SRE Holdings (2980) Q1 2025 earnings summary

Executive summary

• Net sales rose 18.1% YoY to ¥5,067 million; operating profit increased 320.6% to ¥851 million.

• Growth was led by AICC, while L&P benefited from asset-management earnings; Medix was newly consolidated during the quarter.

Financial highlights

• Ordinary profit rose 387.8% to ¥815 million; profit attributable to owners of parent increased 271.4% to ¥497 million.

• Comprehensive income reached ¥535 million, up 282.2% YoY.

• Gross profit increased to ¥2,450 million from ¥1,414 million YoY.

• Total assets grew to ¥31,105 million from ¥24,017 million at the previous fiscal year-end; the equity ratio declined to 39.6% from 50.6%.

Outlook and guidance

• FY2024 forecast: net sales ¥27,000 million (+11.5%), operating profit ¥3,050 million (+37.9%), and profit attributable to owners of parent ¥1,850 million (+33.2%).

• Adjusted EBITDA is forecast at ¥3,600 million (+39%); operating margin at 11.3% versus 9.1% in FY2023, and adjusted EBITDA margin at 13.3% versus 10.7%.

• AICC guidance: revenue ¥7,500 million (+54%) and segment profit ¥2,400 million (+41%); L&P targets revenue of ¥20,500 million (+2%) and profit of ¥950 million (+10%).

• FY2024 ARR target is ¥6,200 million (+45%) and AUM target is ¥110 billion; no dividend is planned.

• LH guidance, excluding MEDIX upside, is revenue of ¥3,850 million (+102%) and segment profit of ¥1,000 million (+102%).