CNS Co (4076) Q4 2024 earnings summary

Executive summary

• Revenue increased 11.1% year-over-year to ¥6,657 million, with operating profit up 10.9% and net income attributable to shareholders rising 6.5%.

• Growth was driven by strong demand for DX solutions, new consulting business, and expanded digital transformation offerings.

• Strategic focus included strengthening business foundations, expanding customer base, and enhancing solution offerings.

Financial highlights

• Operating profit reached ¥619 million (up 10.9% year-over-year), and ordinary profit was ¥650 million (up 10.6%).

• Net income attributable to shareholders was ¥461 million, up 6.5% from the previous year.

• Total assets increased to ¥4,933 million, and equity ratio improved to 74.4%.

• Cash and equivalents at year-end were ¥2,933 million, up ¥350 million from the prior year.

• Dividend per share for the year was ¥48, with a payout ratio of 30.2%.

Outlook and guidance

• FY2025 guidance: revenue ¥7,562 million (+13.6%), operating profit ¥660 million (+6.6%), net income ¥489 million (+6.2%).

• Strategic investments in employee compensation and innovation expected to moderate profit growth.

• New mid-term plan targets ¥10 billion revenue and 10%+ operating margin by FY2027.