As for the final accounts of Takashimaya (8233), operating revenue decreased, and operating income increased and achieved the target by reducing SG& A expenses.
Takashimaya (8233) Ends Fiscal Year Short of Targets yet Records Higher Revenue and Profit Owing to Solid Performance of Domestic Department Stores and Year-Round Contribution of Takashimaya Vietnam
◎ Main Consolidated Operating Results
▽ Consolidated Operating Results
· Operating revenue increased by 2.8% from the previous fiscal year to 949.6 billion yen, and operating income increased by 3.9% to 35.3 billion yen.
· While falling short of the target, operating revenue was up year on year due to strong performance of domestic department stores and the year-round contribution of Takashimaya Vietnam, as well as revenue growth from new businesses.
· Operating income increased due mainly to income growth at domestic department stores, yet fell short of the target, mainly owing to the negative impact of a profit decline at Takashimaya Space Create, a consolidated subsidiary.
▽ Domestic department store results
· Operating revenue growth exceeded estimates owing to robust inbound sales and strong domestic consumption.
· Gross margins declined owing to strong inbound sales and low-margin corporate business performance.
· Operating income, ordinary income, and net income all increased and exceeded estimates, owing to increased sales.
▽ Major subsidiary results (domestic)
· Toshin Development posted higher revenue and profit thanks to increased revenue from condominium sales, etc.
· Takashimaya Credit posted higher revenue and profit due to aggressive sales promotion, etc.
· Takashimaya Space Create recorded a significant decline in revenue and profit due to the postponing of client orders as well as a reactionary decline following last year’s major orders.
▽ Major subsidiary results (overseas)
· The Singapore business recorded a rise in revenue and profit amid the upturn of the local economy and the reversal of previous year's rent, among other things.
· Shanghai Takashimaya maintained revenue growth through effective sales boosting measures, including the introduction of new tenants.
· Takashimaya Vietnam reduced its deficit as planned.
◎ Takashimaya Group Growth Strategy
▽ Promote the Town Development Strategy as a Group-wide effort to achieve stable growth
· Harmoniously coexist with the local community and create unique commercial facilities that concentrate the Group’s capabilities
· Maximize the competitiveness of each business through synergy with the department store industry, and strengthen overseas expansion
· Improvement management efficiency through the Group Business Transformation Project, and thereby support the Town Development Strategy
▽ Takashimaya Group Long-Term Plan
· Operating revenue of 1.33 trillion yen, operating income of 50 billion yen, ROE of 7% or more, ROA(Ordinary income to total assets ratio) of 4.5%, and capital ratio of 47.5%
· In the Domestic Department Store segment, increase revenue and profit through sales and business structure reform
· In the Domestic Group, develop finance in addition to real estate as core businesses (Operating income target: Real Estate Business: 14 billion yen; Financial business: 8 billion yen)
· Overseas, expand businesses in Asia, with Singapore as the core
◎ Plan for the fiscal year ending February 2019
· Operating revenue is forecast to be 965.0 billion, up 1.6% year on year, and operating income to be 30.0 billion yen, down 15.1% year on year.
· Revenue is forecast to increase owing to higher sales at domestic and overseas department stores and the effect of the opening of Siam Takashimaya, among other things.
· A profit decline is expected for the current fiscal year owing to initial investment in Nihonbashi Takashimaya S.C., the Group Business Transformation Project, etc.
· FY2018 will be the year of consolidating our growth strategy, and FY2019 shall be the year in which we get back on the recovery track.
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