I would like to begin by expressing my warmest appreciation for the continued outstanding support from our shareholders and investors.
In terms of the external environment facing the Group, while increased uptake in novel coronavirus (COVID-19) vaccines has gradually helped bring the global economy back on the path to recovery, the pandemic continues to have an intermittent effect on economic activities. In addition, shifts in the rising cost of raw materials and shipping are something that need to be closely watched in the future.
In the fiscal year ending March 2022, revenue increased while profit declined year-on-year. Consolidated net sales increased 0.7% year-on-year to 40.864 billion yen. Consolidated operating profit fell 5.8% year-on-year to 2.159 billion yen due to increases in the cost rate resulting from the steep rise in the cost of raw materials, and increases in SG&A expenses.
Amidst these circumstances, the Company introduced the medium-term management plan on May 2, 2022, which start in the fiscal year ending March 2022, and continues until the fiscal year ending March 2026. Our business targets for the fiscal year ending March 2026 include consolidated net sales of 52 billion yen, consolidated operating profit of 4.5 billion yen, and a ROIC in the 6~7% range.
We have established Management Vision 2030: “Dr. Sound—becoming a professional organization that improves sound in society,” and will work to achieve this vision as part of long-term efforts to flexibly adapt to the rapidly changing social trends of recent years, and to continue to contribute to society through our business.
Under this mid-term plan, we aim to serve as a reliable partner by creating “good sound experiences” that open up new forms of value in sound derived from business cycles while also establishing a “connected business” that delivers value to customers in a broad range of settings.
Looking ahead, we will look to continue to create new value with customers as part of efforts to resolve social issues while helping achieve a sustainable society through activities to “improve sound in society” as part of broader efforts to achieve further growth and improve corporate value in a sustainable manner centered on our management philosophy.
We hope that we can continue to count on your understanding and support in the future.
TAKEUCHI Kazuhiro, TOA President,CEO