■Medium- to long-term growth strategy

1. Mid-Term Vision Growth Strategy

Cube ＜712＞ has formulated a mid-term vision (2023/12 to 2025/12), and has set “global expansion,” “brand deepening,” and “brand development through collaboration” as growth strategies. At the moment, qualitative goals have not changed much.

(1) Global Expansion

We aim to actively open stores through local partners and expand the market by utilizing digital B2B tools and overseas marketing.

・Establishing partnerships in the Asia/ASEAN region

・Expansion of business partners through aggressive marketing using digital B2B tools and joint exhibitions

・Strengthening cross-border EC through investment in overseas marketing strategies

・Market analysis and store opening development through pop-up stores and cross-border EC data

(2) Deepening the brand

Promote product development and new brand development through store development and marketing.

・Promote brands and develop stores through flagship stores

・Promote product development and brand development based on market analysis

・Analyze strong categories, develop new brands, and grow them into further revenue sources

(3) Brand development through collaboration

Collaborate with globally active brands and products, and promote environmentally-friendly new product development.

・Develop innovative brands in collaboration with globally active companies and brands

・Develop environmentally friendly product categories

・Develop efficient production bases to respond to rising labor costs and materials

2. Current position and numerical goals

According to the medium-term vision announced in 2022/3, sales revenue of 15% or more, operating profit of 25% or more at a 3-year CAGR, operating profit margin of 20% or more, and ROE of 15% or more were set as indicators of profitability. However, quantitative medium- to long-term growth targets were reviewed based on the decline in sales for the fiscal year ending 2022/12 and the slowing growth rate for the 2024/12 fiscal year. It is expected that it will take some time for the conventional plan to be realized, but by steadily promoting ongoing global expansion, we are working on targets of sales of 20% or more at CAGR, operating profit of 40% or more at CAGR, operating margin of 20% or more, and ROE of 15% or more.

Achieving a growth rate does not seem easy from the current situation and forecasts for the fiscal year ending 2024/12, but it seems that it is quite possible to achieve operating profit margin and ROE in a single year.

(Written by FISCO Visiting Analyst Noboru Terashima)