Rakus (3923) Q1 2025 earnings summary

Executive summary

• Achieved strong year-over-year sales growth and significant profit increase in Q1 FY2025.3, with net sales up 35.4% to ¥11,219 million and operating profit up 125.5% to ¥2,327 million, driven by robust sales and flexible advertising cost management.

• Profit attributable to owners of parent surged 193.7% to ¥2,071 million; EPS reached ¥11.43, up from ¥3.89.

• Cloud Business maintained high customer growth, supported by regulatory changes, though new orders slowed and are expected to recover after Q1.

• IT Outsourcing Business improved utilization rates, leading to higher sales and profit.

Financial highlights

• Net sales rose 35.4% year-over-year to ¥11,219 million in Q1 FY2025.3.

• Operating profit surged 125.5% to ¥2,327 million; ordinary profit up 123.3% to ¥2,338 million.

• EBITDA increased 117.0% to ¥2,590 million; profit attributable to owners of parent jumped 193.7% to ¥2,071 million.

• Gross profit margin improved to 73.9% from 70.4% year-over-year; gross profit grew to ¥8,286 million from ¥5,838 million.

• Operating profit margin rose to 20.7% from 12.4% year-over-year.

Outlook and guidance

• Full-year FY2025.3 guidance maintained: net sales ¥48,300 million (+25.8%), operating profit ¥9,000 million (+61.9%), profit attributable to owners of parent ¥6,900 million (+64.8%), and EPS forecast at ¥38.08.

• Focus remains on high sales growth and improving profitability toward medium-term targets.

• Continued investment in recruitment, marketing, office expansion, and outsourcing, with efficiency monitoring.

• Dividend increase planned for the 13th consecutive year, targeting a payout ratio over 10%; annual dividend forecast is ¥2.35 per share.