Septeni (4293) Q4 2024 earnings summary

Executive summary

• Net sales increased by 5.8% year-over-year (YoY) and revenue rose 2.2% YoY to ¥28,284 million, both reaching record highs after reclassification of discontinued operations.

• Non-GAAP operating profit declined 20.4% YoY to ¥3,197 million due to delayed revenue conversion from increased personnel.

• Profit attributable to owners of parent surged 47.9% YoY to ¥5,526 million, driven by gains from subsidiary share sales and higher equity in earnings of affiliates.

• The Digital Marketing segment led growth, while the Media Platform segment underwent portfolio review and cost optimization.

• Organizational restructuring and divestment from unprofitable businesses advanced the medium-term "Focus" theme.

Financial highlights

• FY2024 revenue: ¥28,284mn (+2.2% YoY); net sales: ¥145,996mn (+5.8% YoY); Non-GAAP operating profit: ¥3,197mn (-20.4% YoY); profit attributable to owners of parent: ¥5,526mn (+47.9% YoY).

• EPS: ¥26.65 (+¥8.70 YoY); diluted EPS: ¥26.61; year-end dividend: ¥31.35 per share; payout ratio: 117.6%.

• Gross profit margin: 78.5%; SG&A expenses up 5.1% YoY.

• Return on equity was 8.2%; operating profit to revenue ratio was 11.1%.

• Cash and cash equivalents at year-end totaled ¥23,730 million, up from ¥20,873 million.

Outlook and guidance

• FY2025 targets: revenue ¥30,300mn (+7.1% YoY), non-GAAP operating profit ¥4,000mn (+25.1% YoY), net sales ¥153,000mn (+4.8% YoY), profit attributable to owners of parent ¥3,800mn.

• Basic EPS for FY2025 is projected at ¥18.32, a 31.2% decrease.

• Aiming for a V-shaped recovery with profit growth and improved productivity.

• Segment guidance: Marketing Communication (+6.6% revenue), Direct Business (+12.1%), Data & Solutions (+6.4%).

• Year-end dividend forecast for FY2025 is undetermined, pending growth investment and shareholder return measures; minimum 50% payout ratio targeted.