NEPON, The Current Fiscal Year Ordinary Profit Revised Downward by 20%

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Tue Feb 4, 2025 3:30 pm JST Earnings

7985 NEPON Inc. 【J-GAAP】

Earnings Report

NEPON Inc. <7985> [TSE Std] announced its financial results after the market closed on February 4th (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) significantly dropped 62.5% from the same period last year to 36 million yen.

In addition, the full-year consolidated ordinary profit has decreased 20.0%, from the previous forecast of 50 million yen to 40 million yen (compared to 82 million yen in the previous period), leading to an increase in the profit decline rate from 39.0% to 51.2%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the October to March period (2H) has decreased 3.9%, from the previous forecast of 255 million yen to 245 million yen (compared to 177 million yen in the same period of the previous year), leading to a reduction in the profit growth rate from 44.1% to 38.4%.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit grew 26.2% from the same period last year, reaching 241 million yen. The operating profit margin improved from 8.6% in the same period last year to 10.2%.

Kabutan News

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
Apr - Dec, 2022	5,752	217	222	138	145.0	56.1	Feb 3, 2023	J-GAAP
Apr - Dec, 2023	5,915	103	96	62	65.7	117.1	Feb 2, 2024	J-GAAP
Apr - Dec, 2024	5,473	8	36	10	10.8	90.0	Feb 4, 2025	J-GAAP
YoY	-7.5%	-92.2%	-62.5%	-83.9%	-83.5%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	4,746	298	255	177	184.9	10	Nov 6, 2024	J-GAAP
Oct - Mar, 2024 New	4,146	248	245	157	163.9	10	Feb 4, 2025	J-GAAP
Revision Rate	-12.6%	-16.8%	-3.9%	-11.3%	-11.3%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	7,900	70	50	30	31.3	10	May 10, 2024	J-GAAP
Mar, 2025 New	7,300	20	40	10	10.4	10	Feb 4, 2025	J-GAAP
Revision Rate	-7.6%	-71.4%	-20.0%	-66.7%	-66.7%

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	4,159	129	177	122	129.4	30	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	4,146	248	245	157	163.9	10	Feb 4, 2025	J-GAAP
YoY	-0.3%	+92.2%	+38.4%	+28.7%	+26.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	7,992	388	396	285	297.8	60	May 10, 2023	J-GAAP
Mar, 2024	7,774	34	82	64	67.9	30	May 10, 2024	J-GAAP
Mar, 2025 Guidance	7,300	20	40	10	10.4	10	Feb 4, 2025	J-GAAP
YoY	-6.1%	-41.2%	-51.2%	-84.4%	-84.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	2,300	198	191	120	127.2	8.6	Feb 2, 2024	J-GAAP
Jan - Mar, 2024	1,859	-69	-14	2	2.1	-3.7	May 10, 2024	J-GAAP
Apr - Jun, 2024	1,064	-262	-236	-161	-168.2	-24.6	Aug 6, 2024	J-GAAP
Jul - Sep, 2024	2,090	34	31	14	14.7	1.6	Nov 6, 2024	J-GAAP
Oct - Dec, 2024	2,319	236	241	157	169.9	10.2	Feb 4, 2025	J-GAAP
YoY	+0.8%	+19.2%	+26.2%	+30.8%	+33.6%