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ES NETWORKS CO.,LTD., The Current Fiscal Year Ordinary Profit Revised Downward by 8%, The Undetermined Dividend to Rise by 4 yen

Fri Nov 8, 2024 3:00 pm JST Earnings

5867 ES NETWORKS CO.,LTD. 【J-GAAP】

Earnings Report

ES NETWORKS CO.,LTD. <5867> [TSE-G] announced its financial results in the afternoon session on November 8th (15:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) decreased by 8.3% from the same period last year to 210 million yen.

In addition, the full-year consolidated ordinary profit has downwardly by 7.8%, from the previous forecast of 321 million yen to 296 million yen (compared to 251 million yen in the previous period), leading to a reduction in the profit growth rate from 27.9% to 17.9%. However, the full-year consolidated net income has been revised upward by 34.6%, from the previous forecast of 208 million yen to 280 million yen (compared to 136 million yen in the previous period), increasing the growth rate from 52.9% to 2.1 times, reaches new record high for the first time in six terms.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has downwardly by 18.1%, from the previous forecast of 138 million yen to 113 million yen (compared to 110 million yen in the same period of the previous year), leading to a reduction in the profit growth rate from 25.5% to 2.7%.

At the same time, the company has decided to implement a year-end lump-sum dividend of 45 yen for the current fiscal year, which was previously undecided (compared to 41 yen in the prior term).

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit significantly dropped to 27 million yen, a 69.3% decrease compared to the same period last year. The operating profit margin sharply declined from 11.7% in the same period last year to 4.9%.

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Actual Results

Accumulated Results 3rd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Sep, 2024 2,197 215 210 176 58.6 70.9 Nov 8, 2024 J-GAAP
YoY

Guidance Update

Second Half Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 Prev 1,358 153 138 82 27.3 Aug 9, 2024 J-GAAP
Jul - Dec, 2024 New 1,415 120 113 154 51.4 45 Nov 8, 2024 J-GAAP
Revision Rate +4.2% -21.6% -18.1% +87.8% +87.8%

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2024 Prev 2,883 335 321 208 69.4 Feb 9, 2024 J-GAAP
Dec, 2024 New 2,940 302 296 280 93.4 45 Nov 8, 2024 J-GAAP
Revision Rate +2.0% -9.9% -7.8% +34.6% +34.6%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2023 1,347 124 110 24 8.2 41 Feb 9, 2024 J-GAAP
Jul - Dec, 2024 Guidance 1,415 120 113 154 51.4 45 Nov 8, 2024 J-GAAP
YoY +5.0% -3.2% +2.7% +541.7% +527.0%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 2,711 269 251 136 46.4 41 Feb 9, 2024 J-GAAP
Dec, 2024 Guidance 2,940 302 296 280 93.4 45 Nov 8, 2024 J-GAAP
YoY +8.4% +12.3% +17.9% +105.9% +101.1%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Oct - Dec, 2023 665 44 22 -2 -0.7 6.6 Feb 9, 2024 J-GAAP
Jan - Mar, 2024 739 98 98 69 23.1 13.3 May 10, 2024 J-GAAP
Apr - Jun, 2024 786 84 85 57 19.1 10.7 Aug 9, 2024 J-GAAP
Jul - Sep, 2024 672 33 27 50 16.7 4.9 Nov 8, 2024 J-GAAP
YoY

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