Systena (2317) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.4% year-on-year to ¥19,746 million for the quarter ended June 30, 2024, with operating profit up 38.4% and profit attributable to owners of parent up 48.9%.

• Growth driven by recurring revenue businesses, consulting, and DX-related projects, with proactive investment in human resources and segment reclassification to reflect business focus.

Financial highlights

• Operating profit reached ¥2,643 million (up 38.4% YoY), ordinary profit ¥2,651 million (up 48.9% YoY), and net income ¥1,816 million (up 48.9% YoY).

• Gross profit improved to ¥4,917 million from ¥4,336 million YoY.

• Basic EPS increased to ¥4.73 from ¥3.15 YoY.

• Cash and cash equivalents at period end were ¥25,997 million, up from ¥24,231 million YoY.

Outlook and guidance

• Full-year net sales forecasted at ¥85,000–100,000 million (up 10.5–30.0% YoY), with operating profit of ¥10,000–12,000 million (up 3.0–23.6%).

• Profit attributable to owners of parent projected at ¥7,000–8,400 million (down 3.2% to up 16.2%), with EPS of ¥18.98–22.78.

• Forecasts presented as ranges due to aggressive short-term investment policy and associated uncertainties.