PLANET, Inc. (2391, JASDAQ Standard, Tokyo Stock Exchange) Issues Operating Performance for the Year Ended July 31, 2017
TOKYO, Oct. 2, 2017 /PRNewswire/ -- PLANET (JASDAQ: 2391) is pleased to announce its results for the fiscal year ended July 31, 2017.
Summary of Results
Domestic consumption rebounded firmly during the year, buttressed by an upswing in business confidence at consumer-related companies in the second half. PLANET was established in 1985 with investment by eight leading manufacturers of daily necessities and cosmetics and an independent information and communication technology (ICT) company.
Since that time, PLANET has operated information infrastructures based on standard specifications in the consumer packaged goods industry, providing stable, ongoing services amid ongoing changes in the surrounding IT environment. To continue fulfilling this role, the company has switched over its network foundation for such Web-based services as MITEOS (a Web-based service for receiving orders and communicating purchase information), sales reporting services, general database services and Buyers' Net.
In the fiscal year ended July 31, 2017, PLANET generated net sales of JPY2,974 million (up 2.5% YoY), operating income of JPY686 million (down 0.8% YoY) and profit of JPY478 million (up 6.9% YoY).
In the electronic data interchange (EDI) business, PLANET encouraged the further spread of its EDI for enterprise systems to increase the efficiency of operations between consumer packaged goods manufacturers and wholesalers. As a result, PLANET saw increases in the number of manufacturers and wholesalers newly using its service, as well as a rise in the types of data used per customer, leading to an increase in the volume of EDI data processed. During the year, this business generated sales of JPY2,612 million (up 4.3% YoY).
In the database business, the company continued to conduct surveys and register data for enhancing retail store siting conditions and store information. Such information goes into a business partner database that amasses standard transaction codes for retailers' stores and wholesalers' branches and distribution centers. During the year, this business generated sales of JPY339 million (down 9.7% YoY).
In other businesses, the company researched, studied and pursued development initiatives to make visible the vast quantities of transaction data in the consumer packaged goods industry and use big data effectively. This business generated sales of JPY21 million (up 0.7% YoY).
In the fiscal year ending July 31, 2018, PLANET intends to continue encouraging the spread of its EDI business into such sectors as health foods and nursing care products. The company will also promote its sales reporting services, which help reinforce manufacturers' selling activities, and work to introduce MITEOS, which helps wholesalers increase the percentage of orders placed online. The company believes use of EDI services will expand as it reduces fees, but expects cost of sales to rise due to the configuration of a safer system infrastructure and service upgrades. Also, PLANET forecasts an increase in selling, general and administrative expenses, including R&D related to leading-edge communications and system technologies and the outsourcing of some operations. For the upcoming year, PLANET forecasts net sales of JPY3,020 million (up 1.5% YoY), operating income of JPY705 million (up 2.6% YoY) and profit of JPY485 million (up 1.3% YoY).
PLANET's basic policy on dividends is to award dividends twice each year: an interim dividend and a year-end dividend. For the year ended July 31, 2017, the company has awarded an interim dividend of JPY19 per share and expects to pay a year-end dividend of JPY20, totaling JPY39 for the year. For the year ending July 31, 2018, PLANET forecasts annual dividends of JPY40 per share, comprising interim and year-end dividends of JPY20 each. The company aims to continue increasing its dividend payout ratio going forward.
The summary of non-consolidated financial results for the fiscal year ended July 31, 2017 for PLANET, Inc. (2391, JASDAQ Standard, Tokyo Stock Exchange) is available here:
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