Systena (2317) Q4 2024 earnings summary

Executive summary

• Net sales rose 3.2% year-over-year to ¥76,940 million, with operating profit down 1.3% to ¥9,713 million and profit attributable to owners of parent down 1.2% to ¥7,232 million.

• Growth was driven by recurring revenue businesses, consulting, and PMO projects, while proactive investment in human resources continued.

• Segment performance was mixed, with notable declines in Solution Design but growth in Framework Design, IT Service, and Business Solution segments.

Financial highlights

• Gross profit was ¥18,078 million, down slightly from the prior year.

• Operating margin was 12.6%, and ROE was 19.3%, both slightly lower year-over-year.

• Cash and cash equivalents at year-end increased to ¥30,092 million, up ¥5,300 million.

• Annual dividend per share increased to ¥10, with a payout ratio of 53.6%.

Outlook and guidance

• FY2025 guidance is provided as a range due to investment uncertainties: net sales ¥85,000–¥100,000 million (+10.5% to +30.0%), operating profit ¥8,500–¥10,500 million (–12.5% to +8.1%), and profit attributable to owners of parent ¥5,900–¥7,300 million (–18.4% to +0.9%).

• Dividend forecast for FY2025 is ¥12 per share.