BIPROGY (8056) Q4 2024 earnings summary

Executive summary

• FYMar2024 revenue rose 8.9% YoY to ¥370.1bn; operating profit increased 12.2% to ¥33.3bn as higher gross profit absorbed higher SG&A.

• Strong DX demand and outsourcing activity supported higher revenue, orders and backlogs; adjusted operating profit reached ¥33.8bn.

• Management policies for 2024–2026 prioritize core-business productivity, growth businesses, strategic investment and a more sustainable business portfolio.

Financial highlights

• Revenue was ¥370.1bn, up ¥30.2bn YoY; gross profit was ¥97.2bn, up ¥7.8bn.

• Operating profit was ¥33.3bn, up ¥3.6bn YoY; operating margin improved 0.3pt to 9.0%.

• Profit attributable to owners of parent rose ¥5.0bn to ¥25.2bn, supported partly by lower income tax following application of the wage-increase tax measure.

• Adjusted operating profit increased ¥4.4bn to ¥33.8bn; adjusted operating margin improved 0.5pt to 9.1%.

• Orders rose 6.6% to ¥386.1bn; order backlog increased 5.8% to ¥289.8bn, with next-FY backlog up 4.3% to ¥140.9bn.

Outlook and guidance

• FYMar2025 forecast: revenue ¥385.0bn (+4.0% YoY), operating profit ¥35.5bn (+6.6%), and adjusted operating profit ¥35.0bn (+3.5%).

• FYMar2025 forecast operating margin is 9.2%; adjusted operating margin is 9.1%. Profit attributable to owners of parent is forecast at ¥24.5bn, down 3.0%.

• FYMar2025 annual dividend forecast is ¥100 per share, targeting a payout ratio of 40% or more; FYMar2024 dividend was also ¥100 per share.

• FYMar2027 targets: revenue ¥420bn, adjusted operating margin 11.0%, ROE 15.0% and dividend payout ratio of at least 40%.

• FYMar2025 growth is expected to include ¥10.1bn more services revenue and ¥4.7bn more product sales; SG&A investment includes R&D, pay raises and a new personnel system.