PRONEXUS (7893) Q1 2025 earnings summary

Executive summary

• Q1 FY March 2025 revenue was ¥11,794 million, down 0.1% YoY; operating profit rose 2.4% to ¥3,232 million.

• Profit before tax increased 46.9% to ¥4,676 million, and profit attributable to owners of parent rose 46.3% to ¥3,192 million.

• A ¥1,411 million gain on sale of equity-method investments boosted profit before tax and net income, but not operating income.

• Web and English translation services supported non-printing growth; lower paper and sales promotion costs lifted operating profit.

Financial highlights

• Gross profit was ¥5,429 million, up 0.6% YoY; cost of sales fell 0.6% to ¥6,365 million, with a 54.0% cost-of-sales ratio.

• SG&A declined 2.0% to ¥2,211 million; its ratio fell to 18.8%.

• Basic EPS was ¥125.13, compared with ¥85.53 in Q1 FY March 2024.

• Total assets were ¥44,559 million at quarter-end, up ¥5,975 million from the previous fiscal year-end.

Outlook and guidance

• FY March 2025 revenue forecast was ¥31,000 million, up 2.9% YoY; Q1 revenue represented 38.0% of the forecast.

• Full-year profit attributable to owners of parent is forecast at ¥2,650 million, up 48.9% YoY; forecasts were unchanged.

• Annual dividend forecast was ¥52 per share: ¥36 ordinary and ¥16 special, with the special dividend split between ¥8 at Q2 and ¥8 at year-end.

• Q1 typically accounts for a large share of annual revenue as listed-company disclosure and shareholder-meeting orders peak; regular-to-irregular orders are 6:4.