Aidma Holdings (7373) Q4 2024 earnings summary

Executive summary

• Transitioned to a unit provision model, driving cross-sell and upsell, and launched full-scale unit-based business support with about 250 additional unit orders.

• Achieved record-high annual revenue of ¥10,618 million (+17.2% YoY) and operating profit of ¥2,468 million (+11.7% YoY), despite missing some initial forecasts due to a large subsidiary project loss.

• Growth driven by strong demand for sales platform services, HR support, and expansion of work innovation business amid labor shortages.

• Both sales support and HR support orders reached all-time highs, with total orders up 21% YoY.

• The company operates a single segment, work innovation, focused on outsourcing solutions for SMEs.

Financial highlights

• Revenue: ¥10,618 million (+17.2% YoY); operating profit: ¥2,468 million (+11.7% YoY, margin 23.2%); net income attributable to parent: ¥1,425 million (+12.2% YoY).

• Gross profit: ¥7,600 million (+14.2% YoY, margin 71.6%).

• Sales support revenue: ¥7,168 million (+11.5% YoY); HR support revenue: ¥3,164 million (+36.7% YoY).

• Q4 revenue hit a record ¥2,858 million (+17.7% YoY, +5.7% QoQ); Q4 operating profit ¥596 million (+197% YoY, -7.5% QoQ).

• EPS: ¥93.58 (diluted: ¥90.69); net assets per share: ¥439.73; total assets: ¥10,083 million (+¥1,011 million YoY); equity ratio: 66.7%.

Outlook and guidance

• FY2025 revenue forecast: ¥13,000 million (+22.4% YoY); operating profit: ¥2,900 million (+17.5% YoY, margin 22.3%); net income forecast: ¥1,650 million (+15.7% YoY).

• Orders expected to rise: sales support 3,720 (+17.9% YoY), HR support 2,150 (+20.1% YoY).

• Demand for outsourcing and flexible work solutions expected to remain strong due to demographic trends.