■Performance Trends of Polaris Holdings＜3010＞
3. Earnings forecast for the fiscal year ending 2025/3
We anticipate full-year sales for the fiscal year ending 2025/3 million yen (down 10.9% from the previous fiscal year), operating income of 1,891 million yen (down 44.1% from the same period), ordinary profit of 1315 million yen (down 49.6% from the same period), and net income attributable to parent company shareholders of 1,473 million yen (down 55.3% from the same period). There is a decrease in sales and profit, but this is because the performance of real estate sales was added to the previous fiscal year, and excluding that, there was a significant increase in sales and profit compared to the previous fiscal year only in the hotel business, which is the company's main business.
As for the business environment for the fiscal year ending 2025/3, it is expected that the hotel market will continue to grow in domestic hotels, especially in the city center, and that it will recover to the level before the COVID-19 pandemic in other areas as well. Among them, it is thought that there is plenty of room for improvement in average guest room unit prices and occupancy rates even at hotels operated by the company. In particular, for the 5 buildings opened in the previous fiscal year, full-scale performance contributions can be expected this fiscal year through year-round contributions. Business performance is also recovering steadily in the overseas hotel business, and newly built hotels, which are flagship overseas businesses that opened in Manila in the 2024/3 fiscal year, are also expected to contribute to business results. Note, in the real estate business, there were sales of approximately 8 billion yen in the previous fiscal year, but it is estimated that sales are not expected during the ongoing period. When compared in terms of net sales (excluding the effects of real estate sales), the fiscal year ending 2023/3 is 14,545 million yen, and the full fiscal year ending 2025/3 will increase 38.0% from the previous fiscal year.
We also anticipate steady growth in operating profit. Although an increase in utility costs and labor costs, etc. is expected, they will absorb them and plan a surplus increase in sales. The number of hotels and the density of operating hotels within the region have also increased, and the effect of optimizing costs through efficient staffing can also be expected. Changes in the management structure (transition from management outsourcing type to fixed+variable rent type and fixed rent type, etc.) that were worked on in the previous fiscal year also had a positive effect on profitability during the demand expansion period. When compared in terms of net operating profit (excluding the effects of real estate sales), we plan a significant increase of 1335 million yen for the fiscal year ending 2023/3 and 1,891 million yen for the fiscal year ending 2025/3, an increase of 41.6% from the previous fiscal year. We see it as a compelling growth plan based on the current favorable business environment and the track record of business revitalization so far.
(Written by FISCO Visiting Analyst Hideo Kakuta)