INES (9742) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 decreased 15.3% year-over-year to ¥8,436 million, with both public and private sectors experiencing declines.

• Operating loss was ¥321 million, compared to an operating profit of ¥694 million in the prior year.

• Loss attributable to owners of parent was ¥275 million, versus a profit of ¥377 million a year earlier.

• Comprehensive income was negative ¥230 million, down from ¥494 million in Q1 FY2024.

• The company is advancing its DX-oriented strategy, focusing on local government system standardization, next-generation solutions, and business foundation enhancement.

Financial highlights

• Net sales: ¥8,436 million (down 15.3% year-over-year).

• Operating loss: ¥321 million (from a profit of ¥694 million year-over-year).

• Ordinary loss: ¥304 million (from a profit of ¥719 million year-over-year).

• Loss attributable to owners of parent: ¥275 million (from a profit of ¥377 million year-over-year).

• Comprehensive income: negative ¥230 million (from ¥494 million year-over-year).

Outlook and guidance

• Full-year FY2025 forecast: net sales ¥44,000 million (+8.5% year-over-year), operating profit ¥4,000 million (+39.0%), ordinary profit ¥4,000 million (+46.4%), profit attributable to owners of parent ¥2,700 million (+50.3%).

• Dividend forecast for FY2025 is ¥55 per share, up from ¥50 in FY2024.

• No changes to previously published forecasts.