Bushiroad Financial Report: First Quarter of Fiscal 2021

Key insights

6 takeaways

01
Bushiroad reported a net loss of 154 million yen for the first quarter of fiscal 2021 (August 1 to October 31, 2020), shifting from profitability in the same period of the prior year.
02
Net sales grew by 8.0% year-over-year to reach 8,971 million yen, despite the company recording an operating loss of 82 million yen.
03
Earnings per share dropped to a negative 9.57 yen, compared to a profit of 40.24 yen per share in the first quarter of the previous fiscal year.
04
The company's equity-to-asset ratio tightened to 33.0% from 38.3% in the prior fiscal year, reflecting a contraction in the balance sheet.
05
Management has suspended all full-year earnings guidance and dividend projections for fiscal 2021 due to ongoing market volatility and uncertainty.
06
The company has officially adjusted its fiscal year-end date from July 31 to June 30.

Summary

Bushiroad’s financial performance for the first quarter of fiscal year 2021, covering the period from August 1, 2020, to October 31, 2020, reflects a period of significant operational transition and financial contraction. The company, which adjusted its fiscal year-end from July 31 to June 30, reported net sales of 8,971 million yen, representing an 8.0% increase compared to the same period in the previous fiscal year. Despite this growth in top-line revenue, the company shifted from profitability to a loss, recording an operating loss of 82 million yen, an ordinary loss of 93 million yen, and a net loss attributable to owners of the parent of 154 million yen.

The decline in profitability is underscored by a negative profit per share of 9.57 yen, a stark contrast to the 40.24 yen profit per share reported in the first quarter of the prior year. The company’s financial position shows total assets of 39,638 million yen and net assets of 13,733 million yen, with an equity-to-asset ratio of 33.0%. These figures indicate a tightening of the balance sheet compared to the previous fiscal year, where the equity-to-asset ratio stood at 38.3%.

Given the ongoing volatility and uncertainty in the market environment, management has determined that providing a reliable forecast for the remainder of the 2021 fiscal year is currently not feasible. Consequently, no dividend projections or full-year earnings guidance have been issued. The company intends to provide updated financial forecasts as soon as market conditions allow for more accurate and reasonable calculations.