ZAOH COMPANY, LTD., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 22% Decrease

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Mon Nov 11, 2024 3:00 pm JST Earnings

9986 ZAOH COMPANY, LTD. 【J-GAAP】

Earnings Report

ZAOH COMPANY, LTD. <9986> [TSE-S] announced its financial results in the afternoon session on November 11th (15:00). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 49.9% from the same period last year to 241 million yen, resulting in a decrease in profits compared to the previous forecast of a 23.7% increase.

In addition, the full-year ordinary profit has downwardly by 26.8%, from the previous forecast of 1.32 billion yen to 966 million yen (compared to 1.23 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 21.7% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the ordinary profit for the October to March period (second half) is expected to decrease by 3.7% from the same period last year to 725 million yen.

In the most recent three-month period, from July to September (2Q), the ordinary profit significantly dropped to 149 million yen, a 55.1% decrease compared to the same period last year. The operating profit margin significantly dropped from 14.3% in the same period last year to 7.5%.

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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	4,375	606	631	499	87.1	44.9	Oct 31, 2022	J-GAAP
Apr - Sep, 2023	4,174	473	481	314	57.0	39.0	Nov 9, 2023	J-GAAP
Apr - Sep, 2024	3,644	245	241	153	28.3	24.9	Nov 11, 2024	J-GAAP
YoY	-12.7%	-48.2%	-49.9%	-51.3%	-50.4%

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	4,320	585	595	405	74.5	50	May 10, 2024	J-GAAP
Apr - Sep, 2024 Results	3,644	245	241	153	28.3	50	Nov 11, 2024	J-GAAP
Revision Rate	-15.6%	-58.1%	-59.5%	-62.2%	-62.1%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	9,600	1,300	1,320	900	165.6	100	May 10, 2024	J-GAAP
Mar, 2025 New	8,020	964	966	660	121.5	100	Nov 11, 2024	J-GAAP
Revision Rate	-16.5%	-25.8%	-26.8%	-26.7%	-26.7%

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	5,251	737	753	703	128.4	50	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	4,376	719	725	507	93.3	50	Nov 11, 2024	J-GAAP
YoY	-16.7%	-2.4%	-3.7%	-27.9%	-27.3%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	9,647	1,378	1,406	1,054	184.0	109	Apr 28, 2023	J-GAAP
Mar, 2024	9,425	1,210	1,234	1,017	185.7	100	May 10, 2024	J-GAAP
Mar, 2025 Guidance	8,020	964	966	660	121.5	100	Nov 11, 2024	J-GAAP
YoY	-14.9%	-20.3%	-21.7%	-35.1%	-34.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	2,280	326	332	217	39.4	14.3	Nov 9, 2023	J-GAAP
Oct - Dec, 2023	2,789	366	376	252	45.9	13.1	Feb 8, 2024	J-GAAP
Jan - Mar, 2024	2,462	371	377	451	82.4	15.1	May 10, 2024	J-GAAP
Apr - Jun, 2024	1,788	106	92	55	10.3	5.9	Aug 8, 2024	J-GAAP
Jul - Sep, 2024	1,856	139	149	98	18.1	7.5	Nov 11, 2024	J-GAAP
YoY	-18.6%	-57.4%	-55.1%	-54.8%	-54.0%