AINAVO HOLDINGS (7539) Q2 2023 earnings summary

Executive summary

• H1 FY2023 revenue rose 9.7% YoY to ¥44,057m, while operating income fell 11.7% to ¥1,363m and net income fell 31.2% to ¥921m amid margin pressure and higher expenses.

• Full-year revenue guidance remained ¥83,500m; operating income ¥2,080m, ordinary income ¥2,410m and net income ¥1,650m.

Financial highlights

• Revenue increased ¥3,897m YoY to ¥44,057m; gross profit rose 3.3% to ¥6,207m, slower than sales growth.

• SG&A increased 8.5% YoY to ¥4,844m; operating income was ¥1,363m, ordinary income ¥1,514m and net income ¥921m.

• Net income declined 31.2% YoY, including a ¥418m decrease from the prior-year level of ¥1,340m.

Outlook and guidance

• FY2023 forecast: revenue ¥83,500m (+5.5%), operating income ¥2,080m (+9.5%), ordinary income ¥2,410m (+11.2%) and net income ¥1,650m (+0.2%).

• H1 progress against full-year guidance: revenue 52.8%, operating income 65.5% and net income 55.8%.

• Fourth mid-term plan targets ROE of 8%; the plan also identifies business and profit-structure transformation, DX, and workforce development as priorities.