Synchro Food (3963) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 reached ¥1,010.9 million, up 19.5% year-over-year, with operating profit at ¥300.1 million, up 63.4% year-over-year, and net profit attributable to shareholders increasing 72.1% to ¥201.6 million, all setting new quarterly records.

• Growth was driven by strong performance in both Media Platform and M&A Brokerage segments, with notable increases in user registrations and large M&A deal closures.

• Strategic investments in human capital and technology continued, with efficient cost management and a reduction in advertising expenses as a percentage of sales.

• New services launched include a mobility subscription, AI-powered property registration, and a corporate value assessment service for the restaurant industry.

Financial highlights

• Q1 revenue: ¥1,010.9 million (+19.5% YoY); operating profit: ¥300.1 million (+63.4% YoY); net income attributable to parent: ¥201.6 million (+72.1% YoY); EPS: ¥7.50 (prior year: ¥4.38).

• Gross profit margin improved to 83.6% (from 82.1% YoY); operating margin rose to 29.7% (from 21.7% YoY).

• SG&A expenses increased 6.6% YoY, with personnel costs rising slightly and advertising costs dropping from 7.8% to 5.1% of sales.

• Q1 sales and profits are tracking well against full-year guidance, with 24.1% of annual revenue and 23.8% of annual operating profit achieved.

• Comprehensive income for Q1 was ¥202.7 million, up 71.7% year-over-year.

Outlook and guidance

• Full-year FY2025 guidance: revenue ¥4,200 million (+16.6% YoY), operating profit ¥1,260 million (+21.3% YoY), net income ¥882 million (+25.1% YoY), EPS forecast ¥32.74.

• No change to previously announced guidance.

• Company aims to maintain high profitability and meet Prime Market listing standards.

• Strategic focus remains on nationwide expansion of job advertising, platform service growth, mobility service scaling, and new data/SNS-driven services.