Avant Group (3836) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY25 rose 19.3% year-over-year to ¥14,011m, with growth across all business segments and a rebound in Management Solutions after prior restructuring.

• Operating profit increased 34.2% year-over-year to ¥2,537m, driven by improved margins and software business growth, despite higher personnel, IT, and outsourcing costs.

• Net profit climbed 30.2% year-over-year to ¥1,584m, reflecting higher operating profit.

• Comprehensive income for the first half was ¥1,482m, up from ¥1,272m in the prior year.

Financial highlights

• Gross profit for 1H FY25 was ¥6,319m, up 22.2% year-over-year; gross margin improved by 1.0pt to 45.1%.

• EBITDA for 1H FY25 reached ¥2,783m, up 30.9% year-over-year; EBITDA margin rose 1.8pt to 19.9%.

• Operating profit margin for 1H FY25 was 18.1%, up 2.0pt year-over-year; net profit margin was 11.3%, up 0.9pt.

• Net assets increased to ¥13,933m, with a capital adequacy ratio of 66.2% as of 2Q FY25.

• Cash and cash equivalents at period end were ¥11,568m, down ¥407m from the previous fiscal year.

Outlook and guidance

• FY25 full-year guidance maintained: net sales ¥28,800m (+17.9% YoY), operating profit ¥4,900m (+19.5% YoY), net profit ¥3,350m (+17.5% YoY).

• Year-end dividend forecast at ¥25 per share, targeting DOE of 8% within the medium-term plan.

• BG28 medium-term plan targets net sales of ¥45,000m and operating income of ¥11,000m by FY28.