WDB Holdings (2475) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q FY2025 increased by 3.4% year-over-year to ¥12.89 billion, driven by strong CRO segment performance.

• Operating profit rose 2.5% year-over-year to ¥1.32 billion, and ordinary profit increased 1.8%, while net profit declined 11.9% to ¥550–551 million due to temporary corporate tax effects.

• Staff compensation was raised by 5.6% in April as part of a mid- to long-term management plan, impacting margins.

• Human resources business consolidated support desk operations to improve efficiency.

• CRO business, especially WDB Coco and Medfiles, focused on high-margin operations and saw strong performance.

Financial highlights

• 1Q FY2025 revenue: ¥12.89 billion, up 3.4% year-over-year; operating profit: ¥1.32 billion (up 2.5%); ordinary profit: ¥1.32 billion (up 1.8%).

• Net profit: ¥550–551 million, down 11.9% year-over-year due to one-time tax impact.

• Gross profit margin slightly decreased to 23.3% (from 23.7% previous year); operating margin: 10.2%; ordinary margin: 10.3%.

• Comprehensive income for the quarter was ¥660 million, down 6.0% year-over-year.

• EPS for the quarter was ¥28.11, compared to ¥31.89 in the prior year.

Outlook and guidance

• Full-year FY2025 revenue forecast: ¥51.8 billion, up 5.1% year-over-year.

• Operating profit is projected to decline 13.1% year-over-year to ¥4,750 million; net income forecast is ¥2,970 million, down 16.3%.

• Dividend payout ratio target remains at 40%, but dividend per share is expected to decrease temporarily; annual dividend forecast is ¥72.50 per share.