Plus Alpha Consulting (4071) Q1 2025 earnings summary

Executive summary

• Net sales rose 27.1% year-over-year to 3,893 million yen in 1Q FY2025, with operating profit up 9.0% to 1,121 million yen and profit attributable to owners of parent up 7.6% to 755 million yen.

• HR Solutions drove growth, accounting for 75.2% of net sales and 71.9% of profit, with recurring revenue up 33.3% year-over-year.

• Comprehensive income increased 7.4% year-over-year to 754 million yen for the quarter.

• Progress toward full-year plan: 22.0% of net sales and 20.0% of operating profit achieved in 1Q.

• Profit margin slightly decreased due to upfront marketing expenses and subsidiary challenges.

Financial highlights

• Gross profit grew 25.8% to 2,808 million yen; SG&A expenses increased 40.2% year-over-year.

• Ordinary profit increased 8.5% year-over-year to 1,118 million yen; net profit rose 7.6% to 755 million yen.

• Basic earnings per share for the quarter were 17.81 yen, up from 16.64 yen a year earlier.

• Total assets as of December 31, 2024, were 14,142 million yen, with net assets at 11,423 million yen and an equity ratio of 80.6%.

• Cash and deposits at quarter-end were 6,993 million yen.

Outlook and guidance

• FY2025 forecast: net sales of 17,730 million yen (+27.4% YoY), operating profit of 5,600 million yen (margin 31.6%), and profit attributable to owners of parent of 3,900 million yen (+26.1%).

• Basic EPS forecast for FY2025 is 91.79 yen; annual dividend forecast is 18.00 yen per share.

• Growth expected from increased customer base in both HR and Marketing Solutions, and full-year contribution from recent M&A.

• Medium-term target: sales of 30 billion yen and operating profit of 10 billion yen or more.