Cresco (4674) Q3 2025 earnings summary

Executive summary

• Achieved strong growth in net sales and profits for the nine months ended December 31, 2024, driven by robust IT investment demand, successful integration of new subsidiaries, and comprehensive income rising to ¥3,760 million.

• Launched new services in cloud computing, generative AI, and compliance, and expanded business through acquisitions and organizational restructuring.

• Profit attributable to owners of parent increased 22.0% year-over-year to ¥2,926 million.

Financial highlights

• Net sales increased by 11.8% year-over-year to ¥43,102 million, mainly due to sales growth with major customers and new consolidations.

• Operating profit rose 25.9% year-over-year to ¥4,154 million, reflecting a significant reduction in unprofitable projects.

• Ordinary profit up 13.9% year-over-year to ¥4,426 million, aided by a gain on valuation of derivatives.

• Gross profit for the nine-month period was ¥8,505 million, up from ¥7,202 million year-over-year.

• Basic earnings per share for the period was ¥71.02, reflecting a 2-for-1 share split.

Outlook and guidance

• No change in full-year consolidated earnings or dividend forecasts for FY ending March 31, 2025.

• Full-year net sales forecast at ¥58,500 million, up 10.9% year-over-year; operating profit forecast at ¥5,900 million, up 15.2%.

• Profit attributable to owners of parent forecast at ¥4,000 million, up 7.3%.

• Basic earnings per share for the full year is projected at ¥96.99.

• Dividend forecast maintained at ¥38 per share, with a payout ratio target of 40% of profit attributable to owners.