SERAKU (6199) Q4 2024 earnings summary

Executive summary

• Net sales increased by 6.5% year-over-year to 22,221 million yen, with operating profit up 16.9% to 2,274 million yen, driven by growth in Digital Integration and DX domains.

• Profit attributable to parent rose 7.0% to 1,576 million yen.

• Growth was supported by strong IT/DX demand, expansion in Digital Integration, and stable Mechanical Design and Engineering, despite a decline in Midori Cloud.

• The company targets FY25 net sales of 24,500 million yen (+10.3% YoY) and operating profit of 2,550 million yen (+12.1% YoY).

• Focus remains on expanding high-value DX projects, leveraging business partners, and investing in new business areas like Midori Cloud and NewtonX.

Financial highlights

• Gross profit increased by 10.1% year-over-year to 5,700 million yen, with a gross margin improvement.

• Ordinary profit rose 7.5% year-over-year to 2,317 million yen.

• Net assets increased to 7,763 million yen, with an equity ratio of 64.2%.

• Cash and cash equivalents at year-end were 6,844 million yen.

• Dividend per share increased to 13.00 yen, with a payout ratio of 11.4%.

Outlook and guidance

• FY25 guidance targets 24,500 million yen in net sales (+10.3% YoY) and 2,550 million yen in operating profit (+12.1% YoY), with profit attributable to parent forecast at 1,720 million yen (+9.2% YoY).

• Dividend per share for FY25 is expected to increase, supported by performance-linked dividends and treasury share retirement.

• Continued focus on shareholder returns through treasury share acquisition and flexible capital policy.

• Management expects continued solid IT investment demand but notes macroeconomic uncertainties.