Cresco (4674) Q2 2025 earnings summary

Executive summary

• Achieved strong growth in net sales and profits, driven by robust IT investment demand and successful integration of new subsidiaries, with net sales for the six months ended September 30, 2024, rising 11.2% year-over-year to ¥28,506 million and operating profit up 31.9% to ¥2,608 million.

• Organizational restructuring, new service launches, and strategic acquisitions enhanced operational efficiency and technological capabilities.

• Comprehensive income declined 28.5% year-over-year to ¥1,773 million, reflecting a decrease in other comprehensive income.

Financial highlights

• Net sales rose 11.2% year-over-year to 28,506 million yen for the six months ended September 30, 2024.

• Operating profit increased 31.9% year-over-year, reaching 2,608 million yen.

• Ordinary profit grew 13.3% year-over-year, supported by a 30 million yen gain on derivatives.

• Gross profit increased to ¥5,544 million from ¥4,677 million year-over-year, while operating profit margin improved.

• EPS for the period was 44.85 yen, reflecting the share split.

Outlook and guidance

• No change to full-year forecast: net sales projected at 58,500 million yen, operating profit at 5,900 million yen, ordinary profit at 6,000 million yen, and EPS at 97.05 yen.

• Dividend forecast maintained at 38 yen per share for FY2025, post-share split.

• Commitment to a 40% dividend payout ratio of profit attributable to owners of parent.