Toei Animation reported record sales for the fiscal year ending March 2024, reaching ¥88,654 million, a 1.4% increase over the previous year. This performance slightly surpassed the previous all-time high set in the fiscal year ending March 2023. Despite concerns of a potential decline following the blockbuster successes of “ONE PIECE FILM RED” and “THE FIRST SLAM DUNK” last year, the ongoing popularity of these titles, along with strong product sales and overseas distribution rights, drove the sales growth.
However, the company’s profitability took a hit. Operating income fell by 18.5% to ¥23,364 million, ordinary income decreased by 11.2% to ¥26,453 million, and net income dropped by 10.1% to a negative ¥18,795 million. These declines were attributed to valuation losses on “Saint Seiya: The Beginning” and increased advertising expenses. Non-operating income from foreign exchange gains amounted to ¥3.16 billion, but it was insufficient to offset the overall profit decline.
Breaking down the performance by segment, the video production and sales business reported a 6.5% decrease in sales to ¥34,828 million and a 36.0% decline in operating income to ¥6,832 million. Theatrical releases like “PreCure All Stars F” and “Kitaro’s Birth: GeGeGe no Mystery” performed well, but they couldn’t match the previous year’s hits such as “Dragon Ball Super: Super Hero.”
In the copyright business, sales and operating income dropped by 5.7% and 9.5%, respectively. While “One Piece” merchandising remained strong domestically and internationally, the “Dragon Ball” series saw a decline in game rights and overseas merchandising sales.
Conversely, the product sales business experienced significant growth, driven by merchandise related to “THE FIRST SLAM DUNK” and the “One Piece” shop business. Sales surged by 73.7% to ¥10,681 million, with operating profit soaring by 181.8% to ¥1,825 million.
Looking ahead to the fiscal year ending March 2025, Toei Animation remains cautious. Sales are expected to remain high but decline to ¥82 billion, with anticipated negative profits due to new releases like “Dragon Ball DAIMA” and “Girls Band Cry,” as well as increased advertising costs and investments in human resources. Operating income is projected to decrease by 14.4% to ¥20 billion, ordinary income by 22.5% to ¥20.5 billion, and net income by 20.2% to ¥15 billion.
