June 14, 2023
FOR IMMEDIATE RELEASE
Company Name:
Representative:
Inquiries:
Phone:

Premier Anti-Aging Co., Ltd.
(Securities Code: 4934 Tokyo Stock Exchange)
Kiyoshi Matsuura
President
Yuka Uehara
Head of Corporate Communication Division
and Executive Officer+81-3-3502-2020

Notice Concerning Revision of Earnings Forecasts
Premier Anti-Aging Co., Ltd. announces that its Board of Directors, at a meeting held on June 14, 2023,
decided to revise its consolidated earnings forecasts for the fiscal year ending July 31, 2023 (August 1,2022 to July 31, 2023), as follows.
1. Revision of consolidated earnings forecasts for the fiscal year ending July 31, 2023 (August 1, 2022
to July 31, 2023)(Millions of yen)Previous Forecast (A)(Announced on December14, 2022)
Revised Forecast (B)Difference (B－A)
Rate of Change (%)(Reference) Previous
Actual Results (Fiscal Year
ended July 31, 2022)

Net sales

Operatingprofit(loss)

Ordinary
profit(loss)

Profit (loss)
attributableto owners ofparent

Basicearnings
per share

30,000

1,500

1,520

820

94.03 yen

26,500(3,500)(11.7%)(720)(2,220)-(710)(2,230)-(720)(1,540)-(82.57)yen-

33,911

2,414

2,572

1,424

163.35 yen

2. Rational for revision
Sales of “DUO The Cleansing Balm,” our flagship product, declined in mail-order and wholesale sales
in the first nine months of the fiscal year ending July 31, 2023, due to continued intensifying
competition in the cleansing market and balm formulations. Sales continue to decline mainly due to agreater than expected number of customers switching to oil formulations in mail-order sales andlosing its market share to low-priced balm products from competitors in wholesale sales. At the timeof the announcement of the second quarter financial results, CPO remained stable, so from the thirdquarter onwards, we planned to actively implement the investments necessary for sales growth whileemphasizing advertising efficiency. However, new acquisition measures to further improve LTV havenot been effective as expected, and new acquisition remains at a low level, and sales of “DUO” areexpected to decline in the fourth quarter.
On the other hand, “clayence” had been achieving steady growth as the concept of gray hair care foryoung people quickly penetrated the market after the brand was launched, and we expected strong
sales growth. However, the relationship between CPO and LTV worsened in the third quarter due tothe implementation of measures to acquire new customers to improve LTV, resulting in thesuppression of new acquisitions that directly lead to sales.
Due to the above factors, the two brands of “DUO” and “clayence” will mainly push down the sales
forecast, and the full year sales are expected to be 26.5 billion yen.
In terms of profits, in addition to the decrease in gross profit due to the decrease in sales, werecorded a loss on valuation of inventories of approximately 500 million yen in the third quarter. Since
we will incorporate the occurrence of a partial valuation loss on inventories in the fourth quarter, wehave revised operating profit, ordinary profit, and loss attributable to owners of parent as above.
The background to the above inventory evaluation is as follows.
Inventories have been steadily declining since the end of the previous fiscal year. However, sales ofsome products have fallen short of sales plans due to the decline in sales, the withdrawal of certain
brands, and the review of overseas business strategies and inventories have still remained. In order tomaintain a strong financial position and solidify the foundation for re-growth for the future, we posted
an inventory valuation loss in the third quarter, having taken into consideration the sales situation ofsome products.
We are causing concern to our shareholders and other stakeholders by lowering our earnings forecast
for the current fiscal year to a consolidated net loss. The management team is constantly discussing
our future strategic initiatives, and we will provide an explanation at the appropriate time.
(Note) The above forecast is based on the information currently available, and the actual results maychange due to various factors.