HIRAYAMA HOLDINGS (7781) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥35,292m, up 11.4% YoY; operating profit rose 25.3% to ¥1,119m and profit attributable to owners of parent rose 37.9% to ¥757m.

• Broad staffing demand, Hirayama GL’s consolidation and improved profitability at a service-sector staffing subsidiary supported growth; recruiting and workforce costs weighed on earnings.

Financial highlights

• Ordinary profit increased 23.0% to ¥1,166m; profit before income taxes was ¥1,182m and income taxes were ¥422m.

• Gross profit margin improved to 16.9% from 16.5%, and operating margin to 3.2% from 2.8%.

• Cash and cash equivalents rose ¥1,615m to ¥5,915m; operating, investing and financing cash flows were ¥1,003m, ¥70m and ¥534m, respectively.

• Total assets were ¥12,294m, net assets ¥4,466m and liabilities ¥7,828m; the equity ratio was 36.3%.

Outlook and guidance

• FY2025 forecast: revenue ¥38,000m (+7.7%), operating profit ¥1,347m (+20.4%), ordinary profit ¥1,336m (+14.5%) and parent-attributable profit ¥850m (+12.3%).

• Guidance assumes Japanese manufacturing recovery, new graduate placements, and continued recruitment and training for specialized work; Thailand production is expected to remain unchanged.

• Segment revenue guidance: in-sourcing/dispatch +8.8%, technical dispatch +9.3%, overseas -7.7% and other +14.3%.