Summary of Recent Financial Results
◆ Retail unit sales
In the Second quarter of the fiscal year under review (March 1 to August 31, 2023) (the “first half”), retail unit sales at directly managed stores in Japan were 73,777, a record high for first-half sales. This is mainly owed to the commencement of operation of large stores opened in the previous fiscal year and robust retail unit sales at existing large stores. Gross profit per retail unit increased by approximately 20,000 yen compared to the same period last year, reaching 380,000 yen, due to the successful vehicle price discount control led by the headquarters.
◆ Selling, general and administrative expenses
Consolidated selling, general, and administrative (SG&A) expenses decreased year on year. The decrease was primarily due to the transfer of equity in the Australian subsidiary. On the other hand, SG&A expenses on a non-consolidated basis increased. This is mainly owed to an increase in incentives, elevated rent costs resulting from the headquarters relocation and the expansion of large stores, as well as the rise in fixed-term employees in preparation for the opening of new large stores in the second half.
◆ The Impact of the Sale of Shares in the Australian Subsidiaries
Consolidated operating profit decreased by 1,518 million yen year on year because three months from March to May 2022 were included in the consolidation period of the Australian subsidiaries in the same period of the previous fiscal year.