanese-language originals of the attached consolidated financial statements by certified public accountants or an audit corporation: None
- Proper use of earnings forecasts, and other special matters
Regarding future forecasts, please refer to “(3) Explanation of Consolidated Earnings Forecasts and Other Forward-lookingStatements,” under “1. Qualitative Information Regarding Consolidated Operating Results,” on page 8.
A financial results presentation meeting for institutional investors and analysts will be held via telephone conference on August 6, 2024.
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[Attached Material] | ||
1. | Qualitative Information Regarding Consolidated Operating Results | 5 |
(1) | Overview of Operating Results | 5 |
(2) | Overview of Financial Position | 8 |
(3) | Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements | 8 |
2. | Consolidated Financial Statements and Significant Notes Thereto | 9 |
(1) | Consolidated Balance Sheet | 9 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ... | 11 |
(Consolidated statement of income) | 11 | |
(Consolidated statement of comprehensive income) | 12 | |
(3) | Notes Regarding Consolidated Financial Statements | 13 |
(Notes regarding specific accounting for preparing quarterly consolidated financial statements) 13 | ||
(Segment information and other notes) | 13 | |
(Notes on significant changes in the amount of shareholders’ equity) | 15 | |
(Notes regarding assumption of going concern) | 15 | |
(Notes regarding quarterly consolidated statement of cash flows) | 15 |
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1. Qualitative Information Regarding Consolidated Operating Results
- Overview of Operating Results
(Highlights of First Three Months of the Fiscal Year Ending March 31, 2025)
Looking at the business environment surrounding the Company, although the situation in Japan remains largely stagnant, it has continued to recover modestly thanks to the effects of various government policies amid improvements in the employment and income environment. Meanwhile, with questions about the economic and forex impact of persistently high interest rates in Europe and the United States, as well as concerns about the future of the Chinese economy, the situation remained unpredictable.
Under our “Medium- to Long-term Management Strategy 2030” announced in May 2024, we aim to achieve net sales of ¥300 billion and an operating profit margin of 10% in the fiscal year ending March 31, 2030 by establishing a new value-creation model, expanding the scale of our business with age groups and regions axis as growth drivers, and aligning our business strategies with the corporate strategies that support them.
In the first quarter, which marks the start of this strategy, TOMY Company achieved sales growth for “BEYBLADE X” (which has been available in Japan and Asia since July of last year) thanks to the promotion of branding measures that transcend age and region based on the theme of “BEYBLADE WILL BECOME SPORTS.” Furthermore, we have begun global expansion in full swing, including the commencement of exports to Europe and the United States. Additionally, in May, we launched the enormously popular comic “DETECTIVE CONAN” as a trading card game aimed at a wide range of customer base, generating new sales.
At T-ARTS Company, sales of Pokémon-related products such as plush toys grew, in addition to which in the GACHA capsule toy business we increased the number of items offered, including character products, and we also expanded our installation of GACHA sales spaces in capsule toy specialty stores, while also expanding overseas, resulting in favorable performance.
In Kiddy Land operations, continuing from last year, we offered fresh and topical character products and miscellaneous items, which are gaining popularity among people of all ages in Japan and abroad. In the midst of this, the continued popularity of characters such as “Chiikawa” and further growth in inbound demand led to favorable performance, with flagship stores such as the Harajuku and Umeda stores, as well as our character specialty stores, putting in strong performance.
In addition, as part of our corporate strategy, we have established a system to promote sustainable growth, including the announcement in June of revisions to our personnel systems, such as changing to a job-based personnel system and expanding support for balancing work and family life through the establishment of a new childbirth and childcare monetary gift system and other measures.
As a result of these efforts, business performance in the first three months of the fiscal year ending March 31, 2025 was favorable in Japan, with TOMY Company, T-ARTS Company, and Kiddy Land showing significant growth, while business performance in Asia was also strong. Net sales in Europe, the United States and Australia were ¥53,586 million (up 24.3% year on year), marking a record high for the second consecutive period, as a result of sales remaining resilient, despite sluggish toy markets. In addition, operating profit was ¥4,157 million (up 65.9% year on year) and ordinary profit was ¥3,661 million (up 57.1% year on year), both of which reached record highs for the second consecutive period, and profit attributable to owners of parent was ¥2,507 million (up 38.8% year on year), making for a smooth start under the new management system. These results were mainly due to the increase in gross profit accompanying the growth in net sales, and efficient management of selling, general and administrative expenses.
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(Millions of yen)
First three | First three | ||||||||
months of the | months of the | Rate of change | |||||||
fiscal year | fiscal year | Change | |||||||
(%) | |||||||||
ended March | ending March | ||||||||
31, 2024 | 31, 2025 | ||||||||
Net sales | 43,102 | 53,586 | 10,483 | 24.3 | |||||
Japan | 36,521 | 46,521 | 10,000 | 27.4 | |||||
Americas | 5,936 | 6,383 | 447 | 7.5 | |||||
Europe | 770 | 931 | 161 | 20.9 | |||||
Oceania | 593 | 603 | 9 | 1.7 | |||||
Asia | 14,079 | 17,481 | 3,402 | 24.2 | |||||
(excl. Japan) | |||||||||
Eliminations | (14,797) | (18,335) | (3,537) | – | |||||
and corporate | |||||||||
Operating profit/(loss) | 2,506 | 4,157 | 1,651 | 65.9 | |||||
Japan | 3,719 | 5,457 | 1,738 | 46.7 | |||||
Americas | (274) | (221) | 52 | – | |||||
Europe | (272) | (261) | 11 | – | |||||
Oceania | 58 | 9 | (48) | (83.3) | |||||
Asia | 417 | 746 | 329 | 78.8 | |||||
(excl. Japan) | |||||||||
Eliminations | (1,142) | (1,574) | (431) | – | |||||
and corporate | |||||||||
Japan | |||||||||
(Millions of yen) | |||||||||
First three months of | First three months of | ||||||||
the fiscal year ended | the fiscal year ending | Change | |||||||
March 31, 2024 | March 31, 2025 | ||||||||
Net sales | 36,521 | 46,521 | 10,000 | ||||||
Operating profit | 3,719 | 5,457 | 1,738 |
Net sales were ¥46,521 million (up 27.4% year on year), and operating profit was ¥5,457 million (up 46.7% year on year). TOMY Company’s modernized version of Japanese “bei-goma” battling tops, “BEYBLADE X,” which was launched in July of last year, has seen sales expand as a result of the implementation of branding measures that transcend age and region based on the theme of “BEYBLADE WILL BECOME SPORTS.” Furthermore, we have begun global expansion in full swing, including the commencement of exports to Europe and the United States. Additionally, in May, we launched the enormously popular comic “DETECTIVE CONAN” as a trading card game aimed at a wide range of customer base, generating new sales. Our IP “Punirunes,” which we launched in 2021, has proven popular in Japan and Asia, and we have begun exporting it to Europe and the United States, thus continuing the IP’s growth into global content. Additionally, in the digital business, the collaboration with the VTuber group “HoloLive” for “DUEL MASTERS PLAY’S” became a hot topic, while “The Game of Life for the Nintendo Switch™,” released in October last year, continued to gain popularity.
At T-ARTS Company, sales of Pokémon-related products such as plush toys grew, in addition to which in the GACHA capsule toy business we increased the number of items offered, including character products, and we also expanded our installation of GACHA sales spaces in capsule toy specialty stores, while also expanding overseas, resulting in favorable performance. In addition, in amusement machines, although operating rates on “Pokémon Mezastar” temporarily declined due to preparations to replace it with a successor machine, performance remained strong, thanks to the new launch of “Himitsu no AIPRI” in April.
In Kiddy Land operations, continuing from last year, we offered fresh and topical character products and miscellaneous items, which are gaining popularity among people of all ages in Japan and abroad. In the
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midst of this, the continued popularity of characters such as “Chiikawa” and further growth in inbound demand led to favorable performance, with flagship stores such as the Harajuku and Umeda stores, as well as our character specialty stores, putting in strong performance.
Americas
(Millions of yen) | |||
First three months of | First three months of | ||
the fiscal year ended | the fiscal year ending | Change | |
March 31, 2024 | March 31, 2025 | ||
Net sales | 5,936 | 6,383 | 447 |
Operating loss | (274) | (221) | 52 |
Net sales were ¥6,383 million (up 7.5% year on year). At the profit level, we recorded an operating loss of ¥221 million (operating loss of ¥274 million in the same period of the previous fiscal year). Although sales of agricultural machinery toys decreased due to the overall slump in the toy market, sales of baby products including “Boon” and toy and hobby products remained strong. Net sales at Fat Brain Holdings, LLC increased year on year.
Europe
(Millions of yen) | |||
First three months of | First three months of | ||
the fiscal year ended | the fiscal year ending | Change | |
March 31, 2024 | March 31, 2025 | ||
Net sales | 770 | 931 | 161 |
Operating loss | (272) | (261) | 11 |
Net sales were ¥931 million (up 20.9% year on year), and we recorded an operating loss of ¥261 million (operating loss of ¥272 million in the same period of the previous fiscal year). Although toy market was sluggish overall, there was strong performance from toy and hobby products such as bath toys, and agricultural machinery toys.
Oceania
(Millions of yen) | |||
First three months of | First three months of | ||
the fiscal year ended | the fiscal year ending | Change | |
March 31, 2024 | March 31, 2025 | ||
Net sales | 593 | 603 | 9 |
Operating profit | 58 | 9 | (48) |
Net sales were ¥603 million (up 1.7% year on year). Operating profit was ¥9 million (down 83.3% year on year) due to a deterioration in gross profit margin caused by factors such as higher transportation costs. Sales of agricultural machinery toys decreased due to the sluggish toy market. On the other hand, sales grew in T-ARTS Company’s GACHA capsule toy business, and we boosted group synergy effects while also achieving strong sales of baby products.
Asia (excl. Japan)
(Millions of yen) | |||
First three months of | First three months of | ||
the fiscal year ended | the fiscal year ending | Change | |
March 31, 2024 | March 31, 2025 | ||
Net sales | 14,079 | 17,481 | 3,402 |
Operating profit | 417 | 746 | 329 |
Net sales were ¥17,481 million (up 24.2% year on year), and operating profit was ¥746 million (up 78.8% year on year). In Asia, sales of “TOMICA” expanded in China, and “TOMICA Premium” became popular
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among Kidults, resulting in strong performance. Additionally, in “BEYBLADE X,” which we launched toy sales in July of last year, we implemented a rollout for the brand in full swing, including broadcasts of its animation adaptation commencing in various regions. Furthermore, we released the “DETECTIVE CONAN Card Game” series in nine countries and regions, including Hong Kong, South Korea, and Taiwan, in May, simultaneous with its release in Japan, garnering a lot of attention. Other factors included an increase in overseas-bound exports of “BEYBLADE X” and other products at the manufacturing subsidiary TOMY (Hong Kong) Ltd.
- Overview of Financial Position Assets, Liabilities and Net Assets
At the end of the first quarter of the fiscal year ending March 31, 2025, current assets stood at
¥113,004 million, down ¥4,557 million from the end of the previous fiscal year ended March 31, 2024. This was mainly attributable to a decrease in cash and deposits, despite increases in merchandise and finished goods and notes and accounts receivable - trade.
Non-current assets stood at ¥51,593 million, up ¥2,902 million from the end of the previous fiscal year. This was mainly attributable to increases in property, plant and equipment and intangible assets, despite a decrease in investments and other assets.
At the end of the first quarter, current liabilities stood at ¥51,215 million, down ¥2,506 million from the end of the previous fiscal year. This was mainly attributable to decreases in income taxes payable, accounts payable - other and accrued expenses, despite an increase in notes and accounts payable - trade.
Non-current liabilities stood at ¥11,834 million, down ¥696 million from the end of the previous fiscal year. This was mainly attributable to a decrease in long-term borrowings, despite an increase in deferred tax liabilities.
At the end of the first quarter, total net assets were ¥101,547 million, up ¥1,547 million from the end of the previous fiscal year. This was mainly attributable to increases in foreign currency translation adjustment and deferred gains or losses on hedges, despite the purchase of treasury shares. - Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
No changes have been made to the earnings forecasts that were announced on May 14, 2024.
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2. Consolidated Financial Statements and Significant Notes Thereto
(1) Consolidated Balance Sheet
(Millions of yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 64,279 | 49,110 |
Notes and accounts receivable - trade | 25,260 | 27,891 |
Merchandise and finished goods | 17,716 | 22,387 |
Work in process | 653 | 739 |
Raw materials and supplies | 1,093 | 1,199 |
Other | 8,778 | 11,911 |
Allowance for doubtful accounts | (220) | (235) |
Total current assets | 117,561 | 113,004 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 14,010 | 14,142 |
Accumulated depreciation | (9,787) | (9,771) |
Accumulated impairment loss | (921) | (927) |
Buildings and structures, net | 3,301 | 3,443 |
Machinery, equipment and vehicles | 2,949 | 3,018 |
Accumulated depreciation | (2,496) | (2,570) |
Accumulated impairment loss | (36) | (37) |
Machinery, equipment and vehicles, net | 417 | 410 |
Tools, furniture and fixtures | 26,371 | 27,000 |
Accumulated depreciation | (24,240) | (24,817) |
Accumulated impairment loss | (1,080) | (1,138) |
Tools, furniture and fixtures, net | 1,050 | 1,043 |
Land | 3,958 | 3,974 |
Leased assets | 7,137 | 7,354 |
Accumulated depreciation | (3,457) | (3,540) |
Accumulated impairment loss | (449) | (477) |
Leased assets, net | 3,229 | 3,336 |
Right-of-use assets | 2,760 | 2,778 |
Construction in progress | 1,183 | 2,968 |
Total property, plant and equipment | 15,901 | 17,955 |
Intangible assets | ||
Goodwill | 13,135 | 13,480 |
Other | 12,465 | 13,151 |
Total intangible assets | 25,600 | 26,631 |
Investments and other assets | ||
Investment securities | 3,426 | 3,336 |
Deferred tax assets | 1,671 | 1,507 |
Other | 2,109 | 2,182 |
Allowance for doubtful accounts | (19) | (20) |
Total investments and other assets | 7,188 | 7,006 |
Total non-current assets | 48,690 | 51,593 |
Total assets | 166,252 | 164,597 |
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(Millions of yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 14,598 | 19,453 |
Current portion of long-term borrowings | 6,183 | 5,416 |
Lease liabilities | 3,274 | 3,236 |
Accounts payable - other | 10,425 | 8,522 |
Accrued expenses | 10,913 | 9,690 |
Income taxes payable | 4,520 | 1,256 |
Provisions | 555 | 413 |
Other | 3,250 | 3,226 |
Total current liabilities | 53,722 | 51,215 |
Non-current liabilities | ||
Long-term borrowings | 4,181 | 3,283 |
Lease liabilities | 3,259 | 3,438 |
Deferred tax liabilities | 385 | 628 |
Deferred tax liabilities for land revaluation | 472 | 472 |
Provisions | 376 | 333 |
Retirement benefit liability | 2,132 | 2,122 |
Other | 1,724 | 1,556 |
Total non-current liabilities | 12,530 | 11,834 |
Total liabilities | 66,252 | 63,050 |
Net assets | ||
Shareholders’ equity | ||
Share capital | 3,459 | 3,459 |
Capital surplus | 6,818 | 6,818 |
Retained earnings | 66,920 | 66,471 |
Treasury shares | (3,980) | (6,692) |
Total shareholders’ equity | 73,218 | 70,057 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 1,682 | 1,624 |
securities | ||
Deferred gains or losses on hedges | 2,348 | 3,504 |
Revaluation reserve for land | 624 | 624 |
Foreign currency translation adjustment | 22,174 | 25,811 |
Remeasurements of defined benefit plans | (82) | (107) |
Total accumulated other comprehensive income | 26,747 | 31,456 |
Share acquisition rights | 33 | 33 |
Total net assets | 99,999 | 101,547 |
Total liabilities and net assets | 166,252 | 164,597 |
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