FinancialNacon
2021‑22 Annual Sales in Line with Expectations
30 May 20222 pages~6 min full read
Nacon reported 155.9 million euros in annual sales for the 2021-22 fiscal year, representing a 12.3% decline compared to the previous period.
See it on page 1The Games segment revenue fell 21.1% to 54.4 million euros due to the postponement of major titles, while the Accessories segment remained resilient with 96.6 million euros in revenue.
See it on page 1Profitability declined significantly, with current operating income dropping 41.6% to 19.0 million euros and net profit totaling 10.0 million euros.
See it on page 1Nacon invested over 100 million euros in game development and studio acquisitions over two years, expanding its development pipeline from 33 to 46 games.
See it on page 2Management projects a growth acceleration for the 2022-23 fiscal year, targeting annual sales exceeding 250 million euros and a current operating margin above 50 million euros.
See it on page 1The company successfully offset rising shipping and raw material costs through price increases and maintains a strong financial position with 228.4 million euros in equity.
See it on page 1Nacon’s audited consolidated results for the 2021-22 fiscal year, ending March 31, 2022, characterize the period as a transition year defined by strategic investments and a shifting product mix. Annual sales reached 155.9 million euros, a 12.3% decrease from the previous year. This decline was primarily driven by the Games business segment, which saw a 21.1% drop in revenue to 54.4 million euros following the decision to postpone several major titles. The Accessories segment remained more resilient, contributing 96.6 million euros despite global console shortages.
Profitability metrics reflected these transitional pressures, with current operating income falling 41.6% to 19.0 million euros and net profit landing at 10.0 million euros. The gross margin rate decreased slightly to 49.9%, influenced by a higher proportion of accessory sales. However, the company successfully mitigated rising shipping and raw material costs through price increases. To fund its aggressive expansion, Nacon invested over 100 million euros in game development and studio acquisitions over a two-year period, increasing its pipeline from 33 to 46 games in development.
Looking ahead to the 2022-23 fiscal year, the company anticipates a significant growth acceleration fueled by a robust publishing schedule, including titles such as The Lord of the Rings Gollum and Steelrising. Management projects annual sales to exceed 250 million euros with a current operating margin surpassing 50 million euros. While some delays persist, such as the postponement of Test Drive Unlimited Solar Crown to optimize quality, the company maintains a strong balance sheet with 228.4 million euros in equity and plans to continue its external growth strategy through further studio acquisitions.
