Bushiroad Fiscal 2020 Financial Results

Key insights

7 takeaways

01
Bushiroad reported fiscal 2020 net sales of 33,000 million yen, a 2.6% increase over the previous year, despite a decline in overall profitability.
02
Operating profit fell 11.4% to 2,710 million yen, causing the operating profit ratio to contract from 9.5% in 2019 to 8.2% in 2020.
03
Profit attributable to owners of the parent declined by 13.8% to 1,551 million yen during the period ending July 31, 2020.
04
Total assets expanded significantly to 34,518 million yen from 24,136 million yen, while the equity-to-asset ratio dropped from 46.9% to 38.3%.
05
Return on equity (ROE) saw a notable decline, falling from 20.5% in the previous year to 12.6% in fiscal 2020.
06
The company issued no dividends for fiscal 2020 and has maintained a zero-dividend policy for the upcoming 2021 fiscal year.
07
Management has declined to provide a formal financial forecast for fiscal 2021, citing the difficulty of making accurate projections due to current market conditions.

Summary

Bushiroad’s fiscal 2020 financial results, covering the period from August 1, 2019, to July 31, 2020, reflect a period of modest top-line growth tempered by a decline in overall profitability. The company reported net sales of 33,000 million yen, representing a 2.6 percent increase over the previous fiscal year. Despite this revenue growth, operating profit fell by 11.4 percent to 2,710 million yen, and profit attributable to owners of the parent declined by 13.8 percent to 1,551 million yen. These figures indicate a contraction in margins, with the operating profit ratio slipping from 9.5 percent in fiscal 2019 to 8.2 percent in fiscal 2020.

The company’s financial position showed significant expansion in scale, with total assets rising to 34,518 million yen from 24,136 million yen in the prior year. However, the equity-to-asset ratio decreased from 46.9 percent to 38.3 percent. Return on equity also saw a notable decline, dropping from 20.5 percent to 12.6 percent, while return on assets fell to 9.4 percent. Consistent with the previous fiscal year, the company did not issue dividends for fiscal 2020 and has maintained a policy of zero dividends for the upcoming fiscal 2021 period.

Looking ahead, the company has declined to provide a formal forecast for fiscal 2021. Management cites the difficulty of making reasonable calculations for consolidated business results at this time, opting to withhold guidance until market conditions allow for more accurate projections. The results highlight a challenging fiscal environment characterized by rising asset bases and revenue growth that failed to translate into bottom-line gains.