I'LL (3854) Q2 2025 earnings summary

Executive summary

• Net sales rose 7.8% year-over-year to ¥9,242 million for the six months ended January 31, 2025, driven by robust demand for digital transformation and IT solutions among SMEs.

• Operating profit increased 1.0% year-over-year to ¥2,261 million, while ordinary profit slightly declined by 0.6% to ¥2,235 million due to higher non-operating expenses linked to the Impact Neutralization Trust.

• Profit attributable to owners of parent grew 3.2% year-over-year to ¥1,538 million, with EPS at ¥62.26.

• The company continued to invest in R&D, spending ¥42 million to enhance future competitiveness.

• An Impact Neutralization Trust was established, acquiring and partially selling treasury shares to improve share liquidity and governance.

Financial highlights

• Gross profit increased to ¥5,119 million, with a gross margin of 55.4% for the period.

• Operating profit margin was 24.5%, down from 26.1% in the prior year period.

• Comprehensive income reached ¥1,523 million, up 3.5% year-over-year.

• Total assets stood at ¥13,818 million, and net assets at ¥7,354 million, with an equity ratio of 53.2%.

Outlook and guidance

• Full-year forecast for FY2025 projects net sales of ¥19,150 million (+9.4% YoY), operating profit of ¥4,800 million (+12.6%), and profit attributable to owners of parent of ¥3,257 million (+12.8%).

• No revisions have been made to previously announced forecasts.