Financial Summary for FY2009
and Outlook for FY2010
- Although the Japanese economy is on the course of gradual recovery from the recession triggered by the US financial crisis, the severe employment and income conditions remained unchanged.
- As advertisers cut their advertising budgets, our business environment remained extremely severe. Against such a backdrop, we pursued more aggressive business activities, while capitalizing on various communication opportunities such as the 12th IAAF World Championships in Athletics, Berlin 2009TM and the Vancouver 2010 XXI Winter Olympic Games. All this has translated into some improvements in financial results in the 2nd half.
- In summary, the Group posted consolidated net sales (billings) of 1678.6 billion yen (-11.1% compared to the previous fiscal year), gross profit of 296.4 billion yen (-5.7%) and a gross profit margin of 17.7%, an improvement of 1.0 percentage point on a year-on-year-basis.
- Owing to our fundamental cost-cutting efforts, the Group,s SG&A, or selling, general and administrative expenses, were reduced by 12.1 billion yen, or 4.5% from a year ago to 259.1 billion yen.
- As a result, the Group posted operating income of 37.3 billion yen, 13.6% down from a year ago, and ordinary income of 44.7 billion yen, 16.1% down from a year ago.
- The Group posted net income of 31.1 billion yen, which was due in part to the absence of a loss on valuation of investment securities of 51.1 billion yen recorded in the previous fiscal year. Another significant factor was a decrease in the effective tax rate owing to deductions and deferred tax assets recorded, which related to a portion of the loss on valuation of investment securities posted in past fiscal years.