FinancialKoei Tecmo
Summary of Consolidated Financial Results for the Year Ended March 31, 2022
1 Apr 202210 pages~14 min full read
Koei Tecmo Holdings reported strong fiscal growth for the year ended March 31, 2022, with net sales rising 20.5% to ¥72.76 billion and operating profit surging 41.5% to ¥34.53 billion.
The company executed a significant capital reallocation strategy, including a ¥38.53 billion expenditure on treasury share purchases and the issuance of ¥48.10 billion in convertible bonds.
Total assets grew to ¥219.80 billion, driven by an aggressive investment strategy that saw ¥146.63 billion directed toward the purchase of investment securities.
Despite record-breaking performance, total net assets decreased from ¥165.13 billion to ¥138.10 billion, largely due to the strategic treasury share buybacks.
The company maintained a profit attributable to owners of ¥35.36 billion while returning ¥14.93 billion to shareholders through dividends.
The outlook for the 2023 fiscal year is conservative, with projected sales growth of 5.8% and a forecasted 5.9% decline in operating profit.
Koei Tecmo Holdings achieved substantial financial growth during the fiscal year ended March 31, 2022, characterized by a 20.5% increase in net sales to ¥72.76 billion and a 41.5% surge in operating profit to ¥34.53 billion. This performance was bolstered by strong operational cash flows of ¥24.82 billion, contributing to a rise in cash and cash equivalents to ¥19.50 billion. Despite these gains, total net assets decreased from ¥165.13 billion to ¥138.10 billion, a shift primarily driven by a strategic ¥38.53 billion expenditure on treasury share purchases.
The company’s capital structure underwent significant changes during this period, marked by the issuance of ¥48.10 billion in convertible bonds. This influx of capital supported an aggressive investment strategy, with ¥146.63 billion directed toward the purchase of investment securities. Total assets climbed to ¥219.80 billion, reflecting a portfolio heavily weighted toward cash and securities. While the company maintained a robust profit attributable to owners of ¥35.36 billion, it also distributed ¥14.93 billion in dividends, balancing shareholder returns with large-scale reinvestment.
Looking toward the 2023 fiscal year, the outlook remains cautious despite the previous year's momentum. Projections suggest a modest 5.8% increase in sales alongside a forecasted 5.9% decline in operating profit. This conservative guidance indicates a transition period following a year of record-breaking financial expansion and significant capital reallocation. The overall fiscal health remains stable, supported by high liquidity and a diversified asset base, even as the company prepares for potential fluctuations in profitability in the near term.
