Encourage Technologies Co.,Ltd., First Half Ordinary Profit Decreases by 20%, July-September Ordinary Profit Decreases by 34%

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Fri Nov 8, 2024 12:00 pm JST Earnings

3682 Encourage Technologies Co.,Ltd. 【J-GAAP】

Earnings Report

Encourage Technologies Co.,Ltd. <3682> [TSE-S] announced its financial results at noon (12:00) on November 8th. The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending March 2025 (April to September) decreased by 20.2% from the same period last year to 103 million yen. The progress rate against the 350 million yen full-year plan was 29.4%, also falling below the five-year average of 41.6%.

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 October to March period (second half) is expected to grow by 28.6% from the same period last year, reaching 247 million yen.

In the most recent three-month period, from July to September (2Q), the ordinary profit dropped to 75 million yen, a 34.2% decrease compared to the same period last year. The operating profit margin significantly dropped from 17.8% in the same period last year to 11.6%.

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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
Apr - Sep, 2022	1,010	57	56	37	5.6	23.0	Nov 10, 2022	J-GAAP
Apr - Sep, 2023	1,184	128	129	88	13.3	40.2	Nov 10, 2023	J-GAAP
Apr - Sep, 2024	1,222	102	103	69	10.5	29.4	Nov 8, 2024	J-GAAP
YoY	+3.2%	-20.3%	-20.2%	-21.6%	-21.7%

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	ー	ー	ー	ー	－	0	May 10, 2024	J-GAAP
Apr - Sep, 2024 Results	1,222	102	103	69	10.5	0	Nov 8, 2024	J-GAAP
Revision Rate	－	－	－	－	－

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	1,314	190	192	130	19.6	20	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	1,528	248	247	171	25.7	20	Nov 8, 2024	J-GAAP
YoY	+16.3%	+30.5%	+28.6%	+31.5%	+31.0%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	2,120	243	244	174	26.2	20	May 11, 2023	J-GAAP
Mar, 2024	2,498	318	321	218	32.9	20	May 10, 2024	J-GAAP
Mar, 2025 Guidance	2,750	350	350	240	36.0	20	May 10, 2024	J-GAAP
YoY	+10.1%	+10.1%	+9.0%	+10.1%	+9.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	635	113	114	79	12.0	17.8	Nov 10, 2023	J-GAAP
Oct - Dec, 2023	597	64	64	42	6.4	10.7	Feb 14, 2024	J-GAAP
Jan - Mar, 2024	717	126	128	88	13.3	17.6	May 10, 2024	J-GAAP
Apr - Jun, 2024	567	26	28	18	2.7	4.6	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	655	76	75	51	7.7	11.6	Nov 8, 2024	J-GAAP
YoY	+3.1%	-32.7%	-34.2%	-35.4%	-35.6%