| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥7597.1B | ¥7380.2B | +2.9% |
| Operating Income | ¥268.0B | ¥217.8B | +23.0% |
| Ordinary Income (for JGAAP) | ¥305.8B | ¥259.1B | +18.0% |
| Net Income | ¥143.2B | ¥95.2B | +50.3% |
| ROE | 5.8% | 3.8% | - |
The FY2024 financial results delivered revenue of ¥7,597B (YoY +¥217B +2.9%), Operating Income of ¥268B (YoY +¥50B +23.0%), Ordinary Income of ¥306B (YoY +¥47B +18.0%), and Net Income of ¥143B (YoY +¥48B +50.3%), achieving higher revenue and profit. Gross margin remained flat at 27.7% (prior year 27.7%), while SG&A ratio improved by 0.6pt to 24.1% (prior year 24.7%), lifting Operating Margin by 0.6pt to 3.5% (prior year 3.0%). Short-term borrowings of ¥478B were refinanced into long-term borrowings of ¥400B, easing maturity mismatch. Special losses of ¥114B (primarily impairment of ¥113B) weighed on Net Income, but cash generation remained solid with Operating Cash Flow (OCF) of ¥375B and FCF of ¥264B, sufficiently covering total shareholder returns of ¥173B (dividends ¥72B plus share buybacks ¥100B).
[Revenue] Revenue totaled ¥7,597B (YoY +2.9%) and showed steady performance. As a single-segment company, regional and product breakdowns are not disclosed, but the increase appears driven by a combination of existing store sales and new store openings in the domestic retail business. Cost of goods sold was ¥5,495B (prior year ¥5,337B), with a COGS ratio of 72.3% (prior year 72.3%) remaining unchanged and gross margin maintained at 27.7%.
[Profitability] SG&A amounted to ¥1,834B (prior year ¥1,825B +0.5%), growing well below revenue expansion of +2.9%, improving the SG&A ratio by 0.6pt to 24.1%. Major expense items were wages and allowances ¥549B, rents ¥323B, depreciation ¥134B, and advertising ¥103B, while utilities decreased to ¥77B from ¥80B in the prior year. Operating Income improved to ¥268B (+23.0%), and Operating Margin rose to 3.5% (prior year 3.0%), reflecting positive operating leverage. Netting non-operating income of ¥53B (including interest income ¥3B) against non-operating expenses of ¥16B (interest expense ¥8B, fees ¥3B) produced Ordinary Income of ¥306B (+18.0%). Special gains of ¥8B (gain on sale of fixed assets ¥7B) were more than offset by Special losses of ¥114B (impairment ¥113B), leaving Pre-tax Income at ¥200B. After deducting corporate taxes of ¥57B, Net Income was ¥143B (+50.3%). Excluding one-off items such as impairments, profitability shows an improving trend. In conclusion, the company achieved higher revenue and profit.
[Profitability] Operating Margin 3.5% (prior year 3.0%), Ordinary Margin 4.0% (prior year 3.5%), Net Margin 1.9% (prior year 1.3%) — all improved. ROE 5.8% (prior year 3.7%) is decomposed as Net Margin 1.9% × Total Asset Turnover 1.80 × Financial Leverage 1.70x, with improvements in net margin and turnover contributing. [Cash Quality] OCF ¥375B is 2.6x Net Income ¥143B, and an accrual ratio of -5.5% indicates strong cash backing of earnings. OCF/EBITDA of 0.93x indicates healthy cash conversion. [Investment Efficiency] Total Asset Turnover 1.80x, CapEx ¥92B / Depreciation ¥136B yields an investment efficiency of 0.68x, implying restrained investment. Inventory turnover days at 116 days (Inventory ¥1,751B ÷ COGS per day ¥47B) are high, indicating room to improve inventory efficiency. [Financial Soundness] Equity Ratio 58.9% (prior year 59.4%), Current Ratio 210.5%, Quick Ratio 54.0% indicate a conservative financial base. Interest-bearing debt ¥425B (short-term borrowings ¥25B + long-term borrowings ¥400B) yields Debt/EBITDA 1.05x and Interest Coverage 49x (Operating Income + Interest Income ÷ Interest Expense), indicating strong interest-rate resilience. Cash and deposits ¥192B secure a Cash/Short-term Debt ratio of 17.1%.
OCF was ¥375B (prior year ¥362B +3.7%). From Pre-tax Income ¥200B, adding depreciation ¥136B and impairment ¥113B produced cash flow before working capital changes of ¥464B. Increases in inventory ¥66B and trade receivables ¥6B were offset in part by increases in trade payables ¥61B and contract liabilities ¥19B, resulting in net amounts after payment of corporate taxes of ¥82B. Investing Cash Flow was -¥112B, driven by CapEx ¥92B and long-term loans advanced ¥13B, partly offset by long-term loan recoveries ¥21B and proceeds from sales of tangible fixed assets ¥7B. FCF was ¥264B (prior year ¥247B), sufficient to cover Financing Cash Flow of -¥248B (dividends paid ¥70B, share buybacks ¥100B, repayment of short-term borrowings ¥453B, long-term borrowings procured ¥400B, lease liabilities repayment ¥23B net). Ending cash was ¥192B, up ¥33B from ¥159B at the prior fiscal year-end, maintaining a cash position despite the refinancing of interest-bearing debt.
Ordinary Income of ¥306B is largely composed of Operating Income ¥268B, with net non-operating items contributing +¥38B (non-operating income ¥53B including interest income ¥3B less non-operating expenses ¥16B including interest expense ¥8B), which provided modest support to profitability. Conversely, Special losses of ¥114B (impairment ¥113B) materially depressed Net Income to ¥143B, yielding a conversion rate from Ordinary Income to Net Income of 46.8%, which is low. Since impairment is a non-cash expense, it does not directly erode OCF, and may suggest future relief in amortization burden or asset revaluation. The fact that OCF is 2.6x Net Income reflects the contribution of non-cash impairment and working capital efficiency; an accrual ratio of -5.5% (OCF - Net Income ÷ Total Assets) is favorable, indicating high earnings quality. However, given the large scale of Special losses, the potential reversal effect of impairments and the sustainability of recurring profits will be key issues going forward.
Against the full-year forecast (Revenue ¥7,850B, Operating Income ¥305B, Ordinary Income ¥335B, Net Income ¥200B, EPS ¥129.44, Dividend ¥24), the current results represent progress rates of Revenue 96.8%, Operating Income 87.9%, Ordinary Income 91.3%, and Net Income 71.6%. Operating Income requires an incremental ¥37B to meet the guide, assuming improved promotion efficiency and fixed-cost control in H2. Net Income requires an additional ¥57B, which could be achievable if the current impairment of ¥113B is a one-off and Special losses shrink. The deviation in progress rates is mainly due to Special losses; at the Ordinary Income level, performance is generally on track.
Dividends were Interim ¥22 and Year-end ¥24 totaling ¥46 (same as prior year). Based on year-end shares outstanding excluding treasury shares of 154.5 million shares, total dividends amount to approximately ¥71B. Payout Ratio against Net Income ¥143B is 77.1% (XBRL data), indicating a stable dividend policy. Dividends paid on the cash flow statement were ¥70B, and dividend coverage by FCF ¥264B is 3.8x, indicating ample capacity. Share buybacks amounted to ¥100B (treasury stock repurchases on the cash flow statement); combined with dividends, total shareholder returns were approximately ¥171B, representing a Total Return Ratio of about 120% of Net Income, a high level, but fully covered by FCF and resulting in an increase in net cash. With an ending Equity Ratio of 58.9%, the company appears to balance high returns with financial flexibility.
Inventory stagnation and valuation loss risk: Inventory ¥1,751B (74% of current assets) with inventory turnover days of 116 is high. Product model changes and demand fluctuations in consumer electronics could increase valuation losses and pricing pressure, making inventory optimization essential to maintain a gross margin of 27.7%.
Continued impairment loss risk: The current period impairment of ¥113B is the bulk of Special losses and suggests deteriorating profitability of store assets and logistics facilities. Against fixed assets of ¥1,143B, the impairment rate is 9.9%, a material scale; if structural declines in asset efficiency persist, further impairments could be required in subsequent periods.
Interest-rate risk: Interest-bearing debt ¥425B with interest expense ¥8B implies an effective interest rate of about 1.9%. The refinancing into long-term borrowings of ¥400B likely increased fixed-rate balance, but future interest rate movements could raise finance costs and worsen the conversion from EBIT to EBT. Although Interest Coverage is 49x, the sensitivity to rates is elevated given an Operating Margin of 3.5%.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 3.5% | 4.6% (1.7%–8.2%) | -1.1pt |
| Net Margin | 1.9% | 3.3% (0.9%–5.8%) | -1.5pt |
Profitability is below the industry median; both Operating Margin and Net Margin have room to improve.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 2.9% | 4.3% (2.2%–13.0%) | -1.4pt |
Revenue growth is slightly below the median but remains within the IQR range, indicating stable growth.
※Source: Company compilation
Improvement in Operating Margin by +0.6pt and SG&A efficiency drove profitability enhancement, and the SG&A ratio of 24.1% still has room for further restraint. However, the Operating Margin of 3.5% is 1.1pt below the industry median of 4.6%; improvements in gross margin and inventory efficiency (turnover days 116) are key to lifting margins over the medium term.
Refinancing short-term borrowings of ¥478B into long-term borrowings of ¥400B eased maturity mismatch and strengthened financial stability. FCF ¥264B exceeded combined dividends and share buybacks of ¥171B, enabling high shareholder returns (Total Return Ratio approx. 120%) while increasing net cash. However, with CapEx/Depreciation at 0.68x and continued investment restraint, reigniting medium-term growth investment remains a challenge.
Impairment loss of ¥113B weighed on Net Income, resulting in Net Margin 1.9% below the industry median 3.3%. If impairments are one-off, Net Income could rebound next fiscal year, but if asset profitability continues to deteriorate, structural measures to improve asset efficiency will be required.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; please consult a professional as needed.