Systena (2317) Q4 2024 earnings summary

Executive summary

• Net sales rose 3.2% year-over-year to ¥76,940 million, driven by recurring-revenue, consulting, and high value-added software development businesses.

• Operating profit declined 1.3% year-over-year to ¥9,713 million due to unprofitable projects, despite sales growth.

• Profit attributable to owners of parent fell 1.2% to ¥7,232 million.

• Segment performance was mixed, with strong growth in Framework Design, IT Service, and Business Solution, but declines in Solution Design and Overseas segments.

• Proactive investment in human resources and recurring revenue businesses continued.

Financial highlights

• Net sales: ¥76,940 million (+3.2% YoY).

• Operating profit: ¥9,713 million (12.6% margin, -1.3% YoY).

• Ordinary profit: ¥9,942 million (-0.1% YoY).

• Profit attributable to owners: ¥7,232 million (-1.2% YoY).

• Gross profit: ¥18,078 million, down slightly YoY.

• Cash and cash equivalents at year-end increased to ¥30,092 million, up ¥5,300 million.

• Annual dividend per share increased to ¥10, with a payout ratio of 53.6%.

Outlook and guidance

• FY2025 net sales forecast: ¥85,000–100,000 million (up 10.5–30.0% YoY).

• Operating profit forecast: ¥8,500–10,500 million (down 12.5% to up 8.1% YoY).

• Profit attributable to owners forecast: ¥5,900–7,300 million (down 18.4% to up 0.9% YoY).

• Dividend forecast for FY2025 is ¥12 per share.