Bandai Namco Group Fiscal Year Ended March 2023 Information Meeting

Key insights

7 takeaways

01
Bandai Namco Group achieved consolidated net sales of 990 billion yen and an operating profit of 116.4 billion yen for the fiscal year ended March 2023.See it on page 9
02
The Toys and Hobby segment served as a primary growth driver, maintaining high profit margins through strong demand for mature-fan products, cards, and capsule toys despite rising material and freight costs.See it on page 7
03
The Digital segment's performance was bolstered by repeat sales of major titles like Elden Ring, though it faced headwinds from title lineup shifts and valuation losses on work-in-process.See it on page 4
04
The company has set a fiscal year 2024 net sales target of 1 trillion yen, supported by a strategy to enhance global development and IP creation.See it on page 9
05
Bandai Namco aims to increase its overseas sales ratio from current levels to a near-term target of 35%, with a long-term goal of reaching 50%.See it on page 9
06
The group maintains a shareholder return policy targeting a total return ratio of 50% or more, underpinned by stable dividend payments.See it on page 5
07
Recovery in live events and strong performance in amusement facility operations provided positive contributions to the IP Production and Amusement segments.See it on page 10

Summary

The Bandai Namco Group’s fiscal year 2023 results reflect a period of robust growth and strategic expansion, with consolidated net sales reaching 990 billion yen, a notable increase from the previous year. Operating profit for the period stood at 116.4 billion yen. The company’s performance was driven by strong results in the Toys and Hobby segment, which benefited from high demand for products targeting mature fan bases, cards, and capsule toys, alongside favorable repeat sales of major home video game titles such as Elden Ring within the Digital segment.

The company maintains a diversified business model spanning Digital, Toys and Hobby, IP Production, and Amusement segments. While the Digital segment faced challenges related to title lineup shifts and valuation losses on work-in-process, the Toys and Hobby segment demonstrated resilience by maintaining high profit margins despite rising freight and material costs. The IP Production and Amusement units also contributed positively, bolstered by a recovery in live events and strong performance in amusement facility operations.

Looking ahead, the group has set a fiscal year 2024 net sales target of 1 trillion yen, supported by a strategy to enhance global development capabilities and strengthen IP creation. A core component of this long-term growth strategy is the expansion of the overseas sales ratio, which is targeted to reach 35% in the near term and 50% in the future. The company remains committed to a shareholder return policy targeting a total return ratio of 50% or more, underpinned by stable dividend payments. These projections are supported by planned investments in major visual works, global product roll-outs, and the continued integration of the "All Bandai Namco" concept to leverage group-wide resources across international markets.