eGuarantee (8771) Q1 2025 earnings summary

Executive summary

• Net sales rose 7.4% year-over-year to 2,406 million yen for the quarter ended June 30, 2024, driven by growth in guarantee liabilities.

• Operating profit and ordinary profit both increased by 1.5% year-over-year, reaching 1,168 million yen and 1,187 million yen, respectively.

• Profit attributable to owners of parent was 779 million yen, up 1.0% year-over-year.

• Comprehensive income reached 829 million yen, a 1.2% year-over-year increase.

• Guarantee liabilities rose 11.6% year-over-year to 780.2 billion yen, supported by new contracts and high renewal rates.

Financial highlights

• Gross profit slightly decreased by 0.4% year-over-year to 1,849 million yen, despite higher sales.

• Basic earnings per share for the quarter was 16.34 yen, up from 16.24 yen a year earlier.

• Total assets decreased to 28,886 million yen from 30,109 million yen at the previous fiscal year-end.

• Net assets declined to 23,366 million yen from 24,126 million yen as of March 31, 2024.

• Profit attributable to owners of parent rose 1.0% year-over-year to 779 million yen.

Outlook and guidance

• FY2025/3 consolidated forecast: net sales 10,100 million yen, operating profit 5,100 million yen, ordinary profit 5,200 million yen, profit attributable to owners of parent 3,450 million yen.

• Full-year net sales forecasted at 10,100 million yen, up 10.2% year-over-year.

• Basic earnings per share forecasted at 72.34 yen for the full year.

• No changes to the consolidated earnings forecast; aiming for 23 consecutive years of increased net sales and ordinary profit.

• No revisions to previously announced dividend or financial forecasts.