Quest Co (2332) Q2 2024 earnings summary

Executive summary

• H1 FY2023 revenue rose 0.8% YoY to ¥7,001 million; operating profit fell 9.7% to ¥453 million as investment and relocation costs outweighed revenue and efficiency benefits.

• Revenue and operating profit reached 48.3% and 48.2% of full-year forecasts, respectively, in line with five-year average progress rates.

Financial highlights

• Revenue was ¥7,001 million, up ¥53 million or 0.8% YoY; operating profit was ¥453 million, down ¥49 million or 9.7%.

• Ordinary profit was ¥487 million, down 9.0% YoY; net income was ¥326 million, down 9.5%.

• EBITDA was ¥575 million, down 5.0% YoY; EBITDA margin was 8.2%, versus 8.7%.

Outlook and guidance

• FY2023 forecasts were maintained: revenue ¥14,500 million, operating profit ¥940 million, ordinary profit ¥985 million, and EBITDA ¥1,156 million.

• Full-year revenue and operating profit progress were 48.3% and 48.2%; ordinary profit and EBITDA progress were 49.5% and 49.8%.

• Growth actions include shifting resources toward high-demand industries, expanding solution services and new-customer acquisition, and strengthening sourcing capacity.

• Profit priorities include tighter project and contract quality management, controlling operating costs, and accelerating investment payback.