Forside Co (2330) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 rose 49.9% year-over-year to ¥1,483 million, driven by strong prize and AI-related business orders, steady logistics segment performance, and the acquisition of a new HR services subsidiary.

• Exit from real estate business led to significant reduction in selling, general, and administrative expenses.

• Operating profit improved to ¥59 million from a loss of ¥28 million year-over-year; net profit attributable to shareholders increased to ¥55 million, reversing a ¥38 million loss.

Financial highlights

• Operating revenue: ¥1,483 million, up 49.9% year-over-year.

• Gross profit: ¥283 million, down 36.6% year-over-year due to higher cost of sales from AI server business.

• SG&A expenses: ¥224 million, down 53% year-over-year.

• Operating profit: ¥59 million (vs. loss of ¥28 million prior year).

• Net profit attributable to shareholders: ¥55 million (vs. ¥38 million loss prior year).

• Total assets increased to ¥4,712 million from ¥3,565 million at the previous year-end.

• Equity ratio was 54.1%, down from 70.1% at the previous year-end.

Outlook and guidance

• Full-year consolidated revenue forecast at ¥5,535 million, a 3.7% increase year-over-year.

• Full-year operating profit forecast at ¥143 million (up 185.7%), net income forecast at ¥118 million (up 83.7%).

• No change to previously announced full-year guidance.

• Dividend forecast remains undecided, pending future performance.