Medley (4480) Q4 2024 earnings summary

Executive summary

• Achieved 52% YoY Q4 sales growth and 43% YoY full-year sales growth, driven by strong HR PF and Medical PF performance.

• Medical PF posted its first full year of profitability; HR PF maintained steady results despite hiring delays and lower placement fees.

• Operating profit declined 13% YoY to JPY 2,326 million due to proactive investments and increased expenses.

• Major acquisitions included GUPPY's, Offshore, and Lalune, expanding business scope and segment growth.

• Announced up to JPY 1.5 billion treasury stock repurchase to maintain financial flexibility.

Financial highlights

• FY2024 sales: JPY 29,302 million (+43% YoY); Q4 sales: JPY 7,659 million (+52% YoY).

• FY2024 EBITDA: JPY 4,114 million (margin 14%, +21% YoY); Q4 EBITDA: JPY 630 million (margin 8%).

• FY2024 operating profit: JPY 2,326 million (-13% YoY); Q4 operating profit: JPY -31 million (impacted by M&A amortization).

• FY2024 profit attributable to owners: JPY 2,798 million (+9% YoY); Q4 profit: JPY 475 million.

• Gross margin remained strong at 64.6% for FY2024.

Outlook and guidance

• FY2025 forecast: sales JPY 39,800 million (+36% YoY), EBITDA JPY 5,700 million (margin 14.3%), net profit JPY 3,100 million (+10.8% YoY).

• Medical PF sales expected at JPY 10 billion (+35% YoY), HR PF at JPY 29 billion (+35% YoY); continued investment in US business and new product development.

• Forecast includes consolidation of AxisRoot Holdings from Q2 FY2025.

• More conservative guidance for FY2025, factoring in temporary organizational loads and business transfers.

• Mid-term targets: FY2029 sales JPY 100 billion, EBITDA JPY 20 billion; aiming for early achievement.