Central Security Patrols Co (9740) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥17,481 million, down 1.4% year-over-year, with operating profit at ¥1,432 million, down 8.4% year-over-year, and net income attributable to shareholders at ¥880 million, down 5.3% year-over-year.

• The business environment saw moderate recovery in Japan, but labor shortages and rising personnel costs continue to challenge the security industry.

Financial highlights

• Operating profit margin declined as personnel costs increased and temporary demand from the previous year (G7 Hiroshima Summit) normalized.

• Comprehensive income for Q1 FY2025 was ¥1,321 million, up 19.1% year-over-year.

• Total assets at quarter-end were ¥62,635 million, down 2.8% from the previous fiscal year-end.

• Equity ratio improved to 60.8% from 57.9% at the previous fiscal year-end.

Outlook and guidance

• Full-year guidance remains unchanged: revenue of ¥69,200 million (+1.7% YoY), operating profit of ¥4,350 million (+0.8% YoY), and net income attributable to shareholders of ¥2,850 million (+47.0% YoY).

• Dividend forecast is unchanged at ¥60 per share for the full year.