CDS, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 37% Decrease

CDS Co.,Ltd. <2169> [TSE Std] announced its financial results after the market closed on August 8th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending December 2025 (January to June) dropped 31.6% from the same period last year to 0.46 billion yen, fell short of the previous forecast of 0.61 billion yen.

In addition, the full-year forecast for consolidated ordinary profit has decreased 38.3%, from the previous forecast of 1.52 billion yen to 0.94 billion yen (compared to 1.50 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 37.4% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the July to December period (second half) is expected to drop 42.2% from the same period last year to 0.47 billion yen.

In the most recent three-month period, from April to June (2Q), the consolidated ordinary profit dropped to 0.13 billion yen, a 38.5% decrease compared to the same period last year. The operating profit margin drastically worsened from 9.7% in the same period last year to 6.2%.

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