Revenue growth and improved profitability

「Although revenue from the recovery business conducted through the subsidiary ベネクス grew steadily, revenue from the company's anti-aging business declined, resulting in total revenue of ¥7,342 million, down 13.9% year on year, for the current interim consolidated accounting period. Operating income was ¥626 million, down 36.0% year on year, due mainly to selling expenses, including advertising expenses for new customer acquisition in the anti-aging business, falling below plan. Ordinary income was ¥676 million, down 30.3%, and interim net income attributable to owners of the parent was ¥445 million, down 23.4%.」

「Although revenue from the recovery business conducted through the subsidiary ベネクス grew steadily, revenue from the company's anti-aging business declined, resulting in total revenue of ¥16,160 million, down 20.6% year on year, for the current consolidated fiscal year. Meanwhile, operating income was ¥617 million, up 343.8% year on year, due to selling expenses, mainly advertising expenses, falling below plan in the mail-order channel because advertising efficiency for new customer acquisition did not improve sufficiently, as well as continued fixed-cost reductions and appropriate cost management. Ordinary income was ¥599 million, up 271.8%, and net income attributable to owners of the parent was ¥471 million, compared with a net loss attributable to owners of the parent of ¥1,483 million in the prior year.」

「Although revenue from the recovery business conducted through the subsidiary ベネクス grew steadily, revenue from the company's anti-aging business declined, resulting in total revenue of ¥8,528 million, down 19.9% year on year, for the current interim consolidated accounting period. Meanwhile, operating income was ¥977 million, compared with an operating loss of ¥205 million in the prior-year period, due to controls on selling expenses, mainly advertising expenses, because advertising efficiency for new customer acquisition in the mail-order channel did not improve sufficiently, as well as fixed-cost reductions in line with the business scale and appropriate cost management. Ordinary income was ¥970 million, compared with an ordinary loss of ¥199 million, and interim net income attributable to owners of the parent was ¥581 million, compared with an interim net loss attributable to owners of the parent of ¥1,685 million.」

「Although revenue from the recovery business conducted through the subsidiary ベネクス increased, revenue from the company's anti-aging business declined, resulting in total revenue of ¥15,439 million, down 25.1% year on year, for the cumulative third quarter of the current consolidated fiscal year. Although the decline in the anti-aging business reduced gross profit, operating income was ¥3 million, down 92.4% year on year, due to growth in profits from the recovery business and controlled advertising investment based on a new customer acquisition policy focused on acquisition efficiency and conversion rates amid persistently high advertising costs in the mail-order market. Ordinary income was ¥44 million, up 1.3% year on year, due to increased foreign-exchange gains resulting from the weaker yen. The quarterly net loss attributable to owners of the parent was ¥1,450 million, compared with a net loss of ¥153 million in the prior-year period, due to impairment losses on software assets, contract losses, and provision for contract losses recorded as extraordinary losses in the second quarter, as well as the reversal of deferred tax assets recorded in income taxes.」

「Although revenue from the recovery business conducted through the newly added subsidiary ベネクス increased, revenue from the company's anti-aging business declined, resulting in total revenue of ¥10,649 million, down 25.3% year on year, for the cumulative second quarter of the current consolidated fiscal year. Despite higher profits in the recovery business and controls on advertising expenses for new customer acquisition amid persistently high advertising costs in the mail-order market, the decline in revenue reduced gross profit, resulting in an operating loss of ¥205 million, compared with operating income of ¥109 million in the prior-year period, and an ordinary loss of ¥199 million, compared with ordinary income of ¥95 million.」

「Although revenue from the recovery business conducted through the newly added subsidiary ベネクス increased, revenue from the anti-aging businesses operated by the company, including skincare, haircare, and inner care, declined, resulting in total revenue of ¥5,264 million, down 28.8% year on year, for the cumulative first quarter of the current consolidated fiscal year. Although the decline in revenue reduced gross profit, the operating loss narrowed to ¥35 million, compared with an operating loss of ¥244 million in the prior-year period, as advertising investment declined amid a deterioration in the customer acquisition environment caused by increased advertising by competitors.」

「Revenue for the current consolidated fiscal year was ¥26,400,665 thousand, down ¥7,511,237 thousand year on year. The company reported an operating loss of ¥611,681 thousand, compared with operating income of ¥2,414,318 thousand in the prior year, an ordinary loss of ¥631,229 thousand, compared with ordinary income of ¥2,572,326 thousand, and a net loss attributable to owners of the parent of ¥733,974 thousand, compared with net income attributable to owners of the parent of ¥1,424,422 thousand.」

「As a result of the activities described above, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥20,609,823 thousand, down ¥5,287,067 thousand year on year. Operating income was ¥42,547 thousand, down ¥1,914,942 thousand, ordinary income was ¥43,447 thousand, down ¥2,098,185 thousand, and the company reported a quarterly net loss attributable to owners of the parent of ¥153,280 thousand, compared with quarterly net income attributable to owners of the parent of ¥1,222,406 thousand in the prior-year period.」

「As a result of the activities described above, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥14,258,716 thousand, down ¥3,711,423 thousand year on year. Operating income was ¥109,034 thousand, down ¥2,139,345 thousand, ordinary income was ¥95,237 thousand, down ¥2,226,669 thousand, and the company reported a quarterly net loss attributable to owners of the parent of ¥26,013 thousand, compared with quarterly net income attributable to owners of the parent of ¥1,360,409 thousand in the prior-year period.」

「As a result of the activities described above, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥7,391,604 thousand, down ¥2,474,145 thousand year on year. The company reported an operating loss of ¥244,294 thousand, compared with operating income of ¥2,074,797 thousand in the prior-year period, an ordinary loss of ¥224,861 thousand, compared with ordinary income of ¥2,132,204 thousand, and a quarterly net loss attributable to owners of the parent of ¥198,039 thousand, compared with quarterly net income attributable to owners of the parent of ¥1,320,414 thousand.」

「As a result of the activities described above, revenue for the current consolidated fiscal year was ¥33,911,903 thousand, up 3.3% year on year. Operating income was ¥2,414,318 thousand, down 48.4%, ordinary income was ¥2,572,326 thousand, down 44.7%, and net income attributable to owners of the parent was ¥1,424,422 thousand, down 49.0%.」

「As a result of the activities described above, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥25,896,891 thousand, up 9.0% year on year. Operating income was ¥1,957,490 thousand, down 55.8%, ordinary income was ¥2,141,632 thousand, down 51.5%, and net income attributable to owners of the parent was ¥1,222,406 thousand, down 56.8%.」

「As a result of the activities described above, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥17,970,140 thousand, up 17.4% year on year. Operating income was ¥2,248,379 thousand, down 8.7% year on year, ordinary income was ¥2,321,906 thousand, down 5.4%, and net income attributable to owners of the parent was ¥1,360,409 thousand, down 13.5%.」

「As a result of the activities described above, revenue was ¥9,865,750 thousand, operating income was ¥2,074,797 thousand, ordinary income was ¥2,132,204 thousand, and net income attributable to owners of the parent was ¥1,320,414 thousand for the cumulative first quarter of the current consolidated fiscal year.」

「Revenue was ¥32,815,296 thousand, operating income was ¥4,680,076 thousand, ordinary income was ¥4,653,138 thousand, and net income attributable to owners of the parent was ¥2,793,627 thousand for the current consolidated fiscal year.」

「As a result of the activities described above, revenue was ¥23,766,104 thousand, operating income was ¥4,428,068 thousand, ordinary income was ¥4,416,380 thousand, and net income attributable to owners of the parent was ¥2,827,751 thousand for the cumulative third quarter of the current consolidated fiscal year.」

「As these risk factors did not materialize, revenue significantly exceeded expectations during the cumulative second quarter of the current consolidated fiscal year. As a result of the activities described above, revenue was ¥15,310,971 thousand, operating income was ¥2,461,906 thousand, ordinary income was ¥2,454,040 thousand, and net income attributable to owners of the parent was ¥1,573,057 thousand for the cumulative second quarter of the current consolidated fiscal year.」

「We place importance on revenue growth from the perspective of securing higher growth. From the perspective of expanding corporate value, we also regard operating income, net income, and the operating margin as important management indicators.」