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Results announcement

Profit improved thanks to the business matrix structure

Sales increased, and net income doubled

In the term ended March 2017, the growth of sales of products with high unit price and high added value, such as "Shoshu-Riki" Premium Aroma, "Shoshu-Riki" Function Plus series, "SHALDAN" Suteki Plus, and "SHALDAN" Flagrance, resulted in an increase in sales, considerably increasing net income, up 99.2% year on year.

Profit improved thanks to the business matrix structure

The organizational restructuring into a business matrix structure contributed greatly to the profit-oriented management. The product configuration was reviewed at each division so as to make products with high added value our main commodities, and consequently, profit increased. Our efforts at cost reduction improved the ratio of cost of sales by 1.3 points. We successfully reduced the number of goods in stock and that of returned goods by about 20% and cut down the number of items by 10% year on year.

Sowing the seeds of growth

This spring, our company launched "Yells," a new product brand for elderly care, and released 3 types of products under the names of not only "Yells" but also "Shoshu-Riki," including stand-alone liquid type deodorizers, deodorant sprays for futon, and portable deodorant sheets for toilets. In addition, we released, only via mail-order services such as online shopping, functional aroma oils, "Aroma Sapuri" series, with which we propose health care through fragrance. Start up a new business in a small scale and grow it larger - we are sowing the seeds for future growth of our company. Following the advancement of the super-aged society, a variety of new issues are arising in Japan, including an unpleasant smell in spaces where nursing care is provided and emotional ups and downs that seniors experience. Our company endeavors to solve these social issues by means of "Yells," which assists both care givers and care receivers, and "Aroma Sapuri," which supports active life with 'fragrance' that is believed to be closely related to human memory.

Change in work styles

It is impossible to create products that make customers happy unless we ourselves are happy. This is my theory. Therefore, under the slogan of "change in work styles," our company will cut down needless work, adopt flexible ways to work, and perform activities more efficiently in order to boost our organizational productivity. Every one of our employee tries to maintain an ideal balance between work and private life and enjoy their work with a smile, aiming for becoming a company loved by all of our customers.

Realization of "United S.T. CORPORATION"

The policy of our company for this term is "to get on a growth path as united S.T. CORPORATION." In order to put new businesses and markets on a growth path and make a greater leap forward, what should we do now? It is necessary to unite our three sales departments for domestic sales, overseas sales, and operation, which are not in a monolithic unity in the vertically-segmented organization, and enhance support by the supporting division. We will attain highly set goals steadily by realizing "united S.T. CORPORATION." As for dividends for this term, they will be 26 yen per share (including interim dividends of 13 yen), up 2 yen per share. We appreciate your continued support.

June 2017
Takako Suzuki
President and Chief Operating Officer