eGuarantee (8771) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, rose 8.4% year-over-year to 4,878 million yen, driven by new contracts and guarantee liabilities.

• Guarantee liabilities rose 8.2% year-over-year to 791.7 billion yen, reflecting increased contracts amid rising bankruptcies.

• Ordinary profit grew 3.3% year-over-year, with operating profit up 1.3% and profit attributable to owners of parent up 5.2%.

• Comprehensive income increased 1.9% year-over-year to 1,687 million yen.

• Cost ratio improved due to risk portfolio review, with further improvement expected.

Financial highlights

• Gross profit for the six months ended September 30, 2024, was 3,761 million yen, up 2.0% year-over-year.

• Basic earnings per share for the period was 34.30 yen, up from 32.72 yen in the prior year.

• Total assets as of September 30, 2024, were 30,044 million yen, with net assets at 24,314 million yen and a capital adequacy ratio of 74.0%.

• Guarantee obligations surged 28.0% year-over-year to 1.613 trillion yen.

• Interim profit attributable to owners of parent was 1,636 million yen, up 5.2% year-over-year.

Outlook and guidance

• Full-year forecasts for FY2025/3: net sales of 10,100 million yen, operating income of 5,100 million yen, ordinary income of 5,200 million yen, and net income attributable to owners of parent of 3,450 million yen.

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

• Management targets double growth in net sales and ordinary profit by FY2028, aiming for 20 billion yen and 10 billion yen, respectively.

• No changes to the forecast, expecting 23 consecutive years of sales and income growth.