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Presentation materials for financial results2175SMS CO.,LTD.Information and Communications, Services and Others

Materials for the Briefing on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue, EBITDA, operating income and ordinary income exceeded the year-earlier levels, while net income declined. The Company also established a Corporate Value Enhancement Committee and put in place a framework to review its business portfolio and growth strategy, among other matters.

Worth reading
49Recurring
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
202
Hundreds of millions of yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥20,212 million+8.0%
Operating profit¥4,308 million+19.0%
Ordinary income¥5,432 million+14.0%
Net income¥3,728 million-5.0%
Selling, general and administrative expenses¥14,094 million
Results for the three months of the current quarter
Net Sales
¥20,212 million
EBITDA
¥5,190 million
Operating profit
¥4,308 million
Ordinary income
¥5,432 million
Net income for the current fiscal year
¥3,728 million
Full-year earnings forecast
EBITDAPlanned growth rate: -9%
Operating profitAt the previous-year level
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In line with the initial plan
New initiatives
  • Establishment of a corporate value enhancement committee
  • Establishment of 4 working groups covering the business portfolio, growth strategy, management structure, governance, IR and capital markets
  • Withdrawal from, and decisions to withdraw from, multiple businesses
  • Commencement of disclosure of segment EBITDA, operating income and key KPIs
  • Consideration of launching recruitment services for foreign workers in the Career business
  • Considering entry into the spot-work business
  • Planned reorganization of the corporate functions following the appointment of a CFO in August
Key KPIsA metric the company considers important as a management benchmark.
  • Average quarterly CP count1,650 people
    Year on year against the same period last year+6%
  • CP hires225 people
    Year on year against the same period last year+50 people
  • Productivity¥8.1 million
    Year on year against the same period last year+2%
  • Number of customer corporations at quarter-end27,600 organizations
    Year on year against the same period last year+8%
  • Number of customer offices at quarter-end62,300 Facility
    Year on year against the same period last year+9%
  • ARPA¥121 thousand
    Year on year against the same period last year+4%
  • ARR135 Hundreds of millions of yen
    Year on year against the same period last year+13%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of customer corporations at quarter-end27,600 organizations
    Year on year against the same period last year+8%
  • ARPA¥121 thousand
    Year on year against the same period last year+4%
  • Average quarterly CP count1,650 people
    Year on year against the same period last year+6%
  • Productivity¥8.1 million
    Year on year against the same period last year+2%
Segment results
Career
Net Sales
¥14,110 million
Revenue_yoy_pct8
EBITDA
¥5,310 million
EBITDA_yoy_pct10
Segment profit
¥5,012 million
Segment profit YoY %10
Care and Disability-Welfare Management Support
Net Sales
¥3,474 million
Revenue_yoy_pct9
EBITDA
¥1,401 million
EBITDA_yoy_pct6
Segment profit
¥1,026 million
Segment profit YoY %2
Overseas expansion
Net Sales
¥1,595 million
Revenue_yoy_pct4
EBITDA
¥-208 million
Segment profit
¥-320 million
Other
Net Sales
¥1,031 million
Revenue_yoy_pct16
EBITDA
¥-74 million
Segment profit
¥-116 million
Medium-term management plan targets
The medium-term management plan is scheduled to be disclosed by the announcement of financial results for the fiscal year ending March 2027 at the latest, around the end of April 2027. Specific targets: not disclosed
Financial targets
WACC, ROIC and other metrics are scheduled to be considered as business evaluation criteria, but numerical targets and actual results are not disclosed
Market Size / Share
  • DetailsOne of the top 3 companies in all 4 categories in a service quality survey for recruiting businesses
    Number of people placed in employment50,641 people
  • Approximately 270,000 facilities
    DetailsNumber of nursing care facilities in Japan
  • 163,000 facilities
    DetailsNumber of disability welfare service facilities
Number of employees
CP hires: 225 people, up 50 people year on year. Total employees: not disclosed
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥20,212 million (YoY +8.0%)
Operating profit¥4,308 million (YoY +19.0%)
Ordinary income¥5,432 million (YoY +14.0%)
Net income¥3,728 million (YoY -5.0%)
Selling, general and administrative expenses¥14,094 million
Results for the three months of the current quarterNet Sales ¥20,212 million / EBITDA ¥5,190 million / Operating profit ¥4,308 million / Ordinary income ¥5,432 million / Net income for the current fiscal year ¥3,728 million
Full-year earnings forecastEBITDA Planned growth rate: -9% / Operating profit At the previous-year level
Self-assessment against the planIn line with the initial plan
Segment resultsCareer Net Sales ¥14,110 million / Revenue_yoy_pct 8 / EBITDA ¥5,310 million / EBITDA_yoy_pct 10 / Segment profit ¥5,012 million / Segment profit YoY % 10 / Care and Disability-Welfare Management Support Net Sales ¥3,474 million / Revenue_yoy_pct 9 / EBITDA ¥1,401 million / EBITDA_yoy_pct 6 / Segment profit ¥1,026 million / Segment profit YoY % 2 / Overseas expansion Net Sales ¥1,595 million / Revenue_yoy_pct 4 / EBITDA ¥-208 million / Segment profit ¥-320 million / Other Net Sales ¥1,031 million / Revenue_yoy_pct 16 / EBITDA ¥-74 million / Segment profit ¥-116 million
Key KPIsAverage quarterly CP count 1,650 people, CP hires 225 people, Productivity ¥8.1 million, Number of customer corporations at quarter-end 27,600 organizations, Number of customer offices at quarter-end 62,300 Facility, ARPA ¥121 thousand, ARR 135 Hundreds of millions of yen
Unit price and quantity metricsNumber of customer corporations at quarter-end 27,600 organizations, ARPA ¥121 thousand, Average quarterly CP count 1,650 people, Productivity ¥8.1 million
Number of employeesCP hires: 225 people, up 50 people year on year. Total employees: not disclosed
Medium-term management plan targetsThe medium-term management plan is scheduled to be disclosed by the announcement of financial results for the fiscal year ending March 2027 at the latest, around the end of April 2027. Specific targets: not disclosed
Financial targetsWACC, ROIC and other metrics are scheduled to be considered as business evaluation criteria, but numerical targets and actual results are not disclosed
Market Size / ShareDetails One of the top 3 companies in all 4 categories in a service quality survey for recruiting businesses / Number of people placed in employment 50,641 people, Approximately 270,000 facilities, 163,000 facilities
New initiativesEstablishment of a corporate value enhancement committee, Establishment of 4 working groups covering the business portfolio, growth strategy, management structure, governance, IR and capital markets, Withdrawal from, and decisions to withdraw from, multiple businesses, Commencement of disclosure of segment EBITDA, operating income and key KPIs, Consideration of launching recruitment services for foreign workers in the Career business, Considering entry into the spot-work business, Planned reorganization of the corporate functions following the appointment of a CFO in August
Items this document does not state (13)
Gross Profit MarginOperating profit marginProgress against full-year forecastBreakdown of Factors Affecting the ChangeNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating income grew significantly because amortization expenses declined following the impairment loss recognized on intangible assets in the overseas business in the previous fiscal year. Net income declined mainly due to quarterly factors affecting tax expenses related to overseas subsidiaries. The Career business benefited from improved matching through the use of AI, the Nursing Care and Disability Welfare Management Support business benefited from an increase in members and greater use of paid options, and the overseas business benefited from improvements to its earnings structure.

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Materials for the Briefing on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | SMS CO.,LTD. (2175) timely disclosure | Komori