Forside Co (2330) Q4 2024 earnings summary

Executive summary

• Consolidated operating revenue increased 10.9% year-over-year to ¥5,340 million, driven by strong performance in the prize business and new AI and logistics segments.

• Gross profit declined 6% year-over-year due to withdrawal from the real estate segment and increased cost of sales in AI-related business.

• Operating profit was ¥50 million, a slight decrease from the previous year, while ordinary profit rose 7.4% to ¥47 million.

• Net income attributable to parent company shareholders fell 43.3% year-over-year to ¥64 million, impacted by higher allowance for doubtful accounts and one-time items.

• Major strategic moves included the sale of the real estate guarantee subsidiary, establishment of an AI subsidiary, and acquisition of a logistics company.

Financial highlights

• Operating revenue: ¥5,340 million (up 10.9% year-over-year).

• Gross profit: ¥1,818 million (down 6% year-over-year).

• Operating profit: ¥50 million (down 4.5% year-over-year).

• Ordinary profit: ¥47 million (up 7.4% year-over-year).

• Net income attributable to parent: ¥64 million (down 43.3% year-over-year).

• Total assets: ¥3,565 million (down ¥883 million year-over-year); net assets: ¥2,499 million (up ¥924 million year-over-year); equity ratio: 70.1%.

• Cash and equivalents at year-end: ¥1,404 million (up ¥213 million year-over-year).

• Operating cash flow: ¥163 million; investing cash flow: −¥596 million; financing cash flow: ¥639 million.

Outlook and guidance

• Full-year consolidated operating revenue for the next period is forecast at ¥5,535 million, a 3.7% increase year-over-year.

• Operating profit is projected to rise to ¥143 million for the next fiscal year, with ordinary profit at ¥153 million and net income at ¥118 million.

• Guidance does not include potential impact from the planned acquisition of antz.