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During the fiscal year under review (January 1, 2017 to December 31, 2017), the Japanese economy while greater uncertainty in overseas economies and fluctuation in financial and capital markets required attention, the gradual trend in economic recovery continued, reflecting improvements in corporate earnings and the employment environment.
Under these circumstances, the Group worked on the “Self-reform focusing on value creation ? Value Transformation 2018” three-year medium-term management plan that started from the fiscal year ending in December 2016, to realize customer-oriented value creation and the “development of the ability to sustain profitability” to enable medium- to long-term sustainable growth.
Boosted by the Kaunet online and catalog sales business and growth in office furniture sales in Japan, net sales rose to ¥315.6 billion (up 2.6% year on year). Gross profit increased to ¥110.1 billion (up 4.4% year on year) as a result of not only growth in revenue but also several other factors including an improvement in the gross profit margin due to efforts to cut costs and better the product mix. On the other hand, selling, general, and administrative expenses were ¥92.5 billion (up 2.8% year on year) as efforts were made to efficiently use funds, and the ratio of selling, general and administrative expenses to net sales was 29.3%, about the same as that for FY2016. As a result, operating income increased to ¥17.5 billion (up 13.9% year on year). Ordinary income increased to ¥19.1 billion (up 21.9% year on year). Profit attributable to owners of parent rose to ¥15.0 billion (up 23.1% year on year) because of a decline in income taxes, etc., which fell due to a reevaluation of the possibility of recovering deferred tax assets.

Hidekuni Kuroda Representative Director of the Board, President and CEO
Hidekuni Kuroda
Representative Director of the Board,
President and CEO