YA-MAN Group, a Japanese company specializing in beauty devices, released its financial report for the three-month period ending June 2023.
Its net sales for the period declined by 17.6% year-on-year to 9,627 million yen ($65.43 million). Operating profit decreased by 6.2% to 1,674 million yen ($11.38 million), and profit attributable to owners of the parent company decreased by 17.3% to 1,142 million yen ($7.76 million), all falling short of the same period in the previous fiscal year.
The report highlighted the challenges posed by the uncertain global economic landscape, including soaring global resource prices, rising commodity prices, and unstable exchange rates. In response, the company unveiled its new medium-term management plan, “Going Global Strategy,” in an effort to optimize its sales channels, increase investment in research and development, and achieve its ambitious five-year net sales target of 70.0 billion yen ($475.7 million).
As for home shopping sales, its sales to TV shopping companies, catalog sales companies, and online retailers faced challenges in the period. Segment sales decreased by 17.9% to 1,104 million yen ($7.5 million), while segment profit declined by 28.1% to 347 million yen ($2.36 million).
Its store sales at home appliance stores, major department stores, and variety shops remained solid, although certain categories, such as depilation and slimming, struggled to achieve steady growth. Segment sales decreased by 9.7% to 1,719 million yen ($11.68 million), and segment profit decreased by 23.6% to 403 million yen ($2.74 million).
For the direct sales, its sales through infomercials, magazines, newspapers, and online channels were affected by upfront investments in repeat sales, despite strong performance in oral care products. Segment sales decreased by 19.1% to 2,109 million yen ($14.33 million), and segment profit declined by 40.8% to 736 million yen ($5 million).
And the sales to overseas represent mainly sales to overseas home shopping companies, wholesale companies and individuals. Particularly, business in China remained robust. However, the segment’s sales fell short of the previous fiscal year’s record high. Segment sales decreased by 20.0% to 4,648 million yen ($31.59 million), and segment profit decreased by 11.6% to 2,025 million yen ($13.76 million).
The company faced shifts in consumer behavior, with a preference for experience-oriented consumption over product-oriented consumption, coupled with a reluctance to purchase high-priced items due to the rise in commodity prices. YA-MAN Group also made significant upfront investments in advertising for new products and initiatives to enhance repeat direct sales.
Looking ahead, YA-MAN Group provided its consolidated earnings forecasts for the fiscal year ending April 30, 2024. It expects a 4.7% increase in net sales to 45,000 million yen ($305.82 million), a 6.0% increase in operating profit to 6,500 million yen ($44.17 million), a 4.8% increase in ordinary profit to 6,200 million yen ($42.14 million), and an 11.2% increase in profit attributable to owners of the parent company to 4,350 million yen ($29.56 million). The company aims to leverage its “Going Global Strategy” and capitalize on opportunities in the evolving market to achieve sustainable growth in the future.
