NEW ART HOLDINGS Co., Ltd., First Half Ordinary Profit Revised Downward to an Unexpected 24%Decrease

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Thu Nov 14, 2024 3:40 pm JST Earnings

7638 NEW ART HOLDINGS Co., Ltd. 【J-GAAP】

Earnings Report

NEW ART HOLDINGS Co., Ltd. <7638> [TSE-S] announced its financial results after the market closed on November 14th (15:40). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) decreased by 24.4% from the same period last year to 1.16 billion yen, resulting in a decrease in profits compared to the previous forecast of a 16.4% increase.

The progress rate against the 4.8 billion yen full-year plan was 24.4%, also falling below the five-year average of 45.5%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to surge by 2.7 times that of the same period last year, reaching 3.63 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit dropped to 667 million yen, a 31.9% decrease compared to the same period last year. The operating profit margin decreased from 18.8% in the same period last year to 14.3%.

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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	10,264	1,399	1,608	926	58.4	47.7	Nov 14, 2022	J-GAAP
Apr - Sep, 2023	9,948	1,454	1,547	723	47.1	53.1	Nov 13, 2023	J-GAAP
Apr - Sep, 2024	11,702	1,396	1,169	434	27.8	24.4	Nov 14, 2024	J-GAAP
YoY	+17.6%	-4.0%	-24.4%	-40.0%	-41.0%

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	11,000	1,800	1,800	900	55.8	－	May 13, 2024	J-GAAP
Apr - Sep, 2024 Results	11,702	1,396	1,169	434	27.8	0	Nov 14, 2024	J-GAAP
Revision Rate	+6.4%	-22.4%	-35.1%	-51.8%	-50.2%

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	11,151	1,410	1,368	362	23.6	100	May 13, 2024	J-GAAP
Oct - Mar, 2024 Guidance	15,298	3,404	3,631	2,366	147.2	－	Nov 14, 2024	J-GAAP
YoY	+37.2%	+141.4%	+165.4%	+553.6%	+524.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	21,463	3,304	3,371	1,727	110.6	100	May 15, 2023	J-GAAP
Mar, 2024	21,099	2,864	2,915	1,085	70.7	100	May 13, 2024	J-GAAP
Mar, 2025 Guidance	27,000	4,800	4,800	2,800	174.2	－	May 13, 2024	J-GAAP
YoY	+28.0%	+67.6%	+64.7%	+158.1%	+146.5%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	5,121	964	979	462	30.1	18.8	Nov 13, 2023	J-GAAP
Oct - Dec, 2023	5,290	718	613	169	11.0	13.6	Feb 13, 2024	J-GAAP
Jan - Mar, 2024	5,861	692	755	193	12.6	11.8	May 13, 2024	J-GAAP
Apr - Jun, 2024	5,144	461	502	199	13.0	9.0	Aug 13, 2024	J-GAAP
Jul - Sep, 2024	6,558	935	667	235	15.1	14.3	Nov 14, 2024	J-GAAP
YoY	+28.1%	-3.0%	-31.9%	-49.1%	-50.0%