BIPROGY (8056) Q1 2025 earnings summary

Executive summary

• Q1 FYMar2025 revenue rose 10.6% YoY to ¥88,352 million, driven by DX investment and product sales.

• Operating profit increased 12.8% to ¥6,578 million; adjusted operating profit rose 9.7% to ¥6,326 million.

• Profit attributable to owners of parent grew 12.1% to ¥4,892 million.

• Revenue grew across all business segments; orders increased 13.5% and year-end revenue backlog rose 6.6%.

• Strategic priorities include digital transformation, core business enhancement, and regional and global expansion.

Financial highlights

• Gross profit was ¥21,636 million, up from ¥20,402 million YoY; gross margin was 24.5%, down 1.1pt as system-services profit fell and outsourcing costs rose.

• SG&A expenses were ¥15.3bn, up 4.6% YoY; operating margin was 7.4%, up 0.1pt.

• Basic EPS rose to ¥48.66 from ¥43.44 YoY.

• Total assets were ¥296,819 million and equity was ¥168,188 million; cash and cash equivalents were ¥60,961 million, up ¥1,698 million from prior year-end.

Outlook and guidance

• FYMar2025 forecast unchanged: revenue ¥385,000 million (+4.0% YoY), operating profit ¥35,500 million (+6.6%) and profit attributable to owners of parent ¥24,500 million (-3.0%).

• Full-year gross profit forecast is ¥101.2bn (+4.1%); SG&A expenses ¥66.2bn (+4.5%); operating margin 9.2% versus 9.0% in FYMar2024.

• Adjusted operating profit forecast is ¥35.0bn (+3.5%); higher R&D, personnel and internal system costs are partly offset by gross-profit growth.

• Annual dividend forecast is ¥100 per share, comprising interim and year-end dividends of ¥50 each; payout ratio is 41.0%.