CNS Co (4076) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥1,644.6 million, down 0.1% YoY; operating profit fell 43.6% to ¥79.7 million and net profit attributable to shareholders fell 38.4% to ¥55.0 million.

• Profits were pressured by an 11% wage increase implemented at the start of the fiscal year and a back-end-loaded annual plan.

• DX investment demand remained favorable, while shortages of IT and digital talent persisted.

Financial highlights

• Gross profit was ¥378 million, 93.6% of Q1 FY2024; ordinary income was ¥80 million, 55.8% YoY.

• EPS was ¥18.92, down from ¥30.73 in the prior-year quarter.

• Total assets were ¥4,732.3 million, mainly reflecting lower cash and deposits; net assets were ¥3,587.2 million, down ¥84.5 million from year-end, mainly due to dividends.

Outlook and guidance

• Full-year guidance remains unchanged: revenue ¥7,562 million (+13.6% YoY), operating profit ¥660 million (+6.6%), net profit ¥489 million (+6.2%), and EPS ¥168.56.

• Efforts to offset wage increases include higher pricing and service expansion; the year is expected to be back-end loaded.