SMS (2175) Q2 2025 earnings summary

Executive summary

• Achieved 21 consecutive years of sales and profit growth, with Q2 FY03/25 net sales up 16% year-over-year to ¥31.8 billion, but operating and net income declined due to increased hiring and advertising investments.

• Profit attributable to owners of parent decreased 12.1% year-over-year to ¥3,670 million.

• Comprehensive income increased to ¥6,799 million from ¥6,304 million in the prior year period, driven by foreign currency translation gains.

• Strategic focus on accelerating sales growth in the Career Segment from Q3, leveraging new hires and investments.

Financial highlights

• Q2 FY03/25 net sales: ¥31,842 million (+16% YoY); operating income: ¥3,574 million (−24% YoY); ordinary income: ¥4,926 million (−15% YoY); net income: ¥3,670 million (−12% YoY).

• Gross profit increased to ¥28,461 million from ¥24,508 million year-over-year.

• Career Segment sales: ¥20,657 million (+14% YoY); Elderly/Disability Care Operators (Kaipoke): ¥5,770 million (+24% YoY); Overseas: ¥3,879 million (+13% YoY).

• Operating profit margin declined as selling, general and administrative expenses rose to ¥24,886 million from ¥19,807 million.

• Earnings per share for the period were ¥42.84, down from ¥47.81 year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥65,665 million, up 21.7% year-over-year.

• Operating profit is projected at ¥9,096 million, up 10.0%, and profit attributable to owners of parent at ¥8,018 million, up 10.9%.

• Aims to achieve full-year FY03/25 guidance by increasing sales growth rate from Q3, especially in the Career Segment as job seeker motivation recovers.

• Full-year earnings per share forecast is ¥93.59.

• Expects continued growth in both sales and profits for the 21st consecutive year.