DIP Corporation (2379) investor relations material

Executive summary

• Sales and profits declined year-over-year due to intensified competition, transition to a solution-based structure, and sluggish contract acquisition.

• Operating profit dropped 32% to ¥9,112 million, and net income attributable to owners fell 33.5% to ¥5,956 million.

• Major organizational reform and customer handovers impacted sales and profit for about six months.

• Upfront investments in Spot BAITORU, head office expansion, and new graduate recruitment further pressured profitability.

• Regional units unaffected by restructuring showed positive sales growth, and new branding initiatives were launched.

Financial highlights

• Fourth quarter sales fell 9.2% year-over-year to ¥12,474 million; operating profit declined 59.3% to ¥1,027 million.

• Full-year sales decreased 2.7% to ¥54,852 million; operating profit down 32% to ¥9,112 million.

• Net income attributable to owners was ¥5,956 million, down 33.5% year-over-year.

• Gross profit was ¥48,534 million with a gross margin of 88.5%.

• Personnel costs decreased by JPY 300 million, while advertising costs increased by JPY 500 million and the advertising cost ratio rose by 5.9 percentage points.

Outlook and guidance

• FY'27/2 sales forecast: ¥53,500–57,600 million (–2.5% to +5.0% YoY); operating profit expected between ¥5–10 billion.

• Net income forecast: ¥2,900–6,400 million (–51.3% to +7.5% YoY).

• Introduction of a hybrid listing and cost-per-click model expected to temporarily lower sales but drive medium-term growth.

• Medium-term targets include 20% sales growth, operating margin of 30%+, and doubling job listings.

• Upfront investments and transition costs expected to continue impacting short-term profits.