Summary of Consolidated Financial Results
for the Nine Months Ended March 31, 2023 (Japanese GAAP)
May 9, 2023
Company name: | INTAGE HOLDINGS Inc. | Stock listing: Tokyo Stock Exchange | ||
Code number: | 4326 | URL | https://www.intageholdings.co.jp/ | |
Representative: | Noriaki Ishizuka, President and Representative Director | |||
Contact person: | Toru Takeuchi, Director | Tel: +81-3-5294-7411 | ||
Planned filing of quarterly report: | May 9, 2023 | |||
Planned start of dividend payments: - |
Preparation of supplementary explanations of quarterly financial results: Yes
Quarterly financial results presentation held: None
(Amounts are rounded off to nearest million yen.)
1. Consolidated Financial Results for the Nine Months Ended March 31, 2023 (July 1, 2022, to March 31, 2023)
(1) Consolidated Operating Results (Cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||||||
to owners of parent | |||||||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
47,889 | 1.8 | 4,046 | -19.6 | 4,225 | -19.5 | 3,767 | -1.9 | ||||||
March 31, 2023 | |||||||||||||
Nine months ended | 47,020 | 4.2 | 5,030 | 13.2 | 5,250 | 1.6 | 3,842 | 1.9 | |||||
March 31, 2022 | |||||||||||||
(Note) Comprehensive income: | Nine months ended March 31, 2023: ¥3,621 million (10.4%) | ||||||||||||
Nine months ended March 31, 2022: ¥3,279 million (-7.5%) | |||||||||||||
Net income per share | Net income per share | ||||||||||||
after dilution | |||||||||||||
Nine months ended | Yen | Yen | |||||||||||
97.71 | - | ||||||||||||
March 31, 2023 | |||||||||||||
Nine months ended | 96.75 | - | |||||||||||
March 31, 2022 | |||||||||||||
(Note) | For the purpose of calculating net income per share, the number of shares of the Company held in trust for directors' compensation | ||||||||||||
was included in the number of treasury shares, which was to be deducted from the calculation of the average number of shares | |||||||||||||
during the period. | |||||||||||||
(Note) | The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended June | ||||||||||||
2022. The figures for the nine months ended March 31, 2022, reflect the important revision of initial allocation of acquisition costs | |||||||||||||
following the finalization of the provisional accounting treatment. |
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | ||||||||||||
Millions of yen | Millions of yen | % | ||||||||||||
As of March 31, 2023 | 46,944 | 31,036 | 65.6 | |||||||||||
As of June 30, 2022 | 45,633 | 30,823 | 66.8 | |||||||||||
(Reference) Total shareholders' equity: As of March 31, 2023: ¥30,798 million | ||||||||||||||
As of June 30, 2022: ¥30,466 million | ||||||||||||||
2. Dividends | ||||||||||||||
Dividends per share | ||||||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||
Year ended June 30, 2022 | - | 0.00 | - | 38.00 | 38.00 | |||||||||
Year ending June 30, 2023 | - | 0.00 | - | |||||||||||
Year ending June 30, 2023 | 42.00 | 42.00 | ||||||||||||
(Forecast) | ||||||||||||||
(Note) | Revisions to the most | recently disclosed | dividend forecasts: None |
3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2023 (July 1, 2022, to June 30, 2023) (Percentages indicate year-on-year changes.)
Net income | Net income per | |||||||||||
Net sales | Operating income | Ordinary income | attributable to owners | |||||||||
of parent | share | |||||||||||
Full year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
63,300 | 5.1 | 4,650 | 0.0 | 5,000 | 1.0 | 4,000 | 17.0 | 105.06 | ||||
(Note) Revisions | to the most | recently | disclosed earnings forecasts: None |
(Note) The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended June 2022. The year-on-year changes reflect the important revision of initial allocation of acquisition costs following the finalization of the provisional accounting treatment.
* Notes | ||
(1) Changes in significant subsidiaries during the nine months under review: | Yes | |
(Changes in specified subsidiaries resulting in change in scope of consolidation) | ||
New: - companies (Company name) | ||
Excluded: 1 company | CONSUMER SEARCH HONG KONG LIMITED |
- Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements:
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) | Changes in accounting policies due to other reasons: | None | ||||
3) | Changes in accounting estimates: | None | ||||
4) | Restatement of prior period financial statements: | None | ||||
(4) Number of shares issued and outstanding (common shares) | ||||||
1) | Number of shares issued at the end of the | Nine months ended | 40,426,000 | Year ended June 30, | 40,426,000 | |
period (including treasury shares) | March 31, 2023 | 2022 | ||||
2) | Number of treasury shares at the end of | Nine months ended | 2,352,785 | Year ended June 30, | 1,181,785 | |
the period | March 31, 2023 | 2022 | ||||
3) | Average number of shares during the | Nine months ended | Nine months ended | |||
period (cumulative from the beginning of | 38,558,386 | 39,715,845 | ||||
March 31, 2023 | March 31, 2022 | |||||
the fiscal year) | ||||||
* This quarterly financial results report is outside the scope of quarterly review procedures by certified public accountants or auditing firms.
* Explanation on the appropriate use of earnings forecasts and other special notes
The forward-looking statements made in this document, including the earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual performance and other results may differ materially owing to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to section "(3) Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts" of "1. Qualitative Information Regarding the Consolidated Results for the Nine Months under Review" on page 4 of the attached material.
INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Nine Months Ended March 31, 2023
- Table of Contents of the Attached Material
1. Qualitative Information Regarding the Consolidated Results for the Nine Months under Review | ||
(2) | Explanation of Financial Position | 4 |
(3) | Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts | 4 |
2. Consolidated Financial Statements and Notes Thereto | 5 | |
(1) | Consolidated Balance Sheet | 5 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements | 9 |
(Note on assumptions for going concern) | 9 | |
(Note in the event of major change in shareholders' equity) | 9 | |
(Application of accounting treatment specific to the preparation of quarterly consolidated | ||
financial statements) | 9 | |
(Changes in accounting policies) | 9 | |
(Additional information) | 9 | |
(Segment information) | 10 |
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INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Nine Months Ended March 31, 2023
1. Qualitative Information Regarding the Consolidated Results for the Nine Months under Review
(1) Explanation of Operating Results
During the nine months under review (July 1, 2022, to March 31, 2023), the Japanese economy is expected to recover, partly owing to the effects of various policies on the recovery of turnout and changes in various social conditions following the easing of restrictions on activities. Meanwhile, the economies of the Asian region, where the Group operates, are also showing signs of recovery, partly owing to the effects of various policies.
However, the environment surrounding customers remains uncertain and challenging with supply constraints and rising raw material prices mainly due to the protracted situation in Ukraine, as well as the impact of global monetary tightening, which is having a significant impact on consumer behavior and business.
Under these circumstances, the Group has made aggressive investment based on the growth strategy in the fiscal year under review, the final year of its 13th Medium-Term Management Plan (three-year plan), under the Group's basic policy of "Change the design of business!! - together with customers and consumers, who are changing - Reframe, Connect, Create."
In the Marketing Support (Consumer Goods & Services) segment, we aim to achieve profitability in Japan by promoting preparations for establishing the CX marketing platform from 2024 onward, revamping SCI, and expanding sales of next-generation research by Research and Innovation Co.,Ltd., in addition to expanding existing businesses and expanding domains.
Overseas, we aim to build a business structure to achieve stable profitability, strengthen our online shift, and establish a business foundation for segmentation.
In the Marketing Support (Healthcare) segment, we are strengthening medical real-world data, such as the renewal of the integrated database (Cross Fact) from the viewpoint of healthcare consumers. In addition, by continuing to develop (invest in) data science human resources, we will provide additional value. As a result, we work to expand our business domains to support customers in the decision-making phase.
In the Business Intelligence segment, we expand the scope of DX support by leveraging our strengths in video analysis, data utilization, and data visualization, as well as collaborating with partners, in order to realize a business structure that is robust enough to withstand environmental changes.
Across the Group as a whole, while contributing to profits associated with increased sales of its overseas businesses, increased personnel expenses and costs associated with the reinforcement of the organization for expanding sales of its main businesses, as well as increased investments for expanding areas, had an impact on the performance of the Group. However, we continued to promote the reinforcement of the capital policy based on a stable financial base, the creation of business through inter-group collaboration, the implementation of measures to increase non-financial capital, including human capital, and the strengthening of sustainability.
As a result of these efforts, the INTAGE Group's consolidated net sales for the nine months under review amounted to ¥47,889 million (up 1.8% from the same period of the previous year), with an operating income of ¥4,046 million (down 19.6%), ordinary income of ¥4,225 million (down 19.5%), and net income attributable to owners of parent of ¥3,767 million (down 1.9%).
The results by business segment are described below.
- Marketing Support (Consumer Goods & Services)
In the Marketing Support (Consumer Goods & Services) segment, sales increased and profit decreased, consolidated net sales for the segment amounted to ¥31,413 million (up 3.8% from the same period of the previous year), and operating income decreased to ¥1,886 million (down 30.2%).
Panel surveys, the core business of the segment, and the custom research business achieved higher growth than the previous year, but fell below the initial forecast, due to deterioration of the business environment of consumer goods manufacturers, which are the main customer group, as a result of rising raw material costs and the depreciation of the yen. The renewal of contracts in panel surveys in fiscal 2023 remained firm despite the deterioration in the business environment of consumer goods manufacturers, which are the main customer group.
Meanwhile, Research and Innovation Co.,Ltd., which operates CODE (a smartphone app that allows users to register shopping information and commodity ratings), posted sales growth.
As for overseas, sales in Asian nations excluding Hong Kong increased from the previous year due to recovery from the impact of COVID-19 and progress of the online shift.
In terms of investment activities, overall progress for the year was as planned for establishing the CX marketing platform and revamping SCI.
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INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Nine Months Ended March 31, 2023
Profit decreased owing to lower-than-expected growth in core businesses and the expansion of investments made in full swing, especially in the new SCI.
- Marketing Support (Healthcare)
In the Marketing Support (Healthcare) segment, both sales and profit decreased; consolidated net sales of the segment amounted to ¥10,955 million (down 3.7% from the same period of the previous year), with an operating income of ¥1,639 million (down 18.7%).
At INTAGE Healthcare Inc., the research business, its mainstay, has fallen below the level of the previous year owing to the impact of the organizational changes in the previous year, but there are signs of recovery due to the strengthening of the sales structure.
The profitability of the post-marketing surveillance of the CRO (contract research organization) business has improved owing to improvement of the overall business, despite being lower than the previous year.
In KYOWA KIKAKU LTD., both the promotion and education businesses have been sluggish due to a decrease in new drug launch projects.
Profits were affected by the decline in sales of the research business, our mainstay.
- Business Intelligence
In the Business Intelligence segment, both sales and profit increased; consolidated net sales of the segment amounted to ¥5,519 million (up 2.5% from the same period of the previous year), with an operating income of ¥519 million (up 67.0%).
At INTAGE TECHNOSPHERE Inc., in this business, while sales of solutions for existing industries, mainly the travel industry, which was affected by COVID-19, are on a recovery trend, the acquisition of projects in the DX support area remained steady.
In addition, sales at Buildsystem Co.,Ltd. and NSK Co.,Ltd. also exceeded previous-year levels.
Profits increased owing to an increase in sales following the recovery of solutions for existing industries and efforts to reduce costs and expenses.
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Intage Holdings Inc. published this content on 24 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2023 01:15:08 UTC.