GENDA (9166) Q2 2025 earnings summary

Executive summary

• 2Q results exceeded initial business plan, with revenue for the six months ended July 31, 2024, doubling year-over-year to ¥49,531 million.

• EBITDA grew 45.8%–56% YoY, but net income attributable to owners of parent fell 28.8% YoY despite strong top-line growth.

• Net income before goodwill amortization increased 18% YoY in one summary, but another reports a 6% decline.

• Major campaigns, new flagship store openings, and ongoing PMI initiatives contributed to performance.

• Seven new subsidiaries were added and one was excluded during the period.

Financial highlights

• 2Q YTD revenue reached ¥49.5bn (+102% YoY); EBITDA (excl. one-time expenses) ¥6.1bn (+56% YoY); net income before goodwill amortization ¥2.4bn (+18% YoY).

• EBITDA rose 45.8% YoY to ¥5.7bn; net income before amortization of goodwill was ¥1.92bn, down 6%.

• Gross margin for 2Q YTD was 20.9%; EBITDA margin 11.5%.

• Cash and cash equivalents at period end were ¥25.1bn, up from ¥10.9bn a year earlier.

• Total assets grew to ¥93.1bn from ¥52.1bn at the previous fiscal year end.

Outlook and guidance

• FY2025/1 revenue forecast revised up to ¥110bn (+97.5% YoY); EBITDA and net income forecasts unchanged due to M&A timing uncertainties.

• Operating income projected at ¥7.0bn (+30.3%), net income at ¥4.3bn (+2.9%), and EBITDA at ¥13.0bn (+60.4%).

• Adjusted EBITDA for FY2025/1 estimated at ¥15.0bn (adjusted OP ¥9.0bn), reflecting full-year M&A contributions.

• FY2026/1 forecast: revenue ¥140bn, EBITDA ¥18.5bn, OP ¥10.5bn, net income before goodwill amortization ¥7.0bn, assuming no new M&As.

• Earnings per share forecast at ¥59.01; EPS before amortization of goodwill at ¥74.10.