Innovation Inc., First Half Net Income Decreases by 83%, July-September Net Income Decreases by 58%

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Mon Nov 11, 2024 3:30 pm JST Earnings

3970 Innovation Inc. 【J-GAAP】

Earnings Report

Innovation Inc. <3970> [TSE-G] announced its financial results after the market closed on November 11th (15:30). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) significantly dropped by 83.1% from the same period last year to 23 million yen. The progress rate against the 300 million yen full-year plan was 7.7%, also falling below the five-year average of 75.2%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated net income for the October to March period (second half) is expected to surge by 2.6 times that of the same period last year, reaching 277 million yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income significantly dropped to 35 million yen, a 58.3% decrease compared to the same period last year. The operating profit margin decreased from 13.0% in the same period last year to 11.2%.

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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	2,407	276	277	138	56.5	80.3	Nov 9, 2022	J-GAAP
Apr - Sep, 2023	2,110	231	234	136	53.6	57.9	Nov 9, 2023	J-GAAP
Apr - Sep, 2024	2,591	185	181	23	8.8	35.6	Nov 11, 2024	J-GAAP
YoY	+22.8%	-19.9%	-22.6%	-83.1%	-83.6%

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	2,591	185	181	23	8.8	0	Nov 11, 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	2,703	168	170	108	42.1	40	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	3,353	325	327	277	104.8	40	Nov 11, 2024	J-GAAP
YoY	+24.0%	+93.5%	+92.4%	+156.5%	+149.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	4,570	343	345	62	25.5	39	May 15, 2023	J-GAAP
Mar, 2024	4,813	399	404	244	95.1	40	May 10, 2024	J-GAAP
Mar, 2025 Guidance	5,944	510	508	300	113.5	40	May 10, 2024	J-GAAP
YoY	+23.5%	+27.8%	+25.7%	+23.0%	+19.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	1,100	143	144	84	33.1	13.0	Nov 9, 2023	J-GAAP
Oct - Dec, 2023	1,265	80	81	72	28.2	6.3	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	1,438	88	89	36	14.0	6.1	May 10, 2024	J-GAAP
Apr - Jun, 2024	1,215	31	31	-12	-4.8	2.6	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	1,376	154	150	35	13.3	11.2	Nov 11, 2024	J-GAAP
YoY	+25.1%	+7.7%	+4.2%	-58.3%	-59.7%