M3 (2413) Q1 2025 earnings summary

Executive summary

• FY2024 Q1 revenue rose 12% year-over-year to ¥64.2 billion, driven by strong growth in Career, Site Solution, and Overseas segments.

• Operating profit declined 6% year-over-year to ¥16.9 billion, reflecting margin pressure in Medical Platform and Evidence Solution segments.

• Excluding COVID-related revenues, sales grew 16% year-over-year, indicating robust underlying business momentum.

• COVID-related revenue impact decreased to ¥1.0 billion in Q1 FY2024 from ¥3.0 billion in Q1 FY2023, with a larger negative impact expected for the full year.

• Profit attributable to owners of the parent decreased 9.4% year-over-year to ¥11.2 billion.

Financial highlights

• Profit before tax fell 5% year-over-year to ¥18.8 billion; net profit dropped 6% to ¥12.8 billion.

• Basic earnings per share fell to ¥16.56 from ¥18.29 a year earlier.

• Total assets increased to ¥506.5 billion as of June 30, 2024, up from ¥490.8 billion at March 31, 2024.

• Equity attributable to owners of the parent was ¥359.0 billion, with a ratio to total assets of 70.9%.

• Both revenue and operating profit exceeded initial forecasts, attributed to conservative estimates for Medical Platforms and other segments.

Outlook and guidance

• Fiscal year 2025 revenue forecast is ¥268–273 billion, up 12–14% year-over-year.

• Operating profit is projected at ¥67–70 billion, up 4–9% year-over-year.

• Profit attributable to owners of the parent is expected to be ¥44–46 billion, a slight decrease or modest increase year-over-year.

• Full-year COVID-related revenue decline projected to negatively impact results by ¥6 billion.

• Dividend forecast for FY2025 is undetermined, pending review of capital needs and cash flow.