Latest Business Results

2020/12 Financial Results

(Million yen)

2019/12

2020/12

YoY change

YoY rate of change

Net sales

131,463

157,337

25,874

19.7%

Operating profit

15,839

19,607

3,768

23.8%

Profit attributable to owners of parent

10,984

13,771

2,787

25.4%


The Japanese economy during the fiscal year ended December 31, 2020 generally continued to be weak with government economic and fiscal policies providing some support, while concerns about the global spread of the novel coronavirus infectious disease (COVID-19), the policy trend in the United States, and the continuity of the growth momentum of the Chinese economy made the outlook for the future Japanese economy unpredictable.

In this economic environment, we have continually concentrated on acquiring new customers aggressively mainly through internet advertisements (paid listings) and internet search engine optimization (SEO), which can improve our website’s position on the search engines. We also conducted promotion activities including direct mail using e-mail and mail flyers, daily special prices, the publication and distribution of catalogs. In terms of catalogs, we newly published REDBOOK vol. 16 Spring Edition in late February, divided into 11 volumes with 194 thousand items and approximately 2.6 million issues available in total and we also published REDBOOK vol. 16 Autumn Edition in late September, divided into 10 volumes with 270 thousand items and approximately 2.9 million issues available in total.

Furthermore, the total number of our product lineup reached approximately 18 million items in total and 476 thousand items in stock which are available for the same day shipment to meet the increase in demand corresponding to the expansion of our customer base as of the end of the fiscal year ended December 31, 2020.

In addition, in relation to the sales of MRO products to large customers through the integrated purchase systems, both the number of customers and the amount of sales steadily increased.

Consequently, we have successfully obtained 1,391,073 newly registered accounts for the fiscal year ended December 31, 2020 and the number of registered accounts totaled 5,500,774 as of the end of the fiscal year ended December 31, 2020..

In addition, NAVIMRO, which is our Korean subsidiary, also aggressively engaged in acquiring new customers mainly through paid listings and focused on increasing both its product lineup and the number of products in stock in order to expand its customer base.

All of our efforts mentioned above resulted in net sales of 157,337 million yen (19.7% increase from the same period of the previous fiscal year), operating income of 19,607 million yen (23.8% increase from the same period of the previous fiscal year), ordinary income of 19,671 million yen (23.8% increase from the same period of the previous fiscal year), and net income attributable to owners of the parent of 13,771 million yen, a corresponding 25.4% increase.