CNS Co (4076) Q2 2024 earnings summary

Executive summary

• Q2 FY2024 revenue rose 15.9% YoY to ¥3,296 million; operating profit increased 20.2% to ¥323 million, with digital innovation and systems integration leading growth.

• Sales were nearly on plan and profits were broadly on plan; lower-than-planned results at CNS Hokkaido weighed on profit performance.

Financial highlights

• Revenue was ¥3,296 million, up 15.9% YoY; gross profit was ¥819 million, up 16.0%.

• Operating profit rose 20.2% YoY to ¥323 million; ordinary profit rose 18.8% to ¥337 million.

• Net income attributable to owners of the parent increased 15.9% YoY to ¥220 million.

• SG&A increased 13.4% YoY to ¥495 million; cost controls helped reduce the SG&A ratio by 0.3 percentage points.

Outlook and guidance

• FY2024 guidance: revenue ¥6,724 million, operating profit ¥724 million, ordinary profit ¥740 million, and net income ¥487 million.

• Q2 progress was 49.0% for revenue, 44.6% for operating profit, 45.6% for ordinary profit, and 45.2% for net income.

• Management expects stable growth and a record high profit, including recovery efforts at CNS Hokkaido in H2.

• FY2024 segment revenue guidance: digital innovation ¥1,858 million; big data ¥1,165 million; systems infrastructure ¥1,684 million; systems integration ¥1,516 million; consulting ¥500 million.