Rediscovering Our Founding Spirit:
Our Customers’ Delight is Our (the Company’s) Delight
In the 43 years that have passed since our founding, our unmatched scale and product lineup along with strong regional loyalty have enabled us to open 15 large-scale stores throughout the Kanto region. However, we now find ourselves in the midst of the so-called fourth industrial revolution, and society, industry, and people’s lifestyles are evolving at an unprecedented pace due to the advancement of technology. A dizzying array of devices have been born, everything is connected to the internet, and the amount of information being exchanged is growing at a staggering rate. In this world we live in, society, industry, and every field imaginable is being redefined, and this represents new business opportunities that could transform both business and our very way of life as we know it.
After debating how we should evolve in the face of this new reality, our Group decided to return to its founding principles and clearly redefine its action guideline.
Our corporate group name is derived from the words JOY and FULL. The reason why we do business, the mission we hope to accomplish, is to be a company that fills the lives of its customers and employees with joy. And in doing so, we want to continue to grow together with people from all regions, as well as our clients and our shareholders.
And so we reaffirm our commitment to our common values: Making people happy and filling their lives with warmth and smiles through our products and stores. It’s time we returned to our roots.
Going forward, Joyful Honda Group will continue to evolve, always looking for ways to contribute to society while holding its core philosophy close to its heart: Our Customers’ Delight is Our (the Company’s) Delight.
[Operating Performance for Fiscal 2018]
Joyful Honda Co., Ltd. (hereinafter the “Company”) has set the 43rd fiscal year ending June 20, 2018, as the First Year for Reforms, and established the three policies below with the basic theme, Create New Value with Customers to achieve further growth towards a highly profitable company in the medium- and long-term perspective.
- Creation of business growth areas and markets through selection and concentration
- Building of a strong management structure
- Enhancement of active use of human resources that sustain the Company and placement of corporate culture
Under the above three policies, the Company has been working to establish a structural foundation toward further growth, with the implementation of reforms, which are 1. Business Structural Reform, 2. Merchandising Structural Reform, 3. Organization Structural Reform, and 4. Cost Structural Reform.
During the fiscal year under review, consolidated net sales decreased 6,258 million yen, or 4.0%, year on year to 148,676 million yen. Gross profit margin improved, which was attributable to the implementation of reforms to organizational and cost structures, and sales, general and administrative expenses decreased 968 million yen, or 2.5%, year on year, reflecting a reduction of total working hours. As a result, the Company posted operating income of 7,981 million yen, a year-on-year increase of 586 million yen, or 7.9%, and ordinary income of 8,800 million yen, a year-on-year increase of 778 million yen, or 9.7%.
Regarding major special factors, the Company posted a gain on asset retirement obligations of 1,608 million yen under extraordinary income in the previous fiscal year, following the purchase of premises for stores (Chiba New Town store and Utsunomiya store), which had been rented from the Urban Renaissance Agency based on a fixed-term lease agreement for business purposes. In addition, the Company posted an impairment loss of 507 million yen under extraordinary loss, resulting mainly from the reconstruction of Joyful Athletic Club Tsuchiura in the fiscal year under review.
As a result, the Company posted profit attributable to parent company shareholders of 5,594 million yen, a year-on-year decrease of 535 million, or 8.7%.
Joyful Honda Co., Ltd. has set the fiscal year ending June 20, 2019, as the year to complete structural reforms through “Planning and Execution,”
and will endeavor to create stores and sales floors that are frequented by customers and aggressively expand into new businesses. In addition, we will improve the sales floor environment of our existing stores through capital investments designed to enhance their sales capabilities, in an effort to make our stores attractive to customers.
- Yukio Yaguchi
- President and CEO
- JOYFUL HONDA CO., LTD.