DIP Corporation (2379) investor relations material

Executive summary

• Sales and profits declined year-over-year in Q1 FY'27/2 due to increased competition, organizational restructuring, and upfront investments, but signs of recovery appeared in June as sales growth turned upward.

• The company accelerated strategic initiatives, including a transition to a solution-based structure, expansion of digital and spot work services, and new content-driven marketing projects.

• Comprehensive income for the quarter was ¥573 million, a 74.6% decrease year-over-year.

Financial highlights

• Q1 FY'27/2 sales were ¥13,719 million, down 13.1% year-over-year; operating income fell 75.8% to ¥817 million; net income attributable to owners was ¥623 million, down 72.8%.

• Gross profit for the quarter was ¥11,993 million, with a gross margin of 87.4%.

• Personnel costs rose 7.7 percentage points due to hiring 532 new graduates; advertising and promotion costs increased 4.0 percentage points year-over-year.

• Basic earnings per share for the quarter were ¥11.91, compared to ¥43.86 in the prior year.

• Total assets as of May 31, 2026, were ¥47,912 million, down from ¥49,954 million at the previous fiscal year-end.

Outlook and guidance

• Full-year FY'27/2 revenue is forecasted to range from ¥53,500 million to ¥57,600 million, representing -2.5% to +5% year-over-year, with operating profit projected at ¥5–10 billion.

• Net income attributable to owners of parent expected between ¥2,900 million and ¥6,400 million.

• No changes to the earnings forecast; company expects revenue growth from hybrid listing fee and CPC model, and cost reductions from digital initiatives.