Financialmixi
Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
5 pages~8 min full read
Profitability declined significantly in fiscal year 2018, with operating profit falling 18.4% to ¥72,359 million and net profit attributable to owners of the parent dropping 30.8% to ¥41,788 million.
See it on page 2Net sales decreased by 9.2% year-over-year, falling from ¥207,161 million in 2017 to ¥189,094 million in 2018.
See it on page 2Operating profit margins were compressed by a 12.5% increase in selling, general, and administrative expenses, even as the cost of sales remained stable.
See it on page 2Intangible assets experienced a major collapse, dropping from ¥8,954 million to ¥391 million due to a write-off of goodwill.
See it on page 1The company maintained strong liquidity, with cash and deposits increasing to ¥156,190 million and operating cash flow improving to ¥49,975 million.
See it on page 5Shareholders' equity grew to ¥169,587 million, bolstered by an increase in retained earnings and a reduction in treasury shares.
See it on page 4Capital expenditures totaled ¥1,329 million, contributing to an increase in property, plant, and equipment from ¥1,286 million to ¥1,888 million.
See it on page 1The consolidated financial statements for the fiscal year ending March 31, 2018 show a modest contraction in operating performance relative to 2017. Net sales fell from ¥207,161 million to ¥189,094 million, a 9.2 % decline, while gross profit decreased from ¥183,013 million to ¥166,043 million. Operating profit dropped 18.4 % from ¥89,008 million to ¥72,359 million, largely due to a 12.5 % rise in selling, general and administrative expenses despite stable cost of sales. Ordinary profit fell 18.3 % to ¥72,717 million, and after extraordinary items the profit attributable to owners of parent declined 30.8 % to ¥41,788 million.
Total assets increased from ¥176,974 million to ¥192,123 million, driven by higher cash and deposits (¥134,278 → ¥156,190 million) and a significant rise in investment securities (¥2,559 → ¥3,351 million). Property, plant and equipment grew to ¥1,888 million from ¥1,286 million, reflecting capital expenditures of ¥1,329 million. Intangible assets collapsed from ¥8,954 million to ¥391 million due to the write‑off of goodwill. Shareholders’ equity expanded from ¥150,029 million to ¥169,587 million, supported by retained earnings growth and a reduction in treasury shares.
Liquidity remained strong; cash and equivalents rose to ¥156,190 million. Operating cash flow improved from ¥41,303 million to ¥49,975 million, while investing activities generated a net inflow of ¥5,601 million in 2018 versus ¥1,950 million the prior year. Financing cash outflows were largely driven by treasury share repurchases and dividend payments, totaling ¥22,447 million. Overall, the company maintained solid liquidity but faced declining profitability amid higher operating costs and a significant goodwill impairment.
