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ARE Holdings, Inc., First Half Net Income Increases by 26%, July-September Net Income Increases by 19%

Wed Oct 30, 2024 3:30 pm JST Earnings

5857 ARE Holdings, Inc. 【IFRS】

Earnings Report

ARE Holdings, Inc. <5857> [TSE-P] announced its financial results (based on IFRS) after the market closed on October 30th (15:30). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) increased by 25.6% from the same period last year, reaching 6.6 billion yen. The progress rate against the 13.1 billion yen full-year plan was 50.2%, also surpassing the five-year average of 43.5%.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated net income for the October to March period (second half) is expected to significant drop by 66.0% from the same period last year to 6.54 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income grew by 19.0% from the same period last year, reaching 3.4 billion yen. However, the operating profit margin worsened from 4.0% in the same period last year to 3.2%.

Kabutan News

Actual Performance and Financial Trends

Accumulated Results 2nd Quarter
Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Progress Rate
vs. First Half
Announce Accounting
Standards
Apr - Sep, 2022
132,653M 11,493M 10,241M 7,293M 93.3 81.0 Oct 27, 2022 IFRS
Apr - Sep, 2023
144,226M 5,700M 5,898M 5,259M 68.6 47.5 Oct 26, 2023 IFRS
Apr - Sep, 2024
240,357M 8,317M 8,392M 6,604M 86.4 47.7 Oct 30, 2024 IFRS
YoY +66.7% +45.9% +42.3% +25.6% +25.9%
First Half Results vs. Previous Guidance
Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Adj.
Dividend
Announce Accounting
Standards
Apr - Sep, 2024 Guidance 180,000M 8,500M 8,300M 6,304M 82.8 40 Apr 25, 2024 IFRS
Apr - Sep, 2024 Results 240,357M 8,317M 8,392M 6,604M 86.4 40 Oct 30, 2024 IFRS
Revision Rate +33.5% -2.2% +1.1% +4.8% +4.4%

Guidance Update

Full Year Update
Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Adj.
Dividend
Announce Accounting
Standards
Mar, 2025 Prev 370,000M 18,000M 17,600M 13,148M 171.6 80 Apr 25, 2024 IFRS
Mar, 2025 New 480,000M 18,000M 17,600M 13,148M 171.6 80 Oct 30, 2024 IFRS
Revision Rate +29.7% 0.0% 0.0% 0.0% 0.0%

Current Period Guidance

Second Half Results
Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Adj.
Dividend
Announce Accounting
Standards
Oct - Mar, 2023
178,027M 6,667M 6,528M 19,231M 250.9 45 Apr 25, 2024 IFRS
Guidance
Oct - Mar, 2024
239,643M 9,683M 9,208M 6,544M 85.4 40 Oct 30, 2024 IFRS
YoY +34.6% +45.2% +41.1% -66.0% -66.0%
Current Period Guidance
Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Adj.
Dividend
Announce Accounting
Standards
Mar, 2023
274,209M 16,282M 12,649M 10,929M 141.2 90 Apr 27, 2023 IFRS
Mar, 2024
322,253M 12,367M 12,426M 24,490M 319.5 90 Apr 25, 2024 IFRS
Guidance
Mar, 2025
480,000M 18,000M 17,600M 13,148M 171.6 80 Oct 30, 2024 IFRS
YoY +49.0% +45.5% +41.6% -46.3% -46.3%

Quarterly Results

Fiscal Year Revenue Operating
Profit
Ordinary
Profit
Net
Profit
Adj.
EPS
Operating
Profit Margin
Announce Accounting
Standards
Jul - Sep, 2023
81,644M 3,239M 3,355M 2,863M 37.4 4.0 Oct 26, 2023 IFRS
Oct - Dec, 2023
79,081M 2,212M 2,052M 1,838M 24.0 2.8 Jan 31, 2024 IFRS
Jan - Mar, 2024
98,946M 4,455M 4,476M 17,393M 226.9 4.5 Apr 25, 2024 IFRS
Apr - Jun, 2024
92,300M 3,617M 3,796M 3,197M 41.8 3.9 Jul 31, 2024 IFRS
Jul - Sep, 2024
148,057M 4,700M 4,596M 3,407M 44.6 3.2 Oct 30, 2024 IFRS
YoY +81.3% +45.1% +37.0% +19.0% +19.3%