Infomart (2492) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months reached 11,244 million yen, up 15.8% year-over-year, driven by BtoB Platform services and user expansion.

• Operating profit increased 5.9% year-over-year to 671 million yen, while profit attributable to owners of parent surged 42.4% to 533 million yen.

• Achieved record Q3 sales of 4,030 million yen, up 17.0% year-over-year, with profit margins improving due to server migration to the cloud and rate revisions in the FOOD business.

• The number of user companies surpassed 1.1 million, representing about 30% of all Japanese companies.

• The acquisition of Tanomu Inc. expanded digital ordering capabilities in the foodservice sector.

Financial highlights

• Q3 gross profit margin rose to 62.2%, with operating profit margin at 9.0%.

• Gross profit for the nine months was 6,508 million yen, up from 5,501 million yen year-on-year.

• Stock-type revenue ratio reached 96.7% in Q3.

• Full-year forecast: net sales of 16,086 million yen (+20.4% YoY), operating profit of 1,000 million yen (+20.4% YoY), and profit attributable to owners of parent of 539 million yen (+80.6% YoY).

• Basic earnings per share increased to 2.36 yen from 1.64 yen year-on-year.

Outlook and guidance

• Full-year forecasts are considered achievable, with further profit margin improvement expected in Q4 due to reduced server costs.

• Dividend forecast for FY2024 is 1.54 yen per share, unchanged from previous guidance.

• Aims for continued sales and profit growth in FY2025 and FY2026, targeting net sales of 20 billion yen and operating profit of 5 billion yen by FY2026.