OBIC Business Consultants (4733) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2025 rose 16.7% year-over-year to ¥22,738 million, driven by strong cloud solution demand and a shift from on-premise to cloud offerings.

• Operating profit increased 23.9% year-over-year to ¥10,112 million, with gross margin improving by 1.8 percentage points due to higher solution sales mix.

• Net income grew 25.0% year-over-year to ¥7,633 million, with earnings per share at ¥101.53, up from ¥81.20 in the prior year period.

• Ordinary profit rose 21.9% year-over-year to ¥10,792 million.

• Profit for the period includes a gain on sales of investment securities of ¥229 million.

Financial highlights

• Gross profit rose 19.2% year-over-year to ¥19,028 million, with gross margin at 83.7%.

• SGA expenses increased 14.3% year-over-year, mainly from higher personnel and R&D costs, and increased advertising spend.

• Cash and deposits at September 30, 2024, totaled ¥155,492 million, up from ¥151,601 million at March 31, 2024.

• Total assets increased to ¥200,425 million as of September 30, 2024.

• Net assets rose to ¥154,503 million, with an equity ratio of 77.1%.

Outlook and guidance

• Full-year FY2025 net sales forecast remains at ¥48,000 million, up 14.4% year-over-year.

• Operating profit guidance is ¥21,500 million (+14.7% YoY), and profit is revised to ¥15,704 million (+13.5% YoY) to reflect extraordinary gains.

• Full-year earnings per share are expected to reach ¥209.00.

• Dividend forecast for the year ending March 31, 2025, is ¥95.00 per share, up from ¥80.00 in the previous year.

• Cloud sales plan for 2H revised downward to account for a reactionary decline after prior year’s special demand.