Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 [J-GAAP]
July 27, 2023
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 filing the quarterly financial report:
August 9, 2023―
Scheduled date of the start of dividends distribution:
Supplementary quarterly materials prepared:
None
Explanation meeting for quarterly financial results:
None(Figures shown are rounded down to the nearest million yen.)

1. Consolidated results for the first quarter ended June 30, 2023 (April 1, 2023 – June 30, 2023)(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
10,6071.8
1,083(11.6)
1,106
June 30, 2023
10,414
9.5
1,225
35.5
1,260
June 30, 2022
Note: Comprehensive income:Three months ended June 30, 2023: ¥719 million (-4.5%)
Three months ended June 30, 2022: ¥752 million (28.8%)

Net income per share
Three months ended
June 30, 2023
June 30, 2022

Net income attributable toowners of the parent
company

Ordinary income%

Millions of yen(12.2)
49.7

692
790

%

(12.4)
61.8

Diluted net income
per share

Yen

Yen

21.32
24.60

21.05
24.32

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen

46,939As of June 30, 2023
As of March 31, 2023
47,956(Reference) Equity capital: As of June 30, 2023: ¥25,951 million

26,19825,927

Net assets per share%

55.3
53.5
As of March 31, 2023: ¥25,662 million

798.40790.26

2. Dividends
First quarter-end

Second quarter-end

Dividends per share
Third quarter-end

Yen

Yen

Yen

Yen

Yen

14.00
Year ended March 31, 2023―
Year ending March 31, 2024―
Year ending March 31, 2024
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, 2024 (April 1, 2023 – March 31, 2024)(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

44,763
3.6
3,743
4.8
Full year
Note: Revisions to most recently announced results forecasts: None

3,821

8.1

2,140

14.2

65.92

Notes:(1) Significant changes to subsidiaries during the period (Transfers of specific subsidiaries with changes in the scope of consolidation): 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.: None
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatement of revisions:
None(4) Number of outstanding shares (common stock):1) Number of shares issued and outstanding (including treasury shares)As of June 30, 2023
34,393,200 shares
As of March 31, 2023
2) Number of treasury shares
As of June 30, 2023
1,888,439 shares
As of March 31, 2023
3) Average number of shares issued and outstanding in each period
Three months ended June 30, 2023
32,477,370 shares
Three months ended June 30, 2022**

34,393,200 shares
1,919,239 shares
32,128,780 sharesThis quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public
accountants or the independent auditor.
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, 2024
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) ................................................................................. 7–1–ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

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 saw signs of a recovery in consumer
spending, given the normalization of economic activities attributable partly to the reclassification of COVID-19 in May 2023
under the Infectious Diseases Control Law. However, it continued to face an uncertain situation, partly reflecting a rise in thecost of living due chiefly to the weakening of the yen and surges in raw material and energy prices.
Against this backdrop, the Group formulated the ARTNATURE Advance Plan, a new medium-term management plan, andbegan to implement it in the current fiscal year. Amid the current situation where the future outlook is still uncertain, the Grouphas 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 business activities by expanding businesses acquired in newareas with a view to taking a significant leap for the creation of a new ARTNATURE capable of opening up the next phase.
As a result, consolidated net sales in the first three months under review increased 1.8% year on year to ¥10,607 million. In
terms of profits, while net sales rose, operating income and ordinary income stood at ¥1,083 million (down 11.6% year onyear) and ¥1,106 million (down 12.2% year on year), respectively, due to increases in the cost of sales, sales expenses andgeneral and administrative expenses. Similarly, net income attributable to owners of the parent company came to ¥692 million(down 12.4% year on year).
Business results by segment are as follows.
Men’s business
Sales in the men’s business increased 1.3% year on year, to ¥5,466 million, as a result of promotion of customer retention
programs, among other initiatives.
Ladies’ business
Sales in the ladies’ business rose 1.3% year on year, to ¥3,608 million, chiefly reflecting a rise in the number of customers
visiting the Company’s stores.
Ladies’ ready-made wigs business
Sales in the ladies’ ready-made wigs business rose 13.0% year on year, to ¥1,212 million, chiefly reflecting an increase in thenumber of products sold due to a rise in the number of customers visiting retail facilities in which the Company’s stores arelocated.
(2) Analysis of financial position
Assets, liabilities and net assets(Assets)
As of the end of the first quarter, total assets were ¥46,939 million, a decrease of ¥1,016 million compared with the end of theprevious fiscal year. Current assets decreased ¥1,069 million, mainly due to a fall in cash and deposits, while non-current assets
increased ¥52 million, primarily reflecting an increase in investments and other assets.
(Liabilities)
As of the end of the first quarter, liabilities totaled ¥20,740 million, a decrease of ¥1,288 million compared with the end of theprevious fiscal year. This was largely due to decreases in accounts payable-other, income taxes payable and advances received,
as well as a decrease of ¥1,390 million in current liabilities mainly due to increases in provision for bonuses and others incurrent liabilities.
(Net assets)
As of the end of the first quarter, net assets were ¥26,198 million, an increase of ¥271 million compared with the end of theprevious fiscal year. This largely reflected an increase in retained earnings.
(3) Qualitative information on consolidated financial forecasts
Consolidated financial forecasts for the fiscal year ending March 31, 2024 remain the same as those announced on May 12,2023.

–2–

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2023
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
Goodwill
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, 2023

20,180
3,044
25
3,379
203
1,364
1,116(4)29,31019,339
2,790
26
3,272
207
1,451
1,158(4)28,241

4,675
4,120
8,795

4,622
4,116
8,738

54
504
558

45
534
579

9,838(547)9,291
18,64547,956

9,962(582)
9,380
18,69846,939

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilitiesAccounts 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, 2023

318
2,205
995
6,184
1,252
145
43
3,403
14,548

334
1,083
491
5,939
1,590
37
45
3,635
13,157

4,165
1,545
1,769
7,480
22,028

4,238
1,562
1,781
7,582
20,7403,667
3,613
19,278(1,077)25,481

3,667
3,619
19,516(1,060)25,742

10
46
124
181
251
12
25,92747,9564246119209235
1226,198
46,939

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024
(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)Three months ended
June 30, 2022
10,414
3,278
7,135
5,909
1,225

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
Provision of allowance for doubtful accountsGuarantee 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
Loss attributable to non-controlling interests
Net income attributable to owners of the parent company–5–(Millions of yen)Three months ended
June 30, 2023
10,607
3,487
7,119
6,036
1,083

15
69
1095

1145
1269

51
6
260
1,260

34
5
546
1,106

0
2
2
1,258
566
(97)469789(0)
790

022
1,104
418(5)
412
691(0)
692

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024
(Quarterly consolidated statements of comprehensive income)Three months ended
June 30, 2022
789

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–(Millions of yen)Three months ended
June 30, 2023
691(60)149(36)
752

32
0(5)
27719

754
(1)

720(0)

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024
(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.

–7–