Relo Group (8876) Q1 2025 earnings summary

Executive summary

• Revenue and net income saw significant year-over-year growth, driven by expansion in the core stock business and a one-time gain from the sale of shares in Nihon Housing Co., Ltd.

• Excluding the gain on sale, all income levels still achieved double-digit growth, reflecting robust operational performance.

• All major business segments—Relocation, Fringe Benefit, and Tourism—reported year-over-year revenue and profit growth.

Financial highlights

• Revenue rose 12.9% year-over-year to ¥34,626 million for FY2024/6.

• Operating profit increased 22.8% to ¥7,046 million; net income surged 501.6% to ¥24,043 million, mainly due to the gain on share sale.

• Excluding the share sale, net income grew 33.1% to ¥5,319 million, and operating profit rose 21.4%.

• Basic earnings per share jumped to ¥157.33 from ¥26.15 year-over-year.

• Cash and cash equivalents at quarter-end were ¥70,175 million, up ¥20,691 million from the previous year-end.

Outlook and guidance

• FY2025/3 plan projects revenue of ¥140,000 million (+5.6%), operating profit of ¥30,000 million (+8.6%), and net income of ¥33,000 million, incorporating profits from the Nihon Housing share sale.

• Basic earnings per share for the year is forecast at ¥215.90.

• Annual dividend for FY2025/3 is expected to be ¥42 (¥38 ordinary, ¥4 special).

• Medium-term plan targets revenue of ¥150 billion and profit before income taxes of ¥35.5 billion.