F Y 2 0 2 4
Results for
Fiscal Year Ended February 29, 2024
A p r i l 1 5 t h , 2 0 2 4
T S E P r i m e 7 5 9 9
I D O M I n c .
Hello, my name is Ryo Nishihata, CFO of IDOM Inc.
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Disclaimer
Forward-looking statements contained in the materials that IDOM discloses, such as earnings forecasts, are based on the information available to the Company at the time of the disclosure of the materials and certain assumptions that the Company considers reasonable. They are not intended to represent the Company guaranteeing the achievement of any expectations. Please note that a variety of factors may change actual results, etc. Important factors that may influence actual results include the economic conditions surrounding IDOM's business areas, the fluctuation of exchange rates and market prices. The information contained in these materials is not intended for advertising or advisory purposes.
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C o n t e n t s
1. | FY2024 Results Summary | -4 |
2. | Financial Forecasts for FY2025 | -19 |
3. | Market Perception and Future Initiatives | -22 |
(Revision of Medium-Term Business Plan Targets) | -42 | |
4. | Capital Policy and Dividends | -47 |
5. APPENDIX
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I will review the results for the fiscal year ended February 29, 2024 and financial forecasts for the fiscal year ending February 28, 2025.
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1.FY2024 Results Summary
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FY2024 Results Highlights
Caution Regarding Financial Result Briefing Materials
The results for FY2024 reflect a significant decrease in the differences between the consolidated results
and no-consolidated results due to the sale of the Australian business in FY2023.
Since the performance of the standalone entity constitutes the majority of the consolidated figures, there are instances where standalone metrics are utilized for KPIs and other purposes.
Non- | Record quarterly operating profit | |
Consolidated | ||
Operating profit | 5.8 billion yen | |
+31% YoY | ||
Non- | Retail unit sales and | |
Consolidated | gross profit per retail unit for FY2024 | |
Gross profit per | 410,000 yen/unit x | |
retail unit | 144,487 units | |
- Non-consolidatedoperating profit hit a record high for the fourth quarter.
- Gross profit per retail unit:
410,000yen (In line with the assumptions for forecasts)
- Retail unit sales:
144,487 units (Record high, +7% YoY)
* 2024 indicates the fiscal year ending February 29, 2024. | 5 |
First, please see the slide 5. This slide highlights the results for the fiscal year ended February 29, 2024.
The sale of the new car dealer business in Australia in the first quarter of FY2023 reduced the difference between the consolidated and non-consolidated results, and the non-consolidated results now account for the majority of the consolidated results. Accordingly, we may explain sales volume and other figures on a non-consolidated basis on the latter slides.
Firstly, I will explain the results for the fourth quarter. Non-consolidated operating profit was 5.8 billion yen, an increase of 31% year on year. This was the highest quarterly level ever, surpassing the 5.2 billion yen recorded in the third quarter of the fiscal year ended February 28, 2023.
Secondly, we increased sales volume for the full year while maintaining a high level of gross profit per retail unit. The full-year gross profit per retail unit was 410,000 yen, exceeding the forecast assumption. In addition, retail unit sales reached a record high of 144,487 units, up 7% from the previous year.
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Highlights Trend in FY2024 Operating Profit (Non-Consolidated)
(billion yen) | (billion yen) | (billion yen) | |||||
Full-year | Q4 (YoY) | Quarterly trend | |||||
Operating
profit
20.0
15.0
10.0
16.4 16.7
5.0 11.9
0.0
202220232024
8.0 | |||||
6.0 | |||||
4.0 | |||||
4.4 | 5.8 | ||||
2.0 | |||||
2.1 | |||||
0.0 | |||||
2022 | 2023 | 2024 | |||
8.0 | |||||||
6.0 | |||||||
4.0 | |||||||
4.4 | 5.8 | ||||||
2.0 | 3.7 | ||||||
2.8 | |||||||
0.0 | |||||||
2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | ||||
Ordinary profit
margin (%)
Operating
profit growth
rate
3.9% | 4.5% | 4.0% | 4.6% | 4.9% | 5.2% | 2.7% | 4.6% | 3.6% | 5.2% | ||
37.8% | 1.9% | 109.2% | 31.4% | ||||||||
* 2024 indicates the fiscal year ending February 29, 2024. | 6 |
This slide summarizes recent trends in non-consolidated operating profit mentioned in the highlights, with comparisons to the full year, the same period of the previous year, and quarterly basis.
Operating margin for the fourth quarter was 5%.
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Highlights Trend in Retail Unit Sales and Gross Profit per Retail Unit
(thousand unit) | Retail unit sales | Gross profit per retail unit | (ten thousand yen/unit) | ||
150 | 45 | ||||
40 | 41 | |||||
145 | 40 | |||||
37 | 36 | |||||
140 | 35 | |||||
135 | 144 | 30 | ||||
137 | 140 | |||||
136 | 25 | |||||
130 | ||||||
125 | 20 | |||||
2021 | 2022 | 2023 | 2024 |
Retail unit sales increased to a record high while gross profit per retail unit was maintained.
* 2024 indicates the fiscal year ending February 29, 2024. | 7 |
This slide shows the annual trend in retail unit sales and gross profit per retail unit that I also mentioned in the highlights section.
Retail gross profit rose to the ¥400,000 level, and retail unit sales increased significantly.
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Consolidated/ | Key KPIs for FY2024 | |||||
Non-consolidated | ||||||
FY2022 | FY2023 | 2024 | Changes | |||
Number | Store opening of large stores | 5 | 8 | 11 | +3 | |
of stores | (stores) | |||||
Number of unit sales | 23.7 | 24.7 | 26.9 | +2.2 | ||
(ten thousand units) | ||||||
Number | Number of retail unit sales | 14.0 | 13.5 | 14.4 | +0.9 | |
of units | (ten thousand units) | |||||
Number of wholesales unit | 9.7 | 11.2 | 12.4 | +1.2 | ||
(ten thousand units) | ||||||
Gross profit per retail unit | 36 | 40 | 41 | +1 | ||
Gross | (ten thousand yen) | |||||
profit per | ||||||
unit | Gross profit per wholesale | 10 | 10 | 10 | - | |
unit (ten thousand yen) | ||||||
Results for FY2024 exceeded those for FY2023 in all major KPIs.
* 2024 indicates the fiscal year ending February 29, 2024. | 8 |
From here, I will explain about the results of FY2024.
First, let's look at the KPIs.
We opened 11 stores, one store added to the initial plan at the beginning of the year and +3 stores over the previous year.
Retail unit sales were 144,487 units, up approx. 9,000 units from the previous year.
Gross profit per retail unit was 410,000 yen.
We increased the gross profit by 10,000 yen compared to the plan and the previous year.
We were able to expand our business steadily.
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Consolidated FY2024 Results
(billion yen) | 2023 | 2024 | Ratio to net | YoY | Percent |
sales | changes | change | |||
Net sales | 416.5 | 419.9 | 100.0% | +3.4 | +0.8% |
Gross profit | 74.5 | 73.3 | 17.5% | -1.2 | -1.6% |
Selling, general and | 55.9 | 57.2 | 13.6% | +1.3 | +2.4% |
administrative expenses | |||||
16.1 | |||||
Operating profit | 18.7 | 3.8% | -2.6 | -13.7% | |
Ordinary profit | 18.4 | 15.8 | 3.8% | -2.6 | -12.8% |
Profit attributable | 14.2 | 11.4 | 2.7% | -2.8 | -19.5% |
to owners of parent | |||||
* 2024 indicates the fiscal year ending February 29, 2024.
This slide shows the results on a consolidated basis.
Operating profit was 16.1 billion yen and net profit was 11.4 billion yen.
I will explain the factors behind the increase or decrease in operating profit on the next slide.
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Consolidated FY2024 Analysis of Factors in YoY Change in Operating Profit
(billion yen)
Non-consolidated factors (-1.1)
* 2024 indicates the fiscal year ending February 29, 2024.
- Gross profit increased 4.5 billion yen in total, with retail sale sales increasing 3.3 billion yen and wholesale sales increasing 1.2 billion yen.
- SG&A expenses increased
- billion yen, mainly due to an increase in personnel costs and the cost of hiring to accelerate the opening of large stores.
- Operating profit decreased by
- billion yen due to the sale of business and reduction of subsidiary losses.
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This slide shows an analysis of the YoY change in consolidated operating profit. The non-consolidated factors are in the red square.
The non-consolidated factors impacted -1.1 billion yen.
The main factors were a 3.3 billion yen increase in retail sales and a 1.2 billion yen increase in wholesale sales.
On the other hand, SG&A expenses increased by 5.6 billion yen due to increased personnel and recruiting expenses, as well as advertising expenses, to accelerate the opening of large stores.
In addition, operating profit decreased by 1.2 billion yen due to the sale of the Australian business on a consolidated basis.
As a result, consolidated operating profit decreased by 2.6 billion yen to 16.1 billion yen.
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IDOM Inc. published this content on 15 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 10:02:03 UTC.