Plus Alpha Consulting (4071) Q2 2025 earnings summary

Executive summary

• Net sales rose 26.5% year-over-year to 8,178 million yen and operating profit increased 28.9% to 2,792 million yen for the six months ended March 31, 2025.

• Profit attributable to owners of parent increased 25.8% to 1,851 million yen; comprehensive income up 26.0% to 1,853 million yen.

• Operating profit margin improved by 0.6 points to 34.1% year-over-year.

• Both net sales and operating profit are progressing well against the full-year plan, at 46.1% and 49.9% respectively.

• HR Solutions segment continues to drive growth, with strong enterprise adoption and recurring revenue expansion.

Financial highlights

• Ordinary profit increased 26.1% year-over-year to 2,735 million yen; net profit rose 25.8% to 1,851 million yen.

• Gross profit for the six months was 5,930 million yen, up from 4,757 million yen year-over-year; gross margin improved.

• Basic earnings per share for the period was 44.24 yen, compared to 34.84 yen in the prior year.

• Cash and cash equivalents at period end were 8,334 million yen, down from 10,189 million yen at the previous fiscal year end.

• Selling, general and administrative expenses rose 21.2% year-over-year, but marketing expenses were curtailed, supporting profit margin improvement.

Outlook and guidance

• Full-year forecast maintained: net sales of 17,730 million yen (up 27.4% year-over-year), operating profit of 5,600 million yen (margin 31.6%), and profit attributable to owners of parent of 3,900 million yen (up 26.1%).

• Annual dividend forecast raised to 18.00 yen per share, up from 16.00 in the previous year.

• 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.