YAMADA Consulting Group Co (4792) Q2 2027 earnings summary

Executive summary

• 1H FY03/27 net sales rose 1.9% YoY to ¥13,634 million and gross profit rose 6.6% to ¥10,467 million, both record highs; operating profit fell 2.0% to ¥2,046 million and parent-attributable profit fell 14.6% to ¥1,208 million.

• Consulting gains were offset by weaker Investment results and higher SG&A, mainly personnel expenses; the full-year forecast remained unchanged.

Financial highlights

• Ordinary profit fell 2.2% YoY to ¥1,991 million; comprehensive income was ¥1,410 million versus ¥1,420 million a year earlier.

• Gross profit rose as cost of sales declined 10.8%; SG&A increased ¥694.7 million to ¥8,420 million, including a ¥498 million increase in personnel expenses following ~6% salary increases.

• Selective hiring premised on AI use reduced recruitment expenses by ¥78 million.

• Cash and cash equivalents decreased ¥1,680 million during 1H to ¥8,570 million.

Outlook and guidance

• FY03/27 forecasts unchanged: net sales ¥26,900 million, gross profit ¥22,100 million, operating profit ¥4,500 million, ordinary profit ¥4,350 million and parent-attributable profit ¥2,900 million.

• 1H progress was 50.6% of sales, 47.3% of gross profit, 45.4% of operating profit, 45.7% of ordinary profit and 41.6% of parent-attributable profit forecasts.

• FY03/27 EPS forecast was ¥150.88; annual dividend forecast remained ¥77 per share.

• Ten-year targets are gross profit of ¥50.0 billion or more and operating profit of ¥10.0 billion or more; global consulting is an immediate growth challenge.