ERI Holdings (6083) Q4 2024 earnings summary

Executive summary

• FY5/2024 net sales rose 3.5% to ¥18,022 million; operating profit fell 14.4% to ¥1,991 million as upfront staffing, office, ICT and M&A costs weighed on earnings.

• Solution and energy-saving services offset weaker building confirmation and housing performance activity; long-term sales target is ¥30 billion by 2030.

• Operating cash flow increased to ¥1,506 million from ¥1,394 million; year-end cash and cash equivalents were ¥6,653 million.

Financial highlights

• Ordinary profit was ¥2,020 million, down 13.7%; profit attributable to owners of parent was ¥1,233.3 million, down 19.6%, and EPS was ¥159.88 versus ¥197.80.

• Gross profit was ¥6,347.6 million versus ¥6,357.4 million; SG&A rose to ¥4,356.3 million from ¥4,031.2 million.

• Comprehensive income fell 19.4% to ¥1,242 million; profit before income taxes was ¥2,022.4 million, down from ¥2,351.9 million.

Outlook and guidance

• FY5/2025 forecast: net sales ¥20,500 million (+13.7%), operating profit ¥2,100 million (+5.5%), ordinary profit ¥2,100 million (+4.0%) and parent profit ¥1,300 million (+5.4%).

• FY5/2025 forecast EPS is ¥165.98; annual dividend is ¥60 per share, with a 36.1% consolidated payout ratio.

• Sales growth is expected from M&A expansion and partial fee schedule revisions; regulatory-reform preparation costs are expected to limit profit growth.

• Long-term target: ¥30 billion sales by 2030, supported by sustainability-related services.