Aidma Holdings (7373) Q3 2024 earnings summary

Executive summary

• Transitioned to a unit-based service model, offering multiple units per client to address labor shortages and enhance value.

• 9-month revenue rose 17% YoY to ¥7,759 million, driven by SME demand for online sales support.

• Operating income for 9 months declined 6.8% YoY to ¥1,871 million; net income fell 21.8% to ¥933 million.

• Strategic investments in web marketing and system development continued, stabilizing profit trends.

• Acquired Unique Career Co., Ltd. in March 2024 to enhance media production and inbound marketing.

Financial highlights

• 3Q revenue: ¥2,705 million (+13% YoY), operating profit: ¥644 million (+4% YoY), net profit: ¥233 million.

• Cumulative 9-month revenue: ¥7,759 million (+17% YoY), operating profit: ¥1,871 million (−6.8% YoY).

• Gross margin for 3Q: 71.2% (down 2.6 pts YoY); operating margin: 23.8% (down 2.1 pts YoY).

• EPS for the period was ¥61.27, compared to ¥78.48 in the prior year.

• Equity ratio improved to 67.1% from 58.4% at the previous year-end.

Outlook and guidance

• Full-year revenue forecast: ¥11,000 million (+21.4% YoY); operating profit: ¥2,400 million (+8.6%).

• Net income forecast: ¥1,380 million (+8.6%).

• Year-end dividend forecast is ¥30 per share, unchanged from previous guidance.

• 3Q revenue progress at 70.5% of full-year plan, slightly behind due to subsidiary project loss.

• Plans to recover order volume in 4Q by increasing approach numbers and shortening lead times.