Scroll Corporation

8005

JP3913600007

Department Stores

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-06-12 am EDT			5-day change	1st Jan Change
1,050 ^JPY	-1.13%		-3.49%	+9.38%

May. 09	Scroll Corporation Provides Consolidated Earnings Guidance for Year Ending March 31, 2025	CI
May. 09	Scroll Corporation Provides Dividend Guidance for the Fiscal Year Ending March 31, 2025	CI

Scroll : Presentation Material for Financial Results FY2023

May 08, 2024 at 02:19 am EDT

FY2023

Financial Results

(From April 1, 2023 to March 31, 2024)

Scroll Corporation

(TSE Prime Market : 8005)

Notice:

This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Contents

１．FY2023 Financial Results

２．FY2024-FY2026

Medium-term Management Plan

Marketing Solution 2026

～From "ＤＭＳＣ" To "ＭＳＣ"～

３．Appendix

Company Profile

/ Business Segments Introduction

Ｐ.2

Ｐ.14

Ｐ.23

FY2023 Financial Results

Highlights (consolidated)

Decreased in sales and profit YoY.

We were unable to cover the sharp decline in E-commerce Business segment performance, and additionally, we recorded expenses for business restructuring and reorganization.

FY2021 FY2022

FY2023

YoY changes

(Millions of yen)

Actual Actual

Actual

Amount	Rate

Net sales	81,391	81,018	79,826	-1,192	-1.5%

Operating profit	7,000	6,121	5,313	-808	-13.2%
(Operating profit / net sales)	(8.6%)	(7.6%)	(6.7%)


Ordinary profit	7,096	6,191	5,512	-678	-11.0%
(Ordinary profit / net sales)	(8.7%)	(7.6%)	(6.9%)


Profit attributable to	5,585	4,170	3,649	-520	-12.5％
owners of parent


Earnings per share	¥160.20	¥119.39	¥105.05	-¥14.34	－

Return on Equity	19.7%	13.4%	11.2％	-2.2Ｐ	－

* Yen(¥) denotes Japanese yen. The same notation is used on all pages below.

Monthly sales trend (consolidated)

Despite monthly sales were almost the same level as the previous year, in July and August, Mail-order Business struggled in the summer sales

season.
9,000										(Millions of yen)

				FY2020
8,000
FY2021				FY2022

7,000		FY2023

6,000
			FY2019
5,000
4,000
Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.

Figures for FY2019 and FY2020 on this page are figures before the application of the Accounting Standard for Revenue Recognition, etc. It is displayed for reference.

Analysis of sales increase/decrease (consolidated)

While Solutions Business experienced growth, E-commerce Business saw a significant decrease in sales, resulting in an overall decrease in sales.

				(Millions of yen)
Solutions	Mail-order	E-commerce	HBT*	Group
Jurisdiction Adjustments
Business	Business	Business	Business
Business

FY2022

* HBT：Health, Beauty and Travel

FY2023

Analysis of ordinary profit increase/decrease (consolidated)

Decreased in gross profit due to decreasing consolidated sales.
Improvement in cost ratio due to changes in sales composition ratio, efficiency improvement at the logistics center, and control of selling prices.
Increased in promotional expenses for Mail-order Business due to rising costs related to catalogs.
We recorded business restructuring and reorganization expenses for both E-commerce Business and HBT Business.

(Millions of yen)

Decrease in	Improvement in	Increase in	Increase in	Business	Personnel
gross profit due	cost ratio	variable costs*	promotional	restructuring	expenses
to declining			expenses for	and	Other expenses
sales			Mail-order	reorganization
			Business	expenses

FY2022

*Excluding cost of goods sold, promotional expenses for Mail-order Business, and personnel expenses

FY2023

Segment Performance

Net sales	Segment
profit

(Millions of yen)

Solutions	24,992	1,214	Increased in sales and profit

Business	Played a role as a growth driver
(+17.0％)	(+67.4％)


			Decreased in sales but
Mail-order	39,165	5,367	increased in profit

While various costs were rising, cost
Business	(-2.2％)	(+0.0％)	containment measures proved

			effective

E-commerce	15,942	-1,129	Decreased in sales and profit
As the revenue decline couldn't be

Business	(-20.5％)	(31 in FY2022)	stopped, business restructuring costs
			were recorded

HBT Business	1,565	-54	Decreased in sales

	(-15.4％)	(-98 in FY2022)	Reduced deficit

* Figures in ( ) are year-on-year changes rate.
* Sales for each segment include internal sales or transfers between segments.	Copyright© Scroll Corporation. All Rights Reserved.	7

Solutions Business Segment

The various services of mail-order solutions experienced growth, resulting in increased sales and profit.

・Logistics outsourcing services increased in sales and profit due to the operation of new clients and business efficiency improvement at the logistics centers.

・Payment agency services and marketing support business also experienced growth,

progressing favorably.

(Millions of yen)

FY2023	Net sales :	24,992	（YoY + 17.0％）
Segment profit :	1,214	（YoY + 67.4％）

Quarterly Sales				YoY for Q4

								+1,134
						6,7626,739	(+20.3%)
		5,6605,6045,775 5,715
5,123 4,971
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	FY2022			FY2023

Quarterly Segment Profit

YoY for Q4

								+200
						424	389	(+105.6%)
		306
			189	211	189
126
103
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	FY2022			FY2023
				Copyright© Scroll Corporation. All Rights Reserved.	8

Mail-order Business Segment

While various costs were rising, cost containment measures proved effective, securing profits on par with the previous period.

・Through improvements in product supply rate and control of selling prices, despite a

decreased in sales, the gross profit increased.

・Amidst the soaring costs of catalog paper, this business managed to restrain the increase in promotional expenses through initiatives such as reducing paper usage.

(Millions of yen)

FY2023	Net sales :	39,165	（YoY - 2.2％）
Segment profit :	5,367	（YoY + 0.0％）

Quarterly Sales

							YoY for Q4
							-104
10,83610,427		10,916			(-1.2%)

		10,142		9,650	10,061
			8,642			8,538

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	FY2022			FY2023

Quarterly Segment Profit

				1,997			YoY for Q4
1,772
1,568 1,449					+88

			1,339 1,367	(+15.5%)

			573			662

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	FY2022			FY2023
				Copyright© Scroll Corporation. All Rights Reserved.	9

Attachments

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Original Document
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Disclaimer

Scroll Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 06:18:06 UTC.

Latest news about Scroll Corporation

Scroll Corporation Provides Consolidated Earnings Guidance for Year Ending March 31, 2025	May. 09	CI
Scroll Corporation Provides Dividend Guidance for the Fiscal Year Ending March 31, 2025	May. 09	CI
Scroll Corporation Provides Dividend Guidance for the Second Quarter-End of Fiscal Year Ending March 31, 2025	May. 09	CI
Scroll Corporation Announces Dividend for the Fiscal Year Ended March 31, 2024, Payable on June 3, 2024	May. 09	CI
Doximity Business Under Pressure as Underlying Sales Falling, Jehoshaphat Research Says	Apr. 01	MT
Tranche Update on Scroll Corporation's Equity Buyback Plan announced on February 1, 2024.	Feb. 01	CI
Scroll Corporation's Equity Buyback announced on February 1, 2024, has closed with 433,500 shares, representing 1.25% for ¥423.1 million.	Feb. 01	CI
Scroll Corporation announces an Equity Buyback for 450,000 shares, representing 1.3% for ¥439.2 million.	Feb. 01	CI
Scroll Corporation Provides Consolidated Earnings Guidance for Year Ending March 31, 2024	Feb. 01	CI
Scroll Corporation Provides Dividend Guidance for the Year Ending March 31, 2024	Feb. 01	CI
Scroll Corporation authorizes a Buyback Plan.	Jan. 31	CI
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Fed hawks, doves, and centrists: Tracking US central bankers' views	Dec. 20	RE
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Fed hawks, doves, and centrists: How US central bankers' views are changing	Dec. 01	RE
Fed hawks and doves: The latest from US central bankers	Nov. 30	RE
Fed hawks, Fed doves: What U.S. central bankers are saying	Nov. 28	RE
Scroll Corporation cancelled the acquisition of an unknown majority stake in Sanwanets Co., Ltd from Hisataka Yamazaki.	Nov. 14	CI
Scroll Corp.'s H1 Basic EPS Fell to 67.15 Yen as Net Sales Slips 2.3% to 40.02 Billion Yen; Declares Interim Dividend of 24 Yen Per Share	23-10-31	MT
Scroll Corporation Announces Dividend for the Second Quarter for Year Ending March 31, 2024, Payable on November 30, 2023	23-10-30	CI
Scroll Corporation Provides Dividend Guidance for the Year Ending March 31, 2024	23-10-30	CI
Scroll Corporation Provides Consolidated Earnings Guidance for Year Ending March 31, 2024	23-10-30	CI
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Fed hawks, Fed doves: What U.S. central bankers say about policy	23-10-24	RE
Chinese Shares Retreat on Deflation Risks, Weak Exports; Xiling Power Falls Nearly 5% on UAE Deal	23-10-13	MT

Chart Scroll Corporation

Duration

Period

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Company Profile

Scroll Corporation is a Japan-based company mainly engaged in the mail order business and the solutions business for electronic commerce (EC) and mail order companies. The Company has seven business segments. The Mail Order segment is engaged in the mail order sale of apparels, miscellaneous goods and insurance products. The E-Commerce segment is engaged in the e-commerce business for individuals of clothing accessories, outdoor goods, cosmetics and miscellaneous goods. The Cosmetics segment is engaged in the sale of original brand cosmetics and health foods. The Solution segment is engaged in the provision of promotion support, fulfillment support, system construction support and other mail order agency services. The Travel segment is engaged in the planning, sale and organization of travel products. The Overseas segment is engaged in the market development business in overseas. The Group Administration segment is engaged in the logistics business and the real estate leasing business.

Sector

Department Stores

Calendar

2024-07-25 - Q1 2024 Earnings Release (Projected)

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Internet & Mail Order Department Stores

Scroll Corporation

Equities

8005

JP3913600007

Department Stores

Scroll : Presentation Material for Financial Results FY2023

Latest news about Scroll Corporation

Chart Scroll Corporation

Company Profile

Income Statement Evolution

Quarterly earnings - Rate of surprise

Sector Internet & Mail Order Department Stores