NISSO HOLDINGS (9332) Q1 2025 earnings summary

Executive summary

• Achieved record-high first quarter profits since listing, with consolidated net sales up 6.4% year-over-year and operating profit up 75.4% year-over-year; profit attributable to owners of parent up 61.6% year-over-year.

• Growth driven by higher unit costs, recovery at high-profit business partners, increased staff in Engineering Human Resources Services, and strong performance in the Semiconductor Industry.

• Gross profit margin improved by 1.3 points to 17.0%, and operating profit margin rose by 1.4 points to 3.5% year-over-year.

• Limited impact from certification issues in the Automotive Industry.

• Formed a capital and business alliance with TSUNAGU GROUP HOLDINGS, making it an equity-method affiliate.

Financial highlights

• Net sales: ¥25,164 million, up 6.4% year-over-year; operating profit: ¥878 million, up 75.4% year-over-year; ordinary profit: ¥887 million, up 73.6% year-over-year; profit attributable to owners of parent: ¥511 million, up 61.6% year-over-year.

• Net income per share for Q1: ¥15.62.

• Gross profit: ¥4,266 million; gross profit margin: 17.0%.

• Equity ratio at 48.9% as of June 2024.

• SG&A expense ratio decreased by 0.1 percentage points year-over-year.

Outlook and guidance

• Full-year FY 3/2025 forecast: Net sales ¥106,000 million (+9.4% YoY), operating profit ¥3,800 million (+24.3% YoY), ordinary profit ¥3,800 million (+24.3% YoY), profit attributable to owners of parent ¥2,400 million (+22.9% YoY), net income per share ¥73.25.

• Expect continued strength in core General Human Resources Services, with recovery in automotive and semiconductor sectors.

• No changes to previously announced full-year forecast.