Visional (4194) Q1 2025 earnings summary

Executive summary

• 1Q FY2025/7 consolidated net sales reached JPY 18.69Bn, up 16.4% year-over-year, with operating profit at JPY 5.45Bn, up 10.1% year-over-year and a 29.2% margin, both progressing on plan toward annual targets.

• Profit attributable to owners of parent was JPY 4.05Bn (16.1% YoY growth, 21.7% margin).

• BizReach, the core business, delivered 1Q net sales of JPY 16.35Bn (16.0% YoY growth) and operating profit of JPY 6.94Bn (12.7% YoY growth, 42.5% margin), with hiring demand and job seeker trends in line with expectations.

• The BizReach business drove group performance, supported by strong demand for professional human resources and increased advertising.

• HRMOS posted strong 1Q net sales of JPY 1.15Bn (38.9% YoY growth), with operating losses as planned due to front-loaded marketing investments; profitability targeted for FY2026/7.

Financial highlights

• Consolidated gross profit margin remained high at 91.2% in 1Q, with selling, general & administrative expenses at JPY 11.59Bn.

• Gross profit increased to JPY 17.04Bn from JPY 14.74Bn year-over-year, with gross margin remaining robust.

• Basic earnings per share rose to JPY 102.08 from JPY 89.16 year-over-year.

• Cash and deposits stood at JPY 56.43Bn as of 1Q FY2025/7, with total assets of JPY 75.49Bn and total net assets of JPY 55.34Bn.

• Accounts receivable increased to JPY 6.52Bn due to sales growth.

Outlook and guidance

• FY2025/7 consolidated net sales forecast remains unchanged at JPY 76.40Bn (+15.5% YoY), with operating profit forecast at JPY 19.15Bn (+7.4% YoY, 25.1% margin).

• BizReach net sales forecast is JPY 66.44Bn (+15.0% YoY) with a 40% operating profit margin; HRMOS net sales forecast is JPY 5.0Bn (+30.1% YoY).

• Basic earnings per share for the year forecast at JPY 339.79.

• No change to previously issued financial results forecast.

• Increased investments in human capital and other businesses are planned to drive mid-term enterprise value.