Consolidated Financial Summary for First Quarter of Fiscal Year Ending March 31, 2024
(Japanese Accounting Standards)
August 10, 2023 | |||||||||||||||||||||||
Avex Inc. | Tokyo Stock Exchange, Prime Market | ||||||||||||||||||||||
Code No: 7860 | (URL: https://avex.com/jp/en/) | ||||||||||||||||||||||
Representative: Katsumi Kuroiwa, President, CEO | |||||||||||||||||||||||
Contact: Shinji Hayashi, Representative Director, CFO | TEL: (03) 6447-5366 | ||||||||||||||||||||||
Scheduled date to submit the Quarterly Securities Report (Shihanki Houkokusho): August 10, 2023 | |||||||||||||||||||||||
Scheduled date for commencement of dividend payments: - | |||||||||||||||||||||||
Supplementary documents for financial results: Yes | |||||||||||||||||||||||
Financial results briefing: None | |||||||||||||||||||||||
Note: All amounts are rounded down to the nearest million yen. | |||||||||||||||||||||||
1. Consolidated operating results for the first quarter of fiscal year ending March 31, 2024 | |||||||||||||||||||||||
(April 1, 2023 to June 30, 2023) | |||||||||||||||||||||||
(1) Consolidated operating results | Note: Figures in percentages denote the year-on-year change. | ||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||||||
owners of parent | |||||||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||||||||||||||
First Quarter of Fiscal Year | 31,973 | 12.3 | 1,881 | (17.8) | 1,985 | (11.8) | 2,704 | 61.4 | |||||||||||||||
Ending March 31, 2024 | |||||||||||||||||||||||
First Quarter of Fiscal Year | 28,473 | 46.6 | 2,288 | 772.1 | 2,250 | 977.1 | 1,675 | - | |||||||||||||||
Ended March 31, 2023 | |||||||||||||||||||||||
(Note) Comprehensive income | First Quarter of Fiscal Year Ending March 31, 2024: | ¥1,424 million (14.8%) | |||||||||||||||||||||
First Quarter of Fiscal Year Ended March 31, 2023: | ¥1,240 million (435.5%) | ||||||||||||||||||||||
Profit per share | Diluted profit per share | ||||||||||||||||||||||
yen | yen | ||||||||||||||||||||||
First Quarter of Fiscal Year | 59.90 | - | |||||||||||||||||||||
Ending March 31, 2024 | |||||||||||||||||||||||
First Quarter of Fiscal Year | 37.21 | - | |||||||||||||||||||||
Ended March 31, 2023 | |||||||||||||||||||||||
(2) Consolidated financial position | |||||||||||||||||||||||
Total assets | Net assets | Shareholders' equity ratio | |||||||||||||||||||||
million yen | million yen | % | |||||||||||||||||||||
As of June 30, 2023 | 105,415 | 59,055 | 55.3 | ||||||||||||||||||||
As of March 31, 2023 | 108,915 | 58,838 | 53.3 | ||||||||||||||||||||
(Reference) Shareholders' equity | As of June 30, 2023: | ¥58,305 million | |||||||||||||||||||||
As of March 31, 2023: | ¥58,074 million | ||||||||||||||||||||||
2. Status of dividend payments | |||||||||||||||||||||||
Annual dividends | |||||||||||||||||||||||
End of first quarter | End of second quarter | End of third quarter | End of year | Annual | |||||||||||||||||||
yen | yen | yen | yen | yen | |||||||||||||||||||
Year ended March 31, 2023 | - | 25.00 | - | 25.00 | 50.00 | ||||||||||||||||||
Year ending March 31, 2024 | - | ||||||||||||||||||||||
Year ending March 31, 2024 | 25.00 | - | 25.00 | 50.00 | |||||||||||||||||||
(forecast) | |||||||||||||||||||||||
(Note) Revisions to dividend forecasts | published most recently: None |
3. Forecasts for consolidated operating results for the year ending March 31, 2024 (April 1, 2023 to March 31, 2024)
Note: Figures in percentages denote the year-on-year change.
Operating profit | Profit attributable to | Profit per share | ||||
owners of parent | ||||||
Year ending | million yen | % | million yen | % | Yen | |
March 31, 2024 | 2,000 | (40.9) | 2,200 | (19.8) | 48.73 | |
(Note) Revisions to earnings forecasts | published most recently: None |
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Avex Inc. (7860) Consolidated Financial Summary for First Quarter of Fiscal Year Ending March 31, 2024
- Notes
- Changes in significant subsidiaries during term under review (changes in specific subsidiaries in conjunction with changes in scope of consolidation): None
New: - company (Company name) - | Excluded: - company (Company name) - |
- Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: None
-
Changes in accounting policies and changes in or restatement of accounting estimates
1. Changes in accounting policies in conjunction with revisions to accounting standards: None
2. | Changes in accounting policies other than 1: | None |
3. | Changes in accounting estimates: | None |
4. | Restatement: | None |
(4) Outstanding shares (ordinary shares) | |
a. Shares outstanding at end of term (including treasury stock) | |
As of June 30, 2023: | 45,558,800 shares |
As of March 31, 2023: | 45,558,800 shares |
b. Treasury stock at end of term | |
As of June 30, 2023: | 410,382 shares |
As of March 31, 2023: | 410,302 shares |
c. Average number of share (quarter-to-date) | |
First Quarter of Fiscal Year Ending March 31, 2024: | 45,148,490 shares |
First Quarter of Fiscal Year Ended March 31, 2023: | 45,029,976 shares |
- This financial summary is outside the scope of audit procedures by certified public accountants and audit firm.
-
Explanation for forecasts of business results and other notes
The forecasts for business results and other forward-looking statements contained in this release are based on data and information that the Group has obtained so far and specific assumptions that the Group judges to be reasonable. Please note, therefore, that the actual results and others may greatly differ from the forecasts due to various factors.
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Avex Inc. (7860) Consolidated Financial Summary for First Quarter of Fiscal Year Ending March 31, 2024
1. Qualitative Information on Consolidated Results, etc. for the First Quarter of Fiscal Year Ending March 31, 2024
(1) Summary of Operating Results
(Unit: million yen)
Fiscal year | Fiscal year | Fiscal year | Fiscal year | Fiscal year | |
First quarter results | ended March | ended March | ended March | ended March | ending March |
31, 2020 | 31, 2021 | 31, 2022 | 31, 2023 | 31, 2024 | |
Net sales | 29,028 | 14,108 | 19,417 | 28,473 | 31,973 |
Cost of sales | 20,475 | 8,795 | 12,537 | 17,947 | 20,881 |
Gross profit | 8,552 | 5,313 | 6,880 | 10,526 | 11,092 |
Gross profit margin | 29.5% | 37.7% | 35.4% | 37.0% | 34.7% |
Personnel expenses | 2,836 | 2,633 | 2,545 | 3,241 | 3,606 |
Sales promotion and advertising | 1,453 | 953 | 1,332 | 1,745 | 1,625 |
expenses | |||||
General expenses | 3,896 | 2,780 | 2,739 | 3,251 | 3,978 |
Total SG&A expenses | 8,186 | 6,367 | 6,617 | 8,237 | 9,210 |
Operating profit (loss) | 366 | (1,054) | 262 | 2,288 | 1,881 |
Operating margin | 1.3% | -% | 1.4% | 8.0% | 5.9% |
In the entertainment industry, to which the Group belongs, the production of music software, including music videos, was up 20.2% year on year, to 116,969 million yen (January to June 2023; according to a survey by the Recording Industry Association of Japan). Sales of paid music downloads were up 12.7% year on year, to 28,309 million yen (January to March 2023; according to a survey by the Recording Industry Association of Japan). In the video-related market, sales of video software increased 2.2% year on year, to 57,074 million yen (January to June 2023; according to a survey by the Japan Video Software Association).
In this business environment, with the aim of clarifying the social significance of its presence as a company, the Group defined a new corporate philosophy: "Making impossible entertainment , possible," and announced the avex vision 2027, a medium-term management plan developed based on this philosophy, in May 2022. Under the priority strategy: "Seek to discover and develop 'beloved' intellectual property in many different regions and fields," which was set out in the medium-term management plan, the Group stepped up its investment to discover, develop, create and acquire new IP in each business field.
In the first quarter under review, consolidated net sales increased to 31,973 million yen (up 12.3% year on year) due to higher sales in the music business. However, consolidated operating profit decreased to 1,881 million yen (down 17.8% year on year), chiefly reflecting rises in personnel and general expenses due to recovering sales activities, while consolidated profit attributable to owners of parent came to 2,704 million yen (up 61.4% year on year) due mainly to the posting of a gain on sales of investment securities as extraordinary income.
(2) Summary of Financial Position
Assets totaled 105,415 million yen at the end of the first quarter under review after a decrease of 3,499 million yen from the end of the previous consolidated fiscal year. This was chiefly attributable to decreases of 2,181 million yen in cash and deposits and 2,143 million yen in notes and accounts receivable - trade respectively, which more than offset an increase of 1,192 million yen in property, plant and equipment.
Liabilities were reduced by 3,716 million yen from the end of the previous consolidated fiscal year, to 46,360 million yen. This was chiefly attributable to a decline of 3,328 million yen in accounts payable - other.
Net assets increased 216 million yen from the end of the previous consolidated fiscal year, to 59,055 million yen. This was mainly due to increases of 1,542 million yen in retained earnings and 205 million yen in foreign currency translation adjustment respectively, which more than offset a decrease of 1,534 million yen in valuation difference on available-for-sale securities.
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Avex Inc. (7860) Consolidated Financial Summary for First Quarter of Fiscal Year Ending March 31, 2024
(3) Summary of Consolidated Financial Forecasts and Other Future Forecast Information
With respect to consolidated financial results forecasts for the fiscal year ending March 31, 2024, there is no change in the forecasts presented in a "Announcement Regarding Posting of Extraordinary Profit and Revision to Business Results" announced on May 25, 2023.
If any revision to the financial forecasts becomes necessary in the future, the Company will promptly disclose it.
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Avex Inc. (7860) Consolidated Financial Summary for First Quarter of Fiscal Year Ending March 31, 2024
2. Quarterly Consolidated Financial Statements and Key Notes
(1) Quarterly Consolidated Balance Sheets
(Unit: million yen) | |||
As of March 31, 2023 | As of June 30, 2023 | ||
(Assets) | |||
Current assets | |||
Cash and deposits | 48,143 | 45,962 | |
Notes and accounts receivable - trade | 22,206 | 20,063 | |
Merchandise and finished goods | 1,172 | 1,167 | |
Programs and works in progress | 2,801 | 3,139 | |
Raw materials and supplies | 221 | 224 | |
Other | 12,020 | 13,305 | |
Allowance for doubtful accounts | (350) | (383) | |
Total current assets | 86,217 | 83,478 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 2,110 | 2,079 | |
Land | 1,548 | 2,580 | |
Other, net | 892 | 1,083 | |
Total property, plant and equipment | 4,551 | 5,744 | |
Intangible assets | 3,505 | 3,483 | |
Investments and other assets | |||
Investment securities | 9,228 | 7,238 | |
Other | 5,465 | 5,525 | |
Allowance for doubtful accounts | (54) | (54) | |
Total investments and other assets | 14,640 | 12,709 | |
Total non-current assets | 22,697 | 21,937 | |
Total assets | 108,915 | 105,415 | |
(Liabilities) | |||
Current liabilities | |||
Notes and accounts payable - trade | 3,434 | 2,903 | |
Current portion of long-term borrowings | 3 | 3 | |
Accounts payable - other | 25,679 | 22,351 | |
Income taxes payable | 1,482 | 1,051 | |
Refund liabilities | 2,168 | 1,908 | |
Provision for bonuses | 884 | 364 | |
Other | 14,450 | 15,994 | |
Total current liabilities | 48,104 | 44,577 | |
Non-current liabilities | |||
Long-term borrowings | 6 | 5 | |
Liabilities for retirement benefits | 529 | 535 | |
Other | 1,436 | 1,241 | |
Total non-current liabilities | 1,972 | 1,782 | |
Total liabilities | 50,076 | 46,360 |
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Avex Inc. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 06:41:03 UTC.