Avant Group (3836) investor relations material

Executive summary

• Net sales for the first half of FY6/26 rose 8.5% year-over-year to ¥15,202 million, driven by strong demand in the Consolidated Financial Disclosure and Digital Transformation Promotion businesses.

• Operating profit increased 8.2% year-over-year to ¥2,745 million, with profit growth supported by improved margins and reduced outsourcing costs despite higher personnel and IT expenses.

• Net income attributable to owners of parent grew 10.1% year-over-year to ¥1,744 million.

• Segment reclassification was implemented, with each major business now reported as a single segment and smaller entities grouped as "Other."

Financial highlights

• EBITDA for the first half reached ¥2,991 million, up 7.5% year-over-year.

• Gross profit for the first half was ¥6,840 million, up 8.2% year-over-year, with a gross margin of 45.0%.

• Operating profit margin was 18.1% for the first half and 18.3% for Q2.

• Equity ratio improved to 68.6%, reflecting a stable financial position.

• Earnings per share for the first half was ¥47.76, compared to ¥43.44 in the prior year.

Outlook and guidance

• Full-year FY6/26 guidance maintained: net sales of ¥33,300 million (+18.0% YoY), operating profit of ¥5,100 million (+10.8% YoY), and net income of ¥3,500 million (+1.9% YoY).

• Year-end dividend forecast at ¥32 per share, targeting a dividend on equity (DOE) of 8%.

• Management expects continued growth investments, especially in software and R&D, despite macroeconomic uncertainties.