Fusion Co.,Ltd., First Half Ordinary Profit Revised Downward to an Unexpected 75%Decrease

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Fri Oct 11, 2024 3:30 pm JST Earnings

3977 Fusion Co.,Ltd. 【J-GAAP】

Earnings Report

Fusion Co.,Ltd. <3977> [SSE-A] announced its financial results after the market closed on October 11th (15:30). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending February 2025 (March to August) significantly dropped by 75.0% from the same period last year to 4 million yen, resulting in a decrease in profits compared to the previous forecast of a 100.0% increase.

The progress rate against the 50 million yen full-year plan was 8.0%, also falling below the five-year average of 48.5%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the ordinary profit for the September to February period (second half) is expected to expand by 35.3% from the same period last year, reaching 46 million yen.

In the most recent three-month period, from June to August (2Q), the ordinary loss expanded to a loss of 16 million yen (compared to a loss of 7 million yen in the same period last year). The operating profit/loss margin drastically worsened from -1.9% in the same period last year to -5.3%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Mar - Aug, 2022	699	41	42	36	25.7	75.0	Oct 14, 2022	J-GAAP
Mar - Aug, 2023	750	16	16	17	12.4	32.0	Oct 13, 2023	J-GAAP
Mar - Aug, 2024	730	7	4	3	2.7	8.0	Oct 11, 2024	J-GAAP
YoY	-2.7%	-56.3%	-75.0%	-82.4%	-78.1%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar - Aug, 2024 Guidance	813	32	32	27	18.7	0	Apr 12, 2024	J-GAAP
Mar - Aug, 2024 Results	730	7	4	3	2.7	0	Oct 11, 2024	J-GAAP
Revision Rate	-10.2%	-78.1%	-87.5%	-88.9%	-85.5%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2023	717	34	34	35	24.6	0	Apr 12, 2024	J-GAAP
Sep - Feb, 2024 Guidance	870	44	46	40	27.8	0	Oct 11, 2024	J-GAAP
YoY	+21.3%	+29.4%	+35.3%	+14.3%	+13.0%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb, 2023	1,455	54	56	44	30.8	0	Apr 14, 2023	J-GAAP
Feb, 2024	1,467	50	50	52	36.5	0	Apr 12, 2024	J-GAAP
Feb, 2025 Guidance	1,600	51	50	43	29.9	0	Apr 12, 2024	J-GAAP
YoY	+9.1%	+2.0%	0.0%	-17.3%	-18.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jun - Aug, 2023	359	-7	-7	-5	-3.7	-1.9	Oct 13, 2023	J-GAAP
Sep - Nov, 2023	371	25	25	22	15.6	6.7	Jan 12, 2024	J-GAAP
Dec - Feb, 2023	346	9	9	13	9.1	2.6	Apr 12, 2024	J-GAAP
Mar - May, 2024	427	23	20	19	13.9	5.4	Jul 12, 2024	J-GAAP
Jun - Aug, 2024	303	-16	-16	-16	-14.5	-5.3	Oct 11, 2024	J-GAAP
YoY	-15.6%	-128.6%	-128.6%	-220.0%	-297.5%