World Holdings (2429) Q1 2025 earnings summary

Executive summary

• Net sales rose 15.8% YoY to ¥63,493 million, with operating profit up 292.8% to ¥2,499 million and ordinary profit up 298.0% to ¥2,408 million, driven by strong Human Resources and Real Estate segments.

• Profit attributable to owners of parent was ¥1,207 million, reversing a prior-year loss, with all segments except Real Estate exceeding or meeting profit plans.

• The business environment was marked by a weak yen, labor shortages, and geopolitical risks, but manufacturing demand, especially semiconductors, remained robust.

• Human Resources and Education Business outperformed, while Real Estate Business faced timing delays in property sales.

Financial highlights

• Net sales for 1Q FY2025 were ¥63,493 million, up 15.8% YoY but 7.3% below plan.

• Operating profit rose to ¥2,499 million, up 292.8% YoY and 31.0% above plan.

• Ordinary profit reached ¥2,408 million, up 298.0% YoY and 37.8% above plan.

• Profit attributable to owners of parent was ¥1,207 million, reversing a loss YoY.

• Gross profit increased to ¥10,317 million from ¥7,672 million YoY.

Outlook and guidance

• FY2025 net sales forecast is ¥281,439 million (+16.2% YoY), with operating profit of ¥10,179 million (+18.5% YoY).

• Dividend per share forecast raised to ¥106.2, with payout ratio target increased to 35%.

• Management remains cautious due to global uncertainties, leveraging a diversified business portfolio for steady growth.