CE Holdings (4320) Q4 2024 earnings summary

Executive summary

• Revenue reached a record high of ¥14,554 million, up 6.8% year-over-year, while operating and ordinary profit were just below last year's record levels.

• Operating profit declined by 8.5% year-over-year to ¥1,148 million.

• Net income attributable to parent company shareholders dropped sharply by 82.0% year-over-year to ¥123 million due to impairment losses and extraordinary losses at subsidiaries.

• Growth was driven by large-scale electronic medical record system projects, offsetting declines in clinical development and digital marketing support.

• Earnings per share fell to ¥8.19 from ¥45.91 year-over-year.

Financial highlights

• Revenue: ¥14,554 million (+6.8% YoY); operating profit: ¥1,148 million (−8.5% YoY); ordinary profit: ¥1,154 million (−8.2% YoY); net income: ¥123 million (−82.0% YoY).

• Gross profit was ¥3,365 million, while cost of sales increased to ¥11,188 million.

• Both order intake and backlog reached record highs.

• Cash and cash equivalents at year-end increased to ¥3,826 million from ¥3,138 million.

• Earnings per share dropped to ¥8.19.

Outlook and guidance

• FY2025 forecast: Revenue ¥15,000 million (+3.1%), operating profit ¥1,500 million (+30.6%), ordinary profit ¥1,500 million (+30.0%), net income ¥820 million (+564.4%).

• All major profit metrics are expected to reach record highs.