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Financial results presentation3836AVANT GROUP CORPORATIONInformation and Communications, Services and Others

Financial Results Briefing Materials for the Fiscal Year Ending June 2026

For the fiscal year ended June 2026, revenue and operating profit reached record highs, while net income declined. Revenue, operating profit and net income all fell short of the initial forecasts. In response to weak performance in the management accounting solutions business, the company will rebuild the business's management structure, business model and talent base.

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Financial results presentationFull fiscal year ending June 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥30,481 million+8.0%
Operating profit¥4,697 million+2.0%
Net income¥2,985 million-13.1%
Gross Profit Margin44.4 %
Operating profit margin15.4 %
Results for the three months of the current quarter
Net Sales
¥7,653 million+5.0%
Operating profit
¥624 million-36.1%
Operating profit margin
8.2 %
Year-on-year change (points)-5.3
Full-year earnings forecast
Fiscal year ending June 2027
Net Sales
¥32,800 million
Operating profit
¥5,000 million
Net income
¥3,450 million
Operating profit margin
15.2 %
Year-end dividend
¥34 per share
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales-8.5% (below forecast)
Operating profit-7.9% (below forecast)
Adjusted operating profit-3.2% (below forecast)
Net income-14.7% (below forecast)
Operating profit margin+0.1pt
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below the full-year forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher revenue from the consolidated financial reporting and DX promotion businesses
    DirectionIncreased
  • Lower outsourcing costs
    DirectionIncreased
  • Higher personnel costs associated with workforce growth
    DirectionDecreased
  • Office relocation expenses
    DirectionDecreased
  • Provision for Losses on Contracts¥238 million
    DirectionDecreased
New initiatives
  • Rebuilding the management structure, business model and talent base of the management accounting solutions business
  • Morikawa (森川) to become Representative Director and President of Avant
  • Moroi (諸井) to become Director, Executive Officer and COO of Avant
  • Transition to a business model built around customer issues and business design
  • Securing and allocating specialist talent in group management accounting
Key KPIsA metric the company considers important as a management benchmark.
  • ROE19.8 %-4.0%
  • Operating income per employee¥2.6 million-8.2%
  • Software gross profit¥2,957 million+4.7%
  • Stock revenue
  • DivaSystem sales results1,300 companies or more
Segment results
Net Sales
Consolidated financial reporting (DIVA)
¥9,648 million+16.2%
DX promotion (ZEAL)
¥11,022 million+6.8%
Management accounting solutions (Avant)
¥9,685 million+1.7%
Other
¥531 million+21.5%
Eliminations and adjustments
¥-405 million
Total
¥30,481 million+8.0%
Operating profit
Consolidated financial reporting (DIVA)
¥2,923 million+45.7%
DX promotion (ZEAL)
¥1,717 million+0.1%
Management accounting solutions (Avant)
¥1,129 million-36.3%
Other
¥104 million+4.7%
Eliminations and adjustments
¥-1,176 million
Total
¥4,697 million+2.0%
Medium-term management plan targets
Plan nameBE GLOBAL 2028
Target fiscal yearFiscal year ending June 2028
Net Sales
40,000～45,000
Operating profit
9,000～11,000
Net income
6,000～7,000
Operating profit margin
20.0～24.0
ROE
Average of 20% or more
DOE
8% or higher
Dividends
¥51 or higher
Comparison with actual resultsRevenue, operating profit and net income were all 1.4 times higher over the three years through the fiscal year ended June 2026
Financial targets
ROE
TargetAverage of 20% or more
Actual results19.8 %
DOE
Target8% or higher
Actual results7.5 %
Market Size / Share
Consolidated accounting software market
SaaS/PaaS55.6 %
Package44.7 %
Target fiscal yearFY2025
EPM market sizeApproximately 3.5 times larger over the seven years from 2023 to 2030, with a CAGR of 19.7%
Orders received and order backlog
Orders received
Total reportable segments
Fourth quarter9,096
Full year32,102
Order backlog
Total reportable segments¥11,118 million
Number of employees
1,883 People
Change during the periodUp 10.3% from the end of the fiscal year ended June 2025
Annual Dividend
Fiscal year ending June 2026
Annual Dividend¥32 per share
Forecast for the fiscal year ending June 2027
Year-end dividend¥34 per share
Payout ratio
DOE7.5 %
DOE forecast for the fiscal year ending June 20277.7 %
Acquisition of treasury shares
Acquisition amount¥3,231 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFull fiscal year ending June 2026
Net Sales¥30,481 million (YoY +8.0%)
Operating profit¥4,697 million (YoY +2.0%)
Net income¥2,985 million (YoY -13.1%)
Gross Profit Margin44.4 %
Operating profit margin15.4 %
Results for the three months of the current quarterNet Sales ¥7,653 million (YoY +5.0%) / Operating profit ¥624 million (YoY -36.1%) / Operating profit margin 8.2 %
Full-year earnings forecastFiscal year ending June 2027 Net Sales ¥32,800 million / Operating profit ¥5,000 million / Net income ¥3,450 million / Operating profit margin 15.2 % / Year-end dividend ¥34 per share
Progress against full-year forecastNet Sales -8.5% (below forecast) / Operating profit -7.9% (below forecast) / Adjusted operating profit -3.2% (below forecast) / Net income -14.7% (below forecast) / Operating profit margin +0.1pt
Self-assessment against the planBelow the full-year forecast
Segment resultsNet Sales Consolidated financial reporting (DIVA) ¥9,648 million (YoY +16.2%) / DX promotion (ZEAL) ¥11,022 million (YoY +6.8%) / Management accounting solutions (Avant) ¥9,685 million (YoY +1.7%) / Other ¥531 million (YoY +21.5%) / Eliminations and adjustments ¥-405 million / Total ¥30,481 million (YoY +8.0%) / Operating profit Consolidated financial reporting (DIVA) ¥2,923 million (YoY +45.7%) / DX promotion (ZEAL) ¥1,717 million (YoY +0.1%) / Management accounting solutions (Avant) ¥1,129 million (YoY -36.3%) / Other ¥104 million (YoY +4.7%) / Eliminations and adjustments ¥-1,176 million / Total ¥4,697 million (YoY +2.0%)
Breakdown of Factors Affecting the ChangeFactors Higher revenue from the consolidated financial reporting and DX promotion businesses / Direction Increased, Factors Lower outsourcing costs / Direction Increased, Factors Higher personnel costs associated with workforce growth / Direction Decreased, Factors Office relocation expenses / Direction Decreased, Provision for Losses on Contracts ¥238 million
Key KPIsROE 19.8 % (YoY -4.0%), Operating income per employee ¥2.6 million (YoY -8.2%), Software gross profit ¥2,957 million (YoY +4.7%), Stock revenue 非開示, DivaSystem sales results 1,300 companies or more
Number of employees1,883 People
Medium-term management plan targetsPlan name BE GLOBAL 2028 / Target fiscal year Fiscal year ending June 2028 / Net Sales 40,000～45,000 / Operating profit 9,000～11,000 / Net income 6,000～7,000 / Operating profit margin 20.0～24.0 / ROE Average of 20% or more / DOE 8% or higher / Dividends ¥51 or higher / Comparison with actual results Revenue, operating profit and net income were all 1.4 times higher over the three years through the fiscal year ended June 2026
Financial targetsROE Target Average of 20% or more / Actual results 19.8 % / DOE Target 8% or higher / Actual results 7.5 %
Annual DividendFiscal year ending June 2026 Annual Dividend ¥32 per share / Breakdown Not disclosed / Forecast for the fiscal year ending June 2027 Year-end dividend ¥34 per share
Payout ratioDOE 7.5 % / DOE forecast for the fiscal year ending June 2027 7.7 %
Acquisition of treasury sharesAcquisition amount ¥3,231 million / Period Not disclosed
Orders received and order backlogOrders received Total reportable segments Fourth quarter 9,096 / Full year 32,102 / Order backlog Total reportable segments ¥11,118 million
Market Size / ShareConsolidated accounting software market SaaS/PaaS 55.6 % / Package 44.7 % / Target fiscal year FY2025 / EPM market size Approximately 3.5 times larger over the seven years from 2023 to 2030, with a CAGR of 19.7%
New initiativesRebuilding the management structure, business model and talent base of the management accounting solutions business, Morikawa (森川) to become Representative Director and President of Avant, Moroi (諸井) to become Director, Executive Officer and COO of Avant, Transition to a business model built around customer issues and business design, Securing and allocating specialist talent in group management accounting
Items this document does not state (8)
Ordinary incomeSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresKey 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.

Higher revenue from the consolidated financial reporting business and lower outsourcing costs boosted operating profit, but higher personnel and recruitment costs associated with workforce growth, office relocation expenses, and a provision of approximately ¥238 million for losses on orders in the management accounting solutions business weighed on profit. Net income declined due to higher payment fees and other expenses, as well as the absence of the gain on the sale of shares recorded in the previous fiscal year.

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Financial Results Briefing Materials for the Fiscal Year Ending June 2026 | AVANT GROUP CORPORATION (3836) timely disclosure | Komori