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Dentsu Group (4324) investor relations material
Dentsu Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Fiscal 2025 organic growth slightly exceeded guidance, with Japan achieving 6.2% organic growth and record net revenue and operating profit, while international profitability improved due to restructuring.
Significant goodwill impairment loss of JPY 396.1 billion (including JPY 310.1 billion in Q4), mainly in Americas and EMEA, reduced goodwill balance by more than half.
Net loss attributable to owners widened to JPY 327.6 billion, driven by impairment losses; no year-end dividend for FY2025 and none forecast for FY2026 due to negative distributable profit.
New management structure introduced to accelerate transformation, with Sano appointed as next CEO; turnaround initiatives in US CXM and focus on CRM, AI, and data-driven solutions.
Major asset sale (Russia business) completed in July 2024; transfer of Dentsu Ginza Building in January 2026 expected to generate JPY 29.6 billion gain in Q1 FY2026.
Financial highlights
Full-year organic growth rate was 0.5%, with consolidated net revenue up 0.3% year-on-year to JPY 1,197.5 billion; underlying operating profit decreased 2.1% to JPY 172.5 billion, operating margin at 14.4%.
Statutory operating loss of JPY 289.2 billion and net loss of JPY 327.6 billion due to impairment; underlying net profit rose 0.7% to JPY 93.5 billion.
Underlying basic EPS: JPY 360.38 (+1.4% YoY); statutory basic EPS: JPY -1,262.04.
Net debt/EBITDA at 0.95x; cash and cash equivalents at year-end were JPY 295.2 billion.
Ratio of equity attributable to owners to total assets fell to 11.7% from 19.9%.
Outlook and guidance
FY2026 organic growth expected at 0%-1% overall; Japan 2%-3%, Americas -2%, EMEA and APAC around 1%.
Net revenue forecast: JPY 1,230.2 billion (+2.7% YoY); underlying operating profit: JPY 166.3 billion (-3.6% YoY); operating margin in the 13% range.
Group expected to return to statutory profitability with operating profit of JPY 152.6 billion and net profit of JPY 69.7 billion; basic EPS at JPY 268.50.
No dividend forecast for FY2026; focus on enhancing EPS and maximizing TSR.
Targeting 16% operating margin in FY2027 through profitability improvements.
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