CHANGE Holdings, Inc., First Half Net Income Decreases by 33%, July-September Net Income Decreases by 70%

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Wed Nov 13, 2024 3:30 pm JST Earnings

3962 CHANGE Holdings, Inc. 【IFRS】

Earnings Report

CHANGE Holdings, Inc. <3962> [TSE-P] announced its financial results (based on IFRS) after the market closed on November 13th (15:30). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 32.8% from the same period last year to 2.1 billion yen. The progress rate against the 8.06 billion yen full-year plan was 26.1%, also falling below the same period of the previous year of 72.4%.

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 5.0 times that of the same period last year, reaching 5.96 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income significantly dropped to 672 million yen, a 70.5% decrease compared to the same period last year. The operating profit margin sharply declined from 37.9% in the same period last year to 16.7%.

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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	5,937	118	103	163	2.3	1.8	Nov 11, 2022	IFRS
Apr - Sep, 2023	14,657	4,329	4,377	3,131	43.3	58.9	Nov 14, 2023	IFRS
Apr - Sep, 2024	16,512	3,848	3,489	2,104	29.8	27.2	Nov 13, 2024	IFRS
YoY	+12.7%	-11.1%	-20.3%	-32.8%	-31.1%

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	16,500	2,000	1,905	963	13.8	0	May 15, 2024	IFRS
Apr - Sep, 2024 Results	16,512	3,848	3,489	2,104	29.8	0	Nov 13, 2024	IFRS
Revision Rate	+0.1%	+92.4%	+83.1%	+118.5%	+115.5%

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	22,358	3,233	3,052	1,194	16.5	18.70	May 15, 2024	IFRS
Oct - Mar, 2024 Guidance	28,488	9,152	9,326	5,965	85.7	14.50	Nov 13, 2024	IFRS
YoY	+27.4%	+183.1%	+205.6%	+399.6%	+419.6%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	20,021	5,730	5,653	3,856	53.3	10	May 15, 2023	IFRS
Mar, 2024	37,015	7,562	7,429	4,325	59.8	18.70	May 15, 2024	IFRS
Mar, 2025 Guidance	45,000	13,000	12,815	8,069	116.0	14.50	May 15, 2024	IFRS
YoY	+21.6%	+71.9%	+72.5%	+86.6%	+94.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	9,539	3,612	3,241	2,276	31.5	37.9	Nov 14, 2023	IFRS
Oct - Dec, 2023	14,141	5,960	5,906	3,851	53.2	42.1	Feb 14, 2024	IFRS
Jan - Mar, 2024	8,217	-2,727	-2,854	-2,657	-36.7	-33.2	May 15, 2024	IFRS
Apr - Jun, 2024	8,139	2,453	2,285	1,432	20.0	30.1	Aug 14, 2024	IFRS
Jul - Sep, 2024	8,373	1,395	1,204	672	9.5	16.7	Nov 13, 2024	IFRS
YoY	-12.2%	-61.4%	-62.9%	-70.5%	-69.7%