Fullcast Holdings (4848) Q4 2024 earnings summary

Executive summary

• Consolidated results for FY12/24 were in line with forecasts, driven by post-COVID-19 demand recovery in the Short-Term Operational Support Business, but net sales decreased by 0.6% year-over-year to ¥68,556 million due to the drop in COVID-19 and My Number-related special demand and the exclusion of BOD Co., Ltd. from consolidation.

• Operating profit declined 17.6% year-over-year to ¥7,133 million, and ordinary profit fell 15.8% to ¥7,312 million, impacted by lower sales and strategic investment costs.

• Profit attributable to owners of parent decreased 6.7% year-over-year to ¥5,493 million, but exceeded forecast due to a ¥1,295 million gain on sale of subsidiary shares.

• Strategic investments and branding initiatives were implemented to strengthen hiring, sales, and operational systems.

• Several group restructuring activities occurred, including the sale of BOD Co., Ltd., mergers, and new subsidiary establishments.

Financial highlights

• Net sales for FY12/24 were ¥68,556 million, down 0.6% year-over-year; gross profit rose to ¥24,517 million from ¥23,013 million year-over-year.

• Operating profit declined 17.6% year-over-year to ¥7,133 million, with an operating profit ratio of 10.4%.

• Ordinary profit fell 15.8% year-over-year to ¥7,312 million.

• Profit attributable to owners of parent decreased 6.7% year-over-year to ¥5,493 million.

• Basic EPS was ¥156.0, up 8.9% versus forecast, but down from ¥164.86 the previous year.

Outlook and guidance

• FY12/25 forecasts net sales of ¥73,020 million (+6.5%), operating profit of ¥8,325 million (+16.7%), and ordinary profit of ¥8,529 million (+16.6%).

• Profit attributable to owners of parent is forecast at ¥5,482 million, roughly flat year-over-year, with basic EPS of ¥157.53.

• Strategic investments of ¥1,000 million planned for FY12/25 to address intensifying competition.

• Dividend forecast for FY12/25 is ¥62–63 per share, maintaining a total return ratio target of 50%.