■Performance Trends

1. Summary of financial results for the fiscal year ending March 31, 2024

Trenders ＜6069＞'s financial results for the fiscal year ending 2024/3 were sales of 5,673 million yen (down 37.6% from the previous fiscal year), operating income of 788 million yen (down 22.0% from the same period), ordinary income of 773 million yen (down 24.3% from the same period), and net income attributable to parent company shareholders of 479 million yen (down 32.3% from the same period). Contract details were changed for some transactions in the marketing business, and since they went from gross recording to internet recording, sales declined drastically on the surface. Note that the change in the accounting method does not affect the profit side. Net sales for the fiscal year ended 2023/3 calculated were 5,471 million yen, effectively increasing sales by 3.7% from the same period. Compared to earnings forecasts, sales decreased by 8.7%, operating profit decreased by 31.4%, ordinary profit decreased by 32.7%, and net income attributable to parent company shareholders decreased by 38.5%.

Selection and concentration were carried out in the marketing business from the 2024/3 fiscal year, and as a result of strategically focusing on the beauty category, sales volume (net) in the beauty category increased by 23.7% compared to the previous fiscal year. Meanwhile, sales declined in categories other than beauty, such as food and beverages, which fell below expectations. However, due to the contribution of the beauty category, sales in the same business as a whole increased 16.9% from the same period. For existing customers in categories other than beauty, a team in charge of anything other than beauty is formed and transactions are continued, and if new orders are received, they are accepted, but the stance is that active sales are not carried out from the company. The beauty category accounted for 86% of the gross margin composition ratio (up 18 points from the same period). The investment business did not record earnings similar to sales proceeds from sales of operating investment securities in the previous fiscal year, and sales declined by 82.3% from the same period. Gross profit increased 16.8% from the same period to 3061 million yen. Although profit declined in the marketing business outside of the beauty category, the beauty category grew by 27.9% due to an increase in projects with high profit margins such as SNS analysis and consulting, and the growth of influencer marketing and MimiTV, and the same business as a whole increased 23.0%. The investment business declined 61.7% from the same period. SG&A expenses increased 41.3% from the same period to 2,273 million yen. Major factors include an increase in labor costs of 188 million yen in the beauty marketing area, an increase of 153 million yen in advertising costs due to the implementation of large-scale promotions such as TV commercials aimed at expanding awareness of MimiTV, and an increase in costs of 202 million yen in the medical marketing area. As a result, profit at each stage below operating income declined drastically compared to the previous fiscal year, but the company positions it as an investment period aimed at achieving medium-term management plan targets, and it is said that sales and administration expenses are within the expected range.

2. Results by business

(1) Marketing business

Net sales were 5,544 million yen (down 33.7% from the previous fiscal year), gross profit was 2,988 million yen (up 23.0% from the same period), and segment profit was 848 million yen (down 9.6% from the same period). As for sales, when compared on the internet, sales increased 16.9% from the same period. As a result of focusing on promoting influencer marketing and expanding awareness of MimiTV, the beauty category achieved significant growth, with sales (net) increasing 23.7% from the same period and gross margin increasing 27.9% from the same period. The amount of orders received per brand increased by 8% over the same period, and the number of brands traded increased by 13% over the same period. As for gross margin by service in the beauty marketing area, influencer marketing increased 21.5% from the same period, and MiMiTV increased 33.7% from the same period.

In influencer marketing, performance was improved by utilizing “LIN” to provide optimal solutions according to products and target characteristics, covering all SNS platforms such as TikTok. MimiTV transmits the latest beauty information according to the characteristics of each SNS, and the total number of followers on the official account reached approximately 5.81 million people as of 2024/4. In particular, it is thought that the steady increase in the number of followers on the main platform X and the focus platform Instagram contributed to business results. MimiTV's large-scale promotion policy seems to have succeeded in expanding awareness of customer companies and consumers other than SNS users with high awareness of the company. As a result of the TV advertisement, the order sales amount during the advertisement implementation period increased by about 1.5 times compared to the same period last year, and the company determined that there was a certain effect, such as leading to partnerships and collaborations with iStyle, etc. Regarding human resource investment, we are focusing on points such as hiring human resources with planning and proposal capabilities for future business expansion, strengthening employees' skills related to marketing and branding, and developing human resources with management skills associated with organizational expansion, and we will continue to promote them in the future.

The medical marketing area has a policy of specializing in hair regeneration and medical permanent makeup, and investments are being actively made with the aim of monetization for the 2026/3 fiscal year. In the 2024/3 fiscal year, gross margin increased by 71 million yen due to marketing/operation DX support such as SNS advertisement operation, website development, and introduction of an online reservation system for the cosmetic internal medicine clinic “MaisonTheBeauty Clinic” and the permanent makeup clinic “ARS CLINIC TOKYO/GINZAMAISON.”

The decline in segment profit is mainly due to a decrease in gross margin other than the beauty category and medical marketing area, an increase in labor costs and advertising costs for business growth in the beauty marketing area, and an increase in costs in the medical marketing area.

(2) Investment business

Net sales were 129 million yen (down 82.3% from the previous fiscal year), gross profit was 72 million yen (down 61.7% from the same period), and segment profit was 70 million yen (down 62.3% from the same period). While there were 2 sales of operating investment securities in the previous fiscal year, sales and profit declined due to the fact that the 2024/3 fiscal year remained at only 1 case, and valuation losses (50 million yen) of operating investment securities held were recorded. Since the purpose is mainly to generate profits to acquire investment capital for the marketing business, corporate bonds are managed mainly for those that reach a redemption date in about half a year, which can be flexibly handled according to business capital demand, taking into account period risks. In addition, equity investments in investment business limited liability associations and investments in startup companies are being carried out. Both are operated for industries the company is familiar with and companies where collaboration can be expected.

(Author: FISCO Analyst Tomokazu Murase)