SERAKU (6199) Q3 2025 earnings summary

Executive summary

• Net sales rose 12.7% year-over-year to ¥18,545 million for the nine months ended May 31, 2025, driven by Digital Integration, robust DX domain performance, and strong IT/DX demand.

• Operating profit increased 12.5% year-over-year to ¥2,009 million, with profit attributable to parent growing 14.2% to ¥1,315 million.

• Progressed toward FY25 plan, with net sales and operating profit reaching 75.7% and 78.8% of full-year targets, respectively.

• Multiple JA organizations adopted or trialed Midori Cloud Rakuraku Shukka, though Midori Cloud underperformed.

• The business environment was favorable for IT/DX, but uncertainties remain due to global economic factors and domestic consumption risks.

Financial highlights

• Net sales: ¥18,545 million (YOY +12.7%), operating profit: ¥2,009 million (YOY +12.5%), ordinary profit: ¥2,051 million (YOY +13.7%), profit attributable to parent: ¥1,315 million (YOY +14.2%).

• Gross profit improved to ¥4,896 million from ¥4,209 million year-over-year; gross profit margin improved to 26.4% (YOY +0.8pt), but SG&A expenses rose 19.2% YOY.

• Net income per share was ¥97.61, up from ¥83.20 in the prior year period.

• Total assets increased to ¥13,667 million from ¥12,052 million as of August 31, 2024; equity ratio stood at 63.5%.

• Digital Integration segment led growth; Midori Cloud segment posted a loss due to advance investments.

Outlook and guidance

• FY25 plan targets net sales of ¥24,500 million (YOY +10.3%) and operating profit of ¥2,550 million (YOY +12.1%).

• Progress rates as of 3Q: 75.7% for net sales, 78.8% for operating profit.

• Net income per share for FY25 is projected at ¥127.24.

• Medium-term vision aims for operating profit of ¥4.0 billion and net sales of ¥50.0 billion by FY27.

• No revisions to previously announced earnings forecasts.