Septeni (4293) Q1 2025 earnings summary

Executive summary

• Net sales and revenue reached record highs in Q1 FY2025, with revenue up 12.5% YoY to ¥8,206 million and net sales up 7.8% YoY, driven by strong Marketing Communication performance and a 40% surge in Dentsu collaboration sales.

• Non-GAAP operating profit rose 23.3% YoY to ¥1,571 million, and operating margin improved due to effective cost controls.

• Profit attributable to owners fell 56.3% YoY to ¥1,524 million, mainly due to a prior-year one-time gain from a partial share transfer.

• Excluding the prior year's one-time gain, profit from continuing operations increased year-over-year.

• Shareholder return policy was revised, setting a minimum annual dividend of ¥18 per share.

Financial highlights

• Q1 FY2025 revenue: ¥8,206mn (+12.5% YoY); net sales: ¥41,863mn (+7.8% YoY).

• Non-GAAP operating profit: ¥1,571mn (+23.3% YoY); operating profit: ¥1,557mn (+23.7% YoY).

• Profit attributable to owners: ¥1,524mn (-56.3% YoY, due to prior year one-off gain); EPS: ¥7.35.

• Total assets at end-Q1: ¥101,811mn, up from ¥97,637mn at year-end 2024; total equity: ¥64,906mn, with a notable dividend payment of ¥6,503mn.

• Cash and cash equivalents at period end were ¥23,110mn, down from ¥23,730mn at year-end; cash flow from operating activities was ¥5,899mn, up from ¥3,486mn YoY.

Outlook and guidance

• FY2025 full-year revenue forecast: ¥30,300mn (+7.1% YoY); non-GAAP operating profit: ¥4,000mn (+25.1% YoY); profit attributable to owners forecast: ¥3,800mn; EPS: ¥18.32.

• No change in previously announced earnings forecasts.

• Aiming for a V-shaped recovery with increased revenue and profit growth.

• Progress rates for Q1: revenue 27.1%, non-GAAP operating profit 39.3%, profit attributable to owners 40.1%.