Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 [J-GAAP]
July 30, 2024
Name of listed company:
Securities code:
Representative:
Contact:

ARTNATURE INC.
Listed on: Tokyo Stock Exchange
7823
URL: https://www.artnature.co.jp/english/index.html
Yoshikata Igarashi, Chairman and President
Hiroaki Inoue, General Manager, Finance & Accounting Division
TEL: +81-3-3379-3334
Senior Corporate Officer
Scheduled date of the start of dividends distribution:―
Supplementary documents for this summary of financial statements:
Yes
Financial results explanatory meeting:
None(Figures shown are rounded down to the nearest million yen.)

1. Consolidated results for the first quarter ended June 30, 2024 (April 1, 2024 – June 30, 2024)(Percentage figures show changes from the previous year.)(1) Consolidated operating results
Net sales

Operating income

Millions of yen%
Millions of yen%
Millions of yen
Three months ended
June 30, 2024
10,166(4.2)
391(63.9)
398
June 30, 2023
10,6071.8
1,083(11.6)
1,106
Note: Comprehensive income:Three months ended June 30, 2024: ¥277 million (-61.4%)
Three months ended June 30, 2023: ¥719 million (-4.5%)

Net income per share
Three months ended
June 30, 2024
June 30, 2023

Net income attributable toowners of the parent
company

Ordinary income%

Millions of yen%(64.0)(12.2)

201
692(70.9)(12.4)

Diluted net income
per share

Yen

Yen

6.19
21.32

6.11
21.05

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen

As of June 30, 2024
49,538
As of March 31, 2024
49,851(Reference) Equity capital: As of June 30, 2024: ¥26,405 million

26,693
26,870Net assets per share

%

Yen

53.3
53.3
As of March 31, 2023: ¥26,582 million

811.69817.17

2. Dividends
First quarter-end

Second quarter-end

Dividends per share
Third quarter-end

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2024―
14.00
Year ending March 31, 2025―
Year ending March 31, 2025
14.00
(forecast)
Note: Revisions to dividend forecasts published most recently: None

―

14.00

28.00

―

14.00

28.00

Year-end

Annual

3. Consolidated financial forecast for the fiscal year ending March 31, 2025 (April 1, 2024 – March 31, 2025)(Percentage figures show changes from the previous year.)Net sales
Millions of yen

Operating income%

Millions of yen

Net income
attributable to ownersof the parent company

Ordinary income

Net income
per share%

Millions of yen%

Millions of yen%

Yen

Full year
45,001
5.0
2,911
9.7
Note: Revisions to most recently announced results forecasts: None

2,949

8.3

1,509

3.2

46.41

Notes:(1) Significant changes to subsidiaries during the period: None
(2) Application of specific accounting methods for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatement of revisions:
None

Note: For details, please refer to “2. Quarterly consolidated financial statements and related notes, (3) Notes on quarterly
consolidated financial statements (Changes in accounting policies)” on page 7.

(4) Number of outstanding shares (common stock):1) Number of shares issued and outstanding (including treasury shares)
As of June 30, 2024
34,393,200 shares
As of March 31, 2024
2) Number of treasury shares
As of June 30, 2024
1,861,639 shares
As of March 31, 2024
3) Average number of shares issued and outstanding in each period
Three months ended June 30, 2024
32,530,897 shares
Three months ended June 30, 2023

34,393,200 shares
1,863,139 shares
32,477,370 shares*

A review of the attached quarterly consolidated financial statements by certified public accountants or auditing firms:
None*

Explanation of the appropriate use of financial results forecasts; other important items(Cautionary statement regarding forward-looking statements, etc.)
Forward-looking statements in this document, including forecasts, are based on information available at the time of disclosure and on
certain assumptions deemed reasonable by the Company. Actual results may differ materially from forward-looking statements due to anumber of factors. For more information about these assumptions and other conditions that form the basis of these forecasts, please see
page 2 of the supplementary materials, “1. Analysis of operating results and financial position, (3) Qualitative information on consolidated
financial forecasts.”

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
Contents
1. Analysis of operating results and financial position .............................................................................................................. 2(1) Analysis of operating results ................................................................................................................................................. 2(2) Analysis of financial position ............................................................................................................................................... 2(3) Qualitative information on consolidated financial forecasts ................................................................................................. 2
2. Quarterly consolidated financial statements and related notes ............................................................................................ 3(1) Quarterly consolidated balance sheets .................................................................................................................................. 3(2) Quarterly consolidated statements of income and comprehensive income .......................................................................... 5(Quarterly consolidated statements of income) .................................................................................................................... 5(Quarterly consolidated statements of comprehensive income) ........................................................................................... 6(3) Notes on quarterly consolidated financial statements .......................................................................................................... 7(Notes on the going concern assumption) ............................................................................................................................ 7(Notes on significant fluctuation in amounts of shareholders’ equity) ................................................................................. 7(Changes in accounting policies).......................................................................................................................................... 7(Notes to segment information, etc.) .................................................................................................................................... 7(Notes to statement of cash flows) ....................................................................................................................................... 9–1–

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025

1. Analysis of operating results and financial position(1) Analysis of operating results
During the first quarter of the consolidated fiscal year under review, the Japanese economy staged a moderate recovery, givena rebound in consumer spending due to the increase in the number of people going out and improved employment and income
resulting from the normalization of social activities. However, the future of the economy remained uncertain, chiefly due toexchange rate fluctuations, surges in raw material prices, and concern about a potential decline in consumer sentiment caused
by price hikes.
Against this backdrop, the Group entered the second year of the ARTNATURE Advance Plan, the medium-term management
plan. As in the previous fiscal year, the Group has been leveraging its strengths and tackling a range of issues to enhance its
business performances and increase its market share in the haircare industry, while simultaneously promoting its businessactivities by expanding businesses acquired in new areas with a view to taking a significant leap for the creation of a new
ARTNATURE capable of opening up the next phase.
However, in the first three months under review, consolidated net sales declined 4.2% year on year, to ¥10,166 million, chiefly
due to the Group’s challenges in attaining new customers and the absence of the boost in sales that occurred in the first threemonths of the previous fiscal year due to the elimination of product delivery delays caused by the COVID-19 pandemic.
Operating income, ordinary income, and net income attributable to owners of the parent company stood at ¥391 million (down
63.9% year on year), ¥398 million (down 64.0% year on year), and ¥201 million (down 70.9% year on year), respectively,
attributable to a year-on-year decrease in net sales and increases in the cost of sales and selling, general and administrative
expenses. Both net sales and operating income were almost in line with plans.
Business results by segment are as follows.
Men’s business
Sales in the men’s business fell to ¥5,246 million (down 4.0% year on year), the result of a year-on-year decline in sales toboth new customers and repeat customers, although the Group implemented customer retention programs and other measures.
Ladies’ business
Sales in the ladies’ business declined 9.4% year on year, to ¥3,270 million due to a fall in sales to new customers, despite there
was a year-on-year increase in sales to repeat customers, which reflected a rise in the number of customers visiting theCompany’s stores.
Ladies’ ready-made wigs business
Sales in the ladies’ ready-made wigs business rose 7.6% year on year, to ¥1,305 million, chiefly reflecting an increase in thenumber of products sold to new customers.
(2) Analysis of financial position
Assets, liabilities and net assets(Assets)
As of the end of the first quarter, total assets were ¥49,538 million, a decrease of ¥313 million compared with the end of theprevious fiscal year. Current assets declined ¥591 million, mainly due to decreases in cash and deposits and accounts receivable– trade, while non-current assets increased ¥278 million, primarily reflecting increases in intangible assets and investments andother assets.
(Liabilities)
As of the end of the first quarter, liabilities totaled ¥22,844 million, a decrease of ¥136 million compared with the end of theprevious fiscal year. This was largely due to a decrease of ¥193 million in current liabilities chiefly due to decreases in accounts
payable - other.
(Net assets)
As of the end of the first quarter, net assets were ¥26,693 million, a decrease of ¥176 million from the end of the previous fiscal
year. This largely reflected a decrease in retained earnings.
(3) Qualitative information on consolidated financial forecasts
Consolidated financial forecasts for the fiscal year ending March 31, 2025 remain the same as those announced on May 15,
2024.

–2–

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Accounts receivable – trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Others, net
Total property, plant and equipment
Intangible assets
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets–3–

As of June 30, 2024

19,317
3,108
28
3,361
178
1,648
1,203
(9)
28,83818,900
2,770
30
3,319
192
1,704
1,338
(9)
28,247

5,635
4,096
9,732

5,544
4,087
9,631

1,280
1,280

1,459
1,459

10,581(581)
9,999
21,01249,851

10,781(581)
10,19921,29049,538ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025

(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Accounts payable – trade
Accounts payable – other
Income taxes payable
Advances received
Provision for bonuses
Provision for directors’ bonuses
Provision for product warranties
OthersTotal current liabilities
Non-current liabilities
Net defined benefit liability
Asset retirement obligations
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets–4–

As of June 30, 2024

292
2,641
257
6,036
1,060
135
43
3,293
13,758

301
1,515
374
6,162
1,599
37
45
3,530
13,565

4,194
3,196
1,830
9,222
22,981

4,260
3,171
1,847
9,279
22,844

3,667
3,624
19,831(1,045)26,077

3,667
3,624
19,577(1,045)25,824

92
116
296
505
276
11
26,87049,851

83
213
284
581
276
11
26,69349,538ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Millions of yen)Three months ended
June 30, 2023
10,607
3,487
7,119
6,036
1,083

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Guarantee commission
OthersTotal non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent company–5–

Three months ended
June 30, 2024
10,166
3,548
6,618
6,226
391

11
45
12
69

11
–
4
16

–
34
5
5
46
1,106

2
–
5
1
9
398

0
2
2
1,104
418
(5)
412
691
(0)
692

0
15
15
383
308
(126)
181
201
0
201

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(Quarterly consolidated statements of comprehensive income)(Millions of yen)Three months ended
June 30, 2023
691

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of the parent company
Non-controlling interests–6–

Three months ended
June 30, 2024
201

32
0
(5)
27
719

(8)
96
(11)
75
277

720
(0)

277
0

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
There is no related information.
(Notes on significant fluctuation in amounts of shareholders’ equity)
There is no related information.
(Changes in accounting policies)
The Company has been applying the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28,
2022; hereinafter the “Accounting Standard Revised in 2022”) since the beginning of the first three months under review.
In response to the revision to the accounting categories for income taxes (taxation on other comprehensive income), theCompany follows the transitional provisions set out in the proviso to Paragraph 20-3 of the Accounting Standard Revised in
2022 and the transitional provisions set out in the proviso to Paragraph 65-2 (2) of the Guidance on Accounting Standard forTax Effect Accounting (ASBJ Guidance No. 28 (revised in 2022), October 28, 2022; hereinafter the “Guidance Revised in2022”). This change to the accounting policy has no impact on the quarterly consolidated financial statements.
In response to the revised guidance on the deferral of gains/losses on the sale of shares in subsidiary between consolidated
companies for tax purposes that are recorded in the consolidated financial statements, the Company has been applying the
Guidance Revised in 2022 since the beginning of the first three months under review. This change in accounting policy isapplied retroactively, and the change is reflected in the quarterly consolidated financial statements and consolidated financial
statements for the previous fiscal year. The change in accounting policy has no impact on the quarterly consolidated financial
statements or consolidated financial statements for the previous fiscal year.
(Notes to segment information, etc.)[Segment information]
I. Three months ended June 30, 2023
1. Information regarding sales, income (loss), by reportable segment(Millions of yen)
Reportable segment
Men’sbusiness
Net sales
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income

Ladies’ready-madewigs
business

Ladies’business

Others
Note 1

Total

Total

Adjustment
Note 2

Amount inquarterly
consolidated
statement ofincomeNote 3

5,466

3,608

1,212

10,287319

10,607–

10,607

–

–

–

–

640

640

(640)

–

5,466

3,608

1,212

10,287960

11,248(640)

10,607

3,374

2,473

992

6,840

304

7,144

(24)

7,119

Notes: 1. Others is not a reportable segment and mainly includes manufacturing subsidiaries.
2. The adjustment of -¥24 million in segment income is an elimination of intersegment transactions related toinventories, etc.
3. Segment income has been adjusted to reconcile with the gross profits in the quarterly consolidated financial
statements.

–7–

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
2. Adjustments to reconcile total segment income for reportable segments with operating income in the quarterly consolidated
statements of income(Millions of yen)AmountTotal for reportable segments
Others Note 1
Total
Adjustment Note 2

6,840
304
7,144
(24)

Gross profit in the quarterly consolidated statements of income.

7,119

Selling, general and administrative expenses

6,036

Operating income in the quarterly consolidated statements of income

1,083

3. Information on impairment losses on non-current assets and goodwill by reportable segment(Important impairment loss on non-current assets)
No significant impairment losses on non-current assets were recognized in the first three months of the previous fiscal year.
(Significant changes in amount of goodwill)
There were no significant changes in the amount of goodwill in the first three months of the previous fiscal year.
II. Three months ended June 30, 2024
1. Information regarding sales, income (loss), by reportable segment(Millions of yen)
Reportable segment
Men’sbusiness
Net sales
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income

Ladies’ready-madewigs
business

Ladies’business

Others
Note 1

Total

Total

Adjustment
Note 2

Amount inquarterly
consolidated
statement ofincomeNote 3

5,246

3,270

1,305

9,822

344

10,166–

10,166

–

–

–

–

723

723

(723)

–

5,246

3,270

1,305

9,822

1,067

10,890(723)

10,166

3,199

2,097

1,034

6,331

332

6,663

(45)

6,618

Notes: 1. Others is not a reportable segment and mainly includes manufacturing subsidiaries.
2. The adjustment of -¥45 million in segment income is an elimination of intersegment transactions related toinventories, etc.
3. Segment income has been adjusted to reconcile with the gross profits in the quarterly consolidated financial
statements.
2. Adjustments to reconcile total segment income for reportable segments with operating income in the quarterly consolidated
statements of income(Millions of yen)AmountTotal for reportable segments
Others Note 1
Total
Adjustment Note 2

6,331
332
6,663
(45)

Gross profit in the quarterly consolidated statements of income

6,618

Selling, general and administrative expenses

6,226

Operating income in the quarterly consolidated statements of income

3. Information on impairment losses on non-current assets and goodwill by reportable segment(Important impairment loss on non-current assets)
No significant impairment losses on non-current assets were recognized in the first three months under review.
–8–

391

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(Notes to statement of cash flows)
The Company did not prepare quarterly consolidated statements of cash flows for the first three months under review.
Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill for the three-month
period under review are as follows:(Millions of yen)Three months ended June 30, 2023
Depreciation
Amortization of goodwill

Three months ended June 30, 2024
215
9

–9–

257
–