Net Protections (7383) Q1 2025 earnings summary

Executive summary

• Achieved a turnaround to profitability in Q1 FY3/25 with operating profit of JPY 273mn and net profit of JPY 135mn, up JPY 620mn YoY from prior losses.

• Double-digit GMV growth (+10.0% YoY) and strong BtoB (NP Kakebarai, +30.4% YoY GMV) and BtoC atone (+34.3% YoY GMV) performance.

• Gross profit rose 24.9% YoY to JPY 2,257mn, reflecting improved cost control and lower bad debt expenses.

• Upward revision to FY3/25 full-year forecast: operating profit now expected at JPY 1,080mn, more than double the previous forecast.

• Total operating revenue grew 1.6% YoY to JPY 5,254mn.

Financial highlights

• Q1 FY3/25 GMV: JPY 149.4bn (+10.0% YoY); BtoC atone JPY 8.0bn (+34.3%), BtoB NP Kakebarai JPY 55.5bn (+30.4%).

• Q1 gross profit: JPY 2,257mn (+24.9% YoY); operating profit: JPY 273mn (vs. loss of JPY 354mn YoY); EBITDA: JPY 681mn (+4084.7% YoY).

• Basic EPS for Q1: 1.39 yen (vs. -2.86 yen YoY).

• Cash and cash equivalents increased to JPY 12,330mn as of June 30, 2024.

• Total assets rose 5.2% to JPY 63,416mn; equity ratio at 28.2%.

Outlook and guidance

• Full-year FY3/25 operating profit forecast revised up to JPY 1,080mn (+107.6% vs. previous forecast); gross profit forecast up by JPY 390mn.

• Full-year revenue forecast revised upward to JPY 23,000mn (+10.3% YoY); net profit forecast at JPY 658mn.

• GMV for FY2025 projected at JPY 630,500mn (+11.4% YoY); EBITDA forecast at JPY 2,803mn.

• Medium-term plan targets GMV CAGR of 12–15%, total operating revenue of JPY 30bn+, and operating profit of JPY 2bn+ by FY3/27.

• Long-term target: operating profit of JPY 10bn and GMV of JPY 1.6tr.