CMC Corporation (2185) Q3 2024 earnings summary

Executive summary

• Revenue increased 2.4% year-over-year to ¥13,710 million for the nine months ended June 30, 2024, with growth in the Knowledge segment offsetting a decline in Manuals.

• Operating income decreased 3.9% year-over-year to ¥1,787 million due to one-time costs related to fixed asset acquisitions.

• Net income attributable to shareholders fell 13.4% year-over-year to ¥1,122 million.

• The company continues to invest in human resources and data infrastructure, focusing on digital transformation and business model reinforcement.

Financial highlights

• Gross profit for the period was ¥4,976 million, with a gross margin of 36.3%.

• Operating margin declined to 13.0% from 13.9% year-over-year.

• Comprehensive income was ¥1,293 million, down 8.4% year-over-year.

• EPS for the period was ¥84.62, compared to ¥97.77 in the prior year.

Outlook and guidance

• Full-year revenue is forecast at ¥19,000 million, up 3.0% year-over-year.

• Operating income is projected at ¥2,700 million (+3.2%), and net income at ¥1,800 million (+2.1%).

• No changes have been made to previously announced guidance.