Fullcast Holdings (4848) Q3 2024 earnings summary

Executive summary

• Net sales rose 0.3% year-over-year to ¥50,520 million, driven by economic recovery and growth in the Placement service, despite the end of COVID-19 and My-Number special demand and the exclusion of BOD Co., Ltd. from consolidation.

• Operating profit declined 21.0% year-over-year to ¥5,223 million due to strategic investment costs and higher SG&A expenses.

• Profit attributable to owners of parent decreased 9.3% year-over-year to ¥4,140 million, despite a gain on sale of subsidiary shares.

• The group executed strategic M&A, including the transfer of BOD Co., Ltd., a merger of Imple, Inc. and App X, Inc., and acquisition of F-PLAIN Corporation.

Financial highlights

• Gross profit increased 7.6% year-over-year to ¥17,986 million.

• Ordinary profit fell 19.2% year-over-year to ¥5,324 million.

• Basic EPS was 117.57 yen, down from 127.54 yen year-over-year.

• SG&A expenses rose 26.4% year-over-year, impacting profitability.

• Extraordinary income included a ¥1,295 million gain on sale of shares of subsidiaries.

Outlook and guidance

• Results are progressing in line with full-year forecasts; no revisions to business forecasts for FY12/24.

• Strategic investment expenses were concentrated in the second half and booked as planned.

• Progress rates for key metrics: net sales 71.7%, operating profit 72.5%, profit attributable to owners of parent 82.1%.

• Full-year forecast: Net sales ¥70,500 million (+2.2% YoY), operating profit ¥7,200 million (−16.8% YoY), ordinary profit ¥7,233 million (−16.7% YoY), profit attributable to owners of parent ¥5,045 million (−14.3% YoY), EPS 143.29 yen.